House of Representatives

SB 1335

airport; Grand Canyon national park

Sponsors: Senator Bee

DPA	Committee on Transportation
DPA	Caucus and COW	This bill as introduced reallocates a 1999 Appropriation.
X	As Passed the House

SB 1335 eliminates the Grand Canyon Airport Authority and returns the operation of the Grand Canyon National Park Airport (GCNPA) to the Arizona Department of Transportation (ADOT) until the director of ADOT leases the GCNPA to a nonprofit corporation.

History

In 1995, the Governor appointed the Grand Canyon National Park Airport Commission to make a recommendation regarding ownership and management of the airport. The Commission recommended that an independent airport authority be created to operate and manage the airport. Laws 1999, Chapter 213 established the Grand Canyon Airport Authority (GCAA), and required the GCAA’s board of directors to submit annual reports on the GCAA’s activities and a written certified audit. The GCAA is funded by airport user fees and charges.

In addition to these appropriations, the GCAA received appropriations from the state aviation fund in FY 2000-01 and FY 2001-02. The GCAA received one million dollars in FY 2000-01 and $500,000 in FY 2001-02. These funds were appropriated as start-up monies to maintain and operate the airport.

Provisions

· Repeals the GCAA and the GCAA board of directors.

· Transfers the GCNPA and the authority of the GCAA to ADOT.

· Requires ADOT to lease the GCNPA to a nonprofit corporation selected by the director of ADOT by March 1, 2001 without regard to any bidding, notice or requirements.

· Permits ADOT to lease out the GCNPA for a term of not more than 40 years.

· Reallocates all unexpended and unencumbered monies appropriated to the GCAA in FY 2000-01 back to the state aviation fund.

· Transfers all contracts, orders, judicial actions, personnel, property, rights, permits, licenses, cash, revenue, records and data relating to the GCAA to ADOT.

· Allows ADOT to transfer all matters regarding the GCNPA to the lessee.

· Makes technical and conforming changes.

SB 1335 was amended in the Transportation Committee as follows:

· Permits ADOT to lease the GCNPA for an initial term of not more than 5 years.

· Allows ADOT, if the lease between ADOT and a nonprofit corporation is terminated, to spend any airport revenues returned by the lessee and any revenues received after the termination of the lease to operate the airport until ADOT leases the GCNPA out to another nonprofit corporation or for the remainder of the current biennial budget cycle, whichever occurs first.

· Prohibits ADOT from transferring ownership of real property or any improvements to real property to the lessee.

· Requires any amounts appropriated to ADOT for transfer to the lessee that have not been transferred and remain unexpended and unencumbered by July 1, 2001 to revert to the state aviation fund.

SB 1335 was amended in Committee of the Whole as follows:

· Permits ADOT to lease the GCNPA for an initial term of not more than 20 years.

· Requires ADOT to submit the terms of the lease to the Joint Legislative Budget Committee (JLBC) for review.

· Prohibits ADOT from executing the lease before JLBC reviews the lease and submits a report to the Speaker of the House and the President of the Senate.

· Allows ADOT, if the lease between ADOT and a nonprofit corporation is terminated, to spend any airport revenues returned by the lessee and any revenues received after the termination of the lease to operate the airport until ADOT leases the GCNPA out to another nonprofit corporation or for the remainder of the current biennial budget cycle, whichever occurs first.

· Prohibits ADOT from transferring ownership of real property or any improvements to real property to the lessee.

· Requires any amounts appropriated to ADOT for transfer to the lessee that have not been transferred and remain unexpended and unencumbered by July 1, 2001 to revert to the state aviation fund.

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· 44th Legislature Analyst Initials _______

· Second Regular Session March 22, 2000

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