ARIZONA STATE SENATE
Phoenix, Arizona
FINAL
REVISED
airport; Grand Canyon
national park
Eliminates the Grand Canyon
Airport Authority, returning operation of the Grand Canyon National Park
Airport to the Arizona Department of Transportation. Requires the Arizona Department of Transportation to lease the
Grand Canyon National Park Airport to a nonprofit corporation.
The Grand Canyon National
Park Airport Commission was appointed by Governor Symington in June 1995 to
review the state’s options with respect to ownership and operation of the Grand
Canyon National Park Airport (GCNPA).
The Commission’s final report was issued in July 1996 and recommended
the creation of an independent airport authority to own and operate the
facility.
Laws 1999, Chapter 213
created the Grand Canyon Airport Authority (GCAA) and appropriated $1 million
for operation and expenses from the aviation fund for the Grand Canyon National
Park Airport. The Arizona Department of
Transportation (ADOT) has received preliminary legal opinions that the new
authority should be considered to be a semiautonomous state entity, instead of
an independent municipal corporation.
As a result, ADOT believes that the authority is still required to use
the state’s accounting system, personnel system and administrative rule making
process. In addition, the uncertainty
of GCAA’s legal status may jeopardize the authority’s ability to issue bonds.
S.B. 1335 repeals the GCAA
and returns the Grand Canyon National Park Airport to ADOT. ADOT is then required to lease the airport.
There is no estimated fiscal
impact to the general fund associated with this legislation.
1. Repeals the GCAA and the GCAA’s board of directors, operating budget and financing authority.
2. Transfers the GCNPA and the authority of the GCAA to ADOT.
3. Requires the ADOT Director to operate and maintain the GCNPA until the airport is leased.
4. Requires ADOT to lease all land, buildings, facilities and other property of the GCNPA to a nonprofit corporation selected by the ADOT Director without regard to any bidding, notice or other requirements by March 1, 2001.
5. Specifies that the lease may be for a maximum term of 20 years and may include an option to renew for an additional maximum term of 20 years.
6. Requires ADOT to submit the lease for review to the Joint Legislative Budget Committee (JLBC) not less than 30 days before leasing the airport. Prohibits ADOT from executing the lease until JLBC reviews and reports to the Legislature summarizing the terms of the lease.
7. Requires JLBC to submit the report within 30 days after receipt of the lease from ADOT.
8. Allows ADOT to transfer contracts, permits, rights, licenses, cash, revenues and property related to the airport to the lessee with the exception of the real property and the improvements on the real property.
9. Transfers completed or pending contracts, orders, judicial actions, personnel, property, records and data of the GCAA to ADOT.
10. Repeals the terms of members of the GCAA board of directors.
11. Requires ADOT to maintain cash and revenues received from the Grand Canyon Airport Authority in a Grand Canyon National Park Airport account within the state aviation fund.
12. Allows ADOT to spend any airport revenues, including revenues returned by the lessee, for operation of the airport until the airport is leased to another nonprofit corporation or until the end of the biennial budget cycle if the lease is terminated.
13. Reverts any remaining unexpended and unencumbered amount from the nonprofit corporation to the state aviation fund on July 1, 2001.
14. Contains a legislative intent.
15. Makes technical and conforming changes.
16. Provides for a general effective date.
Amendments Adopted by Committee
1. Removes the reappropriation of operating expenses and capital improvements.
2. Requires monies received by ADOT from the Grand Canyon Airport Authority to be maintained in a separate account within the aviation fund.
Amendments Adopted by Committee of the Whole
1. Requires JLBC to review the lease before ADOT is allowed to lease the airport.
2. Allows ADOT to spend any airport revenues if the lease is terminated.
3. Reverts any remaining amount from the nonprofit corporation to the state aviation fund.
Senate Action House Action
TRANS 1/27/00 DP 5-0-2 TRANS 3/7/00 DP 8-0-0-1
APPROP 2/9/00 DPA 11-1-2 3rd Read 3/20/00 58-0-2
Signed by the Governor 4/3/00
Chapter 99
Prepared by Senate Staff
April 6, 2000