Purpose

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.

Background

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.

Provisions

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 40 years and may include an option to renew for an additional maximum term of 40 years.

6. Allows ADOT to transfer contracts, permits, rights, licenses, cash, revenues and property related to the airport to the lessee.

7. Transfers completed or pending contracts, orders, judicial actions, personnel, property, records and data of the GCAA to ADOT.

8. Repeals the terms of members of the GCAA board of directors.

9. 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.

10. Contains a legislative intent.

11. Makes technical and conforming changes.

12. Provides for a general effective date.

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