SENATE BILL REPORT

SB 5328

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 2, 2018

Title: An act relating to creating a community aviation revitalization board.

Brief Description: Creating a community aviation revitalization board.

Sponsors: Senators Honeyford, Hobbs, Bailey, Becker, Miloscia, Angel, Brown, Sheldon, Rivers, Warnick and Rossi.

Brief History:

Committee Activity: Ways & Means: 2/09/17.

Brief Summary of Bill

  • Creates a Community Aviation Revitalization Board (Board) to provide loans to certain airports available for public use to support general aviation activities.

  • Requires the Department of Commerce to support the Board.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Daniel Masterson (786-7454)

Background: There are currently 137 airports available for public use in Washington. These airports are eligible for state funding to preserve and improve their facilities through the Department of Transportation's Airport Aid Grant program. The maximum award under the program is $250,000. The program is funded from the Aeronautics Account, which receives revenue from aircraft registration and excise fees and aircraft fuel excise tax. In fiscal year 2016, the Airport Aid Grant program awarded $1.74 million to 43 airports.

Summary of Bill: The Community Aviation Revitalization Board (Board) is created to make direct loans to certain airports for improvements that primarily support general aviation activities. Eligible airports must be available for public use and have less than 50,000 annual commercial air service passenger enplanements as published by the Federal Aviation Administration.

The Board consists of the following members:

Airports must apply to the Board for consideration. An application must:

The Board must use, but is not limited to, the following criteria when evaluating loan applications:

The Board must develop rules to implement the program and determine the interest rate, terms and conditions of loans, and any local match. However, repayment must begin within three years after a loan is awarded and loans cannot exceed 20 years in duration. The Board must prioritize applications that provide conclusive justification that completion of the loan application project will create revenue-generating opportunities.

Commerce is required to staff the Board and to manage its fiscal and contract services. The Board must meet three times a year or as deemed necessary by Commerce.

A revolving fund is created for the program in the custody of the State Treasurer.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: Yes.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: In order to become profitable, many smaller airports need to invest in infrastructure that attracts new business. Existing funding sources are restricted only to aviation related projects. There is a gap between project needs and available funding of $8.4 million per year. Colorado runs a comparable airport loan program that has had no defaults since it was established 20 years ago.

Persons Testifying: PRO: John Dobson, Washington Pilots Association; Warren Hendrickson, Aircraft Owners and Pilots Association.

Persons Signed In To Testify But Not Testifying: No one.