SENATE BILL REPORT

SHB 130

BYHouse Committee on Transportation (originally sponsored by Representatives Vekich, Fisch and Zellinsky)

Authorizing procedures for collection of airport use fees.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 26, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Peterson, Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, Conner, DeJarnatt, Garrett, Halsan, Nelson, Patterson, Sellar, Smitherman, West.

Senate Staff:Louise Bray (786-7322)

                  March 27, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 26, 1987

BACKGROUND:

Under existing law the remedies of an airport owner or operator to collect delinquent airport charges, or force the removal of aircraft which are the subject of delinquent airport charges, are governed by provisions of the rental contract or the general law concerning abandoned property.

SUMMARY:

Procedures by which an airport operator may enforce collection of fees are created.

Airport operators are authorized to adopt regulations allowing authorized airport employees to secure an aircraft within the airport facility for failure to pay airport charges.  These procedures may be used if the charges are at least sixty days delinquent.  At the time the aircraft is secured, two notices must be attached to the aircraft and a copy of the notice must be sent to the aircraft owner (defined as the legal owner, registered owner and any lienholders of record with the FAA) by both registered mail, return receipt requested and first class mail.  The notice shall contain the following information:  the date and time the notice was attached to the aircraft; a reasonable description of the aircraft; the identity of the authorized employee; the amount owing; a statement that if the account is not paid in full within one hundred eighty days, the plane may be sold at public auction; the time and place of such sale, and a statement of the owner's right to commence legal proceedings and how to have the aircraft released pending resolution of the matter.

If the account is not paid within one hundred eighty days, the aircraft is conclusively presumed to be abandoned and may be sold at public auction.  At least 20 days prior to the sale, a notice must be mailed to the owner by both registered mail, return receipt requested and first class mail, giving details of the sale.  In addition, notice of sale must be published in a newspaper of general circulation in the county in which the airport is located.  The proceeds of any such sale are first applied to the airport charges owed.  The balance, if any, is paid to the Department of Revenue to be held in trust for the owner.  If no valid claim is made for the excess within one year of the date of sale, the balance is to be deposited in the Search and Rescue Account.  If there is more than one owner, or if there are lienholders on the title and a claim for the funds is made, the Department is required to deposit the funds into a court of competent jurisdiction.

The regulations must be adopted pursuant to the Administrative Procedure Act if the airport is operated or owned by a state agency, or by resolution of the proper legislative authority if the airport is owned or operated by a unit of local government.  In addition, the regulations must be included in any written contract and must be posted at the airport manager's office.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Language is added delineating the circumstances under which an airport joint operating authority may act as its own treasury.

Fiscal Note:      none requested

Senate Committee - Testified: No one