HLS 10RS-2818 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 1413
BY REPRESENTATIVE MICHAEL JACKSON
TRANSPORTATION DEPT: Provides with respect to the Airport Construction or
Development Program and creates the Air Service Fund and the Construction
Acceleration Fund
AN ACT1
To amend and reenact R.S. 2:801(3) and 802(A)(1)(introductory paragraph) and to enact2
R.S. 2:802.1 and 802.2, relative to the Airport Construction and Development3
Priority Program; to provide for definitions; to provide for an exception for4
information submitted in the application process for the Air Service Fund; to create5
the Air Service Fund and the Construction Acceleration Fund within the6
Transportation Trust Fund; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 2:801(3) and 802(A)(1)(introductory paragraph) are hereby amended9
and reenacted and R.S. 2:802.1 and 802.2 are hereby enacted to read as follows:10
§801. Definitions11
As used in this Chapter, unless the context clearly indicates otherwise, the12
following definitions shall apply:13
* * *14
(3) "Construction or development project" means a program of construction15
or development, either new or continuing, that will be planned and implemented with16
the primary goal of improving aviation activities in the state. "Development project"17
shall also mean a program of business development, either continuing or new, that18 HLS 10RS-2818 ORIGINAL
HB NO. 1413
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will be planned and implemented with the primary goal of improving air service at1
commercial carrier airports.2
* * *3
§802. Methodology for airport project evaluation4
A.(1) Applications for funding of any airport construction or development5
project may be submitted by any airport authority, except as provided in R.S. 2:806,6
and equal consideration shall be given to rural aviation and commercial urban7
aviation. Applications shall be made to the Department of Transportation and8
Development by November first of each year, beginning in 1989, for consideration9
of funding in the following fiscal year, except for the projects already on the priority10
list for 1989-90, which will be funded in the current year. Applications submitted11
in accordance with the provisions of this Chapter shall not be subject to the12
provisions of R.S. 39:61 and 62.* Except as provided in R. S. 802.1, information13
Information to be provided in the application shall include but not be limited to the14
following:15
* * *16
§802.1. Air Service Fund17
A. There is hereby created in the state treasury a special fund to be known18
as the "Air Service Fund", hereinafter referred to as "the fund", within the19
Transportation Trust Fund. Beginning in Fiscal Year 2010-2011 and each year20
thereafter, the state treasurer shall credit to the fund nine million dollars derived from21
state taxes collected and received from aviation fuel and deposited in the22
Transportation Trust Fund. The monies in the fund shall be used solely for the23
purposes provided in Subsection B of this Section and only in amounts appropriated24
by the legislature. Unexpended and unencumbered monies in the fund at the end of25
each fiscal year shall remain in the fund. The unexpended and unencumbered26
balance in the fund shall not exceed thirty million dollars and the state treasurer shall27
cease deposits into the fund until such balance is below thirty million dollars.28 HLS 10RS-2818 ORIGINAL
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B. Monies in the funds shall be used and expended solely for a program that1
enhances or increases air service at commercial carrier airports through the award2
of monies for specific projects. No project shall exceed three million dollars in any3
given fiscal year. For projects for Fiscal Year 2010-2011, applications shall be made4
to the department by November first of each year. The department, in consultation5
with the Department of Economic Development shall promulgate and adopt rules6
and regulations for the implementation of the program. Notwithstanding any7
provision of law to the contrary, the promulgation and adoption of any rules and8
regulations shall be in accordance with the Administrative Procedures Act for Fiscal9
Year 2010-2011 are considered to be an emergency rule. The program shall be10
subject to the provisions of R.S. 2:803 except that projects for Fiscal Year 2010-201111
shall be followed to the extent practicable but shall be subject to oversight and12
approved by the joint transportation, highways and public works committee.13
§802.2. Construction Acceleration Fund14
A. There is hereby created in the state treasury a special fund known as the15
"Construction Acceleration Fund", hereinafter referred to as "the fund", within the16
Transportation Trust Fund. For Fiscal year 2010-2011 and each fiscal year17
thereafter, the state treasurer shall credit to the fund three million two hundred18
thousand dollars derived from state taxes collected and received from aviation fuel19
and deposited in the Transportation Trust Fund. The monies in the fund shall be20
used solely as provided in Subsection B of this Section and, except as provided in21
Subsection C of this Section, only in amounts appropriated by the legislature.22
Unexpended and unencumbered monies in this fund at the end of each fiscal year23
shall remain in the fund.24
B. Monies in the fund shall be used and expended solely for a program that25
accelerates construction of projects within the aviation priority program.26
Notwithstanding any provision of law or rule to the contrary, no project for a27
commercial service airport shall not exceed six million dollars. A project for a28
general aviation airport shall not exceed one million dollars in any given fiscal year29 HLS 10RS-2818 ORIGINAL
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and for projects funded in accordance with this Section there shall not be a specific1
limitation per commercial service or general aviation airports.2
C. The State Bond Commission or its successor may issue and sell bonds,3
notes or other obligations secured by a pledge of the revenues deposited in the4
Transportation Trust Fund which after the Bond Security and Redemption Fund5
have been satisfied in the manner provided in Article VII, Section 27(D) of the6
Constitution of Louisiana, and if so pledged any portion thereof needed to pay7
principal, interest, or premium, if any, and other obligations incident to the issuance,8
security, and payment may be expended by the state treasurer. Any bonds issued9
in accordance with this Subsection shall be sold in two series with one series10
beginning in Fiscal Year 2010-2011 and another series ending in Fiscal Year 2011-11
2012. Thereafter, except for refunding bonds at a lower rate, shall not be issued in12
accordance with this Section. At such time, all bonds, including refunding bonds,13
issued in accordance with this Section are paid in full with both principal and14
interest, the fund shall be abolished and the authority contained herein shall be15
become null, void, and have no effect.16
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Michael Jackson HB No.
Abstract: 1413Adds to the definition of "development project". Provides for an exception
for information submitted in the Airport Construction and Development Priority
Program process for the Air Service Fund. Creates the Air Service Fund and the
Construction Acceleration Fund within the Transportation Trust Fund.
Present law provides for definitions.
Proposed law defines "development project" shall also mean a program of business
development, either continuing or new, that will be planned and implemented with the
primary goal of improving air service at commercial carrier airports.
Present law authorizes any airport authority to submit applications by Nov. 1st each year to
DOTD for funding of any airport construction or development project and equal
consideration shall be given to rural aviation and commercial urban aviation. Applications
shall include but not be limited to the information required under present law. HLS 10RS-2818 ORIGINAL
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Proposed law creates the Air Service Fund in the state treasury. Beginning in FY 2010-
2011 and each year thereafter, requires the state treasurer to credit to the fund $9,000,000
derived from state taxes collected and received from aviation fuel and these monies shall be
deposited in the Transportation Trust Fund.
Proposed law requires the monies in the fund to used solely for a program that enhances or
increases air service at commercial carrier airports through the award of monies for specific
projects through legislative appropriations. Requires monies unexpended and unencumbered
in the fund at the end of each fiscal year to remain in the fund. Such funds shall not exceed
$30,000,000 and the state treasurer shall cease deposits into the fund until such balance is
below $30,000,000.
Proposed law provides that no project shall exceed $30,000,000 in any given fiscal year.
Proposed law requires project applications for FY 2010-2011 shall be submitted to the
department by Nov. 1st of each year.
Proposed law requires the dept. in consultation with the Dept. of Economic Development
to promulgate and adopt rules and regulations for the implementation of the program.
Provides the promulgation and adoption of any rules and regulations shall be in accordance
with the APA for FY 2010-2011 are considered to be an emergency rule.
Proposed law provides that the program shall be subject to the provisions under proposed
law except that projects for FY 2010-2011 shall be followed to the extent practicable but
shall be subject to oversight and approval by the joint transportation, highways and public
works committee.
Proposed law creates the a special fund "Construction Acceleration Fund" in the state
treasury within the Transportation Trust Fund. Beginning FY-2010-2011 and each fiscal
year thereafter, requires the state treasurer to credit to the fund $30,000,200 derived from
state taxes collected and received from aviation fuel and deposited in the Transportation
Trust Fund. Monies in the fund shall be used solely for a program that accelerates
construction of projects within the aviation priority program. Requires that unexpended and
unencumbered monies in the fund at the end of each fiscal year shall remain in the fund.
Proposed law provides that no project for commercial service airport shall not exceed
$6,000,000. Further provides that a project for general aviation airport shall not exceed $1
million dollars in any given fiscal year and for projects funded in proposed law there shall
be a specific limitation per commercial service or general aviation airports.
Proposed law authorizes the State Bond Commission or its successor to issue and sell bonds,
notes, or other obligations secured by a pledge of the revenues deposited in the
Transportation Trust Fund which after the Bond Security and Redemption Fund have been
satisfied in the manner provided in Article VII, Section 27(D) of the Constitution of
Louisiana, and if so pledged any portion needed to pay principal, interest, or premium, if
any, and other obligations incident to the issuance, security, and payment may be expended
by the state treasurer. Requires any bonds issued as provided by law to be issued in two
series beginning in FY 2010-2011 and ending in FY 2011-2012. Provides that except for
refunding bonds at a lower rate, shall not be issued.
Proposed law requires the fund to be abolished and the authority as provided under proposed
law shall be become null, void, and have no effect when all bonds, including refunding
bonds are paid in full with both principal and interest.
(Amends R.S. 2:801(3) and 802(A)(1)(intro. para.); Adds R.S. 2:802.1 and 802.2)