HLS 24RS-550 ENGROSSED 2024 Regular Session HOUSE BILL NO. 281 BY REPRESENTATIVE CREWS AIRCRAFT/AIRPORTS: Removes the ten year lease provision and the associated exceptions for airport facilities 1 AN ACT 2To amend and reenact R.S. 2:135.1(B), relative to airport facility leases; to repeal provisions 3 for consideration to be paid monthly or annually; to repeal the provision for leases 4 not to exceed ten years along with the associated exceptions; and to provide for 5 related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 2:135.1(B) is hereby amended and reenacted to read as follows: 8 ยง135.1. Authority to equip, improve, establish fees and charges, and lease airport 9 facilities 10 * * * 11 B.(1)(a) The public bid requirement provided for by in Paragraph (A)(3) of 12 this Section shall be at the option of the sponsor when such sponsor is leasing 13 operations space of less than two hundred fifty square feet. 14 (b) (2) The advertisements shall set forth a description of the property to be 15 leased, the time when bids therefor will be received, and a short summary of the 16 terms, conditions, and purposes of the lease to be executed. The public bids 17 provided for in this Part shall be secret, sealed bids and shall be mailed or delivered 18 to the lessor at its domicile address. The advertisements provided for in this Section 19 shall constitute judicial advertisements and legal notices as required in accordance 20 with the provisions of Chapter 5 of Title 43 of the Louisiana Revised Statutes of Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-550 ENGROSSED HB NO. 281 1 1950. At the date and hour mentioned in the advertisement for consideration of bids, 2 the bids shall be publicly opened by the lessor at its office. 3 (c) (3) The lessor shall accept only the highest bid submitted which yields 4 the greatest benefits to the public in services and financial return to it by a person or 5 persons who meet all of the conditions of this Part. The lessor shall have the right 6 to reject all bids. 7 (d) (4) The lessor may execute any lease granted under such terms and 8 conditions that it deems proper or as otherwise provided in this Part. 9 (e) (5) All leases signed by the lessor shall be executed in sufficient 10 counterparts to be disposed of as follows: one copy shall be furnished to the lessee; 11 one copy shall be recorded in the conveyance records of each parish in which the 12 land lies; one copy shall be furnished to the secretary of the Louisiana Department 13 of Transportation and Development; and one copy shall be retained in the records of 14 the lessor. 15 (2) All leases executed under the provisions of this Section shall provide for 16 consideration to be paid annually or monthly as provided for in the lease. All leases 17 shall be for a period not exceeding ten years, except as follows: 18 (a) A lessor may grant an option to extend the primary lease for an 19 additional period of not more than ten years to any lessee who leases such land or 20 holds a ten-year lease in full force on or after August 15, 1999, when such lessee has, 21 within the ten-year term of the lease, added or contracted for permanent 22 improvements to be constructed or placed on or made to the land in the amount of 23 not less than twenty thousand dollars, has provided written notification to the lessor 24 of his desire to extend the primary lease, and has provided a proper showing that 25 such improvements have in fact been made or contracted for. 26 (b) When a lease provides for the addition or construction of improvements 27 on or to the land to a value in excess of sixty thousand dollars for non-air carrier 28 airports or one hundred thousand dollars for air carrier airports, and further provides 29 that such improvements will become the property of the lessor without any cost to Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 24RS-550 ENGROSSED HB NO. 281 1 the lessor, the lessor may grant an option to the lessee to extend the primary term of 2 the lease for an additional ten-year period, or part thereof, for each sixty thousand 3 dollars of improvements or additions for non-air carrier airports or one hundred 4 thousand dollars worth of improvements or additions for air carrier airports made on 5 or to the land, not to exceed a maximum term of one hundred years. 6 (c) The provisions of this Paragraph shall not apply to the Vivian Municipal 7 Airport or the Shreveport Downtown Airport. 8 * * * 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)] HB 281 Engrossed 2024 Regular Session Crews Abstract: Repeals provisions for consideration to be paid monthly or annually and provision for leases not to exceed 10 years along with the associated exceptions. Present law provides for consideration to be paid annually or monthly according to the terms of the lease and for the period of the lease to not exceed 10 years. Proposed law repeals present law. Present law provides an exception for leases to exceed 10 years by 10 additional years for at least $20,000 worth of improvements made when the lessor is notified of the desire to extend the lease. Proposed law repeals present law. Present law provides exceptions for extending a lease by ten years per $60,000 or $100,000 spent for construction or improvements that exceed $60,000 for non-air carrier airports or $100,000 for air carrier airports, respectively. Proposed law repeals present law. Present law provides an exception to present law applicable to the Vivian Municipal Airport or the Shreveport Downtown Airport. Proposed law repeals present law. (Amends R.S. 2:135.1(B)) Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.