HB 1656 — Establishing a community aviation revitalization loan program.

H-1159.1HOUSEENGROSSED HOUSE BILL 1656State of Washington65th Legislature2017 Regular SessionBy Representatives Dent, Gregerson, Hargrove, Tarleton, Klippert, and ClibbornRead first time 01/26/17.

reenacting and amending RCW 43.79A.040 and 42.56.270;

and creating a new sections.BEsection.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:NEW SECTION.  Sec. 1.  The legislature finds that providing additional funding mechanisms for public use general aviation airports to implement infrastructure rehabilitation, upgrades, and revenue-generating projects is in the best interest of the state.

The legislature declares that a revolving loan program is fundamental for smaller airport preservation and future vitality.NEW SECTION.  Sec. 2.  A new section is added to chapter 47.68 RCW to read as follows:(1) An airport infrastructure loan program to be known as the community aviation revitalization loan program is established for localpolitical andsubdivisions smallof the state that own or manage airports to acquire loans to fund capital projects, including repaving runways, installing runway lights, constructing new airport facilities, and improving existing facilities.facilities.(2) The community aviation revitalization revolving loan account is created in the custody of the state treasurer.

AAll revolvingmoneys received for the community aviation revitalization loan accountprogram, isincluding establishedloan inand theinterest aeronauticspayments, must be deposited into the account.

TheMoneys interestin on the loansaccount mustmay be theused federalonly ratefor of interest at the time the loan isprogram borrowedand byfor the airport.(2)department Theexpenditures aviationassociated divisionwith ofadministering the department must administer the community aviation revitalization loan programprogram, and adoptmay bynot rulebe thetransferred criteria to beany usedother inaccount evaluatingor andused approvingfor loanspurposes toother smallthan andthat localprescribed airports.in this chapter.

TheseOnly loans may be provided to (a) political subdivisions of the statesecretary that own or manage airports and privately owned airports within the boundariessecretary's ofdesignee themay stateauthorize thatexpenditures providefrom commensurate public benefit, such as public access, and (b) do not have more than fifty thousand annual commercial service passenger enplanements as published by the federalaccount. aviation administration.

Before adopting rules under this subsection or offering a loan contract for a project, the department must consult with the community aviation revitalization loan oversight task force created in section 3 of this act.(3) The departmentaccount mustis considersubject the following conditions when evaluating loan applications:(a) The proposed project will lead to additionalallotment privateprocedures sectorunder investmentchapter or43.88 permanentRCW, familybut wage jobs;(b) The proposed project will provide capital improvements to augment the maintenance, operation, or expansion of an airportappropriation oris itsnot associatedrequired airport-relatedfor businessexpenditures. park;(c) The proposed project will result in retention, expansion, or creation of long-term economic opportunities dependent on the airport or related aeronautic services;

or(d)Disbursements The proposed project will result in leveraging additional federal funding to anpolitical eligiblesubdivisions airport.(4)for Loansapproved mayloans onlyare benot awardedsubject to applicantsappropriation that clearly identify a viable source of funds intended to repay the loan.(5) The department may accept any gifts, grants, loans of funds, property, contributions, or financialallotment orprocedures. other aid in any form from other sources that do not conflict with the department's governing statutes and regulations and the laws of the state in furtherance of community aviation airport revitalization as proposed in this section.

The departmentinterest mayon alsothe accept federal agency loans ormust grantsbe for the plannedfederal financingrate of anyinterest projectat andthe entertime intothe anloan agreementis withborrowed projectby ownersthe topolitical administersubdivision those loans.(6) The department must keep proper records of the loansstate.(3) and accounts.NEW SECTION.  Sec. 3.  A new section is added to chapter 47.68 RCW to read as follows:(1) The community aviation revitalizationdivision loanof oversight task force is created to oversee and provide consultation to the department inmust relationadminister to the community aviation revitalization loan program.(a)program.(4) The chairdepartment ofmust adopt by rule the communitycriteria aviationto revitalizationbe loanused oversightin taskevaluating forceand isapproving the secretaryloan ofapplications. transportation.

These loans may be provided to political subdivisions of the state that own or manage airports that do not have more than fifty thousand annual commercial service passenger enplanements as published by the federal aviation administration.

Before adopting rules under this subsection or offering a loan contract for a project, the department must consult with the community aviation revitalization loan oversight task force created in section 3 of this act.(5) The department must consider the following conditions when evaluating loan applications:(a) The proposed project will lead to additional investment or permanent family wage jobs;(b) The proposed project will provide capital improvements to augment the maintenance, operation, or expansion of an airport or its associated airport-related business park;(c) The proposed project will result in retention, expansion, or creation of long-term economic opportunities dependent on the airport or related aeronautic services;

or(d) The proposed project will result in leveraging additional federal funding to an eligible airport.(6) Loans may only be awarded to applicants that clearly identify a viable source of funds intended to repay the loan.(7) The department may accept any gifts, grants, loans of funds, property, contributions, or financial or other aid in any form from other sources that do not conflict with the department's governing statutes and regulations and the laws of the state in furtherance of community aviation airport revitalization as proposed in this section.

The department may also accept federal agency loans or grants for the planned financing of any project and enter into an agreement with project owners to administer those loans.NEW SECTION.  Sec. 3.  A new section is added to chapter 47.68 RCW to read as follows:(1) The community aviation revitalization loan oversight task force is created to oversee and provide consultation to the department in relation to the community aviation revitalization loan program.(a) The chair of the community aviation revitalization loan oversight task force is the secretary of transportation.

The chair is responsible for organizing meetings of the task force.(b)(i)force.(b) The community aviation revitalization loan oversight task force must consist of:

Two people from each of the two largest caucuses of the house of representatives andto be appointed by the speaker of the house of representatives, two people from each of the two largest caucuses of the senate asto designatedbe appointed by the leaderspresident of thosethe caucuses,senate, and a nonvoting representative from the department of commerce as designated by the director of the department of commerce.(ii)commerce.(2) EachThe member of the legislature who is appointed to the community aviation revitalization loan oversight task force mayshall designatereview anotherand memberapprove fromrules theprepared legislatureby to take his or her place on the taskdepartment forceto forgovern meetings at which the memberimplementation, willmanagement, beand absent,administration asof long as the designatedcommunity memberaviation belongsrevitalization toloan theprogram. same caucus.

The designee has all of the same powers to vote and participate in task force deliberations as the other task force members.(2) The community aviation revitalization loan oversight task force shall review and approve rules prepared by the department to govern the implementation, management, and administration of the community aviation revitalization loan program.

Any reimbursement for other nonlegislative members is subject to chapter 43.03 RCW.NEWRCW.Sec. 4.  RCW SECTION.  Sec. 4.  The43.79A.040 stateand treasurer's2016 officec must203 establishs a2, new2016 revenuec source173 codes 10, 2016 c 69 s 21, and 2016 c 39 s 7 are each reenacted and amended to trackread anyas revenuefollows:(1) thatMoney isin dedicatedthe treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the communitysame aviationextent revitalizationas loanif programthe establishedmoney were in sectionthe 2state treasury, and may be commingled with moneys in the state treasury for cash management and cash balance purposes.(2) All income received from investment of thisthe act.Sec. 5.  RCWtreasurer's 42.56.270trust fund must be set aside in an account in the treasury trust fund to be known as the investment income account.(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and 2016disbursement sp.s.functions for the state treasurer or affected state agencies.

The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions.

Payments must occur prior to distribution of earnings set forth in subsection (4) of this section.(4)(a) Monthly, the state treasurer must distribute the earnings credited to the investment income account to the state general fund except under (b), (c), and (d) of this subsection.(b) The following accounts and funds must receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period:

The 24/7 sobriety account, the Washington promise scholarship account, the Washington advanced college tuition payment program account, the Washington college savings program account, the accessible communities account, the Washington achieving a better life experience program account, the community and technical college innovation account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the community aviation revitalization revolving loan account, the county enhanced 911 excise tax account, the toll collection account, the developmental disabilities endowment trust fund, the energy account, the fair fund, the family leave insurance account, the food animal veterinarian conditional scholarship account, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the GET ready for math and science scholarship account, the Washington global health technologies and product development account, the grain inspection revolving fund, the industrial insurance rainy day fund, the juvenile accountability incentive account, the law enforcement officers' and firefighters' plan 2 expense fund, the local tourism promotion account, the multiagency permitting team account, the pilotage account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the Washington sexual assault kit account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund and breeder awards account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account, the life sciences discovery fund, the Washington state heritage center account, the reduced cigarette ignition propensity account, the center for childhood deafness and hearing loss account, the school for the blind account, the Millersylvania park trust fund, the public employees' and retirees' insurance reserve fund, and the radiation perpetual maintenance fund.(c) The following accounts and funds must receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period:

The advanced right-of-way revolving fund, the advanced environmental mitigation revolving account, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.(d) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the custody of the state treasurer that deposits funds into a fund or account in the custody of the state treasurer pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.Sec. 5.  RCW 42.56.270 and 2016 sp.s.