Arizona Revised Statutes Title 28 Transportation Chapter 25 Aviation
Article 1 General Provisions
28-8201Definitions
In this article and articles 2 through 5 of this chapter, unless the context otherwise requires:
1. "Aeronaut" includes any aviator, pilot, balloonist and other person participating in the operation of aircraft while in flight.
2. "Aircraft" includes a balloon, airplane, amphibian and craft used for navigation through the air.
3. "Passenger" includes a person who rides in aircraft but has no part in its operation.
4. "Seizure of aircraft" means the physical disabling or securing of an aircraft by locks, chains or other mechanical devices.
28-8202State aviation fund
A. The state aviation fund is established consisting of the following:
1. Aviation fuel taxes or motor vehicle fuel taxes deposited by the department.
2. Monies deposited by the department as a result of the sale of an abandoned aircraft as defined in section 28-8243 or seized aircraft.
3. The amount of flight property tax that the department of revenue has deposited pursuant to section 42-14255.
4. Registration fees, license taxes and penalties collected pursuant to article 4 of this chapter.
5. Monies received by the department from the operation of airports under this article and articles 2 through 5 of this chapter.
6. The amount of jet fuel excise tax and jet fuel use tax that the department of revenue has deposited pursuant to section 42-5353.
B. On notice from the department, the state treasurer shall invest and divest monies in the state aviation fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
C. The department shall administer monies that are appropriated by the legislature from the state aviation fund.
D. The board shall distribute monies appropriated to the department from the state aviation fund for planning, design, development, acquisition of interests in land, construction and improvement of publicly owned and operated airport facilities in counties, incorporated cities and towns and Indian reservations. The board shall distribute these monies according to the needs for these facilities as determined by the board. No more than ten percent of the average annual revenue that the fund received for the past three years may be awarded to any one airport in grants in any fiscal year. For the purposes of this subsection, "publicly owned and operated airport facility" means an airport and appurtenant facilities in which one or more agencies, departments or instrumentalities of this state, a city, town or county of this state or an Indian tribe or tribal government holds an interest in the land on which the airport is located that is clear of any reversionary interest, lien, easement, lease or other encumbrance that might preclude or interfere with the possession, use or control of the land for public airport purposes for a minimum period of twenty years.
42-14255.Assessment, levy and collection of tax; limitation on small airline company tax
A. The department shall annually:
1. Enter in its records the full cash value as determined under this article of the flight property of the airline companies in this state.
2. Assess the property as provided by sections 42-12005 and 42-15005.
3. Levy a tax against the values so determined and assessed at a rate that equals the sum of the average rates for primary and secondary property taxes in the taxing jurisdictions in this state for the current year.
4. Collect the taxes according to the schedules prescribed by section 42-18052.
5. Deposit, pursuant to sections 35-146 and 35-147, the tax revenues in the state aviation fund.
B. The tax imposed by this section is in lieu of all other ad valorem taxes on the flight property of airline companies in this state.
C. Delinquent taxes bear interest at the rate determined pursuant to section 42-1123.
D. The full cash values that are used for tax purposes pursuant to subsection A of this section are a matter of public record and are not confidential information under chapter 2, article 1 of this title.
42-5353.Administration; disposition of revenues
Unless the context otherwise requires, article 1 of this chapter governs the administration of the tax imposed under this article. Monies received from the taxes collected pursuant to section 42-5352 shall be deposited in the state aviation fund established by section 28-8202.
35-313.Investment of trust and treasury monies; loan of securities
A. The state treasurer shall invest and reinvest trust and treasury monies in any of the following items:
1. Obligations issued or guaranteed by the United States or any of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities.
2. Repurchase agreements collateralized with securities that are authorized for investment pursuant to state law and that are purchased from authorized counterparties that have adequate capital and liquidity as determined by the state treasurer.
3. Bonds or other evidences of indebtedness of this state or any of the counties or incorporated cities, towns or duly organized school districts.
4. Commercial paper whose issuer is investment grade for short-term obligations by any two nationally recognized statistical rating organizations.
5. Bills of exchange or time drafts known as bankers acceptances that are drawn on and accepted by a commercial bank.
6. Negotiable certificates of deposit issued by a nationally or state chartered bank or savings and loan association.
7. Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars and that carry an investment grade rating by a nationally recognized bond rating agency.
8. Securities of or any other interests in any open-end or closed-end management type investment company or investment trust, including exchange traded products whose underlying investments are invested in securities allowed by state law, registered under the investment company act of 1940 (54 Stat. 789; 15 United States Code sections 80a-1 through 80a-64), as amended. For any treasurer investment pool that seeks to maintain a constant share price, both of the following apply:
(a) The investment company or investment trust takes delivery of the collateral for any repurchase agreement either directly or through an authorized custodian.
(b) The investment policy of the investment company or investment trust includes seeking to maintain a constant share price.
9. Certificates of deferred property taxes as provided by section 42-17309.
10. Treasurer's warrant notes issued pursuant to section 35-185.01 or registered warrants of a county issued pursuant to section 11-605, if the yield is equal to or greater than yields on eligible investment instruments of comparable maturities.
11. Shares in the treasurer's local government investment pools pursuant to section 35-326 provided that investment policies of the pool seek to maintain a constant share price.
12. Shares in the treasurer's long-term local government investment pools, which terms are determined by the state board of investment, pursuant to section 35-326.01.
13. Subject to subsection D of this section, state transportation board funding obligations delivered pursuant to section 28-7678.
14. Deposits placed in accordance with the procedures prescribed in section 35-323.01.
15. Institutional common trust funds whose underlying investments are invested in securities allowed by state law.
16. Program funding obligations delivered by the credit enhancement eligibility board pursuant to section 15-2157.
B. In case of default or failure to honor a county treasurer's warrant, the state treasurer may withhold the first state shared revenues that would otherwise be distributed to the defaulting county in the amount necessary to honor the note, including accrued interest to and beyond the date of default.
C. The state treasurer may contract to loan securities owned by the trust funds and operating monies deposited in the investment pools pursuant to section 35-316, subsection B to the financial or dealer community through one or more of the entities listed in section 35-317, subsection A, or authorized by the board of investment pursuant to section 35-311, subsection E, if the borrower transfers collateral to the state treasurer or acting agent of the state in the form of cash or securities authorized for investment pursuant to state law. Collateral posted in the form of cash shall be in an amount equal to at least one hundred percent of the market value of the loaned securities as agreed. Collateral posted in the form of securities shall be in an amount of at least one hundred two percent of the market value of the loaned securities as established from time to time by the board of investment. The loaned securities shall be valued as to market value daily, and, if necessary, the borrower shall post additional collateral, as agreed, to ensure that the required margin is maintained. The state treasurer may collect from the borrower all dividends, interest, premiums, rights and other distributions to which the lender of securities would otherwise be entitled. The state treasurer may terminate the contract on not less than five business days' notice, as agreed, and the borrower may terminate the contract on not less than two business days' notice, as agreed.
D. The state treasurer shall invest operating monies in state transportation board funding obligations delivered pursuant to section 28-7678 pursuant to the following:
1. The state treasurer shall liquidate investments of operating monies if necessary in order to invest in state transportation board funding obligations, except that if operating monies in the state general fund fall below an eight hundred million dollar average over the previous twelve consecutive months, the state treasurer is not required to purchase state transportation board funding obligations pursuant to this subsection.
2. Each series of state transportation board funding obligations shall bear interest at a fixed interest rate equal to the mean bid-ask price of the United States treasury obligation with a maturity date closest to the maturity date of the state transportation board funding obligation as determined by the pricing system used by the state treasurer before the date the state treasurer receives a certificate from the state transportation board that states the board's determination to deliver an obligation to the state treasurer and the anticipated delivery date of the obligation. The delivery date shall be between fifteen and sixty days after the day the state treasurer receives the certificate.
3. The state treasurer shall provide written notice to the state transportation board and the director of the department of transportation when the operating monies fall below four hundred million dollars. If operating monies fall below two hundred million dollars, the state treasurer may call the investment in the state transportation board funding obligations in twenty-five million dollar increments up to the amount that the operating monies are below two hundred million dollars. The state treasurer shall give the state transportation board and the director of the department of transportation at least fifteen days' notice of the call.
28-8204State owned airports; fees
The director may establish fees for use of state owned airports and appurtenant facilities, including the following:
1. Landing and takeoff for commercial aircraft.
2. Aircraft tiedown.
3. Vehicle parking.
4. Equipment use.
5. Aircraft servicing.
6. Facility use.
7. Damages to equipment or facilities.
8. Janitorial or custodial services.
9. Terminal and land space rental.
10. Commission on sales at the airport.
11. Ground transportation use of the airport facility in serving passengers who are arriving or departing.
12. Use of advertising space.
13. Fuel flowage, storage, transportation and handling.
28-8205Construction of new airports; definitions
A. A new airport shall not be constructed within the boundaries of an urbanized area or within twenty-four statute miles of the exterior boundary of an urbanized area without approval of the board.
B. The board shall approve construction of a new airport only if both:
1. The construction of the new airport is consistent with the state, regional and local aviation system plans.
2. The state, regional and local aviation plans consider relevant criteria, including airspace and air safety, land use compatibility and priority of funding.
C. This section does not apply to a heliport or to an addition to an existing airport.
D. For the purposes of this section:
1. "Airport" means an area of land or water that is designed, set aside and utilized or to be utilized for the landing and taking off of aircraft.
2. "Heliport" means an area of land, water or structure that is used or intended to be used for the landing and takeoff of rotorcraft. For the purposes of this paragraph, "rotorcraft" means a heavier than air aircraft that depends principally for its support in flight on the lift generated by one or more rotors.
3. "Urbanized area" means an urbanized area as defined in the most recent decennial census by the United States bureau of the census.
28-8206Sovereignty
This state has sovereignty in space above land and water of this state, unless sovereignty is granted to and assumed by the United States pursuant to a lawful grant from this state.
28-8207Ownership
Ownership of space above land and water of this state is vested in the several owners of the surface beneath, subject to the right of flight described in section 28-8277.
28-8208Crimes, torts and other wrongs; governing law
A. Any crime, tort or other wrong that is committed by or against an aeronaut or passenger while in flight over this state is governed by the law of this state.
B. The law of this state determines whether damage by or to an aircraft while in flight over this state is a tort, a crime or any other wrong by or against the owner of the aircraft.
28-8209Legal relationships while in flight
Any contractual or other legal relationship entered into by aeronauts or passengers while in flight over this state have the same effect as if entered into on the land or water beneath the aeronauts or passengers.
28-8210Civil air patrol; federal monies
Notwithstanding any other law, the civil air patrol may receive monies directly or indirectly from the United States department of homeland security.
Article 2 Aeronautics Division
28-8241Aeronautics division; assistant director
A. An assistant director for aeronautics who has an aeronautical background shall administer the aeronautics division of the department.
B. The compensation of the assistant director shall be determined pursuant to section 38-611.
38-611.Compensation of certain state officers and employees
A. Except as otherwise provided in subsections B and C of this section, any officer or employee of the state, or any of its agencies, is entitled to receive a salary within the range as determined by the department of administration unless modified by the legislature.
B. Elected state officers, employees of the supreme court, employees of the court of appeals, employees of the legislature, employees of the governor's office, employees of the Arizona state schools for the deaf and the blind except the superintendent and the medical officer and all employees of the Arizona board of regents and the state universities are exempt from the provisions of this section.
C. Except as otherwise provided by statute or specific legislative appropriation, members of boards, commissions, councils or advisory committees who are authorized by law to receive compensation may receive compensation at the rate of not to exceed thirty dollars for each day engaged in the service of such board, commission, council or advisory committee.
28-8242Powers and duties
A. The department:
1. Shall cooperate with all state, local and federal organizations to encourage and advance the safe and orderly development of aviation in this state.
2. May:
(a) Assemble and distribute to the public information relating to aviation, landing fields, navigational aids and other matters pertaining to aviation.
(b) Accept, in the name of this state, federal monies made available for the advancement of aviation.
(c) Represent this state on issues of routing structures and rate schedules concerning commercial airline traffic.
(d) Accept and receive federal and other public or private monies for the acquisition, construction, enlargement, improvement, maintenance, equipment or operation of airports and other air navigation facilities and sites for air navigation facilities or for any other purpose authorized by this section. The department shall deposit, pursuant to sections 35-146 and 35-147, these monies in the state aviation fund.
(e) Facilitate the development of a regional airport.
(f) Loan monies from the state aviation fund to an airport authority that enters into an agreement with the United States for an airport development project if the airport authority designates in its agreement with the United States that payment of federal participating monies shall be made to the department acting as the agent of the airport authority and enters into an agreement with the department appointing the department as agent of the airport authority to receive all federal participating monies. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies received pursuant to this subdivision in the state aviation fund. For the purposes of this subdivision, "airport authority" means the governing body of a public airport operating pursuant to sections 28-8423 and 28-8424 or a joint powers airport authority.
B. Notwithstanding section 38-623, the director may authorize personnel of the department to use rental aircraft in the performance of their duties at the prevailing hourly rate. The rental fee is a charge against monies appropriated for in-state and out-of-state travel.
C. The director shall adopt rules as necessary to administer this article and articles 1, 3, 4 and 5 of this chapter and to promote public safety and the best interests of aviation in this state. The rules shall not supersede or conflict with rules of the United States government agencies having jurisdiction over aviation activities in this state.
D. The director shall:
1. Contract for the operation of state owned airports.
2. In conjunction with local authorities, plan, build and develop airports, airport terminals and other related navigational facilities.
3. Operate and maintain the Grand Canyon national park airport located in the Kaibab national forest, Coconino county.
4. Provide on the department's website information on resources for operating a model aircraft, including safety guidelines established by a nationwide aeronautics community-based organization.
5. Provide on the department's website pictures that show examples of critical facilities, as defined in section 13-3729, to provide unmanned aircraft operators with information on what is considered a critical facility. A picture or any written description on the website may not identify the owner or operator of the critical facility or the location of the critical facility.