SENATE TRANSPORTATION COMMITTEE

STATEMENT TO

SENATE, No. 1408

with committee amendments

STATE OF NEW JERSEY

DATED: OCTOBER 7, 1996

      The Senate Transportation Committee favorably reports Senate Bill No. 1408 with committee amendments.

      This bill, as amended by the committee, amends existing law to authorize the Commissioner of Transportation to expend monies from the Airport Safety Fund to provide loans to unrestricted public use airports and New Jersey based aviation enterprises. Loans may be provided for revenue or nonrevenue generating capital construction, capital development, or equipment acquisition purposes. An "aviation enterprise" is defined as any business or enterprise which is principally located within a New Jersey unrestricted public use airport where the commissioner has determined such business or enterprise has a direct economic or operational benefit to the airport.

      The amended bill additionally provides that the commissioner may expend monies from the Airport Safety Fund to establish, operate or provide any program or activity which promotes aviation safety, aviation education or provides for the promotion of aeronautics. However, in no fiscal year shall the amount of monies expended for these purposes exceed 10 percent of the total amount of monies appropriated in that fiscal year to the Airport Safety Fund.

      The committee amended the bill to permit the Commissioner of Transportation to expend monies for the promotion of aviation safety and education, or to provide for the promotion of aeronautics--non-capital purposes now permitted by the amendments. The amendments also establish the 10 percent limit on expenditures for these activities.

      These amendments make this bill identical to A-2416 of 1996.