Senate BillVetoedPublic Utilities
SB 661: Airports: financial assistance.
What SB 661 does, verified October 2, 2026
The bill aims to provide financial assistance to airports in California. It would require 50% of the revenues from the state sales and use taxes on jet fuel to be transferred to the aeronautics account. This fund would then be allocated in specified percentages to qualifying general aviation airports, commercial airports, and for other aviation-related purposes. The remaining 50% of those revenues would be retained by the airport at which the jet fuel is sold and used, for purposes related to airport operations, capital improvements, maintenance, and infrastructure needs. This would effectively make an appropriation for airport funding.
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Last action: In Senate. Consideration of Governor's veto pending. (2026-09-30)Alert me
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| Sep. 30, 2026 | In Senate. Consideration of Governor's veto pending. |
| Sep. 30, 2026 | Vetoed by the Governor. |
| Sep. 04, 2026 | Enrolled and presented to the Governor at 2 p.m. |
| Aug. 28, 2026 | Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling. |
| Aug. 27, 2026 | Ordered to special consent calendar. |
Latest bill textEnrolled version, August 31, 2026 · 1,721 words
| Enrolled August 31, 2026 |
| Passed IN Senate August 28, 2026 |
| Passed IN Assembly August 20, 2026 |
| Amended IN Assembly August 13, 2026 |
| Amended IN Assembly July 01, 2026 |
| Amended IN Assembly June 22, 2026 |
| Amended IN Senate May 29, 2025 |
| Amended IN Senate April 07, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 661
| Introduced by Senator Hurtado |
February 20, 2025 |
An act to add Section 21689 to the Public Utilities Code, and to add Section 7102.3 to the Revenue and Taxation Code, relating to airports, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 661, Hurtado. Airports: financial assistance.
The State Aeronautics Act establishes the Aeronautics Account in the State Transportation Fund, and continuously appropriates the moneys in the account for expenditure for airport purposes by the Division of Aeronautics within the Department of Transportation and the California Transportation Commission.
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, including taxes imposed on the sale, storage, use, or other consumption of jet fuels. Existing law requires revenues from these taxes to be transmitted to the Treasurer and deposited into the Retail Sales Tax Fund. Existing federal law requires that any revenue from sales and use taxes imposed on aviation fuel be used for the operation costs of airports, the local airport system, or other local facilities that are directly and substantially related to the air transportation of passengers or property, except as provided.
This bill would require the Controller, on or before September 1 of each year, to transfer an amount calculated to represent the sales and use tax revenues derived with respect to the sale, storage, use, or other consumption of jet fuel, as provided, from the Retail Sales Tax Fund to the account for allocation to airports and aviation-related purposes, as provided. The bill would require all public and private use airports where jet fuel is sold or consumed to report fuel flowage statistics to the Division of Aeronautics, as provided, and would require the division to determine the revenue allocation for each airport that reports fuel flowage statistics. By adding new reporting requirements for county-owned and city-owned airports, the bill would impose a state-mandated local program.
From the above-described sales and use tax revenues deposited into the account, this bill would require the division, after deducting its administrative costs, as provided, to allocate 75% of those revenues to public and private use airports based on their reported fuel flowage statistics, as provided, 15% of those revenues for general aviation airports, as provided, 1% to award grants for aviation education, as provided, and 9% for existing grant programs that serve nonhub and small hub airports. From the above-described 75% of revenues deposited into the account, the bill would apportion, until January 1, 2032, $500,000 annually to award grants to rural, nonhub commercial airports and general aviation airports, as provided.
By increasing the sources of funding for and expanding the purposes for which money may be used from a continuously appropriated fund, the Aeronautics Account, this bill would make an appropriation.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) California’s network of commercial, regional, and general aviation airports functions as an integrated transportation system that connects communities, supports the movement of people and goods, and strengthens economic activity throughout the state.
(b) Reliable air transportation infrastructure is essential to maintaining California’s position as one of the world’s largest economies by facilitating commerce, tourism, workforce mobility, business investment, and access to national and international markets.
(c) Airports of all sizes play a critical role within California’s aviation system. While major international airports serve as global gateways, regional and community-serving airports provide essential connectivity that supports local economies, workforce development, emergency response capabilities, and access to critical services.
(d) Many regions of California, including rapidly growing inland communities and major economic centers in the central valley, depend on regional airports to connect residents and businesses with opportunities throughout the state, nation, and world.
(e) Strategic investments in airport infrastructure, air service development, and aviation-related facilities strengthen the resiliency and competitiveness of California’s transportation network while promoting economic growth in urban and rural communities.
(f) Expanding and sustaining air service at regional airports, including airports that serve emerging economic hubs and freight corridors, will enhance statewide connectivity, support job creation, improve access to business and educational opportunities, and ensure that the benefits of California’s economy are more broadly shared across all regions of the state.
SEC. 2.
Section 21689 is added to the Public Utilities Code, to read:21689.
(a) Notwithstanding the provisions of this article, from the funds deposited into the Aeronautics Account in the State Transportation Fund pursuant to Section 7102.3 of the Revenue and Taxation Code, the division, after deducting its administrative costs pursuant to subdivision (c), shall allocate annually to eligible recipients the following percentages of available funds for airports and aviation-related purposes:(1) (A) Seventy-five percent to be divided among each public and private use airport where jet fuel is sold or consumed based on the airport’s fuel flowage statistics reported for the previous calendar year pursuant to Section 7102.3 of the Revenue and Taxation Code.
(B) Any unused funds under subdivision (c) shall be distributed pursuant to subparagraph (A) on a pro rata basis.
(C) (i) Of the total allocation for a year under subparagraph (A), the division shall use five hundred thousand dollars ($500,000) to provide grants to rural, nonhub commercial airports and general aviation airports.
(ii) Expenditures under this subparagraph shall be consistent with the Federal Register, Volume 64, Number 30, on February 16, 1999.
(iii) This subparagraph shall become inoperative on January 1, 2032.
(2) Fifteen percent for general aviation airports, to be divided and credited to individual airport subaccounts in a manner consistent with a process established by the division.
(3) (A) One percent to provide grants for aviation education that includes, but is not limited to, programs, projects, or initiatives that improve or enrich the aviation workforce within the California aviation community. Grants may include, but are not limited to, scholarships for flight training, traffic control training and education, and aviation-related degrees from accredited universities.
(B) Priority for grants provided pursuant to subparagraph (A) shall be given to underrepresented students, women, veterans, and persons of low income.
(4) Nine percent to existing grant programs that serve nonhub and small hub airports.
(b) Sections 21686 to 21688, inclusive, shall apply to allocations of funds pursuant to this section.
(c) Of the total allocation for the first year deposited into the Aeronautics Account in the State Transportation Fund pursuant to Section 7102.3 of the Revenue and Taxation Code, the division may use up to one million dollars ($1,000,000) on administrative costs to establish a process for distributing funds under this section and to distribute funds under that process for that year. Of the total allocation for each subsequent year deposited into the Aeronautics Account in the State Transportation Fund pursuant to Section 7102.3 of the Revenue and Taxation Code, the division may use up to six hundred thousand dollars ($600,000) on the administrative costs of distributing funds under this section for that year.
(d) For purposes of this section, the following definitions apply:
(1) “Division” means the Division of Aeronautics.
(2) “General aviation airport” has the same meaning as defined in Section 47102 of Title 49 of the United States Code.
SEC. 3.
Section 7102.3 is added to the Revenue and Taxation Code, to read:7102.3.
(a) (1) Notwithstanding Section 7102, revenues in the fund, less refunds, derived under this part from the imposition of state sales and use taxes pursuant to Section 35 of Article XIII of the Constitution, and Sections 6051.2, 6051.3, 6201.2, and 6201.3, which equal 1.25 percent of the total statewide sales and use tax rate, with respect to the sale, storage, use, or other consumption of jet fuel, shall be transferred to the Aeronautics Account in the State Transportation Fund for allocation to airports and aviation-related purposes in accordance with Section 21689 of the Public Utilities Code.(2) The Controller shall make the transfer described in paragraph (1) on or before September 1 of each year.
(b) (1) Amounts transferred pursuant to subdivision (a) shall be allocated toward an aviation purpose, in compliance with Sections 47107 and 47133 of Title 49 of the United States Code.
(2) Amounts subject to allocation pursuant to paragraph (1) shall be determined based on the amounts reported by the California Department of Tax and Fee Administration pursuant to paragraph (1) of subdivision (d) of Section 6452.05 for the fiscal year immediately preceding the due date described in paragraph (2) of subdivision (a).
(3) (A) All public and private use airports where jet fuel is sold or consumed shall report to the Division of Aeronautics within the Department of Transportation the airport’s fuel flowage statistics for the previous calendar year by March 31 for purposes of calculating individual airport fuel tax allocations.
(B) The Division of Aeronautics shall determine the fuel tax revenue allocation for each airport that reports fuel flowage statistics pursuant to subparagraph (A).
(c) For purposes of this section, the following definitions apply:
(1) “Fuel flowage statistics” includes the total gallons of jet fuel sold or consumed annually at an airport.
(2) “Jet fuel” means aircraft jet fuel, as defined in Section 7387.
SEC. 4.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.Text of SB 661 as enrolled, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions