2021 -- S 0725

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LC001049

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO AERONAUTICS -- AIRPORTS AND LANDING FIELDS

     Introduced By: Senator Stephen R. Archambault

     Date Introduced: March 26, 2021

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 1-2-7 of the General Laws in Chapter 1-2 entitled "Airports and

Landing Fields" is hereby amended to read as follows:

     1-2-7. Leases, concessions, and licenses.

     (a) The department of transportation may lease any portion of any airport or landing field

owned or operated by the state or any of the buildings or structures erected on any airport or landing

field and grant concessions upon portions of any airport or landing field owned or operated by the

state for a period not exceeding five (5) years, with or without renewal options for a like period, in

the manner prescribed by § 37-7-9. Where a substantial building, renovation, improvement, or

addition to an existing building is to be constructed for any airport or aeronautical service, activity,

purpose, or function or any allied service, activity, purpose, or function, the department may lease

in the manner provided in § 37-7-9 any portion of any airport or landing field owned or operated

by the state for a period not exceeding thirty (30) fifty (50) years.

     (b) In all department leases, concessions, licenses, and in all landing fee schedules imposed

by the department, provisions shall be included requiring a graduated scale of payments designed

to encourage take-offs and landings between the hours of 6:30 a.m. and midnight (12:00 a.m.). Any

landings occurring after midnight (12:00 a.m.) and before 6:30 a.m. because of conditions beyond

the control of the airlines and/or aircraft operator are not subject to any additional landing fees.

     (c) The department shall include a provision in all leases, licenses, and concessions

requiring aircraft landing at Theodore Francis Green State Airport:

     (1) To be equipped with noise and emission abatement devices as required by federal law

or regulation in effect on July 1, 1985; and

     (2) By January 1, 1989, to be equipped with noise and emission abatement devices as

contained in federal aviation regulation, part 36, noise standards: aircraft type and airworthiness

certification scheduled to take effect on January 1, 1989.

     SECTION 2. Section 42-64-7.1 of the General Laws in Chapter 42-64 entitled "Rhode

Island Commerce Corporation" is hereby amended to read as follows:

     42-64-7.1. Subsidiaries.

     (a)(1) The parent corporation shall have the right to exercise and perform its powers and

functions, or any of them, through one or more subsidiary corporations whose creation shall be

approved and authorized by the general assembly.

     (2)(i) Express approval and authorization of the general assembly shall be deemed to have

been given for all legal purposes on July 1, 1995 for the creation and lawful management of a

subsidiary corporation created for the management of the Quonset Point/Davisville Industrial Park,

that subsidiary corporation being managed by a board of directors, the members of which shall be

constituted as follows: (A) two (2) members who shall be appointed by the town council of the

town of North Kingstown; (B) two (2) members who shall be residents of the town of North

Kingstown appointed by the governor; (C) four (4) members who shall be appointed by the

governor; (D) the chairperson, who shall be: (i) the executive director of the Rhode Island economic

development corporation until such time that the secretary of commerce is appointed; (ii) Upon the

appointment of a secretary of commerce, the chief executive officer of the Rhode Island commerce

corporation, who also shall be the secretary of the Rhode Island executive office of commerce; and

(E) non-voting members, who shall include the members of the general assembly whose districts

are comprised in any part by areas located within the town of North Kingstown and one non-voting

member who shall be a resident of the town of Jamestown, appointed by the town council of the

town of Jamestown. Upon receipt of approval and authorization from the general assembly, the

parent corporation by resolution of the board of directors may direct any of its directors, officers,

or employees to create subsidiary corporations pursuant to chapter 1.2 or 6 of title 7 or in the manner

described in subsection (b); provided, that the parent corporation shall not have any power or

authority to create, empower or otherwise establish any corporation, subsidiary corporation,

corporate body or any form of partnership or any other separate entity, without the express approval

and authorization of the general assembly.

     (ii) The approval and authorization provided herein shall terminate upon the establishment

of the Quonset Development Corporation as provided for in chapter 64.10 of this title.

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     (iii) The Quonset Development Corporation shall be deemed a subsidiary of the Rhode

Island commerce corporation:

     (A) As set forth in § 42-64.10-6(c); and

     (B) Insofar as it exercises any powers and duties delegated to it by the corporation pursuant

to this chapter for any project other than on real and personal property owned, leased or under the

control of the corporation located in the town of North Kingstown, and the corporation shall be

deemed to have authority to delegate any of its powers, with the exception of the power to issue

any form of negotiable bonds or notes and the power of eminent domain, in order to accomplish

the purposes of chapter 64.10 of this title; provided, however, that the corporation may, as provided

for in this chapter, issue bonds or exercise the power of eminent domain on behalf of the Quonset

Development Corporation or to undertake a project of the Quonset Development Corporation.

     (b) As used in this section, "subsidiary public corporation" means a corporation created

pursuant to the provisions of this section. The person or persons directed by the resolution referred

to in subsection (a) shall prepare articles of incorporation setting forth: (1) the name of the

subsidiary public corporation; (2) the period of duration, which may be perpetual; (3) the purpose

or purposes for which the subsidiary public corporation is organized which shall not be more

extensive than the purposes of the corporation set forth in § 42-64-5; (4) the number of directors

(which may, but need not be, more than one) constituting the initial board of directors and their

names and business or residence addresses; (5) the name and business or residence address of the

person preparing the articles of incorporation; (6) the date when corporate existence shall begin

(which shall not be earlier than the filing of the articles of incorporation with the secretary of state

as provided in this subsection); (7) any provision, not inconsistent with law, which the board of

directors elect to set forth in the articles of incorporation for the regulation of the internal affairs of

the subsidiary public corporation; and (8) a reference to the form of authorization and approval by

the general assembly and to the resolution of the board of directors authorizing the preparation of

the articles of incorporation. Duplicate originals of the articles of incorporation shall be delivered

to the secretary of state. If the secretary of state finds that the articles of incorporation conform to

the provisions of this subsection, the secretary shall endorse on each of the duplicate originals the

word "Filed," and the month, day and year of the filing; file one of the duplicate originals in his or

her office; and a certificate of incorporation to which the secretary shall affix the other duplicate

original. No filing fees shall be payable upon the filing of articles of incorporation. Upon the

issuance of the certificate of incorporation or upon a later date specified in the articles of

incorporation, the corporate existence shall begin and the certificate of incorporation shall be

conclusive evidence that all conditions precedent required to be performed have been complied

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with and that the subsidiary public corporation has been duly and validly incorporated under the

provisions hereof. The parent corporation may transfer to any subsidiary public corporation any

moneys, real, personal, or mixed property or any project in order to carry out the purposes of this

chapter. Each subsidiary public corporation shall have all the powers, privileges, rights, immunities,

tax exemptions, and other exemptions of the parent corporation except to the extent that the articles

of incorporation of the subsidiary public corporation shall contain an express limitation and except

that the subsidiary public corporation shall not have the condemnation power contained in § 42-64-

9, nor shall it have the powers contained in, or otherwise be subject to, the provisions of § 42-64-

12 and § 42-64-13(a), nor shall it have the power to create, empower or otherwise establish any

corporation, subsidiary corporation, corporate body, any form of partnership, or any other separate

entity, without the express approval and authorization of the general assembly.

     (c) Any subsidiary corporation shall not be subject to the provisions of § 42-64-8(a), (c),

and (d), except as otherwise provided in the articles of incorporation of the subsidiary corporation.

     (d) The Rhode Island commerce corporation, as the parent corporation of the Rhode Island

Airport Corporation, shall not be liable for the debts or obligations or for any actions or inactions

of the Rhode Island Airport Corporation, unless the Rhode Island commerce corporation expressly

agrees otherwise in writing.

     (e) The East Providence Waterfront District shall, with the approval of its commission and

the board of directors of the corporation, be a subsidiary of the Rhode Island commerce corporation

for the purposes of exercising such powers of the corporation as the board of directors shall

determine, and notwithstanding the requirements of subsection (b), the act creating the District shall

be deemed fully satisfactory for the purposes of this section regarding the establishment of

subsidiary public corporations, and the express approval and authorization of the general assembly

shall be deemed to have been given for all legal purposes for the creation and lawful management

of a subsidiary corporation created for the purposes of implementing the purposes of the District.

     (f) The parent corporation is hereby authorized and empowered to create a subsidiary

corporation for the expressed purpose to issue bonds and notes of the type and for those projects

and purposes specified in the Joint Resolution and Act of the general assembly adopted by the

Rhode Island house of representatives and the Rhode Island senate.

     (g) The I-195 redevelopment district shall be a subsidiary of the Rhode Island commerce

corporation for the purposes of exercising such powers of the corporation as the board of directors

shall determine, and notwithstanding the requirements of subsection (b), the chapter creating the

district shall be deemed fully satisfactory for the purposes of this section regarding the

establishment of subsidiary public corporations, and the express approval and authorization of the

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general assembly shall be deemed to have been given for all legal purposes for the creation and

lawful management of a subsidiary corporation created for the purposes of implementing the

purposes of the district.

     (h) The Rhode Island airport corporation -- appointment of directors:

     The board of directors of the Rhode Island airport corporation shall consist of seven (7)

nine (9) members: The board of directors shall have extensive experience in the fields of finance,

business, construction and/or organized labor.

     The governor of the State of Rhode Island shall appoint, with the advice and consent of the

senate when nominated to serve, the seven (7) nine (9) members of the board of directors. One

director shall be appointed for a term of one year; two (2) directors shall be appointed for a term of

two (2) years; three (3) directors shall be appointed for a term of three (3) years; and one director

shall be appointed for a term of four (4) years. Appointments made thereafter by the governor shall

be for four (4) year terms.

     One director shall be appointed by the governor with advice and consent of the senate from

a recommended list of three (3) candidates provided by the Rhode Island Pilots Association (RIPA)

for a term of four (4) years; and one director shall be appointed by the governor with advice and

consent of the senate from a recommended list of three (3) candidates provided by the Rhode Island

General Aviation Business Owners Association (RIGABOA) for a term of four (4) years.

Appointments made thereafter from the RIPA and RIGABOA shall be for four (4) year terms.

     Any vacancy occurring in the board of directors shall be filled by the governor of the State

of Rhode Island in the same manner prescribed for the original appointments.

     A director appointed to fill a vacancy of a director appointed by the governor of the State

of Rhode Island shall be appointed for the unexpired portion of the term of office of the director

whose vacancy is to be filled.

     All members of the board of directors of the Rhode Island airport corporation shall serve

without compensation.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO AERONAUTICS -- AIRPORTS AND LANDING FIELDS

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     This act would increase the number of years that the department of transportation may lease

airport property where a substantial improvement/building is constructed from a period of up to

thirty (30) years to a period up to fifty (50) years. Additionally, this act would increase the number

of directors on the Rhode Island airport corporation from seven (7) to nine (9) with one appointment

from a list of three (3) candidates from the Rhode Island Pilots Association (RIPA) and one

appointment from a list of three (3) candidates from the Rhode Island General Aviation Business

Owners Association (RIGABOA).

     This act would take effect upon passage.

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