ARTICLE 4.5. Airport Facilities and Concessions [21690.5. - 21690.10.]

Cal. Public Utilities Code - PUC 4.5.
in effect

Cal. Public Utilities Code - PUC § 21690.5. Section 21690.5.

The Legislature finds and declares as follows: (a) The proper operation of California’s publicly owned or operated airports is essential to the welfare of the state and its people. (b) California’s publicly owned or operated airports establish a vital transportation link between the state and the economic systems of the nation and the world, and enable the state to enjoy and provide the benefits of an international tourist and commercial center. (c) The economic validity and stability of California’s publicly owned or operated airports is, consequently, a matter of statewide importance. (d) The policy of this state is to promote the development of commerce and tourism to the end of securing to the people of this state the benefits of these activities conducted in the state. (e) Therefore, since the proper operation of the state’s publicly owned or operated airports is essential to the welfare of the state and its people, the Legislature recognizes and affirms such operation as a governmental function to be discharged in furtherance of the policy of securing the benefits of commerce and tourism for the state and its people.

Cal. Public Utilities Code - PUC § 21690.7. Section 21690.7.

The governing bodies of publicly owned or operated airports shall manage airport facilities and grant airport concessions in furtherance of the development of commerce and tourism in or affecting the state. In managing facilities and granting concessions for services to the public, such airport governing bodies shall promote the development of commerce and tourism by (a) securing a diversity of airport services; (b) avoiding wasteful duplication of such services; (c) securing to the users of airports safe, courteous, and quality service; (d) limiting or prohibiting business competition which is destructive of the ends of promoting commerce and tourism in the state; (e) allocating limited airport resources to promote such ends; and (f) fostering California’s image as a commercial and tourist center.

Cal. Public Utilities Code - PUC § 21690.8. Section 21690.8.

The Legislature recognizes that to further the policies and fulfill the objectives stated in this article, it is often necessary that publicly owned or operated airports enter into exclusive or limited agreements with a single operator or a limited number of operators. The governing bodies of publicly owned or operated airports shall grant exclusive or limited agreements to displace business competition with regulation or monopoly service whenever the governing body determines, in consideration of the factors set forth in Section 21690.9, that such agreements are necessary to further the policies and to fulfill the objectives stated in this article. The Legislature contemplates that publicly owned or operated airports will grant exclusive or limited agreements in furtherance of the policy of this state to displace business competition by exclusive or limited agreements to fulfill these policies and objectives.

Cal. Public Utilities Code - PUC § 21690.9. Section 21690.9.

Before entering any exclusive or limited agreement in connection with the management of any airport facility or the operation of any airport concession, the governing body of a publicly owned or operated airport shall, under authority hereby expressly delegated by the state, determine the necessity for an exclusive or limited agreement. The governing body shall consider the following factors to determine the necessity for an exclusive or limited agreement to further the policies and objectives stated in this article: (a) Public safety. (b) Public convenience. (c) Quality of service. (d) The need to conserve airport space. (e) The need to avoid duplication of services. (f) The impact on the environment or facilities of the airport as an essential commercial and tourist service center. (g) The need to avoid destructive competition which may impair the quality of airport services to the public, lead to uncertainty, disruption, or instability in the rendering of such services, or detract from the state’s attractiveness as a center of tourism and commerce. In making its determination, the airport operator shall not be required to take evidence or to make findings of fact.

Cal. Public Utilities Code - PUC § 21690.10. Section 21690.10.

Nothing in this article shall excuse any local agency from complying with applicable state or local requirements for competitive bidding or public hearings which may be required prior to the awarding or entering into of any bid, agreement or lease.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

Starting a business in California? California LLC guide: costs and requirements