Bill Text: IA SSB1040 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to special certificates issued to aircraft manufacturers, transporters, and dealers, providing fees, making penalties applicable, and including effective date and applicability provisions.

Spectrum: Partisan Bill (? 1-0)

Status: (N/A) 2019-03-28 - Subcommittee Meeting: 04/03/2019 11:30AM Senate Lobbyist Lounge. [SSB1040 Detail]

Download: Iowa-2019-SSB1040-Introduced.html
Senate Study Bill 1040 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act relating to special certificates issued to aircraft 1 manufacturers, transporters, and dealers, providing fees, 2 making penalties applicable, and including effective date 3 and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1473XC (1) 88 ns/rh
S.F. _____ Section 1. Section 328.28, subsection 1, Code 2019, is 1 amended to read as follows: 2 1. A manufacturer or dealer owning an aircraft otherwise 3 required to be registered under this chapter may operate the 4 aircraft for up to three years for purposes of transporting, 5 testing, demonstrating, or selling the aircraft without 6 registering the aircraft, upon condition that a special 7 certificate be obtained by the owner for each year the owner 8 operates the aircraft as provided in this section and sections 9 328.29 through 328.33 . 10 Sec. 2. Section 328.29, Code 2019, is amended to read as 11 follows: 12 328.29 Application for special certificate —— fee. 13 A manufacturer, transporter, or dealer may, upon payment 14 of a one four hundred dollar fee, make application to the 15 department upon such forms as the department may prescribe 16 for a special certificate. The applicant shall also submit 17 such reasonable proof of the applicant’s status as a bona fide 18 manufacturer, transporter, or dealer as the department may 19 require. Dealers in new aircraft shall furnish satisfactory 20 evidence of a valid franchise with the manufacturer or 21 distributor of such aircraft authorizing such dealership. 22 Sec. 3. Section 328.32, Code 2019, is amended to read as 23 follows: 24 328.32 Expiration of special certificate. 25 A special certificate expires at midnight on June 30 October 26 31 , and a new special certificate for the ensuing year may be 27 obtained by the person to whom the expired special certificate 28 was issued, upon application to the department and payment of 29 the fee provided in section 328.29 . 30 Sec. 4. Section 328.34, Code 2019, is amended by adding the 31 following new subsection: 32 NEW SUBSECTION . 7. That the person making application for, 33 or holding, a special certificate operated an aircraft for 34 purposes of transporting, testing, demonstrating, or selling 35 -1- LSB 1473XC (1) 88 ns/rh 1/ 3
S.F. _____ the aircraft, without registering the aircraft, after three 1 years of holding a special certificate for the aircraft in 2 violation of section 328.28. 3 Sec. 5. Section 328.36, subsection 1, Code 2019, is amended 4 to read as follows: 5 1. All moneys received by the department pursuant to section 6 sections 328.21 and 328.29 shall be deposited into the state 7 aviation fund created in section 328.56 . 8 Sec. 6. EFFECTIVE DATE. This Act takes effect June 30, 9 2019. 10 Sec. 7. APPLICABILITY. This Act applies to special 11 certificates issued by the department of transportation 12 that are valid for a period beginning after midnight on June 13 30, 2019. Special certificates issued by the department of 14 transportation that are valid for a period beginning after 15 midnight on June 30, 2019, but beginning before midnight on 16 October 31, 2019, shall expire at midnight on October 31, 17 2020, and the validity period for such special certificates 18 shall count as only one year for purposes of section 328.28, 19 subsection 1, as amended in this Act, and section 328.34, 20 subsection 7, as enacted in this Act. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 Under current law, an aircraft manufacturer or dealer may 25 operate an aircraft for purposes of transporting, testing, 26 demonstrating, or selling the aircraft without registering the 27 aircraft by obtaining a special certificate from the department 28 of transportation (DOT). This bill limits the period a 29 manufacturer or dealer may operate the aircraft under a special 30 certificate to three years. The bill increases the annual 31 fee for a special certificate from $100 to $400, and provides 32 that a special certificate expires at midnight on October 31 33 rather than midnight on June 30. The bill provides that the 34 DOT may refuse to issue, or may revoke or suspend, a special 35 -2- LSB 1473XC (1) 88 ns/rh 2/ 3
S.F. _____ certificate if the person making application for, or holding, 1 the special certificate operated such an aircraft after three 2 years of holding a special certificate for the aircraft in 3 violation of the bill. 4 Under current law, aircraft registration fees collected 5 under Code section 328.21 are required to be deposited in the 6 state aviation fund. The bill specifies that fees received by 7 the DOT for the issuance of special certificates must also be 8 deposited in the state aviation fund, in accordance with the 9 current practice. 10 The bill takes effect June 30, 2019, and applies to special 11 certificates issued by the DOT that are valid for a period 12 beginning after midnight on June 30, 2019. The bill provides 13 that special certificates issued by the DOT that are valid 14 for a period beginning after midnight on June 30, 2019, but 15 beginning before midnight on October 31, 2019, shall expire at 16 midnight on October 31, 2020, and the validity period for such 17 special certificates shall count as only one year for purposes 18 of the bill. 19 Under current law, Code section 328.40 provides that any 20 person who violates any of the provisions of Code chapter 21 328 shall be guilty of a fraudulent practice. A fraudulent 22 practice is punishable by criminal penalties under Code 23 sections 714.9 through 714.13. 24 -3- LSB 1473XC (1) 88 ns/rh 3/ 3
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