HF 388 (LSB 1473HV (1) 88)

HOUSE FILE 388

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO HSB 88)

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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 328.28, subsection 1, Code 2019, is amended to read as follows:
   1.  A manufacturer or dealer owning an aircraft otherwise required to be registered under this chapter may operate the aircraft for up to three years for purposes of transporting, testing, demonstrating, or selling the aircraft without registering the aircraft, upon condition that a special certificate be obtained by the owner for each year the owner operates the aircraft as provided in this section and sections 328.29 through 328.33.
    Sec. 2.  Section 328.29, Code 2019, is amended to read as follows:
   328.29  Application for special certificate —— fee.
   A manufacturer, transporter, or dealer may, upon payment of a one four hundred dollar fee, make application to the department upon such forms as the department may prescribe for a special certificate. The applicant shall also submit such reasonable proof of the applicant’s status as a bona fide manufacturer, transporter, or dealer as the department may require. Dealers in new aircraft shall furnish satisfactory evidence of a valid franchise with the manufacturer or distributor of such aircraft authorizing such dealership.
    Sec. 3.  Section 328.32, Code 2019, is amended to read as follows:
   328.32  Expiration of special certificate.
   A special certificate expires at midnight on June 30 October 31, and a new special certificate for the ensuing year may be obtained by the person to whom the expired special certificate was issued, upon application to the department and payment of the fee provided in section 328.29.
    Sec. 4.  Section 328.34, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  That the person making application for, or holding, a special certificate operated an aircraft for purposes of transporting, testing, demonstrating, or selling the aircraft, without registering the aircraft, after three years of holding a special certificate for the aircraft in violation of section 328.28.
    Sec. 5.  Section 328.36, subsection 1, Code 2019, is amended to read as follows:
   1.  All moneys received by the department pursuant to section sections 328.21 and 328.29 shall be deposited into the state aviation fund created in section 328.56.
    Sec. 6.  EFFECTIVE DATE.  This Act takes effect June 30, 2019.
    Sec. 7.  APPLICABILITY.  This Act applies to special certificates issued by the department of transportation that are valid for a period beginning after midnight on June 30, 2019. Special certificates issued by the department of transportation that are valid for a period beginning after midnight on June 30, 2019, but beginning before midnight on October 31, 2019, shall expire at midnight on October 31, 2020, and the validity period for such special certificates shall count as only one year for purposes of section 328.28, subsection 1, as amended in this Act, and section 328.34, subsection 7, as enacted in this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, an aircraft manufacturer or dealer may operate an aircraft for purposes of transporting, testing, demonstrating, or selling the aircraft without registering the aircraft by obtaining a special certificate from the department of transportation (DOT). This bill limits the period a manufacturer or dealer may operate the aircraft under a special certificate to three years. The bill increases the annual fee for a special certificate from $100 to $400, and provides that a special certificate expires at midnight on October 31 rather than midnight on June 30. The bill provides that the DOT may refuse to issue, or may revoke or suspend, a special certificate if the person making application for, or holding, the special certificate operated such an aircraft after three years of holding a special certificate for the aircraft in violation of the bill. 
   Under current law, aircraft registration fees collected under Code section 328.21 are required to be deposited in the state aviation fund. The bill specifies that fees received by the DOT for the issuance of special certificates must also be deposited in the state aviation fund, in accordance with the current practice.
   The bill takes effect June 30, 2019, and applies to special certificates issued by the DOT that are valid for a period beginning after midnight on June 30, 2019. The bill provides that special certificates issued by the DOT that are valid for a period beginning after midnight on June 30, 2019, but beginning before midnight on October 31, 2019, shall expire at midnight on October 31, 2020, and the validity period for such special certificates shall count as only one year for purposes of the bill.
   Under current law, Code section 328.40 provides that any person who violates any of the provisions of Code chapter 328 shall be guilty of a fraudulent practice. A fraudulent practice is punishable by criminal penalties under Code sections 714.9 through 714.13.