House File 2248 - Introduced HOUSE FILE 2248 BY HINSON 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 5937YH (3) 87 ns/jh

H.F. 2248 Section 1. Section 328.28, subsection 1, Code 2018, 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 2018, 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 2018, 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 2018, 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 5937YH (3) 87 ns/jh 1/ 3

H.F. 2248 the aircraft, without registering the aircraft, for more than 1 three years in violation of section 328.28. 2 Sec. 5. Section 328.36, subsection 1, Code 2018, is amended 3 to read as follows: 4 1. All moneys received by the department pursuant to section 5 sections 328.21 and 328.29 shall be deposited into the state 6 aviation fund created in section 328.56 . 7 Sec. 6. EFFECTIVE DATE. This Act takes effect June 30, 8 2018. 9 Sec. 7. APPLICABILITY. This Act applies to special 10 certificates issued by the department of transportation 11 that are valid for a period beginning after midnight on June 12 30, 2018. Special certificates issued by the department of 13 transportation that are valid for a period between midnight on 14 June 30, 2018, and midnight on October 31, 2018, shall expire 15 at midnight on October 31, 2019. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 Under current law, an aircraft manufacturer or dealer may 20 operate an aircraft for purposes of transporting, testing, 21 demonstrating, or selling the aircraft without registering the 22 aircraft by obtaining a special certificate from the department 23 of transportation (DOT). This bill limits the period a 24 manufacturer or dealer may operate the aircraft under a special 25 certificate to three years. The bill increases the annual 26 fee for a special certificate from $100 to $400, and provides 27 that a special certificate expires at midnight on October 31 28 rather than midnight on June 30. The bill provides that the 29 DOT may refuse to issue, or may revoke or suspend, a special 30 certificate if the person making application for, or holding, 31 the special certificate operated an aircraft for more than 32 three years in violation of the bill. 33 Under current law, aircraft registration fees collected 34 under Code section 328.21 are required to be deposited in the 35 -2- LSB 5937YH (3) 87 ns/jh 2/ 3

H.F. 2248 state aviation fund. The bill specifies that fees received by 1 the DOT for the issuance of special certificates must also be 2 deposited in the state aviation fund, in accordance with the 3 current practice. 4 The bill takes effect June 30, 2018, and applies to special 5 certificates issued by the DOT that are valid for a period 6 beginning after midnight on June 30, 2018. The bill provides 7 that special certificates issued by the DOT that are valid for 8 a period between midnight on June 30, 2018, and midnight on 9 October 31, 2018, shall expire at midnight on October 31, 2019. 10 Under current law, Code section 328.40 provides that any 11 person who violates any of the provisions of Code chapter 12 328 shall be guilty of a fraudulent practice. A fraudulent 13 practice is punishable by criminal penalties under Code 14 sections 714.9 through 714.13. 15 -3- LSB 5937YH (3) 87 ns/jh 3/ 3