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House File 388 - IntroducedA Bill ForAn Act 1relating to special certificates issued to aircraft
2manufacturers, transporters, and dealers, providing fees,
3making penalties applicable, and including effective date
4and applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 328.28, subsection 1, Code 2019, is
2amended to read as follows:
31. A manufacturer or dealer owning an aircraft otherwise
4required to be registered under this chapter may operate the
5aircraft for up to three years for purposes of transporting,
6testing, demonstrating, or selling the aircraft without
7registering the aircraft, upon condition that a special
8certificate be obtained by the owner for each year the owner
9operates the aircraft as provided in this section and sections
10328.29 through 328.33.
11 Sec. 2. Section 328.29, Code 2019, is amended to read as
12follows:
13328.29 Application for special certificate — fee.
14A manufacturer, transporter, or dealer may, upon payment
15of a one four hundred dollar fee, make application to the
16department upon such forms as the department may prescribe
17for a special certificate. The applicant shall also submit
18such reasonable proof of the applicant’s status as a bona fide
19manufacturer, transporter, or dealer as the department may
20require. Dealers in new aircraft shall furnish satisfactory
21evidence of a valid franchise with the manufacturer or
22distributor of such aircraft authorizing such dealership.
23 Sec. 3. Section 328.32, Code 2019, is amended to read as
24follows:
25328.32 Expiration of special certificate.
26A special certificate expires at midnight on June 30 October
2731, and a new special certificate for the ensuing year may be
28obtained by the person to whom the expired special certificate
29was issued, upon application to the department and payment of
30the fee provided in section 328.29.
31 Sec. 4. Section 328.34, Code 2019, is amended by adding the
32following new subsection:
33 NEW SUBSECTION. 7. That the person making application for,
34or holding, a special certificate operated an aircraft for
35purposes of transporting, testing, demonstrating, or selling
-1-1the aircraft, without registering the aircraft, after three
2years of holding a special certificate for the aircraft in
3violation of section 328.28.
4 Sec. 5. Section 328.36, subsection 1, Code 2019, is amended
5to read as follows:
61. All moneys received by the department pursuant to section
7 sections 328.21 and 328.29 shall be deposited into the state
8aviation fund created in section 328.56.
9 Sec. 6. EFFECTIVE DATE. This Act takes effect June 30,
102019.
11 Sec. 7. APPLICABILITY. This Act applies to special
12certificates issued by the department of transportation
13that are valid for a period beginning after midnight on June
1430, 2019. Special certificates issued by the department of
15transportation that are valid for a period beginning after
16midnight on June 30, 2019, but beginning before midnight on
17October 31, 2019, shall expire at midnight on October 31,
182020, and the validity period for such special certificates
19shall count as only one year for purposes of section 328.28,
20subsection 1, as amended in this Act, and section 328.34,
21subsection 7, as enacted in this Act.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25Under current law, an aircraft manufacturer or dealer may
26operate an aircraft for purposes of transporting, testing,
27demonstrating, or selling the aircraft without registering the
28aircraft by obtaining a special certificate from the department
29of transportation (DOT). This bill limits the period a
30manufacturer or dealer may operate the aircraft under a special
31certificate to three years. The bill increases the annual
32fee for a special certificate from $100 to $400, and provides
33that a special certificate expires at midnight on October 31
34rather than midnight on June 30. The bill provides that the
35DOT may refuse to issue, or may revoke or suspend, a special
-2-1certificate if the person making application for, or holding,
2the special certificate operated such an aircraft after three
3years of holding a special certificate for the aircraft in
4violation of the bill.
5Under current law, aircraft registration fees collected
6under Code section 328.21 are required to be deposited in the
7state aviation fund. The bill specifies that fees received by
8the DOT for the issuance of special certificates must also be
9deposited in the state aviation fund, in accordance with the
10current practice.
11The bill takes effect June 30, 2019, and applies to special
12certificates issued by the DOT that are valid for a period
13beginning after midnight on June 30, 2019. The bill provides
14that special certificates issued by the DOT that are valid
15for a period beginning after midnight on June 30, 2019, but
16beginning before midnight on October 31, 2019, shall expire at
17midnight on October 31, 2020, and the validity period for such
18special certificates shall count as only one year for purposes
19of the bill.
20Under current law, Code section 328.40 provides that any
21person who violates any of the provisions of Code chapter
22328 shall be guilty of a fraudulent practice. A fraudulent
23practice is punishable by criminal penalties under Code
24sections 714.9 through 714.13.
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2manufacturers, transporters, and dealers, providing fees,
3making penalties applicable, and including effective date
4and applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 328.28, subsection 1, Code 2019, is
2amended to read as follows:
31. A manufacturer or dealer owning an aircraft otherwise
4required to be registered under this chapter may operate the
5aircraft for up to three years for purposes of transporting,
6testing, demonstrating, or selling the aircraft without
7registering the aircraft, upon condition that a special
8certificate be obtained by the owner for each year the owner
9operates the aircraft as provided in this section and sections
10328.29 through 328.33.
11 Sec. 2. Section 328.29, Code 2019, is amended to read as
12follows:
13328.29 Application for special certificate — fee.
14A manufacturer, transporter, or dealer may, upon payment
15of a one four hundred dollar fee, make application to the
16department upon such forms as the department may prescribe
17for a special certificate. The applicant shall also submit
18such reasonable proof of the applicant’s status as a bona fide
19manufacturer, transporter, or dealer as the department may
20require. Dealers in new aircraft shall furnish satisfactory
21evidence of a valid franchise with the manufacturer or
22distributor of such aircraft authorizing such dealership.
23 Sec. 3. Section 328.32, Code 2019, is amended to read as
24follows:
25328.32 Expiration of special certificate.
26A special certificate expires at midnight on June 30 October
2731, and a new special certificate for the ensuing year may be
28obtained by the person to whom the expired special certificate
29was issued, upon application to the department and payment of
30the fee provided in section 328.29.
31 Sec. 4. Section 328.34, Code 2019, is amended by adding the
32following new subsection:
33 NEW SUBSECTION. 7. That the person making application for,
34or holding, a special certificate operated an aircraft for
35purposes of transporting, testing, demonstrating, or selling
-1-1the aircraft, without registering the aircraft, after three
2years of holding a special certificate for the aircraft in
3violation of section 328.28.
4 Sec. 5. Section 328.36, subsection 1, Code 2019, is amended
5to read as follows:
61. All moneys received by the department pursuant to section
7 sections 328.21 and 328.29 shall be deposited into the state
8aviation fund created in section 328.56.
9 Sec. 6. EFFECTIVE DATE. This Act takes effect June 30,
102019.
11 Sec. 7. APPLICABILITY. This Act applies to special
12certificates issued by the department of transportation
13that are valid for a period beginning after midnight on June
1430, 2019. Special certificates issued by the department of
15transportation that are valid for a period beginning after
16midnight on June 30, 2019, but beginning before midnight on
17October 31, 2019, shall expire at midnight on October 31,
182020, and the validity period for such special certificates
19shall count as only one year for purposes of section 328.28,
20subsection 1, as amended in this Act, and section 328.34,
21subsection 7, as enacted in this Act.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25Under current law, an aircraft manufacturer or dealer may
26operate an aircraft for purposes of transporting, testing,
27demonstrating, or selling the aircraft without registering the
28aircraft by obtaining a special certificate from the department
29of transportation (DOT). This bill limits the period a
30manufacturer or dealer may operate the aircraft under a special
31certificate to three years. The bill increases the annual
32fee for a special certificate from $100 to $400, and provides
33that a special certificate expires at midnight on October 31
34rather than midnight on June 30. The bill provides that the
35DOT may refuse to issue, or may revoke or suspend, a special
-2-1certificate if the person making application for, or holding,
2the special certificate operated such an aircraft after three
3years of holding a special certificate for the aircraft in
4violation of the bill.
5Under current law, aircraft registration fees collected
6under Code section 328.21 are required to be deposited in the
7state aviation fund. The bill specifies that fees received by
8the DOT for the issuance of special certificates must also be
9deposited in the state aviation fund, in accordance with the
10current practice.
11The bill takes effect June 30, 2019, and applies to special
12certificates issued by the DOT that are valid for a period
13beginning after midnight on June 30, 2019. The bill provides
14that special certificates issued by the DOT that are valid
15for a period beginning after midnight on June 30, 2019, but
16beginning before midnight on October 31, 2019, shall expire at
17midnight on October 31, 2020, and the validity period for such
18special certificates shall count as only one year for purposes
19of the bill.
20Under current law, Code section 328.40 provides that any
21person who violates any of the provisions of Code chapter
22328 shall be guilty of a fraudulent practice. A fraudulent
23practice is punishable by criminal penalties under Code
24sections 714.9 through 714.13.
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