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House File 2336 - 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 2018, 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 2018, 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 2018, 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 2018, 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, for more than
2three years in violation of section 328.28.
3 Sec. 5. Section 328.36, subsection 1, Code 2018, is amended
4to read as follows:
51. All moneys received by the department pursuant to section
6 sections 328.21 and 328.29 shall be deposited into the state
7aviation fund created in section 328.56.
8 Sec. 6. EFFECTIVE DATE. This Act takes effect June 30,
92018.
10 Sec. 7. APPLICABILITY. This Act applies to special
11certificates issued by the department of transportation
12that are valid for a period beginning after midnight on June
1330, 2018. Special certificates issued by the department of
14transportation that are valid for a period between midnight on
15June 30, 2018, and midnight on October 31, 2018, shall expire
16at midnight on October 31, 2019.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20Under current law, an aircraft manufacturer or dealer may
21operate an aircraft for purposes of transporting, testing,
22demonstrating, or selling the aircraft without registering the
23aircraft by obtaining a special certificate from the department
24of transportation (DOT). This bill limits the period a
25manufacturer or dealer may operate the aircraft under a special
26certificate to three years. The bill increases the annual
27fee for a special certificate from $100 to $400, and provides
28that a special certificate expires at midnight on October 31
29rather than midnight on June 30. The bill provides that the
30DOT may refuse to issue, or may revoke or suspend, a special
31certificate if the person making application for, or holding,
32the special certificate operated an aircraft for more than
33three years in violation of the bill.
34Under current law, aircraft registration fees collected
35under Code section 328.21 are required to be deposited in the
-2-1state aviation fund. The bill specifies that fees received by
2the DOT for the issuance of special certificates must also be
3deposited in the state aviation fund, in accordance with the
4current practice.
5The bill takes effect June 30, 2018, and applies to special
6certificates issued by the DOT that are valid for a period
7beginning after midnight on June 30, 2018. The bill provides
8that special certificates issued by the DOT that are valid for
9a period between midnight on June 30, 2018, and midnight on
10October 31, 2018, shall expire at midnight on October 31, 2019.
11Under current law, Code section 328.40 provides that any
12person who violates any of the provisions of Code chapter
13328 shall be guilty of a fraudulent practice. A fraudulent
14practice is punishable by criminal penalties under Code
15sections 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 2018, 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 2018, 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 2018, 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 2018, 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, for more than
2three years in violation of section 328.28.
3 Sec. 5. Section 328.36, subsection 1, Code 2018, is amended
4to read as follows:
51. All moneys received by the department pursuant to section
6 sections 328.21 and 328.29 shall be deposited into the state
7aviation fund created in section 328.56.
8 Sec. 6. EFFECTIVE DATE. This Act takes effect June 30,
92018.
10 Sec. 7. APPLICABILITY. This Act applies to special
11certificates issued by the department of transportation
12that are valid for a period beginning after midnight on June
1330, 2018. Special certificates issued by the department of
14transportation that are valid for a period between midnight on
15June 30, 2018, and midnight on October 31, 2018, shall expire
16at midnight on October 31, 2019.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20Under current law, an aircraft manufacturer or dealer may
21operate an aircraft for purposes of transporting, testing,
22demonstrating, or selling the aircraft without registering the
23aircraft by obtaining a special certificate from the department
24of transportation (DOT). This bill limits the period a
25manufacturer or dealer may operate the aircraft under a special
26certificate to three years. The bill increases the annual
27fee for a special certificate from $100 to $400, and provides
28that a special certificate expires at midnight on October 31
29rather than midnight on June 30. The bill provides that the
30DOT may refuse to issue, or may revoke or suspend, a special
31certificate if the person making application for, or holding,
32the special certificate operated an aircraft for more than
33three years in violation of the bill.
34Under current law, aircraft registration fees collected
35under Code section 328.21 are required to be deposited in the
-2-1state aviation fund. The bill specifies that fees received by
2the DOT for the issuance of special certificates must also be
3deposited in the state aviation fund, in accordance with the
4current practice.
5The bill takes effect June 30, 2018, and applies to special
6certificates issued by the DOT that are valid for a period
7beginning after midnight on June 30, 2018. The bill provides
8that special certificates issued by the DOT that are valid for
9a period between midnight on June 30, 2018, and midnight on
10October 31, 2018, shall expire at midnight on October 31, 2019.
11Under current law, Code section 328.40 provides that any
12person who violates any of the provisions of Code chapter
13328 shall be guilty of a fraudulent practice. A fraudulent
14practice is punishable by criminal penalties under Code
15sections 714.9 through 714.13.
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