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Legislative Updates 2019

Iowa Public Airports Association
April 19, 2019

The End May Be Near

Lawmakers have accelerated the pace of work at the Statehouse in an effort to windup the 2019 Session of the Legislature.

The final day of the 2019 Session of the Iowa Legislature is scheduled for May 3. That is the day that the per diem (daily expense money) ends for lawmakers.

We will keep you updated on what is shaping up to be a whirlwind two weeks!

House and Senate Disagree on Airport Funding

The Senate has unveiled its infrastructure spending plan. Sadly it provides a status quo level of funding for airport vertical infrastructure.

Now the two chambers are engaged in negotiations to come to agreement on infrastructure funding.

You may remember that the House approved the following airport vertical infrastructure appropriations:

• General Aviation Airport Vertical Infrastructure - $1.2 million (double the FY 19 appropriation)

• Commercial Service Airport Vertical Infrastructure - $2.5 million (a $1 million increase above the FY 19 appropriation)

Here is the Senate’s proposed airport vertical infrastructure appropriations:

• General Aviation Airport Vertical Infrastructure - $700,000

• Commercial Service Airport Vertical Infrastructure - $1.6 million (which includes an additional $100,000 earmark "for planning and design costs for proposed infrastructure improvements at a commercial service airport...)

We will keep you updated!

Bills of Interest:

SF 275 (formerly SSB 1009) - Threat of A Targeted Attack (F) - This bill establishes the criminal offenses of assault by threat of a targeted attack and provides penalties. Specifically the bill provides that any person who threatens to cause serious injury or death to persons assembled in a public place, school building, or any occupied structure other than a single-family residence which thereby places such persons in reasonable apprehension of serious injury or death, or who threatens to commit such an act under circumstances raising a reasonable expectation that the threat will be carried out, commits a class “D” felony. Passed by the Senate 47-2.
Approved by the House 96-0 with an amendment to limit the bill to threats of a targeted attack.

SSB 1040 - Demonstrator Aircraft Registration Loophole Fix (F) - 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.
Approved by Subcommittee

SSB 1039 - UPS-FedEx Taxation Parity (M) - The bill relates to the apportionment of income of an airline and of a qualified air freight forwarder for purposes of the Iowa corporate income tax.
Subcommittee: Feenstra, R Smith and Danielson

HF 607 (formerly HSB 126) - Aircraft Parts Tax Exemption (F) - This bill eliminates state sales and use tax on aircraft component parts permanently attached to an aircraft, including repair or replacement materials or parts, and repair, remodeling, and maintenance services used on an aircraft, aircraft engine, or aircraft component materials or parts.
On House debate calendar

HF 487 (formerly HSB 155) - Emergency Communications Towers (M) - The bill provides that an authority, or governing body authorized to make decisions relative to a communications tower application, shall not reject an application for the installation of a tower or transmission equipment in the unincorporated area of a county with a population of less than 15,000, except for on certain residential or historical property, upon written confirmation from the chairperson of the statewide interoperable communications system board or the governor’s designated single point-of-contact for the first responder network authority activities in Iowa, or the chairperson’s or point-of-contact designee, that the tower or equipment is intended to be installed and used as part of the state plan approved under specified federal law for the deployment of the nationwide public safety broadband network or radio access network.
Passed the House 74-20; Passed the Senate 38-10. Signed into law by the Governor.

HF 390 (formerly HSB 45) - Aircraft Registration Return (M) - This bill alters certain notice provisions involving the return of an aircraft’s certificate of registration to the department of transportation. Under current law, if a registered aircraft is destroyed by fire or accident or junked, and its identity as an aircraft entirely eliminated, or the aircraft is removed and continuously used beyond the boundaries of the state, then the owner is required to return the aircraft’s certificate of registration to the DOT within 30 days, provide an affidavit of the destruction, dismantling, or removal, and make a claim for a refund of the registration fee. The bill strikes the requirement that the owner return the aircraft’s certificate of registration to the DOT within 30 days, and instead requires the owner to provide notice to the DOT within 30 days.
Approved by the House 99-0. Approved by the Senate 50-0. Signed into law by Governor Reynolds.

HF 388 (formerly HSB 88) - Demonstrator Aircraft Registration Loophole Fix (F) - 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.
Approved by Transportation Committee. Approved by Ways and Means subcommittee

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