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Legislative Updates 2018

Iowa Public Airports Association
2018 Legislative Session
Final Report

Airport Vertical Infrastructure Funding Increase Approved!
For the second year in a row, funding for airport vertical infrastructure funding exceeded the Governor’s recommended level!

Thanks to the many emails and telephone calls from IPAA members, lawmakers approved $1.5 million for commercial service airport vertical infrastructure and $700,000 for general aviation airport vertical infrastructure. You may recall that Governor Reynolds called for $500,000 for general aviation airport improvements.

No word yet on when the Governor will act on the Infrastructure Appropriations Bill, Senate File 2414. We will keep you updated.

UAV Restrictions Over Correctional Facilities Added to Justice System Spending Bill
The Justice System Appropriations bill, House File 2492, includes a provision that prohibits the use of unmanned aerial vehicles over correctional facilities.

Specifically, the bill prohibits a person from operating “an unmanned aerial vehicle knowing that the unmanned aerial vehicle is operating in, on, or above a facility and any contiguous real property comprising the surrounding grounds of the facility, unless the unmanned unless the unmanned aerial vehicle is operated by a law enforcement agency or the person has permission from the authority in charge of the facility to operate an unmanned aerial vehicle in, on, or above such facility.”

Bills of interest signed into law:

SF 2271 - Taxi Regulation (M) - The bill prohibits a taxicab service from transporting passengers by motor vehicle for hire from any place in this state to another place in this state, irrespective of the route or highway traversed, without first having obtained a taxicab service passenger certificate from the DOT. However, the bill provides that a taxicab service passenger certificate issued by the DOT does not authorize a taxicab service to transport passengers within the boundaries of a local authority that licenses or regulates such vehicles pursuant to Code section 321.236(7) unless the taxicab service is in compliance with all applicable regulations of the local authority. A “taxicab service” is a person engaged in the for-hire transportation of passengers in a taxicab having a seating capacity of less than seven passengers and not operating on a regular route or between specified points.
Passed the Senate 47-2. Approved by the House 96-0. Awaiting Governor’s action

Bill of interest not approved by the legislature:

SF 2395 (formerly SSB 3198) - Air Freight Forwarder Taxes (M) - This bill makes changes to the apportionment of income of an airline and of a qualified air freight forwarder for purposes of the Iowa corporate income tax.
On Senate debate calendar

SF 2101 (formerly SF 2002) - Trespass Markings (M) - The bill establishes a new method for property owners, lessees, and other lawful possessors to provide notice that entry onto the property without permission constitutes criminal trespass. Specifically, proposed new Code section 8716.7(2)(a)(2)(c) indicates that purple marks or caps on trees or posts around an area serves as notice that entry without permission into that area constitutes criminal trespass. This new method of notification of trespass is an independent alternative to preexisting, codified methods of notification in Code section 716.7(2)(a)(2). Approved by the Senate 38-11.
Not approved by House subcommittee.

HF 2473 (formerly HF 2069) - Aircraft Parts Tax Exemption (F) - Current law exempts from the Iowa sales and use tax the sale, rental, or use of 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, provided the aircraft is used in either a scheduled or non-scheduled interstate federal aviation administration (FAA) certified air carrier operation (scheduled or non-scheduled FAA operation). This bill removes the requirement that the aircraft be used in a scheduled or non-scheduled FAA operation to qualify for the exemption. The sale, rental, or use of the component parts and services described above will be exempt from the sales and use tax when permanently attached to or performed on any aircraft. The bill defines “aircraft” to mean the same as it does for purposes of Code chapter 328 (aeronautics), which includes any contrivance now known, or hereafter invented, used or designed for navigation of or flight in the air, for the purpose of transporting persons or property, or both.
On House debate calendar

HF 2336 - Demonstration Aircraft Certificates (F) - The bill limits the period a manufacturer or dealer may operate an 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.
Approved by Ways and Means subcommittee

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