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Legislative Updates 2019

Iowa Public Airports Association
End of Session Report

2019 Legislative Session Comes to an End

After a four day stretch of nearly 12-hour long days, the 2019 edition of the Iowa Legislature finally concluded its work during the afternoon of Saturday, April 27.

The battle over how much to spend on health care programs and what, if any tax credits, would be approved were the focus of much of the consternation and deliberations that punctuated the ending days and hours.

Governor Reynolds has until the end of May to either veto or sign into law the bills that were passed by both chambers.

We will keep you updated on any action taken by the Governor on bills of interest.

Airport Vertical Infrastructure Funds Increased!

The Infrastructure spending plan agreed to by the House and Senate, and sent to Governor Reynolds, includes an increase in funding for the commercial service and general aviation airport vertical infrastructure programs.

The final numbers as contained in House File 765 are:

Commercial Service Airport Vertical Infrastructure: $1.9 million (a $400,000 increase)

General Aviation Airport Vertical Infrastructure: $1.0 million (a $300,000 increase)

Thanks again to all the IPAA members who contacted their area lawmakers about the infrastructure needs at Iowa’s airports!

Legislature Takes A Pass on New Tax Credits This Session

In a rather unusual move, the House and Senate did not enact any new tax credits nor did they eliminate any current taxes.

As you may recall the House Ways and Means Committee gave its approval to legislation to eliminate the tax on parts and repairs of aircraft.

The IPAA, with the assistance of AOPA and the Iowa Association of Business and Industry, was able to keep the elimination of the aviation taxes in consideration until the final hours of the last day of the 2019 Session.

We will continue to work with lawmakers to eliminate this taxation disadvantage. Iowa’s FBOs, airports and aviation mechanics deserve a level playing field with neighboring states.

Flood Recovery Funds Approved

In response to the devastating flooding experienced in western Iowa, $15 million dollars are being appropriated to help political subdivisions recover.

As part of the Senate File 638, the Standing Appropriation Bill, the money is being directed to the state’s Flood Mitigation Board for use in projects that support flood recovery, flood response and/or flood prevention.

Any IPAA member who sustained damage due to the recently spring flooding are encouraged to contact the state Flood Mitigation Board to make application.

Other Bills Sent To The Governor:

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.

Bills of Interest:

These bills remain eligible for continued consideration during the 2020 session of the Iowa Legislature.

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 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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