July 06, 2007

July 2008 Legislation Report

Greetings!  First, Here’s an update from Washington, D.C. In February, the Federal Aviation Administration proposed the creation of an array of new user fees to fund the U.S. Air Transportation System. Much of the industry gave the proposal a ‘thumbs down,’ with a key exception being the Air Transport Association, which a year earlier had released a position paper that was very similar to the subsequent FAA proposal. Airports want the cap on passenger facility charges (PFCs) raised and indexed for inflation. User groups (other than the airlines) are essentially calling for the status quo.

It is up to Congress to make the final determination on how to fund the system while also modernizing the Air Traffic Control System the need for which all parties agree.

Meanwhile, another debate has emerged involving money a rates and charges showdown at Los Angeles International Airport that could have-lasting repercussions for airports and their tenants. In the final analysis, it is all a moving target, at best.

Second, The U.S. Senate Committee on Commerce, Science and Transportation approved S.1300, the Aviation Investment and Modernization Act of 2007, which authorizes FAA and other programs through 2011. The U.S. House had yet to come forward with its reauthorization bill.

Comments NATA, “The Senate’s FAA reauthorization largely maintains the status quo…” It does not make changes to current aviation taxes, which fall under the domain of the Senate Committee on Finance. Here are some key S.1300 provisions:

  • Establishes an Air Traffic Modernization Fund, which will collect a $25 surcharge for all commercial and turbine-powered flights.
  • Creates an ATC Oversight Board, made up of government and industry representatives, and authorizes the Department of Transportation to borrow funds via bonds for ATC capital projects to facilitate modernization.
  • Increases Airport Improvement Program funding levels, starting with $3.8 billion in 2008, and ending with $4.1 billion in 2011.

S.1300, however, does not raise the cap on PFCs, which, with the exception of ATA, is generally supported by industry. It is at the top of the airport groups’ wish list, and FAA had proposed raising the cap from the current $4.50 to $6.00, but not indexed for inflation.

The Senate bill does call for a pilot program to allow up to six airports to charge their cap and to collect the fees themselves.

Thirdly, Here is an update concerning Missouri Aviation. The only Airport and Aviation Bills are as follows:

 

Missouri House of Representatives
94th General Assembly, 1st Regular Session (2007)
Bills Indexed by Subject
AIRCRAFT AND AIRPORTS


HB 118 --- Sponsor: Aull, Joe --- CoSponsor: Schaaf, Robert

Specifies the situations in which the Civil Air Patrol may be activated, which missions are federal or state, and who pays for the missions

HB 302 --- Sponsor: Bruns, Mark J. --- CoSponsor: Schaaf, Robert

Changes the laws regarding state aviation trust funds and air traffic control towers

HB 305 --- Sponsor: Bruns, Mark J. --- CoSponsor: Page, Sam

Increases the limit on the amount deposited into the Aviation Trust Fund to $8.5 million

HB 529 --- Sponsor: Bruns, Mark J.

Changes the laws regarding the Aviation Trust Fund and air traffic control towers

HB 571 --- Sponsor: St. Onge, Neal C. --- CoSponsor: Schneider, Vicki

Changes the definition of "commercial aircraft" by lowering the maximum certified gross take-off weight from 7,000 to 1,000 pounds

HB 619 --- Sponsor: Aull, Joe --- CoSponsor: Schaaf, Robert

Specifies the situations in which the Civil Air Patrol may be activated, which missions are federal or state, and who pays for the missions

HB 624 --- Sponsor: Wilson, Larry --- CoSponsor: Quinn, Paul

Changes the laws regarding taxation and regional economic development districts

SB 120 --- Sponsor: Nodler, Gary

Increases the cap on the Aviation Trust Fund and allows the Aviation Trust Fund to be used for certain federal air traffic control cost-sharing programs

SB 602 --- Sponsor: Kennedy, Harry

Creates a sales and use tax exemption for purchases of aviation fuel for transoceanic flights



Last Updated July 5, 2007 at 4:20 pm

 

NOTE: Here’s your Web site address for Texas Legislation: www.texas.gov

Look for Transportation-Aviation, to search all aviation bills.

 

Web site address for Illinois Legislation: www.illinois.gov

Look for Transportation-Aviation, to search all aviation bills.

 

All other State Pilot Associations can follow the same format to search your specific state’s aviation and airport bills.

 

Remember, that as members of USPA, MPA, TPA, TXAA, NMPA, NPA, EAA, AOPA, or other pilot associations of which you may be a member, we have a powerful voice, in Missouri, Illinois, Indiana, Texas, or whatever state that you may represent. Every group of taxpayers and pilots carries a strong voice to Washington, D.C., as well as at the state and local level.

We need to learn how to use our voices, and speak up for General Aviation.

So let’s not forget to exercise our rights and privileges, so we can continue to make a “Difference for General Aviation.”

 

 

Posted by JC at 04:50 PM | Comments (0)