Bill Text: MI HB5773 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Aeronautics; other; dealer's license and registration fees; increase, and impose an ad valorem tax on aviation fuel. Amends secs. 51, 77, 82 & 203 of 1945 PA 327 (MCL 259.51 et seq.).

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2010-02-03 - Printed Bill Filed 02/03/2010 [HB5773 Detail]

Download: Michigan-2009-HB5773-Introduced.html

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HOUSE BILL No. 5773

 

February 2, 2010, Introduced by Reps. Leland, Donigan, Lindberg, Byrnes, Haugh, Lahti and Nerat and referred to the Committee on Transportation.

 

     A bill to amend 1945 PA 327, entitled

 

"Aeronautics code of the state of Michigan,"

 

by amending sections 51, 77, 82, and 203 (MCL 259.51, 259.77,

 

259.82, and 259.203), section 51 as amended by 2002 PA 35, sections

 

77 and 82 as amended by 1996 PA 370, and section 203 as amended by

 

2008 PA 25.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 51. (1) The commission has general supervision over

 

aeronautics within this state. The commission shall encourage,

 

foster, and participate with and provide grants to the political

 

subdivisions of this state in the development of aeronautics within

 

this state. The commission shall establish and encourage the

 

establishment of airports, landing fields, and other aeronautical

 

facilities. The commission shall promulgate rules that it considers

 

necessary and advisable for the public safety governing the

 

designing, laying out, location, building, equipping, and operation

 

of airports and landing fields and shall exercise exclusive

 

authority to approve the location and operation of airports,

 

landing fields, and other aeronautical facilities within the state,

 

so as to assure a uniformity in regulations covering aeronautics.

 

In order to implement this act, the commission may establish

 

programs of state financial assistance in the form of grants,

 

leases, loans, and purchases, or a combination of grants, leases,

 

loans, and purchases, for assisting political subdivisions or other

 

persons. The commission shall not grant an exclusive right for the

 

use of an aeronautical facility. The commission may by the issuance

 

of appropriate and effective rules register pilot's certificates

 

issued by the civil aeronautics authority or other similar federal

 

authority to resident pilots of the state for which it may charge a

 

fee not to exceed $5.00; govern and regulate commercial operations

 

in intrastate commerce for which it may charge a fee of not more

 

than $25.00; and provide for the licensing of aircraft dealers for

 

which it may charge a fee of not more than $25.00 $100.00.

 

     (2) The commission shall cooperate with and assist the federal

 

government, state governments, authorities of political

 

subdivisions, and individuals engaged in aeronautics or the

 

development of aeronautics, and shall seek to coordinate the

 

aeronautical activities of these entities. The commission may

 

confer with or hold joint hearings with any federal or state

 

governments, their agencies, the authorities of political

 

subdivisions, and individuals, in connection with any matter

 

arising under this act, and avail itself of the cooperation,

 

services, records, and facilities of those agencies in the

 

administration and enforcement of this act. The commission shall

 

reciprocate by furnishing governments and their agencies its

 

cooperation, services, records, and facilities, insofar as may be

 

practicable.

 

     (3) The commission may perform acts, issue and amend orders,

 

and make, promulgate, and amend reasonable general or special rules

 

and procedures, and establish minimum standards, consistent with

 

this act, which it considers necessary to implement this act and to

 

perform its duties under this act, all commensurate with and for

 

the purpose of protecting and insuring the general public interest,

 

health, welfare, and safety. The commission may adopt and enforce

 

the provisions of the currently effective federal legislation

 

governing aeronautics. The commission shall promulgate rules to

 

implement this act. The commission may deviate from or add to rules

 

if necessary for the public safety and for the safety of aircraft

 

and airmen within the state. A rule of the commission shall not

 

apply to aeronautical facilities owned by the federal government.

 

     (4) For the safety of aircraft and airmen within this state

 

the commission may designate, establish, or modify a state airways

 

system. The commission may publish and distribute maps, charts, and

 

information relating to that system.

 

     (5) The commission, a commission member or employee, the

 

director, and every state, county, and municipal officer charged

 

with the enforcement of state and municipal laws shall enforce and

 

assist in the enforcement of this act and of rules promulgated

 

under this act, and of all other laws of this state relating to

 

aeronautics. In the aid of enforcement, general police powers are

 

conferred upon the commission, each of its members, the director,

 

and the officers and employees of the commission designated by the

 

commission to exercise those powers. The commission is further

 

authorized to enforce this act and rules promulgated under this act

 

by injunction in the circuit court. The prosecuting attorney of the

 

county in which an offense is committed shall prosecute offenders

 

against this act and other aeronautical laws of this state, or any

 

rule promulgated under this act or order issued by the commission.

 

When a complaint is made before a municipal court in a city having

 

such a court, or the district court in the county, district, or

 

political subdivision in which venue is proper, that court may take

 

cognizance, hear, try, and determine such matters and pass sentence

 

upon offenders in accordance with law.

 

     (6) The commission, a commission member, the director, or an

 

employee designated by the commission may hold investigations,

 

inquiries, and hearings concerning matters covered by this act,

 

aircraft accidents, or orders and rules of the commission. Each

 

person designated may administer oaths and affirmations, certify to

 

official acts, issue subpoenas, and compel the attendance and

 

testimony of witnesses, and the production of papers, books, and

 

documents. In case of failure to comply with a subpoena or order

 

issued under this act, the commission, or its authorized

 

representative, may invoke the aid of a court of general

 

jurisdiction. The court may order the witness to comply with the

 

requirements of the subpoena or order, or to give evidence touching

 

the matter in question. Failure to obey the order of the court may

 

be punished by the court as contempt.

 

     (7) In order to facilitate investigations by the commission in

 

the interest of public safety and development of aeronautics, the

 

reports of investigations or hearings, or any part of them, shall

 

not be admitted in evidence or used for any purpose in an action or

 

proceeding growing out of a matter referred to in the

 

investigation, hearing, or report, except in case of criminal or

 

other proceedings instituted in behalf of the state under this act

 

or any other law of this state relating to aeronautics. A

 

commissioner, director, or an officer or employee of the commission

 

shall not be required to testify to facts ascertained in, or

 

information gained by reason of, his or her official capacity, or

 

be required to testify as an expert witness in an action or

 

proceeding involving an aircraft. Except as otherwise provided in

 

this section, the commission may make available to appropriate

 

federal and state agencies information and material developed in

 

the course of its hearings and investigations.

 

     (8) For the purposes of executing its powers and duties under

 

this act, the commission, upon recommendations to the state

 

administrative board, may enter into necessary contracts.

 

     Sec. 77. (1) If an aircraft is registered under this act, the

 

commission shall send an application for renewal registration to

 

the owner of the aircraft on or after November 1 preceding the year

 

to be designated on the registration. The registration application

 

shall be executed and returned to the commission with payment of

 

the registration fee as provided by this section before the

 

expiration date of the prior registration. If an owner of an

 

aircraft fails to receive a registration application form by

 

December 1, he or she shall inform the commission.

 

     (2) The owner of an aircraft that had not been previously

 

subject to registration under this act but has become subject to

 

registration under this act shall inform the commission within 30

 

days after becoming subject to registration, shall register the

 

aircraft, and shall pay the appropriate fee as provided by this

 

section.

 

     (3) A registration fee shall be payable annually on or before

 

December 31. However, for an aircraft being registered for the

 

first time, a registration certificate issued after July 1 shall be

 

issued at the rate of 50% of the annual fee. All aircraft

 

registrations shall expire on January 1 of each year.

 

     (4) A registration fee shall be in lieu of all property taxes

 

on the aircraft, either general or local.

 

     (5) A registration fee shall be paid at the rate of 1 cent 2

 

cents per pound of either maximum gross weight or maximum takeoff

 

weight, whichever is greater, for which the aircraft is certified

 

under the federal aviation administration airworthiness

 

certificate. Such a fee shall not be less than $25.00.

 

     (6) If an aircraft owner fails to register or pay the aircraft

 

registration fee due under this act by the time specified, a

 

penalty of $50.00 shall be added if the failure is not more than 1

 

month, with an additional $5.00 $10.00 penalty for each additional

 

month or fraction of a month during which the registration fee and

 

penalty are not paid.

 

     (7) If an aircraft registration fee is not paid within the

 

time specified and it is shown to the satisfaction of the

 

commission that the failure or refusal was due to reasonable cause

 

and not willful neglect, the penalty may be waived at the

 

discretion of the director of the state transportation department

 

or his or her designated representative. The period for which a

 

penalty is assessed shall not exceed 1 year.

 

     (8) If an aircraft registration fee is paid by mail, the

 

postmark date is the date of payment.

 

     Sec. 82. (1) A person shall not engage in the business of

 

buying, selling, brokering, or dealing in aircraft of a type

 

required to be registered, unless he or she has received a license

 

from the commission.

 

     (2) An application for a dealer's license shall be accompanied

 

by a $25.00 $100.00 license fee and shall be submitted on the

 

appropriate form furnished by the commission. Applications shall be

 

signed and accompanied by a sworn statement containing the

 

information required by the commission to determine whether the

 

applicant is lawfully entitled to the license.

 

     (3) A license granted under subsection (1) expires on January

 

1 of each calendar year and may be renewed upon application and

 

payment of the required fee. The commission may issue a 1/2-year

 

license for the balance of the current year if application is made

 

after July 1 upon payment of 1/2 of the fee.

 

     (4) A dealer or manufacturer shall display a dealer's license

 

in a prominent location at his or her place of business.

 

     (5) A licensee shall maintain a record, to be open to

 

inspection by any law enforcement officer or authorized officer or

 

investigator of the commission, of every aircraft subject to

 

registration which is bought, sold, exchanged, received, or

 

accepted by the licensee for sale or exchange. A licensee shall

 

submit a report to the commission of aircraft sold to a resident of

 

another state and include the notice of sale or transfer and the

 

registration certificate, if any.

 

     (6) The commission shall issue to aircraft manufacturers,

 

aircraft engine manufacturers, and dealers a distinctive general

 

registration number for each aircraft owned or controlled by them.

 

These aircraft shall not be used except for demonstration, for

 

sale, for ferrying, or for testing. General registration numbers

 

for manufacturer and dealer aircraft shall be issued annually under

 

the same conditions as registration certificates and a $5.00 $25.00

 

charge made for the general registration numbers for manufacturer

 

and dealer aircraft. The general registration number issued to a

 

manufacturer or dealer shall be displayed in the aircraft at all

 

times.

 

     (7) A manufacturer or dealer selling or exchanging aircraft

 

subject to registration, before delivering an aircraft to the

 

purchaser, shall apply to the commission for aircraft registration,

 

and the purchaser shall sign the application for registration and

 

other necessary papers to enable the manufacturer or dealer to

 

apply to the commission.

 

     (8) A dealer dismantling or wrecking any registered aircraft

 

shall forward the registration certificate for that aircraft to the

 

commission within 15 days for cancellation.

 

     (9) The commission may cancel, revoke, or suspend the dealer's

 

license for failure to comply with this section.

 

     Sec. 203. (1) There is hereby imposed a privilege an ad

 

valorem tax of 3 cents per gallon 2.5% of the wholesale price on

 

all fuel sold or used in producing or generating power for

 

propelling aircraft using the aeronautical facilities on the lands

 

and waters of this state beginning January 1, 2010. On January 1,

 

2011, the ad valorem tax shall change to 3%, and on January 1,

 

2012, the ad valorem tax shall change to 4%. The tax shall be

 

collected and remitted in the same manner and method and at the

 

same time as prescribed by law for the collection of the gasoline

 

tax imposed on all gasoline used in producing or generating power

 

for propelling motor vehicles used upon the public highways of this

 

state under the motor fuel tax act, 2000 PA 403, MCL 207.1001 to

 

207.1170. A refund of 1-1/2 cents per gallon shall be made to

 

airline operators who show proof within 6 months after purchase

 

that they are operating interstate on scheduled operations.

 

     (2) If a person required to register with the department of

 

treasury under section 94 of the motor fuel tax act, 2000 PA 403,

 

MCL 207.1094, is not registered, the person shall not purchase fuel

 

under this act at the rate imposed by subsection (1), but shall pay

 

the applicable rate imposed on motor fuel by section 8 of the motor

 

fuel tax act, 2000 PA 403, MCL 207.1008.

 

     (3) The tax imposed under subsection (1) is not imposed on

 

aviation fuel if the purchaser has certified in writing to the

 

seller that the aviation fuel is being purchased solely for the

 

purpose of formulating leaded racing fuel as that term is defined

 

in section 4 of the motor fuel tax act, 2000 PA 403, MCL 207.1004.

 

Aviation fuel qualifying under this subsection shall be identified

 

on shipping papers and invoices as "aviation fuel exempt for LRF".