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Environment, Energy and Transportation Program

Aviation Legislation: 2003 State Legislative Summary

January 2004

By Catherine Chan, NCSL Transportation Program

Introduction

Aviation policy in the United States is driven by an interest in safety, security, transportation efficiency and economic growth. Governmental aviation policy is made at the federal, state and local levels. Generally, the federal government manages the air traffic control system, regulates airline and airport safety, oversees air travel security, and dispenses airport improvement grants to state and local governments. State governments operate airports; provide grants to local airports; conduct statewide aviation planning; license airports and aircraft; lend technical and engineering support to airport managers; provide personnel training; and address environmental factors such as noise, pollution, fuel tanks, land use planning and tall structures. Regional authorities and local governments operate airports, manage ground access to airports and parking, assess and collect passenger facility charges, address noise and environmental issues, and set local land use and zoning policy. The private sector plays a critical role in the nation's aviation system, primarily in aircraft manufacturing and provision of air transport service. This brief report provides an overview of recent federal activity and summarizes aviation-related bills that were enacted in the states during 2003. Table 1 on page 10 summarizes these bills by topic.

Recent Federal Activity

The terrorist attacks on September 11, 2001, precipitated major aviation policy changes related to security. Key among these changes was the Aviation and Transportation Security Act (ATSA), signed into law on November 19, 2001. This act, among other things, established a new Transportation Security Administration (TSA) within the Department of Transportation. TSA has since been moved to the new Department of Homeland Security. ATSA requires TSA to make a number of improvements to aviation security. The act mandated many improvements to aviation policies in order to achieve higher security standards. Some of those measures included screening of individuals and property in the United States to be conducted by TSA employees and companies under contract with TSA; improved airport perimeter access security; and chemical and biological weapon detection.

A more recent enactment of great interest to the states was the Federal Aviation Administration's (FAA) four-year, $60 billion reauthorization bill, Vision 100, the Century of Aviation Act, signed into law on December 16, 2003. Vision 100 is aimed at aiding the states in their overhaul and management of airport security systems. It includes $14 billion for airport construction projects through the Airport Improvement Program, $140 million to help small communities attract and retain air service, $308 million to ensure essential air service to isolated communities, and $2 billion to create more efficient security screening at airports.

State Legislation

In addition to new federal laws and requirements, states in 2003 considered and enacted various other aviation measures. At least 35 states enacted as many as 104 bills in 2003 related to aviation. Issues included fiscal matters, tax issues, state programs and regulation, pilot and airplane regulation, airport procedures, aviation fuel, insurance, employee claims, military matters, and land use considerations.

Fiscal

At least 17 states--Arkansas, Colorado, Florida, Hawaii, Idaho, Iowa, Louisiana, Maine, Mississippi, Montana, New Mexico, New York, Oklahoma, Oregon, Utah, Virginia and West Virginia--enacted 28 fiscal measures related to aviation in 2003. Many of the bills related to appropriation of funds for general improvements to airports or to fund security projects. Hawaii HB 1230, which was line-item vetoed by the governor, would have appropriated additional special fund money to allow airports to continue to meet the heightened security requirements. Meanwhile, Florida enacted SB 676, which also provides for funding for airport security projects.

Fiscal measures unrelated to security also were enacted. For example, Mississippi HB 1509, signed into law on March 28, 2003, appropriates funds to the Board of Agricultural Aviation to defray the expenses of the board. Maine's governor signed a measure that authorizes the state's Department of Transportation to utilize bonds for expansion of the air-medical system. New Mexico legislation was passed--HB 458--that requires aircraft registration fees to be distributed to local governments for airport upgrades and repair and maintenance of runways and related facilities. In another area, West Virginia HB 2357, signed into law in March 2003 authorizes the aeronautics commissioner to expend funds for civil air patrol education, training aid books, materials and equipment, maintenance repair and replacement, and the civil air patrol communications network.

Hawaii SB 44 attempted to provide further economic relief for airport concessionaires, but it was vetoed by the governor in June 2003. In Oregon, SB 5504, signed by the governor in June 2003, authorizes new or increased agency fees adopted by the Oregon Department of Aviation. Utah passed HB 316, which provides incentives for economic development by creating aerospace and aviation development zones for new commercial development. In Montana, HB 517 allows cities or towns to impose mill levies for airports. It was signed into law on April 24, 2003.

Tax Issues

In 2003 at least 14 states--Delaware, Hawaii, Idaho, Illinois, Indiana, Kansas, Nevada, North Carolina, Oregon, South Carolina, South Dakota, Utah, Washington and Wyoming--enacted 19 measures related to taxation and aviation.

SB 3, signed into law in Delaware in January 2003, exempts from the wholesalers' and retailers' license and gross receipts tax the sale of aircraft that weigh a specified amount.

Idaho HB 77 deletes, under the aircraft sales and use tax, the requirement that aircraft primarily used to transport passengers or freight for hire must be registered immediately. Indiana HB 1811 expands the penalties for a person who does not register an aircraft and pay applicable gross retail taxes.

In Kansas, HB 2205 exempts airports from property taxation. The Oregon legislature passed HB 2454, which expands the property tax exemption for airport property owned or leased by certain local governments and airport districts. In Washington, HB 2294A provides tax incentives for the retention and expansion of the aerospace industry and the manufacture of commercial airplanes or components to such airplanes.

At least four states--Maine, Nevada, New Mexico and Washington--passed legislation related to taxation of aviation fuel in 2003. In Maine, HB 1133 authorizes a wholesale transfer tax on aviation fuel. Nevada SB 470 authorizes cities that own and operate airports in certain counties to impose certain taxes on aviation fuel and fuel for jet or turbine-powered aircraft. In New Mexico, HB 62 amends the gross receipts and compensating tax deductions for jet fuel for turboprop or jet-type engines. And Washington HB 191 adjusts excise taxes on aviation fuel.

State Programs and Regulation

At least 22 states--California, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Maine, Mississippi, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Virginia and Wyoming--passed measures related to state programs and regulation as related to aviation.

Five states--California, Connecticut, Maine, North Carolina and Tennessee--enacted measures to promote and recognize aviation and aviation history. California SCR 36 recognizes the centennial anniversary of flight and encourages young people to pursue careers in aviation and aerospace. Connecticut SB 965 proclaims May 25 to be "Aviation Pioneer Day." Maine HB 1173 declares the third week in April to be "Aviation & Aerospace Education Week." The North Carolina Legislature passed HB 694, which designates the Asheboro municipal airport as the official location of the North Carolina aviation hall of fame and aviation museum. Tennessee, in HB 1177 designates the state aviation hall of fame and affiliated museum of aviation as the official state repository and archive for aviation history. Tennessee also passed SJR 23, which recognizes May 24 as the "Tennessee Aviation Maintenance Technician's Day."

Georgia and Wyoming passed measures prohibiting the hunting of wildlife from aircraft. Nevada passed SB 40, which prohibits the discharge of a firearm from an aircraft under certain circumstances, but does not ban hunting of game mammal or bird from an aircraft.

Pilot and Airplane Regulation

At least 13 measures were enacted in 10 states--Alaska, Arkansas, California, Michigan, Nevada, New Hampshire, Rhode Island, Texas, Virginia and Washington--relating to regulation of pilots and airplanes. Arkansas SB 20 requires a mandatory drug and alcohol testing program--including random tests, post-incident tests, and tests based upon reasonable cause--for licensed pilots. In HB 2399, Arkansas mandates that it is unlawful and punishable for a flight crew on duty to have a blood alcohol concentration of .04 or more. Michigan HB 4248 establishes sentencing guidelines, penalties and sanctions for operating an aircraft while intoxicated at 0.08 grams (from 0.1 grams). New Hampshire HB 560 establishes implied consent to blood alcohol concentration (BAC) testing and penalties for people who operate or attempt to operate aircraft while under the influence of alcohol or controlled drugs.

Virginia HB 2131 provides for the strict confidentiality of any information received and maintained by the Board for Branch Pilots concerning a person regulated by the board where they tested negative for drug or alcohol use or had not been the subject of a disciplinary action by the board for a positive test result.

Alaska SB 98 mandates civil liability if an aircraft is operated negligently. The Nevada Legislature passed AB 402, which creates the requirement for approval from a state health officer before operation of a new medical helicopter.

Relating to airplane regulation, Michigan HB 4704 limits aircraft accessibility and provides a security program implemented by flight schools for an aircraft on the ground and for certain procedures prior to enrollment of the aircraft. California AB 1717 eliminates a law related to implementation of computerized cockpit instrument display of general aviation aircraft.

Airport Procedures

At least three states--California, Georgia and New Jersey--enacted laws in 2003 regarding airport procedures. California AB 1263 creates a crime of trespass to enter or reenter the sterile area of an airport after intentionally avoiding submission to screening and inspection. New Jersey AB 2359 prohibits individuals convicted of certain enumerated crimes--such as arson, kidnapping or burglary--from working in sterile areas of certain airports.

Alternatively, Georgia HB 397 provided an affirmative defense for unauthorized possession of firearms, hazardous substances, knives or other devices aboard an aircraft. The affirmative defense will be if the person notifies a law enforcement officer or other person employed to provide security for a public gathering of the presence of such item as soon as possible after learning of its presence and surrendering or securing such item as directed.

Insurance

In Virginia, SB 1154 created an amendment to aircraft insurance laws by providing that an insurer may exclude third-party coverage if the exclusion is requested in writing by the first-named insured and is acknowledged in writing by the excluded.

Employee Claims

At least two states--Florida and Virginia--enacted aviation laws related to employee claims. In Florida, HB 271 states that all medical and dental claims and records relating to airport authority employees in a group insurance or self insurance plan are confidential. Virginia SB 575 provides an exception to the presumption of death law for any person documented to have been a victim of the September 11, 2001 attacks.

Military Matters

In issues related to aviation standards and military operations, at least four states--Arkansas, Illinois, Nebraska and New Jersey-- passed measures. Arkansas HB 1460 allows state employees who are part of the U.S. Air Force Auxiliary Civil Air Patrol to take leave of absence to participate in emergency and rescue services. In HB 1338, Illinois created the County Air Corridor Protection Act. This act provides that any county with an Air Force installation with runways of specified length has the authority to control the use of land around that installation. Nebraska LB 58 transfers contracting duties from the Department of Aeronautics to the Military Department. New Jersey, in AB 2777, requires the Department of Military and Veterans Affairs and the New Jersey Department of Transportation to conduct a study on the feasibility of integrating the Civil Air Patrol in the state's homeland security initiatives.

Land Use Considerations

At least six states--California, Illinois, Louisiana, Mississippi, Oregon and South Dakota--enacted measures related to land use and airports. California AB 332 provides for an airport comprehensive land use compatibility plan. South Dakota passed HB 1190, which limits the ability of certain municipalities to annex territory in the vicinity of certain airports. Oregon HB 3372, chaptered in June 2003, provides for standard procedures before commencement of a condemnation action by the Department of Aviation.

2003 Enacted Aviation Legislation Chart

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