No. 40937 (New Rule): Rule R914-3. Aircraft Registration Enforcement

(New Rule)

DAR File No.: 40937
Filed: 11/02/2016 10:50:48 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to provide procedures for the enforcement of state aircraft registration laws and the administration of penalties as required by Section 72-10-112.

Summary of the rule or change:

This rule provides procedures for enforcing provisions of the Uniform Aeronautical Act that require an owner or owners of aircraft based in Utah to have a certificate of registration issued by the state for each such aircraft. The rule also includes procedures the Department must follow to penalize those owners who do not maintain current certificates of registration for their aircraft, and procedures owners so penalized may follow to appeal their penalties.

Statutory or constitutional authorization for this rule:

• Subsection 72-10-112(3)(b)

Anticipated cost or savings to:

the state budget:

The fiscal note that accompanied S.B. 74, which passed during the 2016 General Session, states that, "Enactment of this bill requires the Division of Aeronautics to conduct compliance audits and inspections to enforce proper registration of aircraft. The estimated cost for this new position is approximately $80,000 per year for a full-time, benefited employee, which would be paid from the Aeronautics Restricted Account."

local governments:

This rule likely will not result in direct, measurable costs for local governments because this rule only applies to the state of Utah and aircraft owners.

small businesses:

The fiscal note that accompanied S.B. 74 (2016) also stated that, "Businesses, including small businesses, or individuals that fail to register an aircraft in the State of Utah may pay a penalty of 10% of the registration fee for the first month and 5% of the registration fee for each subsequent month until the aircraft is properly registered. It is anticipated that new penalties assessed will amount to at least $80,000 annually. The amount will vary based on the year, make, and model of the aircraft and the amount of time it is out of compliance."

persons other than small businesses, businesses, or local governmental entities:

Persons other than small businesses, businesses, or local government entities that own aircraft based in Utah who fail to register their aircraft annually as required by statute may be required to pay a penalty of 10% of the registration fee for the first month and 5% of the registration fee for each subsequent month until the aircraft is properly registered. It is not possible to determine with precision what those costs will be in the aggregate.

Compliance costs for affected persons:

As set forth under small businesses impact above, the fiscal note that accompanied S.B. 74 (2016) also stated that, "Businesses, including small businesses, or individuals that fail to register an aircraft in the State of Utah may pay a penalty of 10% of the registration fee for the first month and 5% of the registration fee for each subsequent month until the aircraft is properly registered. It is anticipated that new penalties assessed will amount to at least $80,000 annually. The amount will vary based on the year, make, and model of the aircraft and the amount of time it is out of compliance."

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule may have a fiscal impact on those businesses that own aircraft based in Utah if they fail to obtain certificates of registration annually. Those businesses that properly register their Utah-based aircraft every year will suffer no fiscal impact because of this rule.

Carlos Braceras, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Transportation
Operations, Aeronautics
135 N 2400 W
SALT LAKE CITY, UT 84116-2982

Direct questions regarding this rule to:

• Christine Newman at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at [e-mail]
• James Palmer at the above address, by phone at 801-965-4000, by FAX at 801-965-4338, or by Internet E-mail at [e-mail]
• Michelle Jeronimo at the above address, by phone at 801-965-3883, by FAX at , or by Internet E-mail at [e-mail]
• Linda Hull at the above address, by phone at 801-965-4253, by FAX at , or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/03/2017

This rule may become effective on:

01/10/2017

Authorized by:

Carlos Braceras, Executive Director

RULE TEXT

R914. Transportation, Operations, Aeronautics.

R914-3. Aircraft Registration Enforcement.

R914-3-1. Purpose and Authority.

The purpose of this rule is to provide procedures for the enforcement of state aircraft registration laws and the administration of penalties as required by Utah Code Section 72-10-112.

 

R914-3-2. Definitions.

(1) "Based" means aircraft that is hangared, tied down, or parked at an airport located in the state of Utah for a plurality of the year, which is a total of six months and a day, minimum.

(2) "Tax Commission" means the Utah State Tax Commission.

(3) "Department" means the Utah Department of Transportation, Division of Aeronautics.

 

R914-3-3. Procedure for Enforcement.

(1) Airport operators shall semi-annually, no later than March 1 and September 1, provide to the Department a report containing a list of aircraft Based at the airports they operate. The list shall contain:

(a) The Federal Aviation Administration tail number of each aircraft, and;

(b) The name and address of the owner or owners and the person responsible for payment of the Utah aircraft registration fee, if different.

(2) In addition to the semi-annual reports, airport operators shall coordinate with the Department, or its agent, and provide information as requested by the Department, or its agent, to determine and verify aircraft Based in the state.

(3) The Department, or its agent, shall conduct compliance audits and inspections as needed to enforce applicable state laws related to the registration of aircraft.

(4) In addition to annually submitting to the Tax Commission the statewide database of aircraft Based in the state as required under Section 72-10-110, the Department shall advise the Tax Commission of aircraft Based in the state that were not included in the annual submission.

(5) The Department shall send a Late Notice by certified mail to all aircraft owners who have failed to pay annual registration fees by January 31 each year.

(6) Aircraft owners who fail to pay annual registration fees within 30 days after receiving a Late Notice from the Department shall be penalized as provided by R914-3-4.

 

R914-3-4. Notice of Agency Action -- Penalties.

(1) The Department may commence an adjudicative proceeding pursuant to rule R907-2 to administer a penalty for failure of an owner or owners of an aircraft to register and pay required registration fees for an aircraft Based in the state by serving a Notice of Agency Action upon the owner or owners of the aircraft accused of the violation.

(2) The Department may impose a penalty of 10% of the registration fee for the first month and 5% of the registration fee for each subsequent month an aircraft is operated in violation of Section 72-10-109.

(3) In addition to other penalties and as authorized in 72-10-112, the owner or owners of the aircraft may also be subject to penalties levied by the Tax Commission authorized by Section 41-1a-1101, providing for seizure of the aircraft, and Section 41-1a-1301, placement of a lien, seizure and sale of the aircraft.

(4) Administrative Hearings initiated under this provision shall be designated as informal hearings under the Utah Administrative Procedures Act and conducted as set forth in Utah Code Section 63G-4-203.

 

R914-3-5. Appeals of Department Action.

(1) Penalized persons may appeal penalties imposed by the Department under this rule and pursuant to the Notice of Agency Action.

(2) Appeals shall be considered by a steering committee created by the Department. The steering committee shall have the powers granted to the Deputy Director, or the Deputy Director's designee, in R907-1-3 for appeals from failure to pay required aircraft registration fees for aircraft based in the state of Utah.

(3) The committee's decision shall be considered a final agency order pursuant the Administrative Procedures Act.

KEY: certificate of registration, Utah-based aircraft, aircraft, penalties

Date of Enactment or Last Substantive Amendment: 2017

Authorizing, Implemented, or Interpreted Law: 72-10-112(3)(b)

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