DAR File No. 41421

Transportation, Operations, Aeronautics

Rule R914-3

Aircraft Registration Enforcement

Notice of Proposed Rule

(Amendment)

DAR File No.: 41421
Filed: 03/29/2017 03:02:20 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment deletes Subsection R914-3-4(3) because the Tax Commission does not have authority to levy the penalties presently authorized by Subsection R914-3-4(3). Authority to penalize for aircraft registration violations resides with the Department of Transportation alone.

Summary of the rule or change:

This amendment deletes Subsection R914-3-4(3) from the rule because the Tax Commission does not have authority to levy the penalties presently authorized in Subsection R914-3-4(3). Only the Department of Transportation has authority to penalize for aircraft registration violations.

Statutory or constitutional authorization for this rule:

• Subsection 72-10-112(3)(b)

Anticipated cost or savings to:

the state budget:

The Department does not anticipate this amendment will cause any additional costs or savings to the state's budget. The authority to levy penalties, which the rule presently grants to the Tax Commission and which this amendment eliminates, remains with the Department of Transportation pursuant to Section 72-10-112. Any fiscal impact that the rule has on the state's budget will not change due to this amendment.

local governments:

The Department does not anticipate this amendment will cause any additional costs or savings to the budgets of local governments. The new rule does not implicate local governments in any way, fiscal or otherwise.

small businesses:

The Department does not anticipate this amendment will cause any additional costs or savings to the budgets of small business. Only small businesses that own aircraft that violate the Department's registration requirements will be affected by the rule. Small businesses that violate the Department's registration requirements will be penalized by the Department. The amendment does not change the amount or nature of the penalties the Department may levy for registration violations.

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

The Department does not anticipate this amendment will cause any additional costs or savings to the budgets of persons other than small businesses, businesses, or local government entities. Only persons that own aircraft that violate the Department's registration requirements are affected by the rule, and they will be penalized by the Department, not by the Tax Commission. The amendment does not change the amount or nature of the penalties the Department may levy for registration violations.

Compliance costs for affected persons:

This amendment will not increase or decrease compliance costs for affected persons. This amendment eliminates a provision in the present rule that provides the Tax Commission authority to levy penalties for violating aircraft registration requirements. The Department of Transportation maintains the authority to levy penalties for violating the registration requirements set forth in the rule. The amount and nature of available penalties do not change.

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

I do not believe this amendment to the proposed rule will have any fiscal impact on business.

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 cwnewman@utah.gov
• James Palmer at the above address, by phone at 801-965-4000, by FAX at 801-965-4338, or by Internet E-mail at jimpalmer@utah.gov
• Linda Hull at the above address, by phone at 801-965-4253, by FAX at , or by Internet E-mail at lhull@utah.gov
• Jason Davis at the above address, by phone at 801-965-4895, by FAX at , or by Internet E-mail at jasondavis@utah.gov

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:

05/15/2017

This rule may become effective on:

05/22/2017

Authorized by:

Carlos Braceras, Executive Director

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]3) 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: [January 18,] 2017

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