House Bill 3393

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    Florida House of Representatives - 1998                HB 3393

        By Representatives Turnbull and King






  1                      A bill to be entitled

  2         An act relating to air carriers; directing the

  3         Department of Management Services to evaluate

  4         the state contract for air carrier service for

  5         state employees, undertake a pilot program, and

  6         evaluate the pilot program; amending s. 212.08,

  7         F.S.; revising the application of the exemption

  8         from the tax on sales, use, and other

  9         transactions for labor charges for the

10         maintenance and repair of certain aircraft;

11         providing an exemption for replacement engines,

12         parts, and equipment used in the repair or

13         maintenance of certain aircraft; amending s.

14         332.007, F.S., which provides for the

15         administration and financing of airport

16         projects; providing that a portion of the

17         assistance provided by the Department of

18         Transportation may be used to improve scheduled

19         airline service; providing that projects to

20         improve scheduled air service to and from the

21         state capital shall be deemed to be of

22         statewide importance under said section;

23         providing an effective date.

24

25         WHEREAS, it is in the best interest of Florida to

26  attract and retain quality affordable air carrier service for

27  its citizens, and

28         WHEREAS, dependable and affordable air service is an

29  important factor in stimulating economic development and

30  promoting efficient and accountable government service, and

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    Florida House of Representatives - 1998                HB 3393

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  1         WHEREAS, citizens require affordable and efficient

  2  access to state government and elected officials in the state

  3  capital to promote an open democracy, and

  4         WHEREAS, safe and affordable air travel from the state

  5  capital to all parts of Florida is necessary to ensure the

  6  continued operation of state programs, and

  7         WHEREAS, incentives need to be identified to attract

  8  and retain quality air service to the state capital from all

  9  major airports in Florida to meet the needs of government and

10  industry, and

11         WHEREAS, the Legislature recognizes the need to provide

12  support to air carriers that provide this valuable service,

13  NOW, THEREFORE,

14

15  Be It Enacted by the Legislature of the State of Florida:

16

17         Section 1.  State air carrier contract.--Pursuant to s.

18  287.042, Florida Statutes, the Department of Management

19  Services shall analyze and evaluate the state contract for air

20  carrier service for state employees to determine how to

21  improve the quality, availability, and cost of air service to

22  state employees and other citizens.  The department shall

23  undertake a pilot program based on this analysis that shall

24  include, but is not limited to, the suspension of any such

25  contract and the provision of any incentives necessary to

26  attract qualified air carriers flying within Florida to the

27  state capital. In implementing this pilot program, the

28  department shall take into consideration the provisions of s.

29  112.061(7)(a)2., Florida Statutes. The department shall

30  evaluate the impact of this pilot program on increased

31  scheduled service, costs, fare structures, and expanded jet

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    Florida House of Representatives - 1998                HB 3393

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  1  service to and from the state capital, and be prepared to

  2  report annually to the Speaker of the House of Representatives

  3  and the President of the Senate.

  4         Section 2.  Paragraph (ff) of subsection (7) of section

  5  212.08, Florida Statutes, is amended, and paragraph (qq) is

  6  added to said subsection, to read:

  7         212.08  Sales, rental, use, consumption, distribution,

  8  and storage tax; specified exemptions.--The sale at retail,

  9  the rental, the use, the consumption, the distribution, and

10  the storage to be used or consumed in this state of the

11  following are hereby specifically exempt from the tax imposed

12  by this chapter.

13         (7)  MISCELLANEOUS EXEMPTIONS.--

14         (ff)  Aircraft repair and maintenance labor

15  charges.--There shall be exempt from the tax imposed by this

16  chapter all labor charges for the repair and maintenance of

17  aircraft of more than 15,000 20,000 pounds maximum certified

18  takeoff weight. Except as otherwise provided in this chapter,

19  charges for parts and equipment furnished in connection with

20  such labor charges are taxable.

21         (qq)  Equipment used in aircraft repair and

22  maintenance.--There shall be exempt from the tax imposed by

23  this chapter replacement engines, parts, and equipment used in

24  the repair or maintenance of aircraft of more than 15,000

25  pounds maximum certified takeoff weight, when such parts or

26  equipment are installed on such aircraft that is being

27  repaired or maintained in this state.

28         Section 3.  Subsection (3), paragraph (a) of subsection

29  (4), and paragraph (d) of subsection (6) of section 332.007,

30  Florida Statutes, are amended to read:

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    Florida House of Representatives - 1998                HB 3393

    558-131B-98






  1         332.007  Administration and financing of aviation and

  2  airport programs and projects; state plan.--

  3         (3)  Assistance pursuant to the provisions of this

  4  section shall only be provided for projects which are included

  5  in the department's adopted work program developed pursuant to

  6  s. 339.135 and, notwithstanding any other provision of this

  7  section, up to 20 percent of the assistance provided by the

  8  department for each airport's work program budget may be used

  9  to improve scheduled airline service to and from that airport.

10  Requests for such expenditures must be submitted to the

11  department as part of the airport's annual work plan.

12         (4)(a)  The annual legislative budget request for

13  aviation and airport development projects shall be based on

14  the funding required for development projects in the aviation

15  and airport work program.  The department shall provide

16  priority funding in support of the planning, design, and

17  construction of proposed projects by local sponsors, with

18  special emphasis on projects for runways and taxiways,

19  including the painting and marking of runways and taxiways,

20  lighting, other related airside activities, and airport access

21  transportation facility projects on airport property, and

22  projects to improve scheduled service.

23         (6)  Subject to the availability of appropriated funds,

24  the department may participate in the capital cost of eligible

25  public airport and aviation development projects in accordance

26  with the following rates, unless otherwise provided in the

27  General Appropriations Act or the substantive bill

28  implementing the General Appropriations Act:

29         (d)  The department is authorized to fund up to 100

30  percent of the cost of an eligible project that is statewide

31  in scope or that involves more than one county where no other

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    Florida House of Representatives - 1998                HB 3393

    558-131B-98






  1  governmental entity or appropriate jurisdiction exists.

  2  Projects that are designed to improve scheduled air service to

  3  and from the state capital to increase access by citizens to

  4  state government shall be deemed to be of statewide

  5  importance.

  6         Section 4.  This act shall take effect July 1 of the

  7  year in which enacted.

  8

  9            *****************************************

10                          HOUSE SUMMARY

11
      Directs the Department of Management Services to evaluate
12    the state contract for air carrier service for state
      employees, undertake a pilot program based on its
13    analysis, and evaluate the pilot program.

14
      Revises the application of the sales tax exemption for
15    labor charges for maintenance and repair of certain
      aircraft, and provides an exemption for replacement
16    engines, parts, and equipment used in the repair or
      maintenance of certain aircraft.
17

18    Revises provisions which provide for the administration
      and financing of airport projects, to provide that a
19    portion of the assistance provided by the Department of
      Transportation may be used to improve scheduled airline
20    service, and that projects to improve scheduled air
      service to and from the state capital shall be deemed to
21    be of statewide importance.

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