MPA LEGISLATION REPORT
January 2006

GREETINGS! First, Here's an update from Washington, D.C. On November 30, 2005, President Bush signed into law the FY2006 spending bill for the Department of Transportation (H.R. 3058), among others. H.R. 3058 includes $3.55 billion for the Airport Improvement Program, a record amount, and includes funding for FAA Operations, FAA Facilities and Equipment. Additionally, the measure carries forward a requirement that FAA pay for the space it uses in airport-owned buildings.

The Bill provides:

o Of the $3.55 billion for AIP, $10 million is made available for the Small Community Air Service Development Program; and $10 million is provided for the Airport Cooperative Research Program. The measure also continues the prohibition against using AIP funds for EDS installation projects.

o $2.54 billion for the FAA Facilities and Equipment account, which funds a number of ATC modernization programs.

o $8.186 billion for the FAA Operations, some $175 million above the President's request and $475 million above last year's level.
o $10 million in AIP funding be used to fund the Airport Cooperative Research Program - a $7 million increase.

o $110 million for EAS, an increase of $8 million.

o $90.5 million for the Contract Tower Program and $7.5 million for the Contract Tower Cost-Sharing Program.

Secondly, Department of Transportation Secretary Norm Mineta signs a Letter of Intent (LOI) for the $337 million in funds over 15 years for Chicago O'Hare's capacity expansion plan; $300 million in AIP funds will be paid to Chicago in $20 million installments every year for the next 15 years. The LOI also includes a separate commitment of $37.2 million in AIP funds, which will be paid to the city over the next five years. The two grants will cover approximately 10 percent of the cost of the first phase of the airport's expansion plan, which includes adding two new runways and extending Runway 10L/28L.

Thirdly, U.S. Senate Commerce Committee approves a bipartisan transportation security bill that would authorize almost $16 billion for aviation security; Transportation Security Improvement Act of 2005 (S. 1052).
The Senate is also proposing to significantly increase the tax on business executives who use business aircraft for personal use. S.2020 the Tax Relief Act was passed by the Senate and would raise tax levels to the equivalent of fair market value or the actual cost of such use, including various fixed and valuable costs. The Bill would also further limit deductions a company can take when its aircraft are used for recreational purposes. Aviation groups oppose the move.

Fourthly, Here's an update concerning Missouri Aviation. The only Airport and Aviation Bills are as follows:

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session (2006)
Bills Indexed by Subject
AIRCRAFT AND AIRPORTS

SB 767 --- Sponsor: Graham, Chuck
Requires Office of Administration and Highway Patrol to oversee use of state aircraft and places restrictions on certain state officers with respect to use of state aircraft.

Note: Here's your web site address for Texas Legislation:
www.texas.gov.
Look for Transportation-Aviation, to search all Aviation Bills.

Note: Here's your web site address for Illinois Legislation:
www.illinois.gov.
Look for Transportation-Aviation, to search all Aviation Bills.

Now, In Conclusion, Remember, we as USPA, MPA, EAA, AOPA, or any other State Pilot Associations of which you may be a member, all have a powerful voice, be it here in Missouri, Indiana, Texas, or whatever state you may represent. Every group of pilots and taxpayers carries a strong voice to Washington, D.C., and on the State and Local Level.

So Let's not forget to exercise our privileges, and continue to make a "Difference for General Aviation."

UNTIL NEXT TIME!

SAFE FLYING!

Larry G. Harmon
Legislation Chairman
E-mail address: MPALHARMON228@aol.com


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