Wed, Apr 27, 2011
Association Takes On CA Legislature On Excessive Fees,
In late 2009, California passed legislation that would give the
state the authority to regulate facilities providing flight
training. This legislation was designed to regulate traditional
"career schools" and private colleges. No flight training providers
were invited to contribute their input in the crafting of this
legislation. The end result was legislation that neglected to
understand the unique nature and diversity of the flight training
Regulations issued, under the authority of this legislation, by
the California Bureau of Private Postsecondary Education (BPPE)
imposed numerous burdensome requirements upon all providers of
flight training, including:
5,000 registration fee
Annual fee equal to 0.75% of gross revenue
Annual requirement for a GAP audit of the facilities'
Requirement for facilities to maintain a 1:1 current liabilities to
current assets ratio
Numerous administrative and recordkeeping requirements
In early 2010, NATA began receiving calls from member flight
training businesses concerned about the impact of these new rules.
NATA conducted a survey of its members to understand the effects of
these rules better. What we learned is that up to 90% of all flight
training facilities could be forced to close their doors due to
these regulations. The impact of these closures would not be felt
by just flight training but also by the entire aviation industry.
The loss of fuel sales, maintenance jobs, overall airport activity
and new pilots would reverberate across the state.
NATA undertook a lobbying effort in the state capital to
mitigate this possible disaster. In fall 2010, the industry came
together and we were able to convince the legislature to provide a
one-year delay in compliance with the new rules. July 1, 2011,
became the new date on which the rules would apply to flight
This year, NATA is continuing its efforts. Monday, the
California Senate Committee on Business, Professions and Economic
Development passed the NATA-sponsored bill (Senate Bill 619) that
would provide a permanent exemption for all flight training
facilities that do not collect upfront "tuition" or fees. This
however, is only the first step in getting relief for flight
training into law. Your support is needed! NATA has created a fund
to help pay for our continuing lobbying efforts and grassroots
organizational costs to support this effort.
Without your support of this effort, California's flight
training businesses are at serious risk of being forced to close.
If that is allowed to happen, aviation businesses across the state
will feel the impact.
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