two ways to participate - airport law workshop 01 - airport … · airport law alerts / digests 1....
TRANSCRIPT
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Two ways to participate https://www.polleverywhere.com/AirportLaw
Text AIRPORTLAW to 22333 (not case sensitive)
Enter your answer (by letter or number)
1
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34th Annual Basics of Airport Law Workshop and 2018 Legal Update
AIRPORT LAW 101
Session #1
Peter J. Kirsch
John E. Putnam
Kaplan Kirsch & Rockwell
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
1. Conference introduction
2. Learning the language of airport law
3. Getting to know the airport
4. Understanding and working with the FAA
5. Identifying and working with stakeholders
6. Key conference themes
3
THIS AFTERNOON’S PRESENTATION
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 4
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 7
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 9
Agenda
Workshop Guide
Airport Law Desk Reference 2018
Presentations www.airportlawconference.com
Attendance roster
On site staff – AAAE and Kaplan Kirsch & Rockwell
Airport Law Alerts / Digests
1. Conference Orientation
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 10
2. A New Language
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Airport law
• FAA/TSA/CBP compliance
• Airport operations
• Finance, funding, taxation
• Real estate development and regulation
• Stakeholder relations
Aviation law
• Aircraft regulation and financing
• Airline regulation and operations
• Pilot regulation
• Aircraft accidents
11
AIRPORT vs. AVIATION LAW
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 12
Schedule a
site visit
3. Getting to Know the
Airport
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 13
A [VERY SHORT] HISTORY OF AIRPORT
LAW….
OR
WHY ARE WE SPENDING SO MUCH TIME
ON FEDERAL LAW?
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
The early model: Airspace
Air Service
Airports
14
DIVIDED LEGAL RESPONSIBILITY
Private Sector
Local Government
Federal Government
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 15
TODAY’S REALITY – MUCH FUZZIER
Feds Private Local Gov’t
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE16
CRITICAL AIRPORT TERMINOLOGY
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE17
CRITICAL AIRPORT TERMINOLOGY Airport
Property “Aeronautical”
“Non-
Aeronautical”
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE18
CRITICAL AIRPORT TERMINOLOGY
“Airside”• Airport
Operations Area
(AOA)
• Security
Identification
Display Area
(SIDA)
“Landside”
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 20
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 21
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
↙Runway 22
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 22
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
↙Runway 22
↗Runway 4
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 23
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
↙Runway 22
↗Runway 4
Runway 4/22
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 24
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
10C/28C
10L/28R
10R/28L
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 25
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
10C/28C
9L/27R
10L/28R
10R/28L
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 26
CRITICAL AIRPORT TERMINOLOGY
Source: By Orion 8 - Own work, CC BY-SA 3.0
https://commons.wikimedia.org/w/index.php?curid=28151549
27 Right←
28 Right←28 Center
28 Left
9 Left
←10 Left
←
10 Center
10 Right
←
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 27
Relationship to airport sponsor
Federal regulation generally
FAA’s different roles
4. Working with the FAA
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Funder
Regulator
Adjudicator Advocate28
FAA’S RELATIONSHIP WITH AIRPORT
SPONSORS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 29
OTHER RELATIONSHIPS
WITH FAA
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Statutes
Federal Aviation Regulations (14 CFR)
Adjudications (Part 16)
30
AIRPORT LAW – FORMAL SOURCES
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
FAA Orders
Policy Statements
Guidance Letters
Advisory Circulars
31
REGULATION BY (ANOTHER) NAME
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Grant Assurances1
Deeds
(Surplus Property Act)2
Part 139 regulations
(commercial airports)3
AIRPORT REGULATION – CRITICAL PIECES
32
Revenue use statute4
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Contractual, not regulatory But Congressionally mandated
20-year duration Clock resets at each grant
FAA gets to enforce Prosecutor, judge, jury, executioner
Court review only after FAA decision
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GRANT ASSURANCES1
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Grant Assurances 39 separate requirements
Apply to most non-planning grants
Legally binding by contract
Principal issues Assurance 5 – rights and powers
Assurance 22 – economic nondiscrimination
Assurance 23 – exclusive rights
Assurance 24 – fee and rental structure
Assurance 25 – airport revenue
34
READ
THEM!
GRANT ASSURANCES1
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Surplus Property Act Many of same restrictions as grant assurances
Perpetual (no 20-year limitation)
Makes real estate sale difficult
35
DEEDS2
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Requires airport operating certificates for airports that: Scheduled and unscheduled operations; aircraft with more
than 30 seats
Scheduled operations; more than 9 seats but less than 31 seats
Part 139 Inspection Administrative inspection of airport files, paperwork, etc.
Facilities inspection Aircraft rescue and fire fighting inspection
Post inspection briefing with airport management
Far less regulation of general aviation airports
36
PART 139 REGULATIONS(COMMERCIAL AIRPORTS)
3
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Federal statute prohibits “diversion” of revenue at airport that has been grant obligated since 1996
FAA – detailed policy that greatly amplifies statute
FAA position – requirement is perpetual
Very complex definitions
37
REVENUE USE4
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Capital and operating
costs of airport
Incentives, off-airport
mitigation;
collateral development;
intermodal transit
General economic
developmentSTOP
WAIT
GO
38
PRINCIPLES OF REVENUE USE4
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 39
FAA REGULATION AND PREEMPTION
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 40
Federal
Preemption
Sponsor
LiabilityFinance
Land Use
Regulation
Airport
Businesses
Aircraft
Operators
Facilities
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Types Field (everything)
Conflict (where in conflict with federal law)
Sources Express (federal statutes)
Implied (from Congressional intent or case law)
Most – but not all – preemption issues fall within conflict and implied preemption
41
FEDERAL PREEMPTION - I
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Operation of national aviation system is a “cooperative scheme” FAA (aircraft and airspace)
Airports (ground operations; airport operations)
Congress has preserved “proprietary powers and rights” of airport operators (not police powers)
Jurisprudence has evolved in the last 100 years Few bright lines
42
FEDERAL PREEMPTION - II
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Non operational matters
Off airport land use
Local health/safety
Operational restrictions
Airfield regulations
Certain financial matters
Aircraft in flight
Aircraft certification
Pilot certification
Express preemption
Implied / conflict preemption
43
THE CONTINUUM OF PREEMPTION
No preemption
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 44
FAA’S DIFFERENT ROLES
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Funder
Regulator
Adjudicator Advocate
45
WHICH ROLE?
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
PILOTS
AIRPORTS
AIRCRAFTAIRCRAFT
OPERATORS
WHO IS REGULATED
46
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
OPERATES
AIR
TRAFFIC
CERTIFIES
AIRCRAFT
FUNDS/
REGULATES
AIRPORTS
LICENSES
PILOTS
WHAT IS REGULATED
47
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
WHICH FAA?
Air Traffic
(ATO)Airports Safety Space
48
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 49
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
FAA Employees
Airports Other
46,000 total
600
51
THE FAA-AIRPORTS OFFICE IN CONTEXT
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 52
FAA AIRPORTS DIVISION
Office of
Airports
(ARP)
Airport safety, inspections, standards, airport design, construction, and operation.
Airport Improvement Program (AIP) grants
Passenger facility charges(PFCs) approvals
National airport planning and environmental requirements
Policies on rates and charges, compliance with grant assurances, and privatization
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Associate Administrator
Winsome Lenfert, Acting
Airport Planning/
Programming
Elliott Black
Compliance/ Management Analysis
Kevin Willis
Safety/ Standards
John Dermody
Deputy Assoc Admin. Winsome Lenfert
53
WHO IS THE AIRPORTS DIVISION?
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
FAA REGIONS Regional office
Airport district office (ADO)
54
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Air Traffic Organization (ATO) Next Gen
Flight tracks
Flight Standards District Office (FSDO) Aircraft operational and safety issues
Accidents
55
OTHER KEY FAA OFFICES
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Agency is huge; airports function is not!
Airports District Office is first point of contact
Major policy issues to HQ
Enforcement (routine) at ADO
Adjudications of grant violations at HQ
Don’t be afraid to call!
56
DEALING WITH THE FAA
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Enforcement Focus is on current compliance, not generally punitive action
Generally ADO or Region
Adjudication of grievances Part 16 for grant assurances
Part 13 for informal grievances
Occasionally, rarely, court
Penalties; corrective action Negotiated
Exclusive jurisdiction in US Ct. Appeals (49 USC § 46110)
57
FAA AS ADJUDICATOR
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 58
5. Stakeholders
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE59
FAA
NeighborsGeneral
Aviation
Non-
aeronautical
Users
Concessions Tenants Utilities
Ground
Access
Providers
Pilots
State
Local Govt’s
FBOs
Airlines
Air Traffic
57
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
What is my legal relationship?
What is the stakeholder’s role?
Is the relationship governed or influenced by… Federal law?
State or local law?
60
QUESTIONS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Encroachment and land uses affecting airports Grant Assurances 20 & 21
State land use / aeronautics laws
Local zoning
IGAs
Part 77
61
NEIGHBORS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
State and local DOTs
Metropolitan Planning Organizations
FHWA / FTA
Uber/Lyft
Ground access providers
Local transit
62
ACCESS PROVIDERS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Concessionaires A special kind of tenant
Subject to federal DBE provisions
Contentious because of the stakes
Vendors/Suppliers
63
CONCESSIONAIRES
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Aeronautical Grant Assurance 22
Minimum Standards
Non-Aeronautical Grant Assurance 24
Releases from Grant Assurances
64
TENANTS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Local governments
Chambers of Commerce
Specific local businesses
Special purpose entity to promote airport
65
ECONOMIC INTERESTS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Private equity investors
Private debt investors
Rating agencies
66
INVESTORS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 67
6. Key Conference
Themes
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
1. IT MATTERS WHO OWNS, OPERATES THE
AIRPORT
68
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 69
2. KNOW THE SOURCE OF YOUR AUTHORITY
federal
proprietarylocal
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 70
3. FEDERAL PREEMPTION IS PERVASIVE
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 71
4. KEEP TRACK OF SOURCES AND USES OF
FUNDS
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 72
5. WHICH FAA IS IT?
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 73
6. KNOW THE GRANT ASSURANCES
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE
Airports have an unlimited supply of money.
Airports are just like other local government functions.
The federal government only regulates money and aircraft.
We can do whatever we want with our airport.
Airports only exist to serve _______.
74
7. RECOGNIZE COMMON MISTAKES
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 75
Schedule a
site visit
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34TH ANNUAL BASICS OF AIRPORT LAW WORKSHOP AND 2018 LEGAL UPDATE 76
Schedule a
site visit
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ATTORNEY ADVERTISEMENT. The contents of this presentation, current at the date of publication, are for reference purposes only and do not constitute legal advice.
The contents do not reflect the official opinion of Kaplan Kirsch & Rockwell LLP. Responsibility for the information and views expressed within this document lies entirely with the author(s).
© 2018 Kaplan Kirsch & Rockwell LLP
QUESTIONS?
Peter J. Kirsch
John E. Putnam
Kaplan Kirsch & Rockwell