093_SB0172enr

 
SB172 Enrolled                       LRB093 07082 SJM 07234 b

 1        AN ACT in relation to air transportation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.   This Act may be cited as the
 5    I-FLY Act.

 6        Section 5.  Findings.  The General Assembly  finds  that,
 7    in  order  to  create,  retain,  and  stabilize  reliable air
 8    service  to  commercial  service  airports  outside  of  Cook
 9    County, improve  accessibility  to  business  and  industrial
10    centers,  augment the State's tourism industry, and encourage
11    the development of facilities  and  support  initiatives  for
12    community  growth,  cooperation  between the State, airports,
13    and communities is essential.  The General  Assembly  further
14    finds  that  a  State  grant  program  is  the best method to
15    achieve these ends.

16        Section 10.  Definitions.  As used in this Act:
17        "Air carrier" means an entity  that  provides  commercial
18    passenger air transportation.
19        "Commission" means the Air Service Commission.

20        Section 15.  I-FLY Fund.
21        (a)  The  I-FLY  Fund is created as a special fund in the
22    State treasury. Moneys may be deposited into the  Fund  from:
23    (1)  appropriations made by the General Assembly and units of
24    local government to the Fund, (2) federal  moneys  designated
25    for  the Fund, and (3) any grants or gifts designated for the
26    Fund.
27        (b)  The  moneys  in  the  Fund  shall  be  used  by  the
28    Commission,   subject   to  appropriation,  for  air  carrier
29    recruitment and retention program  grants  and  for  planning
 
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 1    grants.

 2        Section  20. Air Service Commission. There is created the
 3    Air Service Commission. The Commission  shall  consist  of  5
 4    members,  each  of whom has airport management or air carrier
 5    experience, or both. The members shall be  appointed  by  the
 6    Governor, with the advice and consent of the Senate, each one
 7    from  a different geographical region of the State outside of
 8    Cook County. The Governor shall designate one of the  members
 9    as the chairperson.
10        Members  shall  serve for a term of 4 years, except that,
11    for the initial members appointed, one shall serve for a term
12    of 5 years, one for a term of 4 years, one for a  term  of  3
13    years,  one  for a term of 2 years, and one for a term of one
14    year. Initial terms shall commence  on  July  1,  2003.  Each
15    member  shall  serve  until  a  successor  is  appointed  and
16    qualified.  Vacancies  shall  be filled in the same manner as
17    initial appointments. The members shall not receive a  salary
18    but  shall  be reimbursed for the necessary expenses incurred
19    in the performance of their duties.
20        The  Commission  shall  administer  this   Act   and   is
21    authorized  to  do  all  things  reasonable  and necessary to
22    accomplish the goals of the I-FLY Program.

23        Section 25.  I-FLY Program.
24        (a)  The Commission shall establish  the  I-FLY  Program.
25    The Program shall consist of the following components:
26             (1)  air carrier recruitment and retention grants as
27        described in subsection (c); and
28             (2)  planning grants under subsection (d).
29        The  Commission  may  make  grants under this Act only to
30    airports that are located completely outside of Cook County.
31        (b)  During any one-year period, an airport may receive a
32    grant  for  only  one  of  the  2  components  specified   in
 
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 1    subsection (a).
 2        (c)  Air   carrier   recruitment  and  retention  program
 3    grants.
 4             (1)  An  airport  may   receive   an   air   carrier
 5        recruitment   and   retention   program  grant  from  the
 6        Commission only if:
 7                  (A)  it is capable of supporting  takeoffs  and
 8             landings by aircraft that have at least 19 passenger
 9             seats  or  have  made improvements or commitments to
10             the Commission to provide this capability; and
11                  (B)  it has a commitment from an air carrier to
12             start or continue air service to the community  that
13             the  airport  serves   subject  to financial support
14             from the State and from the airport or unit of local
15             government that the airport serves. The   commitment
16             must  specify that the air carrier would not provide
17             or continue to provide service to the  community  if
18             financial assistance were not available.
19             (2)  An  application  for an air carrier recruitment
20        and retention program grant must contain commitments from
21        the airport or the unit of local government in which  the
22        airport  is located as to the amount of the total project
23        cost, the contribution from the unit of local  government
24        or airport, the method in which the contribution from the
25        airport  or  unit  of local government will be generated,
26        and the requested State contribution.
27             (3)  The  air  carrier  recruitment  and   retention
28        program  grant  shall  be used to guarantee the financial
29        viability  of  air  carriers  providing  reasonable   air
30        service at the airport. A grant under this subsection (c)
31        to  a  particular  airport  may  be  in  only  one of the
32        following 3 forms:
33                  (A)  A grant may be used to guarantee  that  an
34             air  carrier  shall  receive  an  agreed  amount  of
 
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 1             revenue per flight.
 2                  (B)  A grant may be used to guarantee a reduced
 3             or subsidized consumer ticket price.
 4                  (C)  A  grant may be used to guarantee a profit
 5             goal established by the air carrier and airport.
 6             (4)  During the first year of  a  grant  under  this
 7        subsection (c), the grant shall pay 80% of the total cost
 8        of  the  guarantee  and  the  airport  or  unit  of local
 9        government in which the airport is located shall pay  20%
10        of  the  total  cost  of the guarantee. During the second
11        year of a grant under  this  subsection  (c),  the  grant
12        shall  pay 50% of the total cost of the guarantee and the
13        airport or the unit of  local  government  in  which  the
14        airport is located shall pay 50% of the total cost of the
15        guarantee.
16             (5)  The  total State funding for a grant under this
17        subsection (c) to a particular  airport  may  not  exceed
18        $1,000,000 in any year.
19             (6)  An  airport  that  has  received a 2-year grant
20        under this subsection (c) may apply for another grant for
21        an additional  2-year  period;  however,  the  Commission
22        shall,  in  determining  whether  to  make a grant for an
23        additional 2-year period, give priority to other airports
24        that have not previously  received  a  grant  under  this
25        subsection  (c).  The Commission shall also give priority
26        in making grants under this subsection (c) to airports at
27        which the Commission determines that a 2-year  grant  may
28        result  in the creation of stable and reliable commercial
29        air service without an additional grant.
30        (d)  Planning  grants.  An  airport  may  apply  for  and
31    receive a planning grant to conduct  feasibility  studies  or
32    business  plans designed to study the recruitment, retention,
33    or expansion of an air carrier at the airport. To be eligible
34    for a grant under this subsection (d), the airport must  have
 
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 1    the  potential  for  initial  or  expanded air service as the
 2    Commission determines through  its  evaluation  process.  The
 3    grant  shall  pay  70%  of  the total cost of the feasibility
 4    studies or business plans and the  airport  or  the  unit  of
 5    local  government  in  which the airport is located shall pay
 6    30% of the total cost of the feasibility studies or  business
 7    plans. An airport may receive only one planning grant.

 8        Section  90.   The State Finance Act is amended by adding
 9    Section 5.595 as follows:

10        (30 ILCS 105/5.595 new)
11        Sec. 5.595.  The I-FLY Fund.

12        Section 99.  Effective date. This Act takes  effect  upon
13    becoming law.