093_SB0172ham001

 










                                     LRB093 07082 SJM 16722 a

 1                    AMENDMENT TO SENATE BILL 172

 2        AMENDMENT NO.     .  Amend Senate Bill 172  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to air transportation."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 1.  Short title.  This Act may be cited  as  the
 8    I-FLY Act.

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

19        Section 10.  Definitions.  As used in this Act:
20        "Air  carrier"  means  an entity that provides commercial
 
                            -2-      LRB093 07082 SJM 16722 a
 1    passenger air transportation.
 2        "Commission" means the Air Service Commission.

 3        Section 15.  I-FLY Fund.
 4        (a)  The I-FLY Fund is created as a special fund  in  the
 5    State  treasury.  Moneys may be deposited into the Fund from:
 6    (1) appropriations made by the General Assembly and units  of
 7    local  government  to the Fund, (2) federal moneys designated
 8    for the Fund, and (3) any grants or gifts designated for  the
 9    Fund.
10        (b)  The   moneys  in  the  Fund  shall  be  used  by the
11    Commission,  subject  to  appropriation,  for   air   carrier
12    recruitment  and  retention  program  grants and for planning
13    grants.

14        Section 20. Air Service Commission. There is created  the
15    Air  Service  Commission.  The  Commission shall consist of 5
16    members, each of whom has airport management or  air  carrier
17    experience,  or  both.  The members shall be appointed by the
18    Governor, with the advice and consent of the Senate, each one
19    from a different geographical region of the State outside  of
20    Cook  County. The Governor shall designate one of the members
21    as the chairperson.
22        Members shall serve for a term of 4 years,  except  that,
23    for the initial members appointed, one shall serve for a term
24    of  5  years,  one for a term of 4 years, one for a term of 3
25    years, one for a term of 2 years, and one for a term  of  one
26    year.  Initial  terms  shall  commence  on July 1, 2003. Each
27    member  shall  serve  until  a  successor  is  appointed  and
28    qualified. Vacancies shall be filled in the  same  manner  as
29    initial  appointments. The members shall receive a salary set
30    by the Compensation Review Board and shall be reimbursed  for
31    the  necessary  expenses incurred in the performance of their
32    duties.
 
                            -3-      LRB093 07082 SJM 16722 a
 1        The  Commission  shall  administer  this   Act   and   is
 2    authorized  to  do  all  things  reasonable  and necessary to
 3    accomplish the goals of the I-Fly Program.

 4        Section 25.  I-FLY Program.
 5        (a)  The Commission shall establish  the  I-FLY  Program.
 6    The Program shall consist of the following components:
 7             (1)  air carrier recruitment and retention grants as
 8        described in subsection (c); and
 9             (2)  planning grants under subsection (d).
10        The  Commission  may  make  grants under this Act only to
11    airports that are located completely outside of Cook County.
12        (b)  During any one-year period, an airport may receive a
13    grant  for  only  one  of  the  2  components  specified   in
14    subsection (a).
15        (c)  Air   carrier   recruitment  and  retention  program
16    grants.
17             (1)  An  airport  may   receive   an   air   carrier
18        recruitment   and   retention   program  grant  from  the
19        Commission only if:
20                  (A)  it is capable of supporting  takeoffs  and
21             landings by aircraft that have at least 19 passenger
22             seats  or  have  made improvements or commitments to
23             the Commission to provide this capability; and
24                  (B)  it has a commitment from an air carrier to
25             start or continue air service to the community  that
26             the  airport  serves   subject  to financial support
27             from the State and from the airport or unit of local
28             government that the airport serves. The   commitment
29             must  specify that the air carrier would not provide
30             or continue to provide service to the  community  if
31             financial assistance were not available.
32             (2)  An  application  for an air carrier recruitment
33        and retention program grant must contain commitments from
 
                            -4-      LRB093 07082 SJM 16722 a
 1        the airport or the unit of local government in which  the
 2        airport  is located as to the amount of the total project
 3        cost, the contribution from the unit of local  government
 4        or airport, the method in which the contribution from the
 5        airport  or  unit  of local government will be generated,
 6        and the requested State contribution.
 7             (3)  The  air  carrier  recruitment  and   retention
 8        program  grant  shall  be used to guarantee the financial
 9        viability  of  air  carriers  providing  reasonable   air
10        service at the airport. A grant under this subsection (c)
11        to  a  particular  airport  may  be  in  only  one of the
12        following 3 forms:
13                  (A)  A grant may be used to guarantee  that  an
14             air  carrier  shall  receive  an  agreed  amount  of
15             revenue per flight.
16                  (B)  A grant may be used to guarantee a reduced
17             or subsidized consumer ticket price.
18                  (C)  A  grant may be used to guarantee a profit
19             goal established by the air carrier and airport.
20             (4)  During the first year of  a  grant  under  this
21        subsection (c), the grant shall pay 80% of the total cost
22        of  the  guarantee  and  the  airport  or  unit  of local
23        government in which the airport is located shall pay  20%
24        of  the  total  cost  of the guarantee. During the second
25        year of a grant under  this  subsection  (c),  the  grant
26        shall  pay 50% of the total cost of the guarantee and the
27        airport or the unit of  local  government  in  which  the
28        airport is located shall pay 50% of the total cost of the
29        guarantee.
30             (5)  The  total State funding for a grant under this
31        subsection (c) to a particular  airport  may  not  exceed
32        $1,000,000 in any year.
33             (6)  An  airport  that  has  received a 2-year grant
34        under this subsection (c) may apply for another grant for
 
                            -5-      LRB093 07082 SJM 16722 a
 1        an additional  2-year  period;  however,  the  Commission
 2        shall,  in  determining  whether  to  make a grant for an
 3        additional 2-year period, give priority to other airports
 4        that have not previously  received  a  grant  under  this
 5        subsection  (c).  The Commission shall also give priority
 6        in making grants under this subsection (c) to airports at
 7        which the Commission determines that a 2-year  grant  may
 8        result  in the creation of stable and reliable commercial
 9        air service without an additional grant.
10        (d)  Planning  grants.  An  airport  may  apply  for  and
11    receive a planning grant to conduct  feasibility  studies  or
12    business  plans designed to study the recruitment, retention,
13    or expansion of an air carrier at the airport. To be eligible
14    for a grant under this subsection (d), the airport must  have
15    the  potential  for  initial  or  expanded air service as the
16    Commission determines through  its  evaluation  process.  The
17    grant  shall  pay  70%  of  the total cost of the feasibility
18    studies or business plans and the  airport  or  the  unit  of
19    local  government  in  which the airport is located shall pay
20    30% of the total cost of the feasibility studies or  business
21    plans. An airport may receive only one planning grant.

22        Section  90.   The State Finance Act is amended by adding
23    Section 5.595 as follows:

24        (30 ILCS 105/5.595 new)
25        Sec. 5.595.  The I-FLY Fund.

26        Section 99.  Effective date. This Act takes  effect  upon
27    becoming law.".