SB 433 — EXPAND RURAL AIR PASSENGER CAPACITY

SENATEAN BILLACT 433RELATING 56THTO LEGISLATUREAVIATION; - STATEOFNEWMEXICO- FIRST SESSION, 2023 INTRODUCED BY William F.

Burt and Ron Griggs and Dayan Hochman-Vigil 6 8 10 AN ACT RELATING TO AVIATION;

INCREASING THE PASSENGER CAPACITY OF AIRCRAFT USED FOR NEW OR EXPANDED AIR ROUTES FROM THIRTY TO ONE HUNDRED 14 PASSENGERS.

167 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 SECTION 1.

Section 64-6-3 NMSA 1978 (being Laws 2021, w l n d 18 Chapter 47, Section 3, as amended) is amended to read:

= = 19 "64-6-3.

RURAL AIR SERVICE ENHANCEMENT GRANT PROGRAM.-- a l i a e r 20 A.

The "rural air service enhancement grant a t m m 21 program" is created in the division to be administered by the d r e 22 director.

c e s k 23 B.

e a n b 24 (1) establish and publish deadlines and u [ guidelines for the submission of grant applications;

.224966.1 (2) develop procedures for receipt, review and approval of grant applications;

SB 433 (5) establish grant reporting requirements Page 1 that meet the general purpose of the Rural Air Service Enhancement Act;

e e 17 D.

The director shall award grants to applicants e e n d 18 through a competitive process and based upon the following = = l ] 19 criteria:

a l r i 20 (1) the demand for service on the proposed new t e a t air routes or expanded air routes;

m m 21 e d r e 22 (2) the economic impact on the municipality or c e r c 23 county of the proposed new air routes or expanded air routes;

e a n b 24 and u [ (3) the feasibility of a common carrier .224966.1 - 2 - licensed by the state servicing proposed new air routes or expanded air routes.

(1) municipalities or counties shall have a minimum population of twenty thousand persons residing within a fifty-mile radius of the airport unless the municipality or SB 433 Page 2 county has existing air routes;

(2) aircraft to be used to service proposed new air routes or expanded air routes served by the rural air service enhancement grant program shall have a passenger capacity of not more than [thirty ] one hundred persons;

(a) ten percent if the municipality or county has no existing scheduled air routes at the time of e e 17 application;

and e e n d 18 (b) twenty percent if the municipality = = l ] 19 or county has existing scheduled air routes at the time of a l r i 20 application.

t e a t F.

Individual grants awarded through the rural air m m 21 e d r e 22 service enhancement grant program shall not:

c e r c 23 (1) exceed two million two hundred fifty e a n b 24 thousand dollars ($2,250,000) per year for municipalities or u [ counties with existing scheduled air routes;

.224966.1 - 3 - (2) exceed two million seven hundred fifty thousand dollars ($2,750,000) per year for municipalities or counties not served by existing scheduled air routes;

If funds are available in the rural air SB 433 Page 3 service enhancement fund, the director may extend the term of an existing grant up to three additional years.

Funds received through individual grants awarded through the rural air service enhancement grant program shall e e 17 be expended by the grantee municipality or county only to e e n d 18 airlines that have been selected through a competitive process = = l ] 19 pursuant to the Procurement Code." a l r i 20 SECTION 2.

EFFECTIVE DATE.--The effective date of the t e a t provisions of this act is July 1, 2023.

mSB m433 21Page e d r e 22 - 4 -25 c e r c 23 e a n b 24 u [ .224966.1