AB 58 — Revises provisions relating to regional commercial air service in this State. (BDR 18-369)

Sec.

1.3.

“Public use airport” has the meaning ascribed to it in 49 U.S.C.

§ 47102.

Sec.

1.4.

On or before February 1 of each year, the Commission shall prepare and submit to the Director of the Legislative Counsel Bureau for transmittal to the Legislature, or if the Legislature is not in session, the Legislative Commission, a report detailing for the immediately preceding calendar year:

1.

The total number of applications for grants of money from the Fund that were received;

The Commissiontotal mayamount acceptof gifts,grants bequests,from grants,the appropriationsFund andthat donationswere fromawarded anyby sourcethe forCommission depositto inair thecarriers; Fund.

and 3.

For each grant of money awarded from the Fund, the amount of each grant and an explanation of how the grant will be used by the air carrier to provide or enhance air service to an airport.

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1.5.

NRS 231.600 is hereby amended to read as follows:

231.600 As used in NRS 231.600 to 231.720, inclusive, and sections 1.2, 1.3 and 1.4 of this act, unless the context otherwise requires, the words and terms defined in NRS 231.610 to [231.670,] - 82nd Session (2023) – 3 – 231.650, inclusive, and sections 1.2 and 1.3 of this act have the meanings ascribed to them in those sections.

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1.6.

NRS 231.610 is hereby amended to read as follows:

231.610 “Air carrier” means a person who provides without limitation, an air taxi operator designated pursuant to 14 C.F.R.

§ 298.3.

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1.7.

NRS 231.680 is hereby amended to read as follows:

231.680 1.

There is hereby created within the Office of Economic Development the Nevada Air Service Development Commission, consisting of:

(a) The Executive Director;

and (b) [The members] One member appointed by the Governor who is a member of the Commission on Tourism [as provided in NRS 231.170.] ;

(c) One member appointed by the Governor who represents the Nevada Aviation Association or its successor organization;

(d) One member appointed by the Governor who represents the department of aviation in a county whose population is 700,000 or more;

(e) One member appointed by the Governor who represents the Reno-Tahoe Airport Authority;

(f) One member appointed by the Governor who represents the Nevada Resort Association or its successor organization;

(g) One member appointed by the Governor who represents the Nevada Association of Counties or its successor organization;

and (h) One member appointed by the Governor who represents the2.evThe Governor shall ensure that at least one member.

appointed pursuant to subsection 1 is a resident of a county whose population is less than 100,000.

The moneyterms inof office for the Fundmembers mustof bethe investedCommission asappointed otherpursuant stateto fundsparagraphs (b) to (h), inclusive, of subsection 1 are invested.2 years, which terms must be staggered.

All interest earned on the deposit or investment of the money in the Fund, after deducting any applicable charges, must be credited to the Fund.

Claims against the Fund must be paid as other claims against the State are paid.

TheAt Commissionthe mayfirst makemeeting grants of moneyeach fromfiscal year, the FundCommission toshall airelect carriersfrom thatamong satisfyits themembers criteriaa setChair, fortha inVice NRSChair 231.710.and a Secretary.

[3.] 5.

The Commission shall meet at least once each calendar quarter and at other times at the call of the Chair or a majority of its members.

[4.] 6.

A majority of the members of the Commission constitutes a quorum for the transaction of all business.

- 82nd Session (2023) – 4 – 231.710 1.

The Commission shall develop a program toollows:

provide grants of money from the Fund to an air carrier [that will] or any governmental entity for the purpose of establishing air service or [provide] providing enhanced air service routes that service [an airport that is:

(a) A small hub airport, a nonhub airport or, if the air carrier provides air service through a large hub airport that services small hub airports and nonhub airports, a large hub airport;

and (b) Certified by the Federal Aviation Administration of the United States Department of Transportation pursuant to 14 C.F.R.

Part 139.] a public use airport that is an NPIAS airport.

2.

An application for a grant of money from the Fund must be in the form prescribed by the Commission and must include, without limitation:

(a) A statement designating the [small hub airport, nonhub airport or large hub] airport described in subsection 1 for which the awarded;ier will commence or continue air service if the grant is (b) Commitments from the air carrier that if the Commission awards the grant to the air carrier, the air carrier will enter into a written agreement with the Commission that provides for the air carrier to commence or continue air service to the airport designated in the application in exchange for receiving from the Commission one of the guarantees set forth in subsection 2 of NRS 231.720;

and (c) Letters of support from each airport that participates in the air service route offered by an air carrier pursuant to subsection 1.

1.91.

NRS 231.720 is hereby amended to read as follows:

231.720 1.

The Commission may make a grant of money from the Fund if the Commission finds that the grant will:

(a) Enable an air carrier to commence or continue air service to [a small hub airport, nonhub airport or large hub] an airport described in subsection 1 of NRS 231.710;

and 2.

The Commission may make a grant of money from the Fund only to:

(a) Guarantee that an air carrier will receive an agreed amount of revenue per flight that the air carrier operates into or out of the airport designated in the application pursuant to paragraph (a) of subsection 2 of NRS 231.710;

or (b) Guarantee a profit goal for the air carrier that is established by agreement between the air carrier and the Commission.

Sec.

There(Deleted isby herebyamendment.) appropriated- from82nd theSession State(2023) – 5 – General Fund to the NevadaFund Airfor ServiceAviation Development Fund created pursuantby to NRS 231.690494.048 the following sumssums: to make grants of money to air carriers that satisfy the criteria set forth in NRS 231.710:

For the Fiscal Year 2023-2024...............................$5,000,000 For the Fiscal Year 2024-2025...............................$5,000,000 Sec.

2.5.

1.

There is hereby appropriated from the State General Fund to the Fund for Aviation created by NRS 494.048 the following sums:

2.6.

The provisions of subsection 1 of NRS 218D.380 do not apply to any provision of this act which adds or revises a requirement to submit a report to the Legislature.

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2.7.

NRS 231.640, 231.660 and 231.670 are hereby repealed.

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H~~~~~ 23 - *AB58_R1*82nd Session (2023)