AB 100 — Revises provisions relating to economic development of regional commercial air service in this State. (BDR 44-140)

The term includes, without limitation, an air taxi operator designated pursuant to 14 C.F.R.

§ 298.3.

Sec.

5.

“Director” means the Director of the Office of Aerospace appointed pursuant to section 7 of this act.

Sec.

6.

“Office” means the Office of Aerospace created by section 7 of this act.

Sec.

7.

1.

The Office of Aerospace is hereby created within the Department of Transportation.

2.

The Governor shall appoint a Director to head the Office.

The Director is in the unclassified service of the State and serves at the pleasure of the Governor.

Sec.

8.

1.

The Office shall:

(a) Develop a statewide plan for advanced air mobility airspace and airport infrastructure and aviation-flight use, including, without limitation, airport, airstrip, heliport, spaceport and vertiport, which must be developed with input from relevant stakeholders;

(b) Manage and support the development of air service in this State, with an emphasis on intrastate air service to all areas of this State;

(c) Expand existing state planning for airports and heliport systems to highlight the economic impact of airports and aviation in this State;

(d) Create a system for automated weather observation at rural locations;

(e) Create a certification program in airport lighting and maintenance at rural airports;

(f) Develop a program to distribute surplus equipment to airports in this State;

(g) Implement a statewide network of crew cars to support rural airports in this State;

and (h) Establish a comprehensive aviation support network in this State.

2.

The Director may adopt regulations to carry out the provisions of sections 3 to 13, inclusive, of this act.

- *AB100_R1* – 4 – Sec.

9.

The Office of Aerospace may apply for any available grants and accept gifts, grants, bequests and other contributions from any public or private source, including interlocal agreements.

Sec.

10.

1.

There is hereby created as a special revenue fund in the State Treasury the Nevada Aerospace Development Fund.

The CommissionDirector mayshall acceptadminister gifts, bequests, grants, appropriations and donations from any source for deposit in the Fund.

The Director may accept gifts, bequests, grants, appropriations and donations from any source for deposit in the Fund.

The CommissionDirector may make grants of money from the Fund to air carriers or governmental entities that satisfy the criteria set forth in NRSsection 231.710.11 of this act.

11.

1.

The Office shall develop a program to provide grants of money from the Nevada Aerospace Development Fund created by section 10 of this act to an air carrier or governmental entity for the purpose of establishing air service or providing enhanced air service routes that service a public-use airport that is a National Plan of Integrated Airport Systems public airport.

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

(a) A statement designating the airport described in subsection 1 for which the air carrier will commence or continue air service if the grant is awarded;

(b) Commitments from the air carrier that if the Office awards the grant to the air carrier, the air carrier will enter into a written agreement with the Office 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 Office one of the guarantees set forth in subsection 4;

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

3.

The Office may make a grant of money from the Nevada Aerospace Development Fund if the Office finds that the grant will:

- *AB100_R1* – 5 – (a) Enable an air carrier to commence or continue air service to an airport described in subsection 1;

and (b) Provide economic benefit to this State.

4.

The Office may make a grant of money from the Nevada Aerospace Development 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;

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

5.

As used in this section:

(a) “National Plan of Integrated Airport Systems public airport” means an airport in this State that is part of the most recent version of the National Plan of Integrated Airport Systems published by the United States Secretary of Transportation pursuant to 49 U.S.C.

§ 47103.

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

§ 47102.

Sec.

12.

ThereThe is hereby appropriated from the State General Fund to the Nevada AirAerospace ServiceCommission Developmentis Fundhereby created bywithin NRS 231.690 the sumOffice. of $10,000,000.

The Commission shall advise the Governor and the Office on the priorities for aerospace development in this State.

The amountCommission appropriatedconsists byof: subsection 1 must be used for the purpose of conducting a study of the development of intrastate air service in this State and for the purpose of making grants of money pursuant to NRS 231.710.

(a) The Director;

(b) One member appointed by the Governor who is a member of the Commission on Tourism;

(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 the Nevada League of Cities or its successor organization.

3.

The Governor shall ensure that at least one member appointed pursuant to subsection 2 is a resident of a county whose population is less than 100,000.

- *AB100_R1* – 6 – 4.

The terms of office for the members of the Commission appointed pursuant to paragraphs (b) to (h), inclusive, of subsection 2 are 2 years, which terms must be staggered.

5.

At the first meeting of each fiscal year, the Commission shall elect from among its members a Chair, a Vice Chair and a Secretary.

6.

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.

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

7.

The members of the Commission serve without compensation.

13.

On or before February 1 of each year, the Office 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 Nevada Aerospace Development Fund created by section 10 of this act that were received pursuant to section 11 of this act;

2.

The total amount of grants from the Nevada Aerospace Development Fund that were awarded by the Office to air carriers or governmental entities pursuant to section 11 of this act;

For each grant of money awarded from the Nevada Aerospace Development 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;

4.

The total amount of grants from the Fund for Aviation that were awarded by the Office to a county, city or other local government pursuant to NRS 494.048;

and 5.

For each grant of money awarded from the Fund for Aviation that was awarded by the Office to a county, city or local government pursuant to NRS 494.048, the amount of each grant and an explanation of how the grant will be used by the county, city or other local government.

Sec.

14.

NRS 494.048 is hereby amended to read as follows:

494.048 1.

The Fund for Aviation is hereby created as a trust fund in the State Treasury.

The Director:

(a) Shall administer the Fund;

and (b) May apply for and accept any gift, bequest, grant, appropriation or donation from any source for deposit in the Fund.

2.

Any money received by the Director pursuant to the provisions of subsection 1 must be deposited in the Fund.

The money in the Fund may be invested as the money in other state funds is invested.

After deducting any applicable charges, all - *AB100_R1* – 7 – interest and income earned on the money in the Fund must be credited to the Fund.

The money in the Fund may be expended only in accordance with the terms and conditions of any gift, bequest, grant, appropriation or donation to the Fund or in the manner provided in subsection 3.

Not more than 1 percent of the money in the Fund may be used to pay the costs of administering the Fund.

3.

Except as otherwise provided in this section, the Director may:

(a) Expend money in the Fund to award grants to a county, city or other local government in this State for obtaining matching money for federal programs and any other programs relating to airports or for the planning, establishment, development, construction, enlargement, improvement or maintenance of any airport, landing area or air navigation facility owned or controlled by the county, city or other local government;

and (b) Adopt regulations to carry out the provisions of paragraph (a).

4.

The Director shall:

(a) In adopting regulations pursuant to subsection 3, determine the order of priority for the expenditures from the Fund by considering, without limitation, the following factors:

(1) The purpose of the project;

(2) The costs and benefits of the project;

and (3) The effect of the project on the environment, safety, security, infrastructure and capacity of the airport;

and (b) Before awarding a grant or adopting a regulation pursuant to subsection 3, consult with the Nevada Aviation Technical Advisory Committee and any person who represents an airport in this State used by the general public.

5.

Any money received by a county, city or other local government pursuant to the provisions of this section must be accounted for separately by the county, city or other local government and may be used only for the purpose for which the money was received by the county, city or other local government.

6.

The provisions of this section do not apply to an airport, landing area or air navigation facility that is owned or controlled by the Reno-Tahoe Airport Authority or a county whose population is 700,000 or more.

7.

As used in this section, “Director” means the Director of the [Department] Office of [Transportation.] Aerospace created by section 7 of this act.

Sec.

15.

There is hereby appropriated from the State General Fund to the FundNevada forAerospace AviationDevelopment Fund created by NRSsection 494.04810 of this act the followingsum sums:of $10,000,000.

- *AB100_R1* – 8 – 2.

The amount appropriated by subsection 1 must be used for the purpose of conducting a study of the development of intrastate air service in this State and for the purpose of making grants of money pursuant to section 11 of this act.

Sec.

16.

1.

There is hereby appropriated from the State General Fund to the Fund for Aviation created by NRS 494.048, as amended by section 14 of this act, the following sums:

- *AB100* – 3 – Sec.

4.17.

1.

The Legislature hereby finds and declares that:

(a) Section 9 of Article 8 of the Nevada Constitution contains a provision commonly known as the “gift clause” which restricts the State, under certain circumstances, from donating or loaning the State’s money or credit to any company, association or corporation, except corporations formed for educational or charitable purposes.

(b) In Employers Insurance Company of Nevada v.

State Board of Examiners, 117 Nev.

249, 258 (2001), the Nevada Supreme Court held that the State loans its credit in violation of Section 9 of Article 8 of the Nevada Constitution only when the State acts as a surety or guarantor for the debts of a company, corporation or association.

(c) In Lawrence v.

Clark County, 127 Nev.

390, 405 (2011), the Nevada Supreme Court held that the State does not donate, loan or “gift” its money in violation of Section 9 of Article 8 of the Nevada Constitution when the State dispenses state funds for public purposes and the State receives a valuable benefit or fair consideration in exchange for the dispensation of the state funds.

(d) In McLaughlin v.

Housing Authority of the City of Las Vegas, 68 Nev.

84, 93 (1951), and Lawrence v.

Clark County, 127 Nev.

390, 399 (2011), the Nevada Supreme Court held that when the Legislature authorizes a state agency to dispense state funds:

(1) The courts will carefully examine whether the Legislature made an informed and appropriate finding that the dispensation of the state funds serves a public purpose and the State receives a valuable benefit or fair compensation in exchange for the dispensation;

(2) The courts will give great weight and due deference to the Legislature’s finding, and the courts will uphold the Legislature’s finding unless it clearly appears to be erroneous and without reasonable foundations;

and (3) The courts will closely examine whether the dispensing state agency reviews all facts, figures and necessary information - *AB100_R1* – 9 – when making the dispensation, and when the state agency has done so, it will not be second-guessed by the courts.

2.

The Legislature hereby further finds and declares that:

(a) The program developed and carried into effect pursuant to section 11 of this act will not result in the State acting as a surety or guarantor of the debts of an air carrier receiving a grant of money.

(b) The purpose of section 11 of this act is to develop and carry into effect a state program to encourage air carriers to resume, retain or enhance the provision of commercial air service to and from small hub airports, nonhub airports and large hub airports that serve rural communities in this State.

(c) The provisions of section 11 of this act are intended to serve an important public purpose and ensure that the State receives valuable benefits and fair consideration in exchange for each grant of money from the program because:

(1) The program requires the dispensing state agency to review all facts, figures and necessary information when making each grant of money from the program to determine whether the grant will provide economic benefit to the State;

(2) The provision of air transportation service to and from small hub airports and nonhub airports enables the citizens and businesses of this State to travel more efficiently, and at lower cost, to and from the rural communities in this State;

and (3) The dispensing state agency may not make a grant of money from the program unless the agency receives a commitment from the air carrier receiving the grant to commence or continue air service to a designated small hub airport, nonhub airport or large hub airport that services small hub airports and nonhub airports.

3.

As used in this section, “air carrier” has the meaning ascribed to it in section 4 of this act.

Sec.

18.

The Legislative Counsel shall, in preparing supplements to the Nevada Administrative Code, appropriately change any references to an officer, agency or other entity whose name is changed or whose responsibilities are transferred pursuant to the provisions of this act to refer to the appropriate officer, agency or other entity.

Sec.

19.

1.

Any administrative regulations adopted by an officer or an agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remain in force until amended by the officer or agency to which the responsibility for the adoption of the regulations has been transferred.

2.

Any contracts or other agreements entered into by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to - *AB100_R1* – 10 – another officer or agency are binding upon the officer or agency to which the responsibility for the administration of the provisions of the contract or other agreement has been transferred.

Such contracts and other agreements may be enforced by the officer or agency to which the responsibility for the enforcement of the provisions of the contract or other agreement has been transferred.

3.

Any action taken by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remains in effect as if taken by the officer or agency to which the responsibility for the enforcement of such actions has been traSec.

20.

Notwithstanding the amendatory provisions of sections 12 and 23 of this act, any person who, on July 1, 2025, was appointed to serve on the Nevada Air Service Development Commission created by NRS 231.680, as that section existed on June 30, 2025, may continue to serve in that capacity until his or her term would ordinarily expire pursuant to subsection 3 of NRS 231.680, as that section existed on June 30, 2025.

Sec.

21.

On July 1, 2025, the State Controller shall transfer any unexpended balance in the Nevada Air Service Development Fund created by NRS 231.690, as that section existed on June 30, 2025, to the Nevada Aerospace Development Fund created by section 10 of this act.

Sec.

22.

The provisions 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.

Sec.

23.

NRS 231.600, 231.610, 231.620, 231.630, 231.650, 231.655, 231.665, 231.680, 231.690, 231.700, 231.710, 231.720 and 231.730 are hereby repealed.

Sec.

24.

HLEADLINES -OF *AB100*REPEALED SECTIONS 231.600 Definitions.

231.610 “Air carrier” defined.

231.620 “Commission” defined.

231.630 “Fund” defined.

231.650 “Local air service development entity” defined.

231.655 “National Plan of Integrated Airport Systems public airport” or “NPIAS airport” defined.

231.665 “Public use airport” defined.

- *AB100_R1* – 11 – 231.680 Creation;

membership;

terms;

election of Chair, Vice Chair and Secretary;

meetings;

quorum.

gifts, grants and donations;

interest;

use.Fund:

Creation;

231.700 Administration of Fund;

regulations.

231.710 Grant program for air service or enhanced air service;

requirements for grant application.

231.720 Award of grants.

231.730 Annual reports to Legislature.

H - *AB100_R1*