Public Act 93-0585
SB172 Enrolled LRB093 07082 SJM 07234 b
AN ACT in relation to air transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
I-FLY Act.
Section 5. Findings. The General Assembly finds that,
in order to create, retain, and stabilize reliable air
service to commercial service airports outside of Cook
County, improve accessibility to business and industrial
centers, augment the State's tourism industry, and encourage
the development of facilities and support initiatives for
community growth, cooperation between the State, airports,
and communities is essential. The General Assembly further
finds that a State grant program is the best method to
achieve these ends.
Section 10. Definitions. As used in this Act:
"Air carrier" means an entity that provides commercial
passenger air transportation.
"Commission" means the Air Service Commission.
Section 15. I-FLY Fund.
(a) The I-FLY Fund is created as a special fund in the
State treasury. Moneys may be deposited into the Fund from:
(1) appropriations made by the General Assembly and units of
local government to the Fund, (2) federal moneys designated
for the Fund, and (3) any grants or gifts designated for the
Fund.
(b) The moneys in the Fund shall be used by the
Commission, subject to appropriation, for air carrier
recruitment and retention program grants and for planning
grants.
Section 20. Air Service Commission. There is created the
Air Service Commission. The Commission shall consist of 5
members, each of whom has airport management or air carrier
experience, or both. The members shall be appointed by the
Governor, with the advice and consent of the Senate, each one
from a different geographical region of the State outside of
Cook County. The Governor shall designate one of the members
as the chairperson.
Members shall serve for a term of 4 years, except that,
for the initial members appointed, one shall serve for a term
of 5 years, one for a term of 4 years, one for a term of 3
years, one for a term of 2 years, and one for a term of one
year. Initial terms shall commence on July 1, 2003. Each
member shall serve until a successor is appointed and
qualified. Vacancies shall be filled in the same manner as
initial appointments. The members shall not receive a salary
but shall be reimbursed for the necessary expenses incurred
in the performance of their duties.
The Commission shall administer this Act and is
authorized to do all things reasonable and necessary to
accomplish the goals of the I-FLY Program.
Section 25. I-FLY Program.
(a) The Commission shall establish the I-FLY Program.
The Program shall consist of the following components:
(1) air carrier recruitment and retention grants as
described in subsection (c); and
(2) planning grants under subsection (d).
The Commission may make grants under this Act only to
airports that are located completely outside of Cook County.
(b) During any one-year period, an airport may receive a
grant for only one of the 2 components specified in
subsection (a).
(c) Air carrier recruitment and retention program
grants.
(1) An airport may receive an air carrier
recruitment and retention program grant from the
Commission only if:
(A) it is capable of supporting takeoffs and
landings by aircraft that have at least 19 passenger
seats or have made improvements or commitments to
the Commission to provide this capability; and
(B) it has a commitment from an air carrier to
start or continue air service to the community that
the airport serves subject to financial support
from the State and from the airport or unit of local
government that the airport serves. The commitment
must specify that the air carrier would not provide
or continue to provide service to the community if
financial assistance were not available.
(2) An application for an air carrier recruitment
and retention program grant must contain commitments from
the airport or the unit of local government in which the
airport is located as to the amount of the total project
cost, the contribution from the unit of local government
or airport, the method in which the contribution from the
airport or unit of local government will be generated,
and the requested State contribution.
(3) The air carrier recruitment and retention
program grant shall be used to guarantee the financial
viability of air carriers providing reasonable air
service at the airport. A grant under this subsection (c)
to a particular airport may be in only one of the
following 3 forms:
(A) A grant may be used to guarantee that an
air carrier shall receive an agreed amount of
revenue per flight.
(B) A grant may be used to guarantee a reduced
or subsidized consumer ticket price.
(C) A grant may be used to guarantee a profit
goal established by the air carrier and airport.
(4) During the first year of a grant under this
subsection (c), the grant shall pay 80% of the total cost
of the guarantee and the airport or unit of local
government in which the airport is located shall pay 20%
of the total cost of the guarantee. During the second
year of a grant under this subsection (c), the grant
shall pay 50% of the total cost of the guarantee and the
airport or the unit of local government in which the
airport is located shall pay 50% of the total cost of the
guarantee.
(5) The total State funding for a grant under this
subsection (c) to a particular airport may not exceed
$1,000,000 in any year.
(6) An airport that has received a 2-year grant
under this subsection (c) may apply for another grant for
an additional 2-year period; however, the Commission
shall, in determining whether to make a grant for an
additional 2-year period, give priority to other airports
that have not previously received a grant under this
subsection (c). The Commission shall also give priority
in making grants under this subsection (c) to airports at
which the Commission determines that a 2-year grant may
result in the creation of stable and reliable commercial
air service without an additional grant.
(d) Planning grants. An airport may apply for and
receive a planning grant to conduct feasibility studies or
business plans designed to study the recruitment, retention,
or expansion of an air carrier at the airport. To be eligible
for a grant under this subsection (d), the airport must have
the potential for initial or expanded air service as the
Commission determines through its evaluation process. The
grant shall pay 70% of the total cost of the feasibility
studies or business plans and the airport or the unit of
local government in which the airport is located shall pay
30% of the total cost of the feasibility studies or business
plans. An airport may receive only one planning grant.
Section 90. The State Finance Act is amended by adding
Section 5.595 as follows:
(30 ILCS 105/5.595 new)
Sec. 5.595. The I-FLY Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.