093_HB0226

                                     LRB093 05131 DRH 05191 b

 1        AN ACT in relation to air transportation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.   This Act may be cited as the
 5    I-FLY Act.

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

16        Section 10.  Definitions.  As used in this Act:
17        "Air carrier" means an entity  that  provides  commercial
18    passenger air transportation.
19        "Department"    means    the   Illinois   Department   of
20    Transportation.

21        Section 15.  I-FLY Fund.
22        (a)  The I-FLY Fund is created as a special fund  in  the
23    State  treasury.  Moneys may be transferred to the Fund from:
24    (1) appropriations made by the General Assembly and units  of
25    local  government  to the Fund, (2) federal moneys designated
26    for the Fund, and (3) any grants or gifts designated for  the
27    Fund.
28        (b)    Fifty  percent of the  moneys in the Fund shall be
29    used, subject to appropriation, for air  carrier  recruitment
 
                            -2-      LRB093 05131 DRH 05191 b
 1    and  retention program grants. Fifty percent of the moneys in
 2    the  Fund  shall  be  used,  subject  to  appropriation,  for
 3    planning grants and capital improvement and equipment grants.

 4        Section 20.  I-FLY Program.
 5        (a)  The Department 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);
 9             (2)  planning grants under subsection (d); and
10             (3)  capital  improvement and equipment grants under
11        subsection (e).
12        Grants under this Act may be made only to  airports  that
13    are located completely outside of Cook County.
14        (b)  During any one-year period, an airport may receive a
15    grant   for  only  one  of  the  3  components  specified  in
16    subsection (a).
17        (c)  Air  carrier  recruitment  and   retention   program
18    grants.
19             (1)  An   airport   may   receive   an  air  carrier
20        recruitment and retention program grant only if:
21                  (A)  it is capable of supporting  takeoffs  and
22             landings by aircraft that have at least 19 passenger
23             seats  or  have  made improvements or commitments to
24             the Department to provide this capability;
25                  (B)  it is located within 20 miles  of  one  or
26             more  manufacturing  facilities  having  at least 50
27             full-time employees or within a municipality with at
28             least 75,000 inhabitants; and
29                  (C)  it has a commitment from an air carrier to
30             start or continue air service to the community  that
31             the  airport  serves   subject  to financial support
32             from the State and from the airport or unit of local
33             government that the airport serves. The   commitment
 
                            -3-      LRB093 05131 DRH 05191 b
 1             must  specify that the air carrier would not provide
 2             or continue to provide service to the  community  if
 3             financial assistance were not available.
 4             (2)  An  application  for an air carrier recruitment
 5        and retention program grant must contain commitments from
 6        the airport or the unit of local government in which  the
 7        airport  is located as to the amount of the total project
 8        cost, the contribution from the unit of local  government
 9        or airport, the method in which the contribution from the
10        airport  or  unit  of local government will be generated,
11        and the requested State contribution.
12             (3)  The  air  carrier  recruitment  and   retention
13        program  grant  shall  be used to guarantee the financial
14        viability of air carriers providing 4 flights per day for
15        6 days per week at the airport using aircraft  that  have
16        at   least  19  passenger  seats.   A  grant  under  this
17        subsection (c) to a particular airport may be in only one
18        of the following 3 forms:
19                  (A)  A grant may be used to guarantee  that  an
20             air  carrier  shall  receive  a  specified amount of
21             revenue per flight.
22                  (B)  A grant may be used to guarantee a reduced
23             or subsidized consumer ticket price.
24                  (C)  A grant may be used to guarantee a  profit
25             goal established by the air carrier and airport.
26             (4)  During  the  first  year  of a grant under this
27        subsection (c), the grant shall pay 80% of the total cost
28        of the  guarantee  and  the  airport  or  unit  of  local
29        government  in which the airport is located shall pay 20%
30        of the total cost of the  guarantee.  During  the  second
31        year  of  a  grant  under  this subsection (c), the grant
32        shall pay 50% of the total cost of the guarantee and  the
33        airport  or  the  unit  of  local government in which the
34        airport is located shall pay 50% of the total cost of the
 
                            -4-      LRB093 05131 DRH 05191 b
 1        guarantee.
 2             (5)  The total State funding for a grant under  this
 3        subsection  (c)  to  a  particular airport may not exceed
 4        $2,500,000 in any year.
 5             (6)  An airport that has  received  a  2-year  grant
 6        under this subsection (c) may apply for another grant for
 7        an  additional  2-year  period;  however,  the Department
 8        shall, in determining whether to  make  a  grant  for  an
 9        additional 2-year period, give priority to other airports
10        that  have  not  previously  received  a grant under this
11        subsection (c).  The Department shall also give  priority
12        in making grants under this subsection (c) to airports at
13        which  the  Department determines that a 2-year grant may
14        result in the creation of stable and reliable  commercial
15        air service without an additional grant.
16        (d)  Planning  grants.  An  airport  may  apply  for  and
17    receive  a  planning  grant to conduct feasibility studies or
18    business plans designed to study the recruitment,  retention,
19    or expansion of an air carrier at the airport. To be eligible
20    for  a grant under this subsection (d), the airport must have
21    the potential for initial or  expanded  air  service  as  the
22    Department  determines  through  its  evaluation process. The
23    grant shall pay 70% of the  total  cost  of  the  feasibility
24    studies  or  business  plans  and  the airport or the unit of
25    local government in which the airport is  located  shall  pay
26    30%  of the total cost of the feasibility studies or business
27    plans. An airport may receive only one planning grant.
28        (e)  Capital improvement and equipment grants. An airport
29    may apply for and receive a capital improvement and equipment
30    grant  for  capital  improvements,  including  equipment   to
31    facilitate  the  attraction  or  retention  of commercial air
32    service. The grant shall pay 50%  of the cost of an  approved
33    project  and  the  airport or the unit of local government in
34    which the airport is located shall pay 50%  of  the  cost  of
 
                            -5-      LRB093 05131 DRH 05191 b
 1    the  approved  project.  In  evaluating  an application for a
 2    grant under this subsection (e), the Department   shall  give
 3    priority  to  airports  at  which  the requested improvements
 4    would facilitate the airport's ability to recruit  or  retain
 5    commercial air service.

 6        Section  25.  Rules.  The Department shall adopt rules to
 7    carry out this Act.

 8        Section 90.  The State Finance Act is amended  by  adding
 9    Section 5.596 as follows:

10        (30 ILCS 105/5.596 new)
11        Sec. 5.596.  The I-FLY Fund.

12        Section  99.  Effective  date. This Act takes effect upon
13    becoming law.