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92_HB1521sam001 LRB9202074WHpcam 1 AMENDMENT TO HOUSE BILL 1521 2 AMENDMENT NO. . Amend House Bill 1521 by replacing 3 everything after the enacting clause with the following: 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, in 7 order to create, retain, and stabilize reliable air service 8 to commercial service airports outside of Cook County, 9 improve accessibility to business and industrial centers, 10 augment the State's tourism industry, and encourage the 11 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. -2- LRB9202074WHpcam 1 Section 15. I-FLY Fund. 2 (a) The I-FLY Fund is created as a special fund in the 3 State treasury. Moneys may be transferred to the Fund from: 4 (1) appropriations made by the General Assembly and units of 5 local government to the Fund, (2) federal moneys designated 6 for the Fund, and (3) any grants or gifts designated for the 7 Fund. 8 (b) Fifty percent of the moneys in the Fund shall be 9 used, subject to appropriation, for air carrier recruitment 10 and retention program grants. Fifty percent of the moneys in 11 the Fund shall be used, subject to appropriation, for 12 planning grants and capital improvement and equipment grants. 13 Section 20. I-FLY Program. 14 (a) The Department shall establish the I-FLY Program. 15 The Program shall consist of the following components: 16 (1) air carrier recruitment and retention grants as 17 described in subsection (c); 18 (2) planning grants under subsection (d); and 19 (3) capital improvement and equipment grants under 20 subsection (e). 21 Grants under this Act may be made only to airports that 22 are located completely outside of Cook County. 23 (b) During any one-year period, an airport may receive a 24 grant for only one of the 3 components specified in 25 subsection (a). 26 (c) Air carrier recruitment and retention program 27 grants. 28 (1) An airport may receive an air carrier 29 recruitment and retention program grant only if: 30 (A) it is capable of supporting takeoffs and 31 landings by aircraft that have at least 19 passenger 32 seats or have made improvements or commitments to 33 the Department to provide this capability; -3- LRB9202074WHpcam 1 (B) it is located within 20 miles of one or 2 more manufacturing facilities having at least 50 3 full-time employees or within a municipality with at 4 least 75,000 inhabitants; and 5 (C) it has a commitment from an air carrier to 6 start or continue air service to the community that 7 the airport serves subject to financial support 8 from the State and from the airport or unit of local 9 government that the airport serves. The commitment 10 must specify that the air carrier would not provide 11 or continue to provide service to the community if 12 financial assistance were not available. 13 (2) An application for an air carrier recruitment 14 and retention program grant must contain commitments from 15 the airport or the unit of local government in which the 16 airport is located as to the amount of the total project 17 cost, the contribution from the unit of local government 18 or airport, the method in which the contribution from the 19 airport or unit of local government will be generated, 20 and the requested State contribution. 21 (3) The air carrier recruitment and retention 22 program grant shall be used to guarantee the financial 23 viability of air carriers providing 4 flights per day for 24 6 days per week at the airport using aircraft that have 25 at least 19 passenger seats. A grant under this 26 subsection (c) to a particular airport may be in only one 27 of the following 3 forms: 28 (A) A grant may be used to guarantee that an 29 air carrier shall receive a specified amount of 30 revenue per flight. 31 (B) A grant may be used to guarantee a reduced 32 or subsidized consumer ticket price. 33 (C) A grant may be used to guarantee a profit 34 goal established by the air carrier and airport. -4- LRB9202074WHpcam 1 (4) During the first year of a grant under this 2 subsection (c), the grant shall pay 80% of the total cost 3 of the guarantee and the airport or unit of local 4 government in which the airport is located shall pay 20% 5 of the total cost of the guarantee. During the second 6 year of a grant under this subsection (c), the grant 7 shall pay 50% of the total cost of the guarantee and the 8 airport or the unit of local government in which the 9 airport is located shall pay 50% of the total cost of the 10 guarantee. 11 (5) The total State funding for a grant under this 12 subsection (c) to a particular airport may not exceed 13 $2,500,000 in any year. 14 (6) An airport that has received a 2-year grant 15 under this subsection (c) may apply for another grant for 16 an additional 2-year period; however, the Department 17 shall, in determining whether to make a grant for an 18 additional 2-year period, give priority to other airports 19 that have not previously received a grant under this 20 subsection (c). The Department shall also give priority 21 in making grants under this subsection (c) to airports at 22 which the Department determines that a 2-year grant may 23 result in the creation of stable and reliable commercial 24 air service without an additional grant. 25 (d) Planning grants. An airport may apply for and 26 receive a planning grant to conduct feasibility studies or 27 business plans designed to study the recruitment, retention, 28 or expansion of an air carrier at the airport. To be eligible 29 for a grant under this subsection (d), the airport must have 30 the potential for initial or expanded air service as the 31 Department determines through its evaluation process. The 32 grant shall pay 70% of the total cost of the feasibility 33 studies or business plans and the airport or the unit of 34 local government in which the airport is located shall pay -5- LRB9202074WHpcam 1 30% of the total cost of the feasibility studies or business 2 plans. An airport may receive only one planning grant. 3 (e) Capital improvement and equipment grants. An airport 4 may apply for and receive a capital improvement and equipment 5 grant for capital improvements, including equipment to 6 facilitate the attraction or retention of commercial air 7 service. The grant shall pay 50% of the cost of an approved 8 project and the airport or the unit of local government in 9 which the airport is located shall pay 50% of the cost of 10 the approved project. In evaluating an application for a 11 grant under this subsection (e), the Department shall give 12 priority to airports at which the requested improvements 13 would facilitate the airport's ability to recruit or retain 14 commercial air service. 15 Section 25. Rules. The Department shall adopt rules to 16 carry out this Act. 17 Section 90. The State Finance Act is amended by adding 18 Section 5.545 as follows: 19 (30 ILCS 105/5.545 new) 20 Sec. 5.545. The I-FLY Fund. 21 Section 99. Effective date. This Act takes effect upon 22 becoming law.".