093_SB0172enr SB172 Enrolled LRB093 07082 SJM 07234 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 "Commission" means the Air Service Commission. 20 Section 15. I-FLY Fund. 21 (a) The I-FLY Fund is created as a special fund in the 22 State treasury. Moneys may be deposited into the Fund from: 23 (1) appropriations made by the General Assembly and units of 24 local government to the Fund, (2) federal moneys designated 25 for the Fund, and (3) any grants or gifts designated for the 26 Fund. 27 (b) The moneys in the Fund shall be used by the 28 Commission, subject to appropriation, for air carrier 29 recruitment and retention program grants and for planning SB172 Enrolled -2- LRB093 07082 SJM 07234 b 1 grants. 2 Section 20. Air Service Commission. There is created the 3 Air Service Commission. The Commission shall consist of 5 4 members, each of whom has airport management or air carrier 5 experience, or both. The members shall be appointed by the 6 Governor, with the advice and consent of the Senate, each one 7 from a different geographical region of the State outside of 8 Cook County. The Governor shall designate one of the members 9 as the chairperson. 10 Members shall serve for a term of 4 years, except that, 11 for the initial members appointed, one shall serve for a term 12 of 5 years, one for a term of 4 years, one for a term of 3 13 years, one for a term of 2 years, and one for a term of one 14 year. Initial terms shall commence on July 1, 2003. Each 15 member shall serve until a successor is appointed and 16 qualified. Vacancies shall be filled in the same manner as 17 initial appointments. The members shall not receive a salary 18 but shall be reimbursed for the necessary expenses incurred 19 in the performance of their duties. 20 The Commission shall administer this Act and is 21 authorized to do all things reasonable and necessary to 22 accomplish the goals of the I-FLY Program. 23 Section 25. I-FLY Program. 24 (a) The Commission shall establish the I-FLY Program. 25 The Program shall consist of the following components: 26 (1) air carrier recruitment and retention grants as 27 described in subsection (c); and 28 (2) planning grants under subsection (d). 29 The Commission may make grants under this Act only to 30 airports that are located completely outside of Cook County. 31 (b) During any one-year period, an airport may receive a 32 grant for only one of the 2 components specified in SB172 Enrolled -3- LRB093 07082 SJM 07234 b 1 subsection (a). 2 (c) Air carrier recruitment and retention program 3 grants. 4 (1) An airport may receive an air carrier 5 recruitment and retention program grant from the 6 Commission only if: 7 (A) it is capable of supporting takeoffs and 8 landings by aircraft that have at least 19 passenger 9 seats or have made improvements or commitments to 10 the Commission to provide this capability; and 11 (B) it has a commitment from an air carrier to 12 start or continue air service to the community that 13 the airport serves subject to financial support 14 from the State and from the airport or unit of local 15 government that the airport serves. The commitment 16 must specify that the air carrier would not provide 17 or continue to provide service to the community if 18 financial assistance were not available. 19 (2) An application for an air carrier recruitment 20 and retention program grant must contain commitments from 21 the airport or the unit of local government in which the 22 airport is located as to the amount of the total project 23 cost, the contribution from the unit of local government 24 or airport, the method in which the contribution from the 25 airport or unit of local government will be generated, 26 and the requested State contribution. 27 (3) The air carrier recruitment and retention 28 program grant shall be used to guarantee the financial 29 viability of air carriers providing reasonable air 30 service at the airport. A grant under this subsection (c) 31 to a particular airport may be in only one of the 32 following 3 forms: 33 (A) A grant may be used to guarantee that an 34 air carrier shall receive an agreed amount of SB172 Enrolled -4- LRB093 07082 SJM 07234 b 1 revenue per flight. 2 (B) A grant may be used to guarantee a reduced 3 or subsidized consumer ticket price. 4 (C) A grant may be used to guarantee a profit 5 goal established by the air carrier and airport. 6 (4) During the first year of a grant under this 7 subsection (c), the grant shall pay 80% of the total cost 8 of the guarantee and the airport or unit of local 9 government in which the airport is located shall pay 20% 10 of the total cost of the guarantee. During the second 11 year of a grant under this subsection (c), the grant 12 shall pay 50% of the total cost of the guarantee and the 13 airport or the unit of local government in which the 14 airport is located shall pay 50% of the total cost of the 15 guarantee. 16 (5) The total State funding for a grant under this 17 subsection (c) to a particular airport may not exceed 18 $1,000,000 in any year. 19 (6) An airport that has received a 2-year grant 20 under this subsection (c) may apply for another grant for 21 an additional 2-year period; however, the Commission 22 shall, in determining whether to make a grant for an 23 additional 2-year period, give priority to other airports 24 that have not previously received a grant under this 25 subsection (c). The Commission shall also give priority 26 in making grants under this subsection (c) to airports at 27 which the Commission determines that a 2-year grant may 28 result in the creation of stable and reliable commercial 29 air service without an additional grant. 30 (d) Planning grants. An airport may apply for and 31 receive a planning grant to conduct feasibility studies or 32 business plans designed to study the recruitment, retention, 33 or expansion of an air carrier at the airport. To be eligible 34 for a grant under this subsection (d), the airport must have SB172 Enrolled -5- LRB093 07082 SJM 07234 b 1 the potential for initial or expanded air service as the 2 Commission determines through its evaluation process. The 3 grant shall pay 70% of the total cost of the feasibility 4 studies or business plans and the airport or the unit of 5 local government in which the airport is located shall pay 6 30% of the total cost of the feasibility studies or business 7 plans. An airport may receive only one planning grant. 8 Section 90. The State Finance Act is amended by adding 9 Section 5.595 as follows: 10 (30 ILCS 105/5.595 new) 11 Sec. 5.595. The I-FLY Fund. 12 Section 99. Effective date. This Act takes effect upon 13 becoming law.