Bill Text: MS SB2539 | 2013 | Regular Session | Introduced

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Bill Title: Airports; create air service development program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-02-05 - Died In Committee [SB2539 Detail]

Download: Mississippi-2013-SB2539-Introduced.html

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MISSISSIPPI LEGISLATURE

2013 Regular Session

To: Highways and Transportation; Finance

By: Senator(s) Simmons (13th)

Senate Bill 2539

AN ACT TO CREATE THE MISSISSIPPI AIR SERVICE DEVELOPMENT PROGRAM ACT OF 2013, TO PROVIDE GRANTS TO CERTAIN AIRPORTS TO PROMOTE ADDITIONAL COMMERCIAL AIR SERVICE IN THE STATE; TO PROVIDE HOW GRANT FUNDS MAY BE UTILIZED; TO REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO ADMINISTER THE PROGRAM; TO PROVIDE CERTAIN DISBURSEMENT TO AIRPORT GRANT RECIPIENTS; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  This act shall be known and may be cited as the "Mississippi Air Service Development Program Act of 2013."

     SECTION 2.  (1)  There is created in the State Treasury a fund designated as the "Mississippi Air Service Development Program Fund" referred to in this act as "fund."

     (2)  During the regular legislative session held in calendar year 2013, the Legislature shall appropriate an amount not to exceed Ten Million Dollars ($10,000,000.00) for purposes of carrying out the provisions of this act.

     SECTION 3.  (1)  The funds shall be used to provide grants to regional airports, as provided in this section, for one or more of the following air service development goals:

          (a)  Retaining existing air service;

          (b)  Adding air service to a new destination;

          (c)  Adding frequencies to current services;

          (d)  Lowering fares/introducing new competitive service;      (e)  Improving service reliability;

          (f)  Updating aircraft; and

          (h)  Increasing access to global networks.

     (2)  Eligible projects for grants shall include marketing and advertising of new service and routes and additional frequencies, as well as travel bank and other risk abatement plans; however, use of grant funds to purchase airline passenger seats is prohibited.

     SECTION 4.  (1)  The fund shall be administered by the Mississippi Development Authority which shall promulgate reasonable regulations consistent with the purposes of this act.

     (2)  The Mississippi Development Authority shall monitor and evaluate the Air Service Development Program and shall also report its evaluation of the program to the Governor, Lieutenant Governor and the Speaker of the House on an annual basis.

     SECTION 5.  (1)  Airport grant recipients shall be limited to scheduled air carriers that hold a Federal Aviation Administration (FAA) Part 121 Certificate and that provide scheduled air service at Mississippi airports or holds FAA Part 139 Certification.  An airport grant recipient shall only utilize grant funds in accordance with FAA regulation.

     (2)  The amount of a grant shall be based on a formula of Five Dollars ($5.00) per seat per day calculation, not to exceed an annual total of Five Hundred Thousand Dollars ($500,000.00) per grant per FAA Part 139 airport.

     (3)  Grants shall be disbursed by the Mississippi Development Authority within twelve (12) consecutive months as follows:

          (a)  Thirty-five percent (35%) at the end of the first three (3) months of service;

          (b)  Twenty-five percent (25%) at the end of the second three (3) months of service;

          (c)  Twenty-five percent (25%) at the end of the third three (3) months of service; and

          (d)  Fifteen percent (15%) at the end of the fourth three (3) months of service.

     (4)  (a)  Each grant shall be expended within twelve (12) consecutive months from the date the grant is awarded.  Each grant shall require a twenty percent (20%) match, which may be provided by private sources and/or public sources; however, such public sources shall not be a sponsor of a FAA Part 139 airport.

          (b)  Of the twenty percent (20%) match prescribed under this subsection, only ten percent (10%) may derive from in-kind sources.

     (5)  All expenditures of the fund by airport grant recipients shall be utilized for the purposes prescribed under Section 3 of this act.

     SECTION 6.  This act shall stand repealed from and after July 1, 2016.

     SECTION 7.  This act shall take effect and be in force from and after July 1, 2013.