Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1461 Compare Versions

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 58th Legislature (2022)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 1461 By: Rosino of the Senate
7	37
8	38		and
9	39
10	40		Echols of the House
11	41
12	42
13	43
14	44
15	45		An Act relating to aircraft; creating the Oklahoma
16	46		Air Service Development Grant Program; providing for
17	47		legislative findings; providing certain definitions;
18	48		providing for certain grant service for certain air
19	49		service development; providing for certain gran t
20	50		application process; creating Oklahoma Air Service
21	51		Development Grant Program Revolving Fund; providing
22	52		for codification; and providing an effective date.
23	53
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25	55
26	56
27		-	SUBJECT: Oklahoma Air Service Development Grant Program
28		-
29	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
30		-
31	58		SECTION 1. NEW LAW A new section of law to be codified
32	59		in the Oklahoma Statutes as Section 411 of Title 3, unless there is
33	60		created a duplication in numbering, reads a s follows:
34		-
35	61		This act shall be known and may be cited as the “Oklahoma Air
36	62		Service Development Grant Program”.
37		-
38	63		SECTION 2. NEW LAW A new section o f law to be codified
39	64		in the Oklahoma Statutes as Section 412 of Title 3, unless there is
40	65		created a duplication in numbering, reads as follows:
	66	+	As used in the Oklahoma Air Service Development Grant Program:
41	67
42		-	As used in the Oklahoma Air Service Development Grant Program:
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43	93
44	94		1. “Aircraft” means any contrivance now kno wn, or hereafter
45	95		invented, used, or designed for navigation of or f light in the air
46	96		or airspace;
47		-
48		-	ENR. S. B. NO. 1461 Page 2
49		-
50	97		2. “Airport” means an area of land or water that is used, or
51	98		intended to be used, for the landing and takeoff of aircr aft, and
52	99		buildings and facilities, if any ;
53		-
54	100		3. “Airport sponsor” means the owner of a publicly owned
55	101		airport;
56		-
57	102		4. “Commercial air servi ce” means the operation of a company
58	103		that provides scheduled air transport s ervices to the state for
59	104		traveling passengers ;
60		-
61	105		5. “Commercial service air port” means an airport meeting the
62	106		current Federal Aviatio n Administration definition for commercial
63	107		service airport;
64		-
65	108		6. “Municipality” means any incorporated city, village , or town
66	109		of this state and any county or political sub division or district in
67	110		this state, or any public trust thereof, which is, or may be,
68	111		authorized by law to acquire, establish, constru ct, maintain,
69	112		improve, and operate airports, airstrips , and aeronautical
70	113		navigation facilities;
71		-
72	114		7. “New airline service” means a commercial service carrier or
73	115		company that provides regularly scheduled new air transport services
74	116		to the state for traveling passengers and freight;
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76	144		8. “Nonstop flight” means a flight made without intermediate
77	145		stops between source and destination ;
78		-
79	146		9. “Primary airport” means a commercial service airport that
80	147		has more than ten thousan d (10,000) passenger boardings each year;
81	148		and
82		-
83	149		10. “State” or “this state” means the State of Oklahoma.
84		-
85	150		SECTION 3. NEW LAW A new section of law to be codified
86	151		in the Oklahoma Statutes as Section 413 of Title 3, unless there is
87	152		created a duplication in numbering, reads as follows:
88		-
89	153		A. There is hereby created within the Oklahoma Aeronautics
90	154		Commission, the Oklahoma Air Service Development Grant Program. The
91		-
92		-	ENR. S. B. NO. 1461 Page 3
93	155		Oklahoma Air Service Dev elopment Grant Program (OASDGP) is designed
94	156		to offer financial assistan ce by grant to private or pu blic entities
95	157		for the purpose of assisting commercial air service deve lopment.
96	158		Grant funding is administered based on merit and the potential for a
97	159		specific project to enhance the state’s economy. Grants are one -
98	160		time awards.
99		-
100	161		B. Grant funding can be used for commercial air service
101	162		development projects and include minimum r evenue guarantees for
102	163		specific new routes, marketi ng and advertising of service, market
103	164		study and research projects to d evelop data for a business case for
104	165		new service, start-up cost offsets to reduce the cost of an airline
105	166		beginning service, and other innovative risk sharing models to
106	167		support the introduc tion of new airline service in the state.
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107	195		Grants must be used to recr uit service in an airport -pair that has
108	196		no current, daily schedul ed airline service. Grants may not be used
109	197		to support current routes o r to recruit a second carrier to an
110	198		airport-pair.
111		-
112	199		C. Public, private and nonprofit entities within Oklahoma that
113	200		have sufficient financial and management ca pacity to complete the
114	201		requested project are eligible for funding under this program.
115	202		Eligible entities include:
116		-
117	203		1. Airport sponsors of publicly owned airports;
118		-
119	204		2. Oklahoma municipalities;
120		-
121	205		3. Chambers of commerce; o r
122		-
123	206		4. Community organizations that pr omote economic development.
124		-
125	207		D. Each application must include a detailed business plan with
126	208		supporting data for the proposed project. T he business plan should
127	209		include:
128		-
129	210		1. Available passengers for the route including local demand
130	211		and connecting demand;
131		-
132	212		2. Detail on available revenue;
133		-
134		-
135		-	ENR. S. B. NO. 1461 Page 4
136	213		3. Current and historical fare data relative to peers and how
137	214		the project will lower fares; and
138		-
139	215		4. Business demand for companies based in Oklahoma or do ing
140	216		business in Oklahoma that may use the proposed route.
141		-
142	217		E. Projects with airline support will be considered first for
143	218		funding under this program. Airline support can be evidenced by a
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144	246		letter, dated, signed, and on airline letterhead, or other
145	247		communication directly from an airline stati ng its support for the
146	248		funding and its interest in the proposed route. An airline letter
147	249		of support is not required for funding to be allocated to a project
148	250		but will be used in prioritizing fund awards.
149		-
150	251		F. To be considered for state funding under this pr ogram,
151	252		applicants must demonstrate t he ability to provide a mini mum twenty
152	253		percent (20%) of all funding for the project throu gh local sources.
153	254		Local funding should be dedicat ed to the project and evidenced by
154	255		letters of commitment before an application is submitted. Any
155	256		private enterprise or nonairport, nonmunicipal, nonprofit entity
156	257		must have a letter of credit to qualif y for a grant without a public
157	258		partner.
158		-
159	259		G. Each application should include a narrative organized into
160	260		seven (7) sections:
161		-
162	261		1. A proposal summary;
163		-
164	262		2. Applicant organizatio n description, history, and ability to
165	263		fund the project;
166		-
167	264		3. Air service background and history of the airport/market;
168		-
169	265		4. Project description, target route, and specific business
170	266		plan for service;
171		-
172	267		5. Timeline;
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174	268		6. Budget including local funding; and
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176	269		7. Letters of support.
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179		-	ENR. S. B. NO. 1461 Page 5
180	297		H. Applications will first be vetted for completeness. Any
181	298		application which does not include the information lis ted in
182	299		subsection G will be eliminated from cons ideration. Any application
183	300		that does not include local funding for at le ast twenty percent
184	301		(20%) of the project cost will be eliminated from consideration.
185	302		Any applicant that cannot demons trate he or she is working with an
186	303		airport sponsor on the project will be eliminated from
187	304		consideration.
188		-
189	305		I. Once applications have been de emed to meet minimum
190	306		requirements, they will be evaluated for funding against each other,
191	307		with special attention paid to the following criteria i n this order:
192		-
193	308		1. The viability of the business case for service and the
194	309		opportunity for service to be sustaina ble;
195		-
196	310		2. The need for the service in the community and region;
197		-
198	311		3. The challenges with current air service that could be
199	312		rectified with grant fun ding;
200		-
201	313		4. Share of local funding vers us grant funding;
202		-
203	314		5. Airline support for the project;
204		-
205	315		6. Broad-based stakeholder support for the project; and
206		-
207	316		7. The ability to use the funding in a timely manner.
208		-
209	317		The Oklahoma Department of Commerce shall be part of this review
210	318		process. The state may request additional information from the
211	319		applicant and may require a writte n response from the applican t for
212	320		any outstanding questions. The state reserves the right to require
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213	348		formal presentations from each applicant to explain the proposed
214	349		project.
215		-
216	350		J. The state will enter into a grant agreement contract with
217	351		recipients prior to distributing program funds . The agreement shall
218	352		include:
219		-
220	353		1. The specific project re ceiving grant funding;
221		-
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223		-	ENR. S. B. NO. 1461 Page 6
224	354		2. The maximum dollar amount of state funding;
225		-
226	355		3. Effective dates of th e grant;
227		-
228	356		4. Rights to terminate the grant agreement;
229		-
230	357		5. Inspection and reporting requirements to ve rify project
231	358		status and expenditures; and
232		-
233	359		6. Conditions of disbursement of grant funds including
234	360		obligation to repay funds if the terms of the agreement a re not met.
235		-
236	361		The grant agreement contract shall require the awardee to
237	362		provide ongoing quarterly repor ts stating progress and detailing any
238	363		activity related to the project.
239		-
240	364		SECTION 4. NEW LAW A new section of law to be codified
241	365		in the Oklahoma Statutes as Section 414 of Title 3, unless there is
242	366		created a duplication in numbering, re ads as follows:
243		-
244	367		There is hereby created in the State Treasur y a revolving fund
245	368		for the Oklahoma Aeronautics Commission to be designated the
246	369		“Oklahoma Air Service Development Grant Program Revolving Fund”.
247	370		The fund shall be a continuing fund, not subject t o fiscal year
248	371		limitations, and shall consist of all mo nies received by the Tax
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249	399		Commission which are specifically required by law to be deposited in
250	400		the fund, any public or private donations, con tributions and gifts
251	401		received for the benefit of the fund, and any amounts appropriated
252	402		by the Legislature. All monies accruing to the credit of the fund
253	403		are hereby appropriat ed and may be budgeted and expended b y the
254	404		Oklahoma Aeronautics Commission for the purpose of funding grants as
255	405		provided in this act. Expenditures from the fund shall be made upon
256	406		warrants issued by the St ate Treasurer against claims filed as
257	407		prescribed by law wit h the Director of the Office of Man agement and
258	408		Enterprise Services for a pproval and payment.
259		-
260	409		SECTION 5. This act shall become effective November 1, 2022.
261	410
262		-
263		-	ENR. S. B. NO. 1461 Page 7
264		-	Passed the Senate the 14th day of March, 2022.
265		-
266		-
267		-
268		-	Presiding Officer of the Senate
269		-
270		-
271		-	Passed the House of Representativ es the 28th day of April, 2022.
272		-
273		-
274		-
275		-	Presiding Officer of the House
276		-	of Representatives
277		-
278		-	OFFICE OF THE GOVERNOR
279		-	Received by the Office of the Governor this _______ _____________
280		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
281		-	By: _______________________________ __
282		-	Approved by the Governor of the State of Oklahoma this _____ ____
283		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
284		-
285		-	_________________________________
286		-	Governor of the State of Oklahoma
287		-
288		-
289		-	OFFICE OF THE SECRETA RY OF STATE
290		-	Received by the Office of the Secretary of State this _______ ___
291		-	day of __________________, 20 _______, at _______ o'clock _______ M.
292		-	By: _______________________________ __
	411	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	412	+	04/11/2022 - DO PASS.