1.1                          A bill for an act
  1.2             relating to transportation; directing the commissioner 
  1.3             of transportation to establish an air service 
  1.4             marketing program; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 360. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [360.0151] [AIR SERVICE MARKETING PROGRAM.] 
  1.8      Subdivision 1.  [PROGRAM ESTABLISHED.] The commissioner of 
  1.9   transportation shall establish an air service marketing program 
  1.10  to encourage the preservation and expansion of scheduled 
  1.11  passenger air carrier service to greater Minnesota.  The 
  1.12  commissioner may spend funds appropriated from the state 
  1.13  airports fund for airport development and assistance for the 
  1.14  purposes of this section.  
  1.15     Subd. 2.  [GRANTS AUTHORIZED.] (a) The commissioner shall 
  1.16  make air service marketing grants to political subdivisions that 
  1.17  own and operate airports designated as key airports in the state 
  1.18  aviation system plan.  The commissioner shall make a project 
  1.19  agreement with each political subdivision receiving a grant 
  1.20  under this section that provides for: 
  1.21     (1) a detailed description of the project for which the 
  1.22  grant is provided; 
  1.23     (2) a schedule of the project; and 
  1.24     (3) the division of costs of the project between the state 
  1.25  and the recipient. 
  2.1      (b) Payments by the commissioner under a project agreement 
  2.2   may only be made to reimburse local costs already incurred. 
  2.3      Subd. 3.  [USES OF GRANT.] (a) A grant under this section 
  2.4   may be used to pay for the following activities related to 
  2.5   commercial passenger air service at the recipient's airport: 
  2.6      (1) advertising of service; 
  2.7      (2) public relations activities intended to educate the 
  2.8   public on the value of the airport and its commercial passenger 
  2.9   air service; 
  2.10     (3) marketing studies; and 
  2.11     (4) service improvement activities such as route analysis, 
  2.12  service studies, and other activities intended to preserve or 
  2.13  increase service from an existing or new-entry air carrier. 
  2.14     (b) A grant under this section may not be used for: 
  2.15     (1) an activity that promotes an airport within the service 
  2.16  area of another airport; 
  2.17     (2) a promotional activity that features one specific air 
  2.18  carrier at an airport when more than one air carrier serves the 
  2.19  airport; 
  2.20     (3) administrative costs associated with the marketing 
  2.21  program or with the route operation of the airport; or 
  2.22     (4) payments to air carriers as fare subsidies, service 
  2.23  subsidies, or seat guarantees. 
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective July 1, 1997.