Revises provisions relating to economic development of regional commercial air service in this State. (BDR 44-140)

EXEMPT
(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT A.B. 100

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ASSEMBLY BILL NO. 100–ASSEMBLYMEMBERS GURR,
KOENIG AND D’SILVA

PREFILED JANUARY 14, 2025
____________

Referred to Committee on Revenue

SUMMARY—Revises provisions relating to economic
development of regional commercial air service in
this State. (BDR 44-140)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Contains Appropriation not included
in Executive Budget.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to economic development; creating the Office of
Aerospace within the Department of Transportation ;
setting forth the duties of the Office; revising provisions
relating to the Nevada Air Service Development
Commission; requiring the Office to submit certain
written reports relating to grants; requiring the Director of
the Office to administer the Fund for Aviation; making an
appropriation to t he Nevada Aerospace Development
Fund; making an appropriation to the Fund for Aviation;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law creates within the Office of Economic Development in the Office 1
of the Governor the Nevada Air Service Development Commission, which consists 2
of the Executive Director of the Office of Economic Development and certain 3
members who are appointed by the Governor. (NRS 231.680) Section 7 of this bill 4
creates the Office of Aeros pace within the Department of Transportation and 5
requires the Governor to appoint a Director to head the Office. Sections 3-6 of this 6
bill define certain terms relating to the Office. 7
Section 8 of this bill sets forth the duties of the Office, which inclu de: (1) 8
developing and expanding state planning relating to air service and airspace 9
infrastructure and aviation-flight use, including, airport, airstrip, heliport, spaceport 10
and vertiport, which must be developed subject to certain conditions; (2) creating a 11
system for automated weather observation at rural locations ; (3) creating a 12
certification program for airport lighting and maintenance at rural airports ; (4) 13
developing a program to distribute the surplus equipment to airports; (5) 14

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implementing a state wide network of crew cars to support rural airports; and (6) 15
establishing a comprehensive aviation support network. Section 9 of this bill 16
authorizes the Office to apply for grants and accept certain funds. 17
Existing law creates the Nevada Air Service Development Fund as a special 18
revenue fund in the State Treasury and requires the Commission to develop a 19
program to make grants of money from the Fund to an air carrier or any 20
governmental entity for the purpose of establishing air service or providing 21
enhanced air service routes that service certain airports. (NRS 231.690, 231.710) 22
Sections 10 and 2 3 of this bill : (1) move and rename the Nevada Air Service 23
Development Fund to the Nevada Aerospace Development Fund and provide that 24
money remaining in the Ne vada Aerospace Development Fund does not revert to 25
the State General Fund at the end of a fiscal year and must be carried forward to the 26
next fiscal year ; and (2) require the Director of the Office to administer the Fund 27
and make grants of money to air car riers or governmental entities that meet certain 28
requirements. Sections 11 and 23 move the responsibility for developing the grant 29
program from the Nevada Air Service Development Commission to the Office. 30
Section 11 also sets forth the requirements for air carriers to be awarded a grant of 31
money from the Office. 32
Sections 12 and 23 of this bill: (1) rename the Nevada Air Service 33
Development Commission the Nevada Aerospace Commission; and (2) move the 34
Commission to the Office of Aerospace. Section 12 requires the Nevada Aerospace 35
Commission to advise the Governor and the Office on the priorities for aerospace 36
development in this State. 37
Existing law creates the Fund for Aviation as a trust fund administered by the 38
Director of the Department of Transportation and authorizes the Director to award 39
grants of money from the Fund for Aviation to counties, cities or other local 40
governments in this State to obtain matching money for federal programs and 41
certain other programs relating to airports. (NRS 494.048) Section 14 of this bill 42
requires the Director of the Office of Aerospace to administer the Fund for Aviation 43
and authorizes the Director of the Office of Aerospace to award such grants of 44
money. 45
Section 13 of this bill requires the Office to submit an annual re port to be 46
transmitted to the Legislature or Legislative Commission detailing certain 47
information for the immediately preceding calendar year relating to the grants 48
awarded from the Nevada Aerospace Development Fund and the Fund for 49
Aviation. 50
Section 15 of this bill makes an appropriation from the State General Fund to 51
the Nevada Aerospace Development Fund in the amount of $10,000,000 for the 52
purpose of conducting a study of the development of intrastate air service in this 53
State and for the purpose of mak ing grants of money pursuant to section 11 . 54
Section 16 of this bill makes an appropriation from the State General Fund to the 55
Fund for Aviation in the amount of $1,000,000 for Fiscal Year 2025 -2026 and 56
$1,000,000 for Fiscal Year 2026 -2027 to match money that is available from the 57
Federal Aviation Administration for these purposes. 58

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. (Deleted by amendment.) 1

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Sec. 2. Chapter 494 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 3 to 13, inclusive, of this 2
act. 3
Sec. 3. As used in sections 3 to 13, inclusive, of this act, 4
unless the context otherwise requires, the words and terms defined 5
in sections 4, 5 and 6 of this act have the meanings ascribed to 6
them in those sections. 7
Sec. 4. “Air carrier” means a person who provides 8
commercial air transportation to passengers. The term includes, 9
without limitation, an air taxi operator designated pursuant to 14 10
C.F.R. § 298.3. 11
Sec. 5. “Director” means the Director of the Office of 12
Aerospace appointed pursuant to section 7 of this act. 13
Sec. 6. “Office” means the Office of Aerospace created by 14
section 7 of this act. 15
Sec. 7. 1. The Office of Aerospace is hereby created within 16
the Department of Transportation. 17
2. The Governor sh all appoint a Director to head the Office. 18
The Director is in the unclassified service of the State and serves 19
at the pleasure of the Governor. 20
Sec. 8. 1. The Office shall: 21
(a) Develop a statewide plan for advanced air mobility airspace 22
and airport infrastructure and aviation -flight use, including , 23
without limitation, airport, airstrip, heliport, spaceport and 24
vertiport, which must be developed with input from relevant 25
stakeholders; 26
(b) Manage and support the development of air service in this 27
State, with an emphasis on intrastate air service to all areas of this 28
State; 29
(c) Expand existing state planning for airports and heliport 30
systems to highlight the economic impact of airports and aviation 31
in this State; 32
(d) Create a system for automated weather observation at rural 33
locations; 34
(e) Create a certification program in airport lighting and 35
maintenance at rural airports; 36
(f) Develop a program to distribute surplus equipment to 37
airports in this State; 38
(g) Implement a sta tewide network of crew cars to support 39
rural airports in this State; and 40
(h) Establish a comprehensive aviation support network in this 41
State. 42
2. The Director may adopt regulations to carry out the 43
provisions of sections 3 to 13, inclusive, of this act. 44

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Sec. 9. The Office of Aerospace may apply for any available 1
grants and accept gifts, grants, bequests and other contributions 2
from any public or private source , including interlocal 3
agreements. 4
Sec. 10. 1. There is hereby created as a special revenue 5
fund in the State Treasury the Nevada Aerospace Development 6
Fund. Any money in the Fund remaining at the end of a fiscal 7
year does not revert to the State General Fund, and the balance in 8
the Fund must be carried forward to the next fiscal year. 9
2. The Director shall administer the Fund. The Director may 10
accept gifts, bequests, grants, appropriations and donations from 11
any source for deposit in the Fund. 12
3. The money in the Fund must be inve sted as other state 13
funds are invested. All interest earned on the deposit or investment 14
of the money in the Fund, after deducting any applicable charges, 15
must be credited to the Fund. Claims against the Fund must be 16
paid as other claims against the State are paid. 17
4. The Director may make grants of money from the Fund to 18
air carriers or governmental entities that satisfy the criteria set 19
forth in section 11 of this act. 20
Sec. 11. 1. The Office shall develop a program to provide 21
grants of money from the Nevada Aerospace Development Fund 22
created by section 10 of this act to an air carrier or governmental 23
entity for the purpose of establishing air service or providing 24
enhanced air service routes that service a public-use airport that is 25
a National Plan of Integrated Airport Systems public airport. 26
2. An application for a grant of money from the Fund must 27
be in the form prescribed by the Director and must include, 28
without limitation: 29
(a) A statement designating the airport described in subsection 30
1 for which the air carrier will commence or continue air service if 31
the grant is awarded; 32
(b) Commitments from the air carrier that if the Office awards 33
the grant to the air carrier, the air carrier will enter into a written 34
agreement with the Office that provides for the air carrier to 35
commence or continue air service to the airport designated in the 36
application in exchange for receiving from the Office one of the 37
guarantees set forth in subsection 4; and 38
(c) Letters of support from each airport that participates in the 39
air service route offered by the air carrier pursuant to 40
subsection 1. 41
3. The Office may make a grant of money from the Nevada 42
Aerospace Development Fund if the Office finds that the gran t 43
will: 44

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(a) Enable an air carrier to commence or continue air service 1
to an airport described in subsection 1; and 2
(b) Provide economic benefit to this State. 3
4. The Office may make a grant of money from the Nevada 4
Aerospace Development Fund only to: 5
(a) Guarantee that an air carrier will receive an agreed 6
amount of revenue per flight that the air carrier operates into or 7
out of the airport designated in the application pursuant to 8
paragraph (a) of subsection 2; or 9
(b) Guarantee a profit goal for th e air carrier that is 10
established by agreement between the air carrier and the Office. 11
5. As used in this section: 12
(a) “National Plan of Integrated Airport Systems public 13
airport” means an airport in this State that is part of the most 14
recent version of the National Plan of Integrated Airport Systems 15
published by the United States Secretary of Transportation 16
pursuant to 49 U.S.C. § 47103. 17
(b) “Public-use airport” has the meaning ascribed to it in 49 18
U.S.C. § 47102. 19
Sec. 12. 1. The Nevada Aerospace Commission is hereby 20
created within the Office. The Commission shall advise the 21
Governor and the Office on the priorities for aerospace 22
development in this State. 23
2. The Commission consists of: 24
(a) The Director; 25
(b) One member appointed by the Governor who is a member 26
of the Commission on Tourism; 27
(c) One member appointed by the Governor who represents the 28
Nevada Aviation Association or its successor organization; 29
(d) One member appointed by the Governor who represents the 30
department of aviation in a county whose population is 700,000 or 31
more; 32
(e) One member appointed by the Governor who represents the 33
Reno-Tahoe Airport Authority; 34
(f) One member appointed by the Governor who represents the 35
Nevada Resort Association or its successor organization; 36
(g) One member appointed by the Governor who represents the 37
Nevada Association of Counties or its successor organization; and 38
(h) One member appointed by the Governor who represents 39
the Nevada League of Cities or its successor organization. 40
3. The Governor shall ensure that at least one member 41
appointed pursuant to subsection 2 is a resident of a county whose 42
population is less than 100,000. 43

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4. The terms of office for the members of the Commission 1
appointed pursuant to pa ragraphs (b) to (h), inclusive, of 2
subsection 2 are 2 years, which terms must be staggered. 3
5. At the first meeting of each fiscal year, the Commission 4
shall elect from among its members a Chair, a Vice Chair and a 5
Secretary. 6
6. The Commission shall me et at least once each calendar 7
quarter and at other times at the call of the Chair or a majority of 8
its members. A majority of the members of the Commission 9
constitutes a quorum for the transaction of all business. 10
7. The members of the Commission serve without 11
compensation. 12
Sec. 13. On or before February 1 of each year, the Office 13
shall prepare and submit to the Director of the Legislative Counsel 14
Bureau for transmittal to the Legislature, or if the Legislature is 15
not in session, the Legislative Commission, a report detailing for 16
the immediately preceding calendar year: 17
1. The total number of applications for grants of money from 18
the Nevada Aerospace Development Fund created by section 10 of 19
this act that were received pursuant to section 11 of this act; 20
2. The total amount of grants from the Nevada Aerospace 21
Development Fund that were awarded by the Office to air carriers 22
or governmental entities pursuant to section 11 of this act; 23
3. For each grant of money awarded from the Nevada 24
Aerospace Development Fund, the amount of each grant and an 25
explanation of how the grant will be used by the air carrier to 26
provide or enhance air service to an airport; 27
4. The total amount of grants from the Fund for Aviation that 28
were awarded by the Office to a county, city or other local 29
government pursuant to NRS 494.048; and 30
5. For each grant of money awarded from the Fund for 31
Aviation that was awarded by the Office to a county, city or local 32
government pursuant to NRS 494.048, the amount of each grant 33
and an explanation of how the grant will be used by the county, 34
city or other local government. 35
Sec. 14. NRS 494.048 is hereby amended to read as follows: 36
494.048 1. The Fund for Aviation is hereby created as a trust 37
fund in the State Treasury. The Director: 38
(a) Shall administer the Fund; and 39
(b) May apply for and accept any gift, bequest, grant, 40
appropriation or donation from any source for deposit in the Fund. 41
2. Any money received by the Direc tor pursuant to the 42
provisions of subsection 1 must be deposited in the Fund. The 43
money in the Fund may be invested as the money in other state 44
funds is invested. After deducting any applicable charges, all 45

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interest and income earned on the money in the Fu nd must be 1
credited to the Fund. The money in the Fund may be expended only 2
in accordance with the terms and conditions of any gift, bequest, 3
grant, appropriation or donation to the Fund or in the manner 4
provided in subsection 3. Not more than 1 percent of the money in 5
the Fund may be used to pay the costs of administering the Fund. 6
3. Except as otherwise provided in this section, the Director 7
may: 8
(a) Expend money in the Fund to award grants to a county, city 9
or other local government in this State for obtaining matching 10
money for federal programs and any other programs relating to 11
airports or for the planning, establishment, development, 12
construction, enlargement, improvement or maintenance of any 13
airport, landing area or air navigation facility owned o r controlled 14
by the county, city or other local government; and 15
(b) Adopt regulations to carry out the provisions of 16
paragraph (a). 17
4. The Director shall: 18
(a) In adopting regulations pursuant to subsection 3, determine 19
the order of priority for the ex penditures from the Fund by 20
considering, without limitation, the following factors: 21
(1) The purpose of the project; 22
(2) The costs and benefits of the project; and 23
(3) The effect of the project on the environment, safety, 24
security, infrastructure and capacity of the airport; and 25
(b) Before awarding a grant or adopting a regulation pursuant to 26
subsection 3, consult with the Nevada Aviation Technical Advisory 27
Committee and any person who represents an airport in this State 28
used by the general public. 29
5. Any money received by a county, city or other local 30
government pursuant to the provisions of this section must be 31
accounted for separately by the county, city or other local 32
government and may be used only for the purpose for which the 33
money was received by the county, city or other local government. 34
6. The provisions of this section do not apply to an airport, 35
landing area or air navigation facility that is owned or controlled by 36
the Reno-Tahoe Airport Authority or a county whose population is 37
700,000 or more. 38
7. As used in this section, “Director” means the Director of the 39
[Department] Office of [Transportation.] Aerospace created by 40
section 7 of this act. 41
Sec. 15. 1. There is hereby appropriated from the Sta te 42
General Fund to the Nevada Aerospace Development Fund created 43
by section 10 of this act the sum of $10,000,000. 44

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2. The amount appropriated by subsection 1 must be used for 1
the purpose of conducting a study of the development of intrastate 2
air service in this State and for the purpose of making grants of 3
money pursuant to section 11 of this act. 4
Sec. 16. 1. There is hereby appropriated from the State 5
General Fund to the Fund for Aviation created by NRS 494.048 , as 6
amended by section 14 of this act, the following sums: 7
For the Fiscal Year 2025-2026 ............................... $1,000,000 8
For the Fiscal Year 2026-2027 ............................... $1,000,000 9
2. The money appropriated by subsection 1 must be used by 10
rural airports to match money that is available from the Federal 11
Aviation Administration. 12
Sec. 17. 1. The Legislature hereby finds and declares that: 13
(a) Section 9 of Article 8 of the Nevada Constitution contains a 14
provision commonly known as the “gift clause” which restricts the 15
State, under certain circumstances, from donating or loaning the 16
State’s money or credit to any company, association or corporation, 17
except corporations formed for educational or charitable purposes. 18
(b) In Employers Insurance Company of Nevada v. State B oard 19
of Examiners, 117 Nev. 249, 258 (2001), the Nevada Supreme Court 20
held that the State loans its credit in violation of Section 9 of Article 21
8 of the Nevada Constitution only when the State acts as a surety or 22
guarantor for the debts of a company, corporation or association. 23
(c) In Lawrence v. Clark County, 127 Nev. 390, 405 (2011), the 24
Nevada Supreme Court held that the State does not donate, loan or 25
“gift” its money in violation of Section 9 of Article 8 of the Nevada 26
Constitution when the State dispe nses state funds for public 27
purposes and the State receives a valuable benefit or fair 28
consideration in exchange for the dispensation of the state funds. 29
(d) In McLaughlin v. Housing Authority of the City of Las 30
Vegas, 68 Nev. 84, 93 (1951), and Lawrence v. Clark County , 127 31
Nev. 390, 399 (2011), the Nevada Supreme Court held that when 32
the Legislature authorizes a state agency to dispense state funds: 33
(1) The courts will carefully examine whether the Legislature 34
made an informed and appropriate finding t hat the dispensation of 35
the state funds serves a public purpose and the State receives a 36
valuable benefit or fair compensation in exchange for the 37
dispensation; 38
(2) The courts will give great weight and due deference to 39
the Legislature’s finding, and the courts will uphold the 40
Legislature’s finding unless it clearly appears to be erroneous and 41
without reasonable foundations; and 42
(3) The courts will closely examine whether the dispensing 43
state agency reviews all facts, figures and necessary information 44

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when making the dispensation, and when the state agency has done 1
so, it will not be second-guessed by the courts. 2
2. The Legislature hereby further finds and declares that: 3
(a) The program developed and carried into effect pursuant to 4
section 11 of this act will not result in the State acting as a surety or 5
guarantor of the debts of an air carrier receiving a grant of money. 6
(b) The purpose of section 11 of this act is to develop and carry 7
into effect a state program to encourage air carriers to resume, retain 8
or enhance the provision of commercial air service to and from 9
small hub airports, nonhub airports and large hub airports that serve 10
rural communities in this State. 11
(c) The provisions of section 11 of this act are intended to serve 12
an important p ublic purpose and ensure that the State receives 13
valuable benefits and fair consideration in exchange for each grant 14
of money from the program because: 15
(1) The program requires the dispensing state agency to 16
review all facts, figures and necessary inform ation when making 17
each grant of money from the program to determine whether the 18
grant will provide economic benefit to the State; 19
(2) The provision of air transportation service to and from 20
small hub airports and nonhub airports enables the citizens and 21
businesses of this State to travel more efficiently, and at lower cost, 22
to and from the rural communities in this State; and 23
(3) The dispensing state agency may not make a grant of 24
money from the program unless the agency receives a commitment 25
from the air carrier receiving the grant to commence or continue air 26
service to a designated small hub airport, nonhub airport or large 27
hub airport that services small hub airports and nonhub airports. 28
3. As used in this section, “air carrier” has the meaning 29
ascribed to it in section 4 of this act. 30
Sec. 18. The Legislative Counsel shall, in preparing 31
supplements to the Nevada Administrative Code, appropriately 32
change any references to an officer, agency or other entity whose 33
name is changed or whose responsibilities are transferred pursuant 34
to the provisions of this act to refer to the appropriate officer, 35
agency or other entity. 36
Sec. 19. 1. Any administrative regulations adopted by an 37
officer or a n agency whose name has been changed or whose 38
responsibilities have been transferred pursuant to the provisions of 39
this act to another officer or agency remain in force until amended 40
by the officer or agency to which the responsibility for the adoption 41
of the regulations has been transferred. 42
2. Any contracts or other agreements entered into by an officer 43
or agency whose name has been changed or whose responsibilities 44
have been transferred pursuant to the provisions of this act to 45

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another officer or agenc y are binding upon the officer or agency to 1
which the responsibility for the administration of the provisions of 2
the contract or other agreement has been transferred. Such contracts 3
and other agreements may be enforced by the officer or agency to 4
which the responsibility for the enforcement of the provisions of the 5
contract or other agreement has been transferred. 6
3. Any action taken by an officer or agency whose name has 7
been changed or whose responsibilities have been transferred 8
pursuant to the provisi ons of this act to another officer or agency 9
remains in effect as if taken by the officer or agency to which the 10
responsibility for the enforcement of such actions has been 11
transferred. 12
Sec. 20. Notwithstanding the amendato ry provisions of 13
sections 12 and 23 of this act, any person who, on July 1, 2025, was 14
appointed to serve on the Nevada Air Service Development 15
Commission created by NRS 231.680 , as that section existed on 16
June 30, 2025, may continue to serve in that capacity until his or her 17
term would ordinarily expire pursuant to subsection 3 of NRS 18
231.680, as that section existed on June 30, 2025. 19
Sec. 21. On July 1, 2025, the State Controller shall t ransfer 20
any unexpended balance in the Nevada Air Service Development 21
Fund created by NRS 231.690 , as that section existed on June 30, 22
2025, to the Nevada Aerospace Development Fund created by 23
section 10 of this act. 24
Sec. 22. The provisions of NRS 218D.380 do not apply to any 25
provision of this act which adds or revises a requirement to submit a 26
report to the Legislature. 27
Sec. 23. NRS 231.600, 231.610, 231.620, 231.630, 231.650, 28
231.655, 231.665, 231.680, 231.690, 231.700, 231.710, 231.720 and 29
231.730 are hereby repealed. 30
Sec. 24. This act becomes effective on July 1, 2025. 31

LEADLINES OF REPEALED SECTIONS

231.600 Definitions.
231.610 “Air carrier” defined.
231.620 “Commission” defined.
231.630 “Fund” defined.
231.650 “Local air service development entity” defined.
231.655 “National Plan of Integrated Airport Systems
public airport” or “NPIAS airport” defined.
231.665 “Public use airport” defined.

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231.680 Creation; membership; terms; election of Chair,
Vice Chair and Secretary; meetings; quorum.
231.690 Nevada Air Service Development Fund: Creation;
gifts, grants and donations; interest; use.
231.700 Administration of Fund; regulations.
231.710 Grant program for air service or enhanced air
service; requirements for grant application.
231.720 Award of grants.
231.730 Annual reports to Legislature.

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