Creates the Office of Aerospace. (BDR 18-782)

A.B. 293

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ASSEMBLY BILL NO. 293–ASSEMBLYMEMBERS
KOENIG AND D’SILVA

FEBRUARY 25, 2025
____________

Referred to Committee on Government Affairs

SUMMARY—Creates the Office of Aerospace. (BDR 18-782)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

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

AN ACT relating to aerospace; creating the Office of Aerospace;
setting forth the duties of the Office; revising provisions
relating to the Nevada Air Service Development Fund;
revising provisions relating to the Nevada Air Service
Development Commission; requiring the Office to submit
certain written report s relating to grants; requiring the
Office to administer the Fund for Aviation; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law creates the Nevada Air Service Development Commission within 1
the Office of Economic Development and provides that the Commission consists of 2
the Executive Director of the Office of Economic Development and a member 3
of the Commission on Tourism of the Department of Tourism and Cultural Affairs. 4
(NRS 231.680) Section 6 of this bill creates the Office of Aerospace and requires 5
the Governor to appoint a Director to head the Office. Sections 2-5 of this bill 6
define certain terms relating to the Office. 7
Section 7 of this bill sets forth the duties of the Office, which include: (1) 8
developing and expanding state planning relating to air service, airspace and airport 9
and heliport infrastructure; (2) creating a system for automated weather 10
observation; (3) creating a certification program for airport lighting and 11
maintenance; (4) developing a program to distribute surplus property to airports; (5) 12
implementing a statewi de network of crew cars to support rural airports; and (6) 13
establishing a comprehensive aviation support network. 14
Existing law creates the Nevada Air Service Development Fund as a special 15
revenue fund in the State Treasury and provides for the Nevada Air Service 16
Development Commission to award grants of money from the Nevada Air Service 17
Development Fund to air carriers that meet certain requirements. (NRS 231.690 -18
231.720) Sections 8 and 19 of this bill: (1) move and rename the Nevada Air 19
Service Development Fund to the Nevada Aerospace Development Fund; and ( 2) 20

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require the Director of the Office to administer the Fund and make grants of money 21
to air carriers that meet certain requirements. Sections 9 and 19 of this bill move 22
the responsibility for developing the grant program from the Nevada Air Service 23
Development Commission to the Office. Section 9 also sets forth the requirements 24
for air carriers to be awarded a grant of money from the Office. 25
Sections 10 and 19 of this bill: (1) rename the Nevada Air Service 26
Development Commission the Nevada Aerospace Commission; and (2) move the 27
Commission to the Office of Aerospace. Section 10 requires the Nevada Aerospace 28
Commission to advise the Governor and the Office on the priorities for aerospace 29
development in this State. 30
Existing law creates the Fund for Aviation as a trust fund administered by the 31
Director of the Depart ment of Transportation and authorizes the Director of the 32
Department of Transportation to award grants of money from the Fund for Aviation 33
to counties, cities or other local governments in this State to obtain matching 34
money for federal programs and certai n other programs relating to airports. (NRS 35
494.048) Section 12 of this bill requires the Director of the Office of Aerospace to 36
administer the Fund for A viation and authorizes the Director of the Office of 37
Aerospace to award such grants of money. 38
Section 11 of this bill requires the Office to submit an an nual report to be 39
transmitted to the Legislature or Legislative Commission detailing certain 40
information for the immediately preceding calendar year relating to the grants 41
awarded from the Nevada Aerospace Development Fund and the Fund for 42
Aviation. 43

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

Section 1. Chapter 232 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 2 to 11, inclusive, of this 2
act. 3
Sec. 2. As used in sections 2 to 11, inclusive, of this act, 4
unless the context otherwise requires, the words and terms defined 5
in sections 3, 4 and 5 of this act have the meanings ascribed to 6
them in those sections. 7
Sec. 3. “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. 4. “Director” means the Dire ctor of the Office of 12
Aerospace appointed pursuant to section 6 of this act. 13
Sec. 5. “Office” means the Office of Aerospace created by 14
section 6 of this act. 15
Sec. 6. 1. The Office of Aerospace is hereby created. 16
2. The Governor shall appoint a Director to head the Office. 17
The Director is in the unclassified service of the State and serves 18
at the pleasure of the Governor. 19
Sec. 7. 1. The Office shall: 20

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(a) Develop a statewide plan for advanced air mobility airspace 1
and airport infrastructure, which must be developed with input 2
from relevant stakeholders; 3
(b) Manage and support the development of air service in this 4
State, with an emphasis on intrastate air service to all corners of 5
this State; 6
(c) Expand existing state planning for airports and heliport 7
systems to highlight the economic impact of airports and aviation 8
in this State; 9
(d) Create a system for automated weather observation; 10
(e) Create a certification program in airport lighting and 11
maintenance; 12
(f) Develop a program to distribute surplus property to airports 13
in this State; 14
(g) Implement a statewide network of crew cars to support 15
rural airports in this State; and 16
(h) Establish a comprehensive aviation support network in this 17
State. 18
2. The Director may adopt regulations to carry out the 19
provisions of sections 2 to 11, inclusive, of this act. 20
Sec. 8. 1. There is hereby created as a special revenue fund 21
in the State Treasury the Nevada Aerospace Development Fund. 22
2. The Director shall administer the Fund. The Director may 23
accept gifts, bequests, grants, appropriations and donations from 24
any source for deposit in the Fund. 25
3. The money in the Fund must be invested as other state 26
funds are invested. All interest earned on the deposit or investment 27
of the money in the Fund, after deducting any applicable charges, 28
must be credited to the Fund. Claims against the Fund must be 29
paid as other claims against the State are paid. 30
4. The Director may make grants of money f rom the Fund to 31
air carriers that satisfy the criteria set forth in section 9 of this act. 32
Sec. 9. 1. The Office shall d evelop a program to provide 33
grants of money from the Nevada Aerospace Development Fund 34
created by section 8 of this act to an air carrier or any 35
governmental entity for the purpose of establishing air service or 36
providing enhanced air service routes that service a public -use 37
airport that is a National Plan of Integrated Airport Systems 38
public airport. 39
2. An application for a grant of money from the Fund must 40
be in the form prescribed by the Director and must include, 41
without limitation: 42
(a) A statement designating the airport described in subsection 43
1 for which the air carrier will commence or continue air service if 44
the grant is awarded; 45

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(b) Commitments from the air carrier that if the Office awards 1
the grant to the air carrier, the air carrier will enter into a written 2
agreement with the Office that provides for the air carrier to 3
commence or continue air service to the airport designated in the 4
application in exchange for receiving from the Office on e of the 5
guarantees set forth in subsection 4; and 6
(c) Letters of support from each airport that participates in the 7
air service route offered by the air carrier pursuant to 8
subsection 1. 9
3. The Office may make a grant of money from the Nevada 10
Aerospace Development Fund if the Office finds that the grant 11
will: 12
(a) Enable an air carrier to commence or continue air service 13
to an airport described in subsection 1; and 14
(b) Provide economic benefit to this State. 15
4. The Office may make a grant of money from the Nevada 16
Aerospace Development Fund only to: 17
(a) Guarantee that an air carrier will receive an agreed 18
amount of revenue per flight that the air carrier operates into or 19
out of the airport d esignated in the application pursuant to 20
paragraph (a) of subsection 2; or 21
(b) Guarantee a profit goal for the air carrier that is 22
established by agreement between the air carrier and the Office. 23
5. As used in this section: 24
(a) “National Plan of Integrated Airport Systems public 25
airport” means an airport in this State that is part of the most 26
recent version of the National Plan of Integrated Airport Systems 27
published by the United States Secretary of Transportation 28
pursuant to 49 U.S.C. § 47103. 29
(b) “Public-use airport” has the meaning ascribed to it in 49 30
U.S.C. § 47102. 31
Sec. 10. 1. The Nevada Aerospace Commission is hereby 32
created within the Office. The Commission shall advise the 33
Governor and the Office on the priorities for aerospace 34
development in this State. 35
2. The Commission consists of: 36
(a) The Director; 37
(b) One member appointed by the Governor who is a member 38
of the Commission on Tourism; 39
(c) One member appointed by the Governor who represents the 40
Nevada Aviation Association or its successor organization; 41
(d) One member appointed by the Governor who represents the 42
department of aviation in a county whose population is 700,000 or 43
more; 44

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(e) One member appointed by the Governor who represents the 1
Reno-Tahoe Airport Authority; 2
(f) One member appointed by the Governor who represents the 3
Nevada Resort Association or its successor organization; 4
(g) One member appointed by the Governor who represents the 5
Nevada Association of Counties or its successor organization; and 6
(h) One member appointed by the Governor who represents 7
the Nevada League of Cities or its successor organization. 8
2. The Governor shall ensure that at least one member 9
appointed pursuant to subsection 1 is a resident of a county who se 10
population is less than 100,000. 11
3. The terms of office for the members of the Commission 12
appointed pursuant to paragraphs (b) to (h), inclusive, of 13
subsection 1 are 2 years, which terms must be staggered. 14
4. At the first meeting of each fiscal year , the Commission 15
shall elect from among its members a Chair, a Vice Chair and a 16
Secretary. 17
5. The Commission shall meet at least once each calendar 18
quarter and at other times at the call of the Chair or a majority of 19
its members. A majority of the member s of the Commission 20
constitutes a quorum for the transaction of all business. 21
6. The members of the Commission serve without 22
compensation. 23
Sec. 11. On or before February 1 of each year, the Office 24
shall prepare and submit to the Director of the Legislative Counsel 25
Bureau for transmittal to the Legislature, or if the Legislature is 26
not in session, the Legislative Commission, a report detailing for 27
the immediately preceding calendar year: 28
1. The total number of applications for grants of money from 29
the Nevada Aerospace Development Fund created by section 8 of 30
this act that were received pursuant to section 9 of this act; 31
2. The total amount of grants from the Nevada Aerospace 32
Development Fund that were awarded by the Office to air carriers 33
or governmental entities pursuant to section 9 of this act; 34
3. For each grant of money awarded from the Nevada 35
Aerospace Development Fund, the amount of each grant and an 36
explanation of how the grant will be used by the air carrier to 37
provide or enhance air service to an airport; 38
4. The total amount of grants from the Fund for Aviation that 39
were awarded by the Office to a county, city or other local 40
government pursuant to NRS 494.048; and 41
5. For each grant of money awarded from the Fund for 42
Aviation that was awarded by the Office to a county, city or local 43
government pursuant to NRS 494.048, the amount of each grant 44

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and an explanation of how the grant will be used by the cou nty, 1
city or other local government. 2
Sec. 12. NRS 494.048 is hereby amended to read as follows: 3
494.048 1. The Fund for Aviation is hereby created as a trust 4
fund in the State Treasury. The Director: 5
(a) Shall administer the Fund; and 6
(b) May apply for and accept any gift, bequest, grant, 7
appropriation or donation from any source for deposit in the Fund. 8
2. Any money received by the Director pursuant to the 9
provisions of subsection 1 must be deposited in the Fund. The 10
money in the Fund may be invested as the money in other state 11
funds is invested. After deducting any applicable charges, all 12
interest and income earned on the money in the Fund must be 13
credited to the Fund. The money in the Fund may be expended o nly 14
in accordance with the terms and conditions of any gift, bequest, 15
grant, appropriation or donation to the Fund or in the manner 16
provided in subsection 3. Not more than 1 percent of the money in 17
the Fund may be used to pay the costs of administering the Fund. 18
3. Except as otherwise provided in this section, the Director 19
may: 20
(a) Expend money in the Fund to award grants to a county, city 21
or other local government in this State for obtaining matching 22
money for federal programs and any other programs rel ating to 23
airports or for the planning, establishment, development, 24
construction, enlargement, improvement or maintenance of any 25
airport, landing area or air navigation facility owned or controlled 26
by the county, city or other local government; and 27
(b) Adopt regulations to carry out the provisions of 28
paragraph (a). 29
4. The Director shall: 30
(a) In adopting regulations pursuant to subsection 3, determine 31
the order of priority for the expenditures from the Fund by 32
considering, without limitation, the following factors: 33
(1) The purpose of the project; 34
(2) The costs and benefits of the project; and 35
(3) The effect of the project on the environment, safety, 36
security, infrastructure and capacity of the airport; and 37
(b) Before awarding a grant or adopting a r egulation pursuant to 38
subsection 3, consult with the Nevada Aviation Technical Advisory 39
Committee and any person who represents an airport in this State 40
used by the general public. 41
5. Any money received by a county, city or other local 42
government pursuan t to the provisions of this section must be 43
accounted for separately by the county, city or other local 44

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government and may be used only for the purpose for which the 1
money was received by the county, city or other local government. 2
6. The provisions of t his section do not apply to an airport, 3
landing area or air navigation facility that is owned or controlled by 4
the Reno-Tahoe Airport Authority or a county whose population is 5
700,000 or more. 6
7. As used in this section, “Director” means the Director of the 7
[Department of Transportation. ] Office of Aerospace created by 8
section 6 of this act. 9
Sec. 13. 1. The Legislature hereby finds and declares that: 10
(a) Section 9 of Article 8 of the Nevada Constitution contains a 11
provision commonly known as a “gift clause” which restricts the 12
State, under certain circumstances , from donating or loaning the 13
State’s money or credit to any company, association or corporation, 14
except corporations formed for educational or charitable purposes. 15
(b) In Employers Insurance Company of Nevada v. State Board 16
of Examiners, 117 Nev. 249, 258 (2001), the Nevada Supreme Court 17
held that the State loans its credit in violation of Section 9 of Article 18
8 of the Nevada Constitution only when the State acts as a surety or 19
guarantor for the debts of a company, corporation or association. 20
(c) In Lawrence v. Clark County, 127 Nev. 390, 405 (2011), the 21
Nevada Supreme Court held that the State does not donate, loan or 22
“gift” its money in violation of Section 9 of Article 8 of the Nevada 23
Constitution when the State dispenses state funds for public 24
purposes and the State receives a valuable benefit or fair 25
consideration in exchange for the dispensation of the state funds. 26
(d) In McLaughlin v. Housing Authority of the City of Las 27
Vegas, 68 Nev. 84, 93 (1951), and Lawrence v. Clark County , 127 28
Nev. 390, 399 (2011), the Nevada Supreme Court held that when 29
the Legislature authorizes a state agency to dispense state funds: 30
(1) The courts will carefully examine whether the Legislature 31
made an informed and appropriate finding that dispensation of the 32
state funds serves a public purposes and the State receives a 33
valuable benefit or fair consideration in exchange for the 34
dispensation; 35
(2) The courts will give great weight and due deference to 36
the Legislature’s finding, and the courts will uphold the 37
Legislature’s finding unless it clearly appears to be erroneous and 38
without reasonable foundations; and 39
(3) The courts will closely examine whether the dispensing 40
state agency reviews all fact s, figures and necessary information 41
when making the dispensation, and when the state agency has done 42
so, it will not be second-guessed by the courts. 43
2. The Legislature hereby further finds and declares that: 44

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

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

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 Airpo rt Systems
public airport” or “NPIAS airport” defined.
231.665 “Public use airport” defined.
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.

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231.720 Award of grants.
231.730 Annual reports to Legislature.

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