[Rev. 3/27/2014 6:37:37 PM]

 

This chapter of NAC has changes which have been adopted but have not been codified; you can see those changes by viewing the following regulation(s) on the Nevada Register of Administrative Regulations: R102-13

[NAC-231 Revised Date: 6-10]

CHAPTER 231 - ECONOMIC DEVELOPMENT AND TOURISM

COMMISSION ON ECONOMIC DEVELOPMENT

General Provisions

231.001              Definitions.

231.005              “Commission” defined.

231.011              “Economic development” defined.

231.015              “Executive Director” defined.

231.021              “Nonprofit private entity” defined.

231.053              Certification of businesses for certain benefits: “Consistent with the State Plan for Industrial Development and Diversification” interpreted.

231.055              Certification of businesses for certain benefits: Interpretation of certain statutory terms.

Grants to Assist Projects of Economic Diversification in Certain Counties

231.100              Definitions.

231.105              “County with an economy subject to dramatic fluctuations because of a dependence on mining” defined.

231.110              “Project of economic diversification” defined.

231.115              Applications for grant.

231.120              Eligibility for grant.

231.125              Agreement with Commission.

231.130              Disbursement of money from grant.

231.135              Failure to comply with agreement.

Grants From Nevada Economic Development Fund

231.150              Definitions.

231.155              “Blighted urban area” defined.

231.160              “Nevada Economic Development Fund” defined.

231.165              “Public agency” defined.

231.170              “Rural area” defined.

231.175              Application for grant.

231.180              Determination of whether to award grant; postponement or denial of grant.

231.185              Agreement with Commission.

231.190              Disbursement of money from grant.

231.195              Failure to comply with agreement.

GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE

231.500              Definitions.

231.505              “Air carrier” defined.

231.510              “Commission” defined.

231.515              “Director” defined.

231.520              “Grant” defined.

231.525              Application for grant: Form and contents; presentation; review; approval or disapproval; responsibilities of applicant.

231.530              Eligibility for grant.

231.535              Use of grant; contribution by airport or recipient of grant.

231.540              Agreement with Commission.

231.545              Disbursement of money from grant.

231.550              Failure to comply with agreement.

COMMISSION ON ECONOMIC DEVELOPMENT

General Provisions

q1w2e3NAC 231.001  Definitions.

      NAC 231.001  Definitions. (NRS 231.155)  As used in NAC 231.001 to 231.195, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.005 to 231.021, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.005  “Commission” defined.

      NAC 231.005  “Commission” defined. (NRS 231.155)  “Commission” means the Commission on Economic Development.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.011  “Economic development” defined.

      NAC 231.011  “Economic development” defined. (NRS 231.155)  “Economic development” means the process of furthering the development of regional economies in the State of Nevada through the use, singularly or in combination, of the methods that practitioners of economic development generally accept. These methods include, without limitation, the diversification of the economy, the development and support of entrepreneurs, the development and support of business leaders, the education and training of the workforce and the establishment of programs for the development of a community.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.015  “Executive Director” defined.

      NAC 231.015  “Executive Director” defined. (NRS 231.155)  “Executive Director” means the Executive Director of the Commission.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.021  “Nonprofit private entity” defined.

      NAC 231.021  “Nonprofit private entity” defined. (NRS 231.155)  “Nonprofit private entity” means an entity which:

     1.  Has registered with the Office of the Secretary of State as a nonprofit corporation pursuant to chapter 82 of NRS; and

     2.  Is exempt from federal income tax pursuant to 26 U.S.C. § 501.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.053  Certification of businesses for certain benefits: “Consistent with the State Plan for Industrial Development and Diversification” interpreted.

      NAC 231.053  Certification of businesses for certain benefits: “Consistent with the State Plan for Industrial Development and Diversification” interpreted. (NRS 231.139)  For the purposes of NRS 231.139, a business is “consistent with the State Plan for Industrial Development and Diversification” if:

     1.  The business being considered for the benefits provided pursuant to NRS 704.223 is the type of business that is consistent with the current goals of the Commission concerning industrial development and diversification, as evidenced by the Commission’s certification of the business;

     2.  The average hourly wage paid by the business to its employees in this State is at least equal to the average statewide industrial hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year;

     3.  The business provides a health insurance plan for all employees that includes, without limitation, an option for health insurance coverage for dependents of employees;

     4.  The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and any other permit required by the state, county, city or town in which the business operates;

     5.  The business has:

     (a) Obtained a statement from the governing body of the affected county, school district and city, if applicable, that is signed and dated, indicating that the county, school district or city acknowledges the possibility of the business obtaining the benefits provided pursuant to NRS 704.223 if the Commission certifies the business; and

     (b) Provided a copy of the statement described in paragraph (a) to the Commission;

     6.  If the business is applying for an abatement pursuant to paragraph (a) of subsection 1 of NRS 701A.210, the business agrees to provide the Commission, at their request, with proof that the business is in compliance with the provisions of that paragraph; and

     7.  The business has executed an agreement with the Commission that grants the Commission the right to review any document which the Commission determines is necessary to verify the eligibility of the business for the benefits provided pursuant to NRS 704.223.

     (Added to NAC by Comm’n on Econ. Development by R145-07, eff. 4-17-2008)

q1w2e3NAC 231.055  Certification of businesses for certain benefits: Interpretation of certain statutory terms.

      NAC 231.055  Certification of businesses for certain benefits: Interpretation of certain statutory terms. (NRS 231.139)  As used in NRS 231.139:

     1.  “Intermediate product” means any product that has been processed from its initial raw material stage, but has not yet been made into its final form;

     2.  “Raw material” means material before it is manufactured into a final form; and

     3.  “Recycle on-site” means to take a raw material or an intermediate product and physically transform that material or product into its final form on the manufacturing site.

     (Added to NAC by Comm’n on Econ. Development, eff. 9-5-97)—(Substituted in revision for NAC 231.020)

Grants to Assist Projects of Economic Diversification in Certain Counties

q1w2e3NAC 231.100  Definitions.

      NAC 231.100  Definitions. (NRS 231.065)  As used in NAC 231.100 to 231.135, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.105 and 231.110 have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.105  “County with an economy subject to dramatic fluctuations because of a dependence on mining” defined.

      NAC 231.105  “County with an economy subject to dramatic fluctuations because of a dependence on mining” defined. (NRS 231.065)  “County with an economy subject to dramatic fluctuations because of a dependence on mining” means a county where data from the last decennial census or special census conducted by the Bureau of the Census of the United States Department of Commerce indicate that the mining industry is one of the top two employers in the county.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.110  “Project of economic diversification” defined.

      NAC 231.110  “Project of economic diversification” defined. (NRS 231.065)  “Project of economic diversification” includes, without limitation, any project that analyzes industrial property, conducts feasibility studies, constructs industrial park infrastructure or purchases publicly owned industrial property.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.115  Applications for grant.

      NAC 231.115  Applications for grant. (NRS 231.065)

     1.  To receive a grant to assist a project of economic diversification in a county with an economy subject to dramatic fluctuations because of a dependence on mining, an entity must:

     (a) Be a political subdivision of the State or a local or regional organization for economic development; and

     (b) Submit an application to the Commission on a form prescribed by the Executive Director.

     2.  If an applicant is a nonprofit private entity, the applicant must include with the application:

     (a) The most recent audit of the books and records of the applicant; and

     (b) A letter from the board of county commissioners of the county in which the project is located. This letter must state that:

          (1) The board of county commissioners approves of and supports the project that the applicant will fund with money from the grant; and

          (2) The resources of the county will be available to provide for the financial administration of the grant money if the applicant, the Commission or the board of county commissioners requests that the county provide for the financial administration of the grant money.

     3.  The Commission will accept applications at any time, except the Commission will not accept an application submitted on a date in a fiscal year after which the Commission has spent or committed for expenditure the entire amount of money appropriated by the Legislature for that fiscal year for grants to assist projects of economic diversification in counties with economies subject to dramatic fluctuations because of a dependence on mining.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.120  Eligibility for grant.

      NAC 231.120  Eligibility for grant. (NRS 231.065)  A political subdivision of the State or a local or regional organization for economic development is eligible for a grant to assist a project of economic diversification in a county with an economy subject to dramatic fluctuations because of a dependence on mining if the political subdivision or organization:

     1.  Submits the application required by NAC 231.115;

     2.  Seeks the grant for the purpose of funding a project of economic diversification in a county with an economy subject to dramatic fluctuations because of a dependence on mining;

     3.  Has matched or will match funds for the project in the form of cash only and in an amount equal to at least four times the amount of the grant the political subdivision or organization is requesting; and

     4.  Will not use the grant to fund a project of economic diversification in a county that qualifies for funding from the Economic Development Administration of the United States Department of Commerce.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.125  Agreement with Commission.

      NAC 231.125  Agreement with Commission. (NRS 231.065)

     1.  If the Commission approves an application for a grant to assist a project of economic diversification in a county with an economy subject to dramatic fluctuations because of a dependence on mining, the entity receiving the grant must enter into an agreement with the Commission. The agreement must specify:

     (a) The amount of the grant;

     (b) The proper use of the money obtained from the grant;

     (c) The date on which the Commission approved the grant;

     (d) The specific benchmarks of performance by which the Commission and the recipient of the grant will measure the progress of the project;

     (e) A requirement that the recipient of the grant report to the Commission on a quarterly basis and that the report include a statement of:

          (1) The specific benchmarks of performance mentioned in paragraph (d);

          (2) The progress that the recipient of the grant has made toward the completion of the specific benchmarks of performance;

          (3) The expected dates by which the recipient of the grant will complete the specific benchmarks of performance; and

          (4) The amount of money the recipient expects to draw from the grant and the dates on which the recipient of the grant expects to draw money from the grant;

     (f) The right of the Commission or its designee to review any document which the Commission or its designee determines is necessary for the appropriate fiscal oversight of the project; and

     (g) The date on which the grant will end.

     2.  The Executive Director and the Office of the Attorney General shall review the form of the agreement entered into by the Commission and the recipient of the grant pursuant to subsection 1. No agreement will take effect unless the Executive Director and the Office of the Attorney General approve the form of the agreement.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.130  Disbursement of money from grant.

      NAC 231.130  Disbursement of money from grant. (NRS 231.065)

     1.  The Executive Director may not disburse any money from the grant until:

     (a) The recipient of the grant and a representative of the Commission have signed the agreement required by NAC 231.125; and

     (b) The Executive Director has received a request to draw money from the grant from the recipient of the grant.

     2.  The recipient of the grant must make a request to draw money from the grant on a form prescribed by the Executive Director. The request must include:

     (a) A statement of the amount of money the recipient wants to draw from the grant;

     (b) A statement of the dates on which the recipient of the grant wants to draw money from the grant;

     (c) A statement of the amount of money the recipient of the grant wants to draw from the grant on each date that the recipient of the grant wants to draw money from the grant; and

     (d) Evidence of the expenses incurred by the recipient of the grant during the course of the project. This evidence includes, without limitation, copies of contracts, receipts or invoices.

     3.  The Executive Director shall review and either approve or deny a request to draw money from the grant within 10 working days after the date on which the Executive Director receives the request.

     4.  If the Executive Director approves a request to draw money from the grant, the Executive Director shall cause a check to be issued to the recipient of the grant in the amount requested by the recipient.

     5.  If the Executive Director denies a request to draw money from the grant, the Executive Director shall provide the recipient who made the request with a written statement:

     (a) Stating the reason for the denial of the request; and

     (b) Describing any actions the recipient must take to receive approval of the request from the Executive Director.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

q1w2e3NAC 231.135  Failure to comply with agreement.

      NAC 231.135  Failure to comply with agreement. (NRS 231.065)  If the Commission finds that the recipient of the grant is not using money from the grant in accordance with the provisions of the agreement set forth in NAC 231.125, the Commission will immediately cease providing the recipient with money from the grant and the Commission may, in its sole discretion, determine that the agreement is void.

     (Added to NAC by Comm’n on Econ. Development by R047-06, eff. 6-28-2006)

Grants From Nevada Economic Development Fund

q1w2e3NAC 231.150  Definitions.

      NAC 231.150  Definitions. (NRS 231.155)  As used in NAC 231.150 to 231.195, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.155 to 231.170, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.155  “Blighted urban area” defined.

      NAC 231.155  “Blighted urban area” defined. (NRS 231.155)  “Blighted urban area” has the meaning ascribed to it in NRS 231.154.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.160  “Nevada Economic Development Fund” defined.

      NAC 231.160  “Nevada Economic Development Fund” defined. (NRS 231.155)  “Nevada Economic Development Fund” means the Nevada Economic Development Fund created by NRS 231.153 to provide grants of money for economic development in rural areas or blighted urban areas.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.165  “Public agency” defined.

      NAC 231.165  “Public agency” defined. (NRS 231.155)  “Public agency” has the meaning ascribed to it in NRS 231.154.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.170  “Rural area” defined.

      NAC 231.170  “Rural area” defined. (NRS 231.155)  “Rural area” has the meaning ascribed to it in NRS 231.154.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.175  Application for grant.

      NAC 231.175  Application for grant. (NRS 231.155)

     1.  To receive a grant from the Nevada Economic Development Fund for the purpose of funding a project or program of economic development in a rural area or blighted urban area, an entity must:

     (a) Be a public agency or nonprofit private entity whose primary purpose is the economic development of this State or the rural areas or blighted urban areas of this State; and

     (b) Submit an application to the Commission on a form prescribed by the Executive Director.

     2.  A public agency or nonprofit private entity that wishes to apply for a grant from the Nevada Economic Development Fund must submit the application required by paragraph (b) of subsection 1 to the Commission not later than 30 days before the meeting at which the Commission will consider the application.

     3.  The application required by paragraph (b) of subsection 1 must contain the following information:

     (a) The name, mailing address, phone number, facsimile number and electronic mail address of the person responsible for the administration of the money received from the grant.

     (b) The name, mailing address, phone number, facsimile number and electronic mail address of the person responsible for the administration of the project or program that will be funded with the money from the grant.

     (c) The name and contact information of the auditing firm responsible for the audit of the books and records of the public agency or nonprofit private entity that is applying for the grant.

     (d) A description of the projects and programs of economic development in which the applicant has engaged, unless the Commission has previously received such information.

     (e) A description of the rural area or blighted urban area that will benefit from the project, including, without limitation, data relating to the level of employment in the area, the median household income in the area, the population of the area, the tax revenue in the area and the stagnation or decline of the economy of the area.

     (f) The amount of money the applicant is requesting and the source and amount of any matching funds the applicant will receive.

     (g) A description of the project or program that the applicant will fund with the money from the grant, including, without limitation, information concerning:

          (1) The work the applicant will complete during the course of the project or program;

          (2) The specific benchmarks of performance by which the Commission and the applicant will measure the progress of the project or program;

          (3) The dates by which the applicant expects to complete the specific benchmarks of performance and the project or program; and

          (4) The dates on which the applicant expects to draw money from the grant and the amount of money the applicant expects to draw from the grant on each date that the applicant expects to draw money from the grant.

     (h) A description of how the proposed project will enhance or improve the economy of the rural area or blighted urban area described in paragraph (e).

     4.  If an applicant is a nonprofit private entity, the applicant must include with the application:

     (a) The most recent audit of the books and records of the applicant; and

     (b) A letter from the governing body of any county and incorporated city in which the rural area or blighted urban area is located. This letter must state that:

          (1) The governing body approves of and supports the project or program that the applicant will fund with money from the grant; and

          (2) The resources of the county will be available to provide for the financial administration of the grant money if the applicant, the Commission, the board of county commissioners or the governing body of the incorporated city requests that the county provide for the financial administration of the grant money.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.180  Determination of whether to award grant; postponement or denial of grant.

      NAC 231.180  Determination of whether to award grant; postponement or denial of grant. (NRS 231.155)

     1.  In determining whether to award a grant, the Commission will:

     (a) Determine whether sufficient funds are available in the Nevada Economic Development Fund to provide the grant which the applicant has requested;

     (b) Give priority to applications for grants which indicate that the applicant has matching funding for the project or program that will be funded with the grant; and

     (c) Consider whether the project or program is reasonably designed to further the economic development of a rural area or blighted urban area.

     2.  If the Commission finds that there is not a sufficient amount of money in the Nevada Economic Development Fund to provide the grant which the applicant has requested, the Commission may postpone or decline approval of the grant.

     3.  If the Commission finds that the project or program is not reasonably designed to further the economic development of a rural area or blighted urban area, the Commission may postpone or decline approval of the grant.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.185  Agreement with Commission.

      NAC 231.185  Agreement with Commission. (NRS 231.155)

     1.  If the Commission approves an application for a grant from the Nevada Economic Development Fund, the public agency or nonprofit private entity receiving the grant must enter into an agreement with the Commission. The agreement must specify:

     (a) The amount of the grant;

     (b) The proper use of the money obtained from the grant;

     (c) The date on which the Commission approved the grant;

     (d) The specific benchmarks of performance by which the Commission and the recipient of the grant will measure the progress of the project or program;

     (e) A requirement that the recipient of the grant report to the Commission on a quarterly basis and that the report include a statement of:

          (1) The specific benchmarks of performance mentioned in paragraph (d);

          (2) The progress that the recipient of the grant has made toward the completion of the specific benchmarks of performance;

          (3) The expected dates by which the recipient of the grant will complete the specific benchmarks of performance; and

          (4) The amount of money the recipient expects to draw from the grant and the dates on which the recipient of the grant expects to draw money from the grant;

     (f) The right of the Commission or its designee to review any document which the Commission or its designee determines is necessary for the appropriate fiscal oversight of the project or program; and

     (g) The date on which the grant will end.

     2.  The Executive Director and the Office of the Attorney General shall review the form of the agreement entered into by the Commission and the recipient of the grant pursuant to subsection 1. No agreement will take effect unless the Executive Director and the Office of the Attorney General approve the form of the agreement.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.190  Disbursement of money from grant.

      NAC 231.190  Disbursement of money from grant. (NRS 231.155)

     1.  The Executive Director may not disburse any money from the grant until:

     (a) The recipient of the grant and a representative of the Commission have signed the agreement required by NAC 231.185; and

     (b) The Executive Director has received a request to draw money from the grant from the recipient of the grant.

     2.  The recipient of the grant must make a request to draw money from the grant on a form prescribed by the Executive Director. The request must include:

     (a) A statement of the amount of money the recipient wants to draw from the grant;

     (b) A statement of the dates on which the recipient of the grant wants to draw money from the grant;

     (c) A statement of the amount of money the recipient of the grant wants to draw from the grant on each date that the recipient of the grant wants to draw money from the grant; and

     (d) Evidence of the expenses incurred by the recipient of the grant during the course of the project or program. This evidence includes, without limitation, copies of contracts, receipts or invoices.

     3.  The Executive Director shall review and either approve or deny a request to draw money from the grant within 10 working days after the date on which the Executive Director receives the request.

     4.  If the Executive Director approves a request to draw money from the grant, the Executive Director shall cause a check to be issued to the recipient of the grant in the amount requested by the recipient.

     5.  If the Executive Director denies a request to draw money from the grant, the Executive Director shall provide the recipient who made the request with a written statement:

     (a) Stating the reason for the denial of the request; and

     (b) Describing any actions the recipient must take to receive approval of the request from the Executive Director.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

q1w2e3NAC 231.195  Failure to comply with agreement.

      NAC 231.195  Failure to comply with agreement. (NRS 231.155)  If the Commission finds that the recipient of the grant is not using money from the grant in accordance with the provisions of the agreement set forth in NAC 231.185, the Commission will immediately cease providing the recipient with money from the grant and the Commission may, in its sole discretion, determine that the agreement is void.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE

q1w2e3NAC 231.500  Definitions.

      NAC 231.500  Definitions. (§ 13 of ch. 345, Stats. 2007)  As used in NAC 231.500 to 231.550, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.505 to 231.520, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.505  “Air carrier” defined.

      NAC 231.505  “Air carrier” defined. (§ 13 of ch. 345, Stats. 2007)  “Air carrier” means a person that provides commercial air transportation to passengers.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.510  “Commission” defined.

      NAC 231.510  “Commission” defined. (§ 13 of ch. 345, Stats. 2007)  “Commission” means the Commission on Tourism.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.515  “Director” defined.

      NAC 231.515  “Director” defined. (§ 13 of ch. 345, Stats. 2007)  “Director” means the Director of the Commission.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.520  “Grant” defined.

      NAC 231.520  “Grant” defined. (§ 13 of ch. 345, Stats. 2007)  “Grant” means an amount of money awarded to a small airport pursuant to NAC 231.500 to 231.550, inclusive, from money appropriated to the Commission for that purpose pursuant to section 13 of chapter 345, Statutes of Nevada 2007.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.525  Application for grant: Form and contents; presentation; review; approval or disapproval; responsibilities of applicant.

      NAC 231.525  Application for grant: Form and contents; presentation; review; approval or disapproval; responsibilities of applicant. (§ 13 of ch. 345, Stats. 2007)

     1.  To receive a grant, a local government applying for a grant for an airport within the jurisdiction of the local government must comply with the criteria and guidelines established by the Commission and apply using a form prescribed by the Commission.

     2.  The application must include, without limitation:

     (a) A reasonable business plan for using the grant, if the application is approved, which includes reasonable cost estimates;

     (b) A commitment from an air carrier and the airport which indicates that, if the grant is awarded to the local government, the air carrier and the airport will enter into a written operating agreement with the local government requiring the air carrier to commence or continue air service to the airport;

     (c) The cost and terms of the operating agreement between the local government, the airport and the air carrier;

     (d) The amount of the contribution and the manner in which the contribution from the airport or the local government will be paid pursuant to NAC 231.535; and

     (e) The amount of the grant for which the local government is applying.

     3.  The Commission will evaluate each application for a grant in accordance with the criteria and guidelines specified by the Commission pursuant to subsection 1.

     4.  In reviewing an application for a grant, the Commission will give additional consideration to:

     (a) An applicant who has an operating agreement with another airport in this State or who has applied or is eligible to apply for a grant pursuant to any federal law or regulation; or

     (b) An air carrier offering intrastate service.

     5.  Each applicant is solely responsible for soliciting, reviewing and selecting a regional air carrier for inclusion in the application.

     6.  The Commission will consider and approve or disapprove applications for grants at regularly scheduled meetings of the Commission.

     7.  The airport and the local government must concur in the application and present the application to the Commission together.

     8.  If an application is approved, the applicant is responsible for ensuring the provision of regional air service and the specified level of air service.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.530  Eligibility for grant.

      NAC 231.530  Eligibility for grant. (§ 13 of ch. 345, Stats. 2007)

     1.  To be eligible for a grant, an airport within the jurisdiction of a local government applying for a grant:

     (a) Must be a commercial service airport that does not have more passenger boardings on an annual basis than a small hub airport;

     (b) Must be certified by the Federal Aviation Administration pursuant to 14 C.F.R. Part 139;

     (c) Must be located more than 150 miles from a medium hub airport or a large hub airport; and

     (d) Must demonstrate to the Commission, through the applicant, that air carriers charge unreasonably high fares to service the airport or provide insufficient service to the airport.

     2.  As used in this section, the terms “commercial service airport,” “large hub airport,” “medium hub airport,” “passenger boardings” and “small hub airport” have the meanings ascribed to them in 49 U.S.C. § 47102.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.535  Use of grant; contribution by airport or recipient of grant.

      NAC 231.535  Use of grant; contribution by airport or recipient of grant. (§ 13 of ch. 345, Stats. 2007)

     1.  A grant may only be used to:

     (a) Guarantee that an air carrier will receive an agreed amount of revenue for each flight that the air carrier operates in or out of the airport; or

     (b) Guarantee an amount of profit for an air carrier that is established by an agreement between the air carrier and the airport.

     2.  A recipient of a grant must use the grant to pay 80 percent of the cost of the guarantee set forth in the operating agreement between the local government, the airport and the air carrier. Except as otherwise provided in subsection 3, the remaining 20 percent of the cost of the guarantee must be paid by the airport or the recipient of the grant. The contribution to the cost of the guarantee from the airport or the local government must be in the form of money or in kind, or both. An in-kind contribution may be in the following forms:

     (a) A waiver or reduction in favor of the air carrier, based on reasonable and customary rates for the following:

          (1) Airport rental fees;

          (2) Landing fees;

          (3) Fees for supporting the operations of the air carrier; or

          (4) Any other airport charges or taxes; or

     (b) Marketing and advertising services provided by the airport or the local government to the air carrier.

     3.  All or any portion of the contribution required pursuant to subsection 2 may be provided through the recipient of the grant by a connecting airport or any other business entity receiving a benefit from any air service subsidized pursuant to NAC 231.500 to 231.550, inclusive.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.540  Agreement with Commission.

      NAC 231.540  Agreement with Commission. (§ 13 of ch. 345, Stats. 2007)

     1.  If the Commission approves an application for a grant, the recipient of the grant must enter into an agreement with the Commission. The agreement must specify:

     (a) The amount of the grant;

     (b) The proper use of the money obtained from the grant;

     (c) The date on which the Commission approved the grant;

     (d) The specific indicators of performance by which the Commission and the recipient of the grant will measure the progress of the project;

     (e) A requirement that the recipient of the grant report to the Commission on a quarterly basis and that the report include a statement setting forth:

          (1) The specific indicators of performance specified in paragraph (d);

          (2) The projected estimates of costs; and

          (3) The amount of money the recipient expects to draw from the grant and the dates on which the recipient expects to draw money from the grant;

     (f) The right of the Commission or its designee to review any document which the Commission or its designee determines is necessary for the appropriate fiscal oversight of the project; and

     (g) The date on which the grant will expire.

     2.  The Director and the Office of the Attorney General shall review the form of the agreement entered into by the Commission and the recipient of the grant pursuant to subsection 1.

     3.  An agreement entered into pursuant to subsection 1 is not effective unless the Director and the Office of the Attorney General approve the form of the agreement.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.545  Disbursement of money from grant.

      NAC 231.545  Disbursement of money from grant. (§ 13 of ch. 345, Stats. 2007)

     1.  The Director may not disburse any money from a grant until:

     (a) The recipient of a grant and a representative of the Commission have signed the agreement required pursuant to NAC 231.540; and

     (b) The Director has received a request to draw money from the grant from the recipient of the grant pursuant to subsection 2.

     2.  The recipient of a grant must make a request to draw money from the grant on a form prescribed by the Director. The request must include:

     (a) A statement specifying the amount of money the recipient wishes to draw from the grant; and

     (b) Evidence of the performance and the calculation of the grant.

     3.  The recipient of a grant may request an initial advance of not more than 20 percent of the amount of the grant.

     4.  If the Commission awards a grant to a recipient and, after the recipient receives a disbursement of the grant pursuant to this section, the Commission determines that the recipient no longer needs the grant or any portion of the grant, the Commission may:

     (a) Require the Director to cease making any further disbursements of the grant to the recipient of the grant; or

     (b) Require the recipient of the grant to repay any unused portion of the grant.

     5.  The Director shall review and approve or deny a request to draw money from a grant within 10 working days after the date on which the Director receives the request.

     6.  If the Director approves a request to draw money from a grant, the Director shall cause a check to be issued to the recipient of the grant in the amount requested by the recipient.

     7.  If the Director denies a request to draw money from a grant, the Director shall provide the recipient who made the request with a written statement:

     (a) Stating the reason for the denial of the request; and

     (b) Describing any actions the recipient must take to receive approval of the request from the Director.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

q1w2e3NAC 231.550  Failure to comply with agreement.

      NAC 231.550  Failure to comply with agreement. (§ 13 of ch. 345, Stats. 2007)  In addition to any money required to be repaid pursuant to NAC 231.545, if the Commission finds that the recipient of a grant is not using money from the grant in accordance with the provisions of the agreement entered into pursuant to NAC 231.540, the Commission will immediately cease providing the recipient with money from the grant and may determine that the agreement is void. If the Commission finds that money from the grant is not used in accordance with the agreement, the Commission may require the repayment of the grant or any portion of the grant.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)