[Rev. 8/28/2014 2:27:01 PM]

[NAC-231 Revised Date: 9-14]

CHAPTER 231 - ECONOMIC DEVELOPMENT AND TOURISM

OFFICE OF ECONOMIC DEVELOPMENT

General Provisions

231.001            Definitions.

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 Economic Development” 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 Office.

231.130            Disbursement of money from grant.

231.135            Failure to comply with agreement.

Local Emerging Small Businesses

231.200            Certification: Requirements; application and supporting documentation; determination; written notice.

231.205            Certification: Interpretation of certain requirements for eligibility.

231.210            Certification: Interpretation of certain terms used to determine designation as a tier 1 or tier 2 firm.

231.215            Certification: Validity; notice of expiration; renewal.

231.220            Applicant for certification and certified business required to notify Office of change to certain information.

231.225            Filing complaint; investigation; appointment of panel; notice of determination; revocation of certificate.

231.230            Investigations by Office; revocation of certificate.

231.235            Submission of required reports: “Solicited to submit a bid or proposal” interpreted.

231.240            Office to meet with authorized representatives to establish and achieve certain goals.

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.

 

 

 

OFFICE OF ECONOMIC DEVELOPMENT

General Provisions

      NAC 231.001  Definitions. (NRS 231.155)  As used in NAC 231.001 to 231.240, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.011, 231.015 and 231.021 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)

      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)

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

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

      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)

      NAC 231.053  Certification of businesses for certain benefits: “Consistent with the State Plan for Economic Development” interpreted. (NRS 231.139)  For the purposes of NRS 231.139, a business is “consistent with the State Plan for Economic Development” 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 Office concerning industrial development and diversification, as evidenced by the Office’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 Office certifies the business; and

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

     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 Office, at its 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 Office that grants the Office the right to review any document which the Office 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)

      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

      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)

      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)

      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)

      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 Office 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 Office or the board of county commissioners requests that the county provide for the financial administration of the grant money.

     3.  The Office will accept applications at any time, except the Office will not accept an application submitted on a date in a fiscal year after which the Office 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)

      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)

      NAC 231.125  Agreement with Office. (NRS 231.065)

     1.  If the Office 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 Office. 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 Office approved the grant;

     (d) The specific benchmarks of performance by which the Office 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 Office 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 Office or its designee to review any document which the Office 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 Office 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)

      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 Office 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)

      NAC 231.135  Failure to comply with agreement. (NRS 231.065)  If the Office 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 Office will immediately cease providing the recipient with money from the grant and the Office 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)

Local Emerging Small Businesses

      NAC 231.200  Certification: Requirements; application and supporting documentation; determination; written notice. (NRS 231.1408)

     1.  The Office will certify as a local emerging small business a business that satisfies the requirements set forth in this section and NRS 231.1405 and 231.14055.

     2.  To obtain certification as a local emerging small business, a business must:

     (a) Submit a complete application to the Office on a form prescribed and provided by the Office.

     (b) Attest on the application that the business satisfies the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405.

     (c) Submit to the Office the documentation required by the Office to establish that the business satisfies the criteria set forth in NRS 231.1405.

     3.  A business may submit to the Office an application to obtain certification as a local emerging small business and the supporting documentation required by subsection 2 by using the Office’s online application process or by mail or in person at the address provided on the application form.

     4.  Upon receipt of a complete application, the Office will review the application and supporting documentation submitted by the applicant and determine whether the applicant satisfies the requirements to obtain certification as a local emerging small business, as set forth in this section and NRS 231.1405 and 231.14055.

     5.  The Office may delay or deny the certification of an applicant for certification as a local emerging small business if the applicant fails to disclose information required by the application or submits a materially incomplete application.

     6.  The Office will provide each applicant for certification as a local emerging small business written notification of its determination pursuant to subsection 4 within 90 days after receipt of the application.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.205  Certification: Interpretation of certain requirements for eligibility. (NRS 231.1405, 231.1408)  For the purpose of determining whether a business satisfies the criteria for certification as a local emerging small business, as set forth in NRS 231.1405, the Office interprets the requirement that a business:

     1.  Maintain its principal place of business in this State to mean that the address identified on the state business license of the business must be a physical address located in this State.

     2.  Be operated for profit to mean that the normal business operations of the business are intended to earn a profit and that the income or profit of the business is distributable to its owners or shareholders.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.210  Certification: Interpretation of certain terms used to determine designation as a tier 1 or tier 2 firm. (NRS 231.1405, 231.1408)  For the purpose of determining whether a business satisfies the criteria for certification as a tier 1 firm or a tier 2 firm pursuant to NRS 231.1405, the Office:

     1.  Interprets the term “annual gross receipts” to mean the total amount of sales by the business during a fiscal year as reported on the business’s federal income tax return.

     2.  Will determine that a business is “involved in providing construction services” if the business:

     (a) Is a person who is licensed pursuant to chapter 624 of NRS and who provides labor, materials, equipment or supplies for the construction, repair or reconstruction of any building, highway, road, railroad, excavation or other structure, project, development or improvement; or

     (b) Employs as an employee of the business a design professional as defined in NRS 338.010.

     3.  Will determine that a business is “involved in the sale of goods” if the business sells goods as defined in NRS 104.2105.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.215  Certification: Validity; notice of expiration; renewal. (NRS 231.1408)

     1.  A certification as a local emerging small business is valid until 2 years after the last day of the month in which it is issued or renewed, unless the certification is renewed.

     2.  Not less than 60 days before the expiration of the certification of a local emerging small business, the Office will send to the local emerging small business a written notice of the expiration of the certification and an affidavit on a form prescribed by the Office which the local emerging small business may complete and return to the Office to renew its certification. The failure of a local emerging small business to receive a notice does not excuse it from the requirement to comply with the provisions of subsection 3.

     3.  To renew its certification, a local emerging small business must submit to the Office, at least 10 days before the expiration of the certification, the completed affidavit provided by the Office pursuant to subsection 2 and all supporting documentation required by the Office to establish that the local emerging small business continues to satisfy the criteria set forth in NRS 231.1405. The affidavit and documentation required by this subsection may be submitted to the Office through the Office’s online renewal process or by mail or in person to the address identified on the affidavit.

     4.  If a local emerging small business submits an affidavit and all supporting documentation required by the Office at least 10 days before the expiration date of the certification, the certification of the local emerging small business is valid until the Office determines whether the local emerging small business satisfies the requirements for certification set forth in NRS 231.1405. The Office will determine whether to renew the certification within 90 days after receiving a request for renewal.

     5.  The Office may delay or deny the renewal of a certification as a local emerging small business if the local emerging small business fails to comply with the requirements of this section.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.220  Applicant for certification and certified business required to notify Office of change to certain information. (NRS 231.1408)  An applicant for certification as a local emerging small business and each local emerging small business certified by the Office shall notify the Office of any change in its business address, electronic mail address or telephone number and of any other change which may affect its eligibility to be certified as a local emerging small business.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.225  Filing complaint; investigation; appointment of panel; notice of determination; revocation of certificate. (NRS 231.1408)

     1.  Any individual, firm or agency who believes that a local emerging small business does not satisfy the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200, may file a complaint with the Office.

     2.  Upon receipt of a complaint, the Office will investigate the allegations made in the complaint.

     3.  The Executive Director shall appoint a panel of three individuals who must not be employees of the Office to review the information, documentation and other materials obtained during the Office’s investigation and to make a determination of whether the local emerging small business that is the subject of the complaint satisfies the criteria to be certified as a local emerging small business.

     4.  The Office will issue to the complainant and the local emerging small business that is the subject of the complaint written notice of the determination of the panel appointed pursuant to subsection 3.

     5.  The Office may revoke the certification of a local emerging small business if the panel appointed pursuant to subsection 3 determines that the local emerging small business does not satisfy the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.230  Investigations by Office; revocation of certificate. (NRS 231.1408)

     1.  The Office may conduct investigations to determine whether a local emerging small business satisfies the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

     2.  The Office may revoke the certification of a local emerging small business if the Office determines that the local emerging small business does not satisfy the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.235  Submission of required reports: “Solicited to submit a bid or proposal” interpreted. (NRS 231.1408)

     1.  For the purposes of the reports required to be submitted to the Office pursuant to NRS 332.201, 333.177 and 338.1427, the Office interprets the term “solicited to submit a bid or proposal” to mean issuing an invitation to participate in a bid or proposal for a local purchasing contract, state purchasing contract or contract for a public work, as applicable.

     2.  As used in this section, “contract for a public work” means a written contract between a contractor and a public body for the provision of labor, materials, equipment or supplies for a public work and a written contract between a design professional and a public body who is not a member of a design-build team for the provision of services in connection with a public work. As used in this subsection, “contractor,” “design-build team,” “design professional,” “public body” and “public work” have the meanings ascribed to them in NRS 338.010.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

      NAC 231.240  Office to meet with authorized representatives to establish and achieve certain goals. (NRS 231.1408)

     1.  The Office will meet with authorized representatives of the Purchasing Division of the Department of Administration and the State Public Works Division of the Department of Administration to receive input and provide advice concerning the establishment and achievement of the goals required to be established pursuant to subsection 1 of NRS 231.1407.

     2.  The Office will meet with authorized representatives of the governing body of each local government in a county whose population is 100,000 or more to receive input and provide advice concerning the establishment and achievement of goals for the award of local purchasing contracts and contracts for public works of the local government to local emerging small businesses.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE

      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)

      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)

      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)

      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)

      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)

      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)

      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)

      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)

      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)

      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)

      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)