New Mexico § 64-6-3 - Rural air service enhancement grant program

§ 64-6-3. Rural air service enhancement grant program

A. The “rural air service enhancement grant program” is created in the division to

be administered by the director. B. The director shall: (1) establish and publish deadlines and guidelines for the submission of grant applications; (2) develop procedures for receipt, review and approval of grant applications; (3) receive, review and approve grant applications; (4) monitor municipalities' and counties' use of grant money by reviewing annual reports

submitted to the director to ensure that grants are used consistently with the terms

of the grant awards; (5) establish grant reporting requirements that meet the general purpose of the Rural

Air Service Enhancement Act; and (6) perform other duties as necessary to carry out the provisions of the Rural Air

Service Enhancement Act. C. Each fiscal year, competitive grants for minimum revenue guarantees shall be awarded

to applicants for the sole purpose of funding rural air service enhancement grants. D. The director shall award grants to applicants through a competitive process and

based upon the following criteria: (1) the demand for service on the proposed new air routes or expanded air routes; (2) the economic impact on the municipality or county of the proposed new air routes

or expanded air routes; and (3) the feasibility of a common carrier servicing proposed new air routes or expanded

air routes. E. Applicants shall meet the following minimum criteria to be eligible for a grant: (1) municipalities or counties shall have a minimum population of twenty thousand

persons residing within a fifty-mile radius of the airport unless the municipality

or county has existing air routes; (2) aircraft to be used to service proposed new air routes or expanded air routes

served by the rural air service enhancement grant program shall have a passenger capacity

of not more than one hundred persons; and (3) minimum matching funds from a municipality or county shall be: (a) ten percent if the municipality or county has no existing scheduled air routes

at the time of application; and (b) twenty percent if the municipality or county has existing scheduled air routes

at the time of application. F. Individual grants awarded through the rural air service enhancement grant program

shall not: (1) exceed two million two hundred fifty thousand dollars ($2,250,000) per year for

municipalities or counties with existing scheduled air routes; (2) exceed two million seven hundred fifty thousand dollars ($2,750,000) per year

for municipalities or counties not served by existing scheduled air routes; or (3) be used for infrastructure improvement. G. Individual grants awarded through the rural air service enhancement grant program

shall cover a time frame of at least two years. If funds are available in the rural air service enhancement fund, the director may

extend the term of an existing grant up to three additional years. H. No more than ten percent of the balance of the rural air service enhancement fund

on July 1 of any year may be used by the division for infrastructure improvements

associated with individual grants awarded through the rural air service enhancement

grant program. I. Funds received through individual grants awarded through the rural air service

enhancement grant program shall be expended by the grantee municipality or county

only to airlines that have been selected through a competitive process pursuant to

the Procurement Code.