                                 CODE OF VIRGINIA

GOVERNOR&#8217;S NEW AIRLINE SERVICE INCENTIVE FUND (§ 2.2-2320.1)

A. There is hereby created in the state treasury a special nonreverting fund
known as the Governor&#8217;s New Airline Service Incentive Fund, referred to in
this section as &#8220;the Fund.&#8221; The Fund shall be established on the
books of the Comptroller. All funds appropriated for such purpose and any gifts,
donations, grants, bequests, and other funds received on its behalf shall be
paid into the state treasury and credited to the Fund. Interest earned on moneys
in the Fund shall remain in the Fund and be credited to it. Any moneys remaining
in the Fund, including interest thereon, at the end of a biennium shall not
revert to the general fund but shall remain in the Fund. Moneys in the Fund
shall be used, in the sole discretion of the Governor, for grants to airlines
serving local, regional, national, and international airports in Virginia as
provided in subsection B. Revenues in the Fund shall be used to support the
development of additional commercial air services in the Commonwealth, provided
that such service advances the goals established in the commercial air service
plan most recently adopted pursuant to &#xA7; 5.1-2.2:2. Expenditures and
disbursements from the Fund shall be made by the State Treasurer on warrants
issued by the Comptroller upon written request signed by the Executive Director
of the Authority.

B. The Fund shall be used by the Governor to provide or assist in the provision
of marketing, advertising, or promotional activities by airlines in connection
with the launch of new air passenger service at Virginia airports in order to
incentivize airlines that have committed to commencing new air passenger service
in Virginia. The Secretary of Transportation, in consultation with the Secretary
of Commerce and Trade and the Secretary of Finance, shall develop guidelines and
criteria to be used in awarding grants from the Fund. The guidelines shall
include a provision that a grant from the Fund shall not be awarded if it can be
reasonably anticipated to result in the reduction of existing commercial air
service at another airport located within the Commonwealth. The guidelines may
require that as a condition of receiving any grant from the Fund an airline
enter into a performance agreement or memorandum of understanding with the
Commonwealth (i) setting a minimum number of nonstop roundtrip flights per week,
a minimum number of nonstop roundtrip flights within 12 months of the start date
of new air service, or a minimum passenger load factor, or any combination
thereof, and (ii) providing that any grant received by an airline shall be
repaid by the airline or reduced proportionately if such conditions are not met.

HISTORY: 2020, cc. 1119, 1120.