New Mexico Register / Volume XXXIV, Issue 3 / February 14,
2023
This is an amendment to 18.11.10 NMAC, Section 7, 8,
9, 11, 14, effective 2/14/2023.
18.11.10.7 DEFINITIONS:
[ A. "Aircraft"
means airplane.
B. “Air carrier”
has the same meaning as defined in 49 U.S.C §40102 (a) (2).
C. “Department”
has
the same meaning as defined in Section 64-1-12.D NMSA 1978 (2020).
D. “Director” has
the same meaning as defined in Section 64-1-12.F NMSA 1978 (2020).
E. “Division” has
the same meaning as defined in Section 64-1-12.E NMSA 1978 (2020).
F. “Eligible
recipient” means a municipality or county located within the state of New
Mexico who owns and operates an airport which is located either within its
jurisdiction or the jurisdiction of any other political subdivision and have a
minimum population of twenty thousand persons residing within a fifty-mile
radius of the airport.
G. “Enhancement
Grant”
means an award of financial assistance of rural air service enhancement funds
to an eligible entity. Individual grants
shall not exceed one million two hundred fifty thousand dollars ($1,250,000)
per year for municipalities or counties with existing scheduled air service; or
exceed one million seven hundred fifty thousand dollars ($1,750,000) per year
for municipalities or counties not served by existing scheduled air service.
H. “Grant” or “grant
award” means an award of financial assistance though the rural air service
enhancement program.
I. “Grant Agreement”
means a legal instrument of financial assistance between the division and an
eligible recipient. “Grant agreement”
and “agreement” are used interchangeably.
J. “Grantee” or
“grant recipient” means the direct recipient of a grant award. The grantee is legally accountable to the
department for the use of grant funds and is bound by the provisions and terms
and conditions of the grant agreement.
The grantee is responsible for ensuring that the selected air carrier
carrying out activities under the award comply with the provisions and terms
and conditions of the grant agreement.
K. “Grant term”
means the timeframe for the use of the grant award as set forth in the grant
award agreement. Grant awards shall
cover a timeframe of at least two years.
L. “In-kind
contribution” means any non-monetary contribution. Goods or services offered free or
at less than the
usual charge are considered in an in-kind
contribution. Similarly, when a person
or entity pays for
services on the
committee’s behalf, the payment is an in-kind contribution.
M. “Minimum level of
airline service” means:
(1) service for one or more New Mexico
municipalities or counties to one or more airports by a reliable airline;
(2) flights that are at reasonable times
considering the needs of passengers and at prices that are not excessive
compared to the generally prevailing prices of other air carriers for like
service between similar places; and
(3) operated
by pilots that meet the minimum requirements of the federal aviation
administration based on the type of service provided.
N. "Licensed by
the state" for purposes of the Rural Air Service Enhancement Act means
a common carrier who has obtained from the United States department of
transportation economic authority from the office of the secretary of
transportation in the form of a certificate for interstate or foreign passenger
and a safety authority in the form of an air carrier certificate and operations
specifications from the federal aviation administration.
O. "Passenger"
has the same meaning as defined in Section 64-1-12.C NMSA 1978 (2020).
P. "Pilot"
means any person including a co-pilot participating in the operation of an
aircraft while it is in flight.
Q. "Scheduled
air service or “scheduled operation” means any common carriage
passenger-carrying operation for compensation or hire conducted by an air
carrier for which the air carrier or its representatives offers in advance the
departure location, departure time, and arrival location.]
A. Definitions beginning with “A”:
(1) "Aircraft"
means airplane.
(2) “Air carrier” has the same meaning as defined in 49 U.S.C §40102 (a)
(2).
(3) “Air route” means any
scheduled operation or public charter.
B. Definitions
beginning with “B”: [RESERVED]
C. Definitions beginning with “C”: “Charter flight” means a flight operated under the
terms of a charter contract between a direct air carrier and the carrier’s
customer.
D. Definitions beginning with “D”:
(1) “Department” has the same
meaning as defined in Subsection D of Section 64-1-12 NMSA 1978 (2020).
(2) “Director”
has the same meaning as defined in Subsection F of Section 64-1-12 NMSA 1978
(2020).
(3) “Division”
has the same meaning as defined in Subsection E of Section 64-1-12 NMSA 1978
(2020).
E. Definitions beginning with “E”:
(1)
“Eligible recipient” means a municipality or county located within the
state of New Mexico who owns and operates an airport which is located either
within its jurisdiction or the jurisdiction of any other political subdivision
and have a minimum population of twenty thousand persons residing within a
fifty-mile radius of the airport.
(2) “Enhancement grant” means an award of
financial assistance of rural air service enhancement funds to an eligible
entity. Individual grants shall not
exceed two million two hundred fifty thousand dollars ($2,250,000) per year for
municipalities or counties with existing scheduled air service; or exceed two
million seven hundred fifty thousand dollars ($2,750,000) per year for
municipalities or counties not served by existing scheduled air service.
(3) “Expanded air route” means an
air route served by the rural air service enhancement grant program that
expands passenger capacity or the number of scheduled operations or public
charter flights from what was served at the time a grant was made.
F. Definitions
beginning with “F”: [RESERVED]
G. Definitions
beginning with “G”:
(1) “Grant” or “grant award” means an award of
financial assistance though the rural air service enhancement program.
(2) “Grant
Agreement” means a legal instrument of financial assistance between the
division and an eligible recipient.
“Grant agreement” and “agreement” are used interchangeably.
(3) “Grantee”
or “grant recipient” means the direct recipient of a grant award. The grantee is legally accountable to the
department for the use of grant funds and is bound by the provisions and terms
and conditions of the grant agreement.
The grantee is responsible for ensuring that the selected air carrier
carrying out activities under the award comply with the provisions and terms
and conditions of the grant agreement.
(4) “Grant
term” means the timeframe for the use of the grant award as set forth in
the grant award agreement. Grant awards
shall cover a timeframe of at least two years.
H. Definitions
beginning with “H”: [RESERVED]
I. Definitions beginning
with “I”: “In-kind contribution” means any
non-monetary contribution. Goods or
services offered free or at less than the usual charge are
considered in an in-kind contribution.
Similarly, when a person or entity pays for services on the committee’s
behalf, the payment is an in-kind contribution.
J. Definitions
beginning with “J”: [RESERVED]
K. Definitions beginning with “K”: [RESERVED]
L. Definitions
beginning with “L”: "Licensed by the state" for purposes of the
Rural Air Service Enhancement Act means a common carrier who has obtained from
the United States department of transportation economic authority from the
office of the secretary of transportation in the form of a certificate for
interstate or foreign passenger and a safety authority in the form of an air
carrier certificate and operations specifications from the federal aviation
administration.
M. Definitions
beginning with “M”:
(1) “Minimum level of airline service” means:
(a) service for one or more New Mexico
municipalities or counties to one or more airports by a reliable airline;
(b) flights that are at reasonable times
considering the needs of passengers and at prices that are not excessive
compared to the generally prevailing prices of other air carriers for like
service between similar places; and
(c) operated
by pilots that meet the minimum requirements of the federal aviation
administration based on the type of service provided.
(2) “Minimum revenue guarantee”
means the amount of money guaranteed by a municipality or county to be earned
by an airline providing scheduled air services to and from that municipality or
county, which is the difference between the minimum flight charge revenue
specified in the contract between the municipality or county and the airline
and the amount of actual flight charge revenue received by the airline that is
less than the contractual amount.
N. Definitions
beginning with “N”: “New air route” means an air
route to be served by the rural air service enhancement grant program that was
not served prior to January 1, 2021.
O. Definitions
beginning with “O”: [RESERVED]
P. Definitions
beginning with “P”:
(1) "Passenger"
has the same meaning as defined in Subsection C of Section 64-1-12 NMSA 1978
(2020).
(2) "Pilot"
means any person including a co-pilot participating in the operation of an
aircraft while it is in flight.
(3) “Public charter” means a
one-way or round-trip charter flight to be performed by one or more direct air
carriers that is arranged and sponsored by a charter operator.
Q. Definitions
beginning with “Q”: [RESERVED]
R. Definitions
beginning with “R”: [RESERVED]
S. Definitions
beginning with “S”: Scheduled air service or “scheduled
operation”
means any common carriage passenger-carrying operation for compensation or hire
conducted by an air carrier for which the air carrier or its representatives
offers in advance the departure location, departure time, and arrival location.
T. Definitions beginning
with “T”: [RESERVED]
U. Definitions
beginning with “U”: [RESERVED]
V. Definitions
beginning with “V”: [RESERVED]
W. Definitions
beginning with “W”: [RESERVED]
X. Definitions
beginning with “X”: [RESERVED]
Y. Definitions
beginning with “Y”: [RESERVED]
Z. Definitions
beginning with “Z”: [RESERVED]
[18.11.10.7 NMAC -
N, 10/26/2021, A, 2/14/2023]
18.11.10.8 ELIGIBILITY
FOR ASSISTANCE: Applicants shall meet the following minimum
criteria to be eligible for a grant:
A. The municipality or county shall have a minimum
population of 20,000 persons residing within a 50-mile radius of the airport
unless the municipality or county has existing scheduled air service;
B. The aircraft to be used to service proposed new air
routes served by the rural air service enhancement grant program shall have a
passenger capacity of not more than [nine] 30 persons;
C. The route or routes to be served by the program shall be
a new air route or routes that were not served at the time the grant was made;
and
D. The selected air carrier must be licensed by the state.
[18.11.10.8 NMAC -
N, 10/26/2021, A, 2/14/2023]
18.11.10.9 AIR
CARRIER PROCUREMENT REQUIREMENTS:
A. In
selecting an air carrier, an eligible recipient must comply with:
(1) the requirements of the New Mexico
Procurement Code, Sections 13-1-28 to13-1-199 NMSA 1978, as amended, or
(2) if exempted from complying with the Procurement
Code pursuant to Section 13-1-98K NMSA 1978, their own purchasing
ordinances. Such an eligible recipient
must provide a copy of those ordinances to the division.
(3) Applicants will be required to
provide proof of compliance with the New Mexico Procurement Code or its own
purchasing ordinances if exempted from complying with the Procurement Code.
(4) An eligible entity must award a
contract only to an air carrier who is licensed by the state.
B. The division may make available to eligible recipients
upon request suggested forms and documents for use in the procurement of the
airline services.
C. At a minimum an eligible entity should consider including
the following in its solicitation:
(1) a description of the airport or
airports that will serve the proposed new scheduled air service or expanded
air route;
(2) an estimate of the demand for the
proposed new scheduled air service routes;
(3) a description of any existing air
service, including the carrier(s) providing the service, service frequency,
direct and connecting destinations offered, available fares, and equipment
types;
(4) a description of the requested
service options for proposed air service routes or a description of the
proposed new air routes or expanded air routes to serve the applicant;
(5) a justification for the new proposed
scheduled air service routes;
(6) a commitment from the selected air
carrier that if a grant is awarded to the municipality or county the air
carrier will enter into a written operating agreement with the eligible
recipient to provide the air service described;
(7) a draft operating agreement;
(8) a requirement that the air carrier
discuss its requested revenue guarantee as well as supporting data for the
request, such as traffic assumptions, revenue forecasts, estimated operating
costs and potential route profitability.
(9) a requirement that the air carrier
provide a description of the aircraft to be used on the new scheduled air
service route(s);
(10) a description by the air carrier of its demonstrated
reliability in providing scheduled air service;
(11) disclosure on the part of the air carrier of the existence
of interline agreements that the air service provider has made with larger
carriers to allow passengers and cargo of the air service provider at the hub
airport to be transported by the larger carrier(s) through one reservation,
ticket, and baggage check in.
[18.11.10.9 - N, 10/26/2021 A, 2/14/2023]
18.11.10.11 Application FOR GRANT:
A. In any fiscal year in which funds will be available for
distribution from the rural service enhancement fund the director will request
applications from eligible recipients interested in receiving a rural air
service enhancement grant.
B. Two
or more communities may enter into a shared or common
services arrangements, memorandum of understanding, intergovernmental
agreement, joint powers agreements, or other similar agreement to provide air
service over a linear route, e.g., community A to community B. The applicant shall submit a fully executed
letter of intent together with its application defining
the respective responsibilities of the communities in implementing the project
and to define the requirements, terms, conditions, type of funds, and considerations
attendant upon each party to the agreement. If awarded a grant, prior to the disbursement of any funds by the
division, the communities shall execute the agreement in a manner provided by
law for entering into binding contractual agreements. Two or more communities entering into such
an agreement need to make their own determination of the legality of such a
relationship and the form and the content of the agreement.
C. Eligible
recipients shall submit a single application to the division in a format
provided by the division. An applicant
shall comply with deadlines and guidelines published by the director. The director shall reject any application
that is not submitted by the deadline.
Each applicant is solely responsible for soliciting, reviewing and
selecting an air carrier for inclusion in the application.
D. A grant application shall include
the items listed in Section 64-6-4 NMSA 1978.
[18.11.10.11 NMAC - N, 10/26/2021 A, 2/14/2023]
18.11.10.14 Approval of Grant:
A. If the division approves an application for a grant, the
recipient of the grant must enter into an agreement with the division. The agreement must specify:
(1) The amount of the grant;
(2) The amount of the matching funds from
the eligible recipient. Minimum matching
funds shall not be less than:
(a) ten percent if the eligible recipient
has no existing scheduled air service at the time of application; and
(b) [fifty] twenty percent
if the eligible recipient has existing scheduled air service at the time of
application. In-kind contributions may
not be used in satisfying the required minimum matching funds.
(3) the proper use of the money obtained
from the grant;
(4) the date on which the division
approved the grant;
(5) the specific indicators of
performance by which the division and the recipient of the grant will measure
the progress of the project;
(6) the projected estimates of costs;
(7) a requirement that the recipient of
the grant report to the division on an annual basis.
B. If the eligible entity fails to execute and return the
grant agreement within 60 days of receiving the notice of award, the project
shall be considered lapsed.
[18.11.10.14 NMAC
- N, 10/26/2021 A, 2/14/2023]