108 STAT. 1148 PUBLIC LAW 103-272—JULY 5, 1994 §41735. Enhanced essential air service (a) PROPOSALS. — (1) A State or local government may submit a proposal to the Secretary of Transportation for enhanced essential air service to an eligible place for which basic essential air service is being provided under section 41733 of this title. The proposal shall— (A) specify the level and type of enhanced essential air service the State or local government considers appropriate; and (B) include an agreement related to compensation required for the proposed service. (2) The agreement submitted under paragraph (1)(B) of this subsection shall provide that— (A) the State or local government or a person pay 50 percent of the compensation required for the proposed service and the United States Government pay the remaining 50 percent; or (B)(i) the Government pay 100 percent of the compensation; and (ii) if the proposed service is not successful for at least a 2-year period under the criteria prescribed by the Secretary under paragraph (3) of this subsection, the eligible place is not eligible for air service or air transportation for which compensation is paid by the Secretary under this subchapter. Regulations. (3) The Secretary shall prescribe by regulation objective criteria for deciding whether enhanced essential air service to an eligible place under this section is successful in terms of— (A) increasing passenger usage of the airport facilities at the place; and (B) reducing the amount of compensation provided by the Secretary under this subchapter for that service. (b) DECISIONS. — Not later than 90 days after receiving a proposal under subsection (a) of this section, the Secretary sh^l— (1) approve the proposal if the Secretary decides the proposal is reasonable; or (2) if the Secretary decides the proposal is not reasonable, disapprove the proposal and notify the State or local government of the disapproval and the reasons for the disapproval. (c) COMPENSATION PAYMENTS.—(1) The Secretary shall pay compensation under this section when and in the way the Secretary decides is appropriate. Compensation for enhanced essential air service under this section may be paid only for the costs incurred in providing air service to an eligible place that are in addition to the costs incurred in providing basic essential air service to the place under section 41733 of this title. The Secretary shall continue to pay compensation under this section only as long as— (A) the air carrier maintains the level of enhanced essential air service; (B) the State or local government or person agreeing to~ pay compensation under this section continues to pay the compensation; and (C) the Secretary decides the compensation is necessary to maintain the service to the place. (2) The Secretary may require the State or local government or person agreeing to pay compensation under this section to make _^, advance payments or provide other security to ensure that timely ^ pa3anents are made.
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