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2020 Op. Neb. Att'y Gen. 1 (2020)

handle is hein.sag/sagne2020 and id is 1 raw text is: 


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SUBJECT:




REQUESTED BY:


WRITTEN   BY:


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STATE OF NEBRASKA
    OFFICIAL

    FEB 2 12020

DEPT. OF JUSTICE


Whether  Legislation Authorizing City Airport Authorities To Provide
Minimum   Revenue   Guarantees  To  Private Airlines Offering To
Furnish New  And Additional Services Would Violate Neb. Const. Art.
XIII, § 3

Senator Mike Hilgers
Nebraska  State Legislature

Douglas J. Peterson, Attorney General
Lynn A. Melson, Assistant Attorney General


                                  INTRODUCTION

       You  have requested an  opinion from this office concerning a proposed bill that
 would amend   Neb. Rev. Stat. § 3-504.02 (2012) to authorize airport authorities of all
 classes of cities to make grants and loans, and offer revenue guarantees, to airlines
 offering to provide new and additional service to such cities. According to your letter, the
 services would be funded through local property tax, which are levied under authorization
 of § 3-504.02. You add that minimum revenue guarantees occur when a governmental
 entity agrees to compensate a private contractor if actual project revenue falls below a
 specified threshold in order to mitigate the risk taken by the private sector contractor.

       You ask  whether legislation authorizing an airport authority to offer minimum
revenue  guarantees  to private airlines would violate art. XIII, § 3 of the Nebraska
Constitution which, with certain exceptions not applicable here, prohibits extending the
credit of the state to any private individual, association or corporation.


   STATE OF NEBRASKA

of  the   Zlttorney Seneral
  2115 STATE CAPITOL BUILDING
    LINCOLN, NE 68509-8920
        (402) 471-2682
      TDD (402) 471-2682
 FAX (402) 471-3297 or (402) 471-4725


Off  Ire


DOUGLAS J. PETERSON
ATTORNEY GENERAL

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