Texas 2025 - 89th Regular

Texas House Bill HB4524 Compare Versions

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1	1	89R15225 JAM-D
2	2	By: Martinez H.B. No. 4524
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of the Texas airport investment
10	10	partnership program.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 21, Transportation Code, is amended by
13	13	adding Subchapter C-1 to read as follows:
14	14	SUBCHAPTER C-1. TEXAS AIRPORT INVESTMENT PARTNERSHIP PROGRAM
15	15	Sec. 21.131. DEFINITIONS. In this subchapter:
16	16	(1) "Division" means the aviation division of the
17	17	department.
18	18	(2) "Eligible political subdivision" means a county,
19	19	municipality, airport authority, or other local governmental or
20	20	nonprofit entity authorized to own or operate a general aviation
21	21	airport.
22	22	(3) "Fund" means the Texas airport investment
23	23	partnership program fund established by Section 21.133.
24	24	(4) "Oversight committee" means the oversight
25	25	committee established under Section 21.134.
26	26	(5) "Program" means the Texas airport investment
27	27	partnership program established by Section 21.132.
28	28	Sec. 21.132. TEXAS AIRPORT INVESTMENT PARTNERSHIP PROGRAM.
29	29	(a) The division shall establish, implement, and administer the
30	30	Texas airport investment partnership program to provide loans at
31	31	below-market interest rates to encourage investment in general
32	32	aviation airport infrastructure projects including runways,
33	33	hangars, fueling stations, navigational aids, safety enhancements,
34	34	and environmental mitigation efforts. A loan may not be provided
35	35	for a project limited to commercial air carrier services.
36	36	(b) A loan under the program:
37	37	(1) may not exceed:
38	38	(A) $10 million for a general aviation airport
39	39	project; and
40	40	(B) $5 million for a commercial non-hub aviation
41	41	airport project;
42	42	(2) must be repaid over a term not to exceed 20 years;
43	43	(3) must require that at least 10 percent of total
44	44	project costs be provided by sources other than the state; and
45	45	(4) must be provided under an agreement that includes
46	46	a recoupment provision and other terms the oversight committee
47	47	considers necessary.
48	48	(c) For purposes of Subsection (b)(3), costs related to
49	49	architectural, engineering, design, or development services or
50	50	environmental clearances may be considered in satisfying the
51	51	non-state contribution.
52	52	(d) A project at a publicly owned airport qualifies for
53	53	classification as a categorical exclusion transportation project,
54	54	as defined by the department.
55	55	(e) An airport that has received a loan under the program
56	56	may not be prohibited from imposing a passenger facility charge,
57	57	rental charge, landing fee, or other service charge necessary to
58	58	ensure financial sustainability.
59	59	(f) The program may coordinate with a state block grant
60	60	program to use federal funding and streamline project approval
61	61	processes.
62	62	(g) The division may not award a loan to a project that
63	63	includes an entity affiliated with or controlled by the government
64	64	of China, Iran, North Korea, or Russia.
65	65	Sec. 21.133. TEXAS AIRPORT INVESTMENT PARTNERSHIP PROGRAM
66	66	FUND. (a) The Texas airport investment partnership program fund is
67	67	a special fund in the state treasury outside the general revenue
68	68	fund. The division may use money in the fund only for the purposes
69	69	of awarding loans under this subchapter. The fund consists of:
70	70	(1) money appropriated by the legislature for deposit
71	71	to the credit of the fund;
72	72	(2) gifts, grants, and donations received for the
73	73	fund;
74	74	(3) investment earnings and interest earned on amounts
75	75	credited to the fund; and
76	76	(4) money from the repayment of loans issued from the
77	77	fund.
78	78	(b) The fund is subject to periodic audits to ensure optimal
79	79	fund management and regulatory compliance with state and federal
80	80	aviation administration standards.
81	81	Sec. 21.134. OVERSIGHT COMMITTEE. (a) The oversight
82	82	committee shall be composed of division staff appointed by the
83	83	division director, with the presiding officer of the oversight
84	84	committee appointed by the governor.
85	85	(b) The oversight committee shall oversee the
86	86	administration of the program and the issuance of loans using money
87	87	in the fund.
88	88	Sec. 21.135. SELECTION OF PROJECTS. (a) An eligible
89	89	political subdivision requesting a loan under the program must
90	90	submit to the oversight committee an application detailing the
91	91	scope, estimated costs, timeline, and anticipated benefits of the
92	92	project for which a loan is requested. The application must:
93	93	(1) demonstrate the applicant's ability to repay the
94	94	loan through airport revenue, local tax revenue, or other funding
95	95	sources; and
96	96	(2) be evaluated by the oversight committee with
97	97	respect to the economic impact, feasibility, safety improvements,
98	98	and long-term sustainability of the project.
99	99	(b) In awarding loans under the program, the oversight
100	100	committee shall give priority to projects that support general
101	101	aviation airports, enhance safety, promote economic development,
102	102	or incorporate federal-private partnership models.
103	103	Sec. 21.136. OVERSIGHT AND REPORTING. (a) A loan recipient
104	104	shall submit to the division an annual progress report that details
105	105	the expenditures, project milestones, and financial performance
106	106	for a project for which a loan was provided.
107	107	(b) The oversight committee shall conduct periodic audits
108	108	to ensure compliance with loan agreements.
109	109	(c) A loan recipient that does not submit a report under
110	110	Subsection (a) or is found to be in noncompliance with the terms of
111	111	a loan through an audit conducted under Subsection (b) may be
112	112	subjected to penalties as provided by the terms of the loan
113	113	agreement, including increased interest rates, modified repayment
114	114	terms, repayment acceleration, or revocation of program
115	115	participation rights.
116	116	(d) The department shall conduct a biennial review of the
117	117	effectiveness of the program that assesses loan performance,
118	118	infrastructure improvements, and economic impact. The review
119	119	conducted under this section must be:
120	120	(1) included in the division's capital improvement
121	121	plan; and
122	122	(2) summarized, made publicly available, and
123	123	submitted to the legislature.
124	124	Sec. 21.137. RULES. The commission may adopt rules
125	125	necessary to implement this subchapter.
126	126	SECTION 2. (a) Not later than September 1, 2026, the
127	127	oversight committee established by Section 21.134, Transportation
128	128	Code, as added by this Act, shall begin accepting applications for
129	129	loans issued under Section 21.132, Transportation Code, as added by
130	130	this Act.
131	131	(b) Not later than March 1, 2027, the oversight committee
132	132	established by Section 21.134, Transportation Code, as added by
133	133	this Act, shall begin issuing loans under Section 21.132,
134	134	Transportation Code, as added by this Act.
135	135	SECTION 3. This Act takes effect September 1, 2025.