89R15225 JAM-D
By: Martinez H.B. No. 4524
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Texas airport investment
partnership program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 21, Transportation Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1. TEXAS AIRPORT INVESTMENT PARTNERSHIP PROGRAM
Sec. 21.131. DEFINITIONS. In this subchapter:
(1) "Division" means the aviation division of the
department.
(2) "Eligible political subdivision" means a county,
municipality, airport authority, or other local governmental or
nonprofit entity authorized to own or operate a general aviation
airport.
(3) "Fund" means the Texas airport investment
partnership program fund established by Section 21.133.
(4) "Oversight committee" means the oversight
committee established under Section 21.134.
(5) "Program" means the Texas airport investment
partnership program established by Section 21.132.
Sec. 21.132. TEXAS AIRPORT INVESTMENT PARTNERSHIP PROGRAM.
(a) The division shall establish, implement, and administer the
Texas airport investment partnership program to provide loans at
below-market interest rates to encourage investment in general
aviation airport infrastructure projects including runways,
hangars, fueling stations, navigational aids, safety enhancements,
and environmental mitigation efforts. A loan may not be provided
for a project limited to commercial air carrier services.
(b) A loan under the program:
(1) may not exceed:
(A) $10 million for a general aviation airport
project; and
(B) $5 million for a commercial non-hub aviation
airport project;
(2) must be repaid over a term not to exceed 20 years;
(3) must require that at least 10 percent of total
project costs be provided by sources other than the state; and
(4) must be provided under an agreement that includes
a recoupment provision and other terms the oversight committee
considers necessary.
(c) For purposes of Subsection (b)(3), costs related to
architectural, engineering, design, or development services or
environmental clearances may be considered in satisfying the
non-state contribution.
(d) A project at a publicly owned airport qualifies for
classification as a categorical exclusion transportation project,
as defined by the department.
(e) An airport that has received a loan under the program
may not be prohibited from imposing a passenger facility charge,
rental charge, landing fee, or other service charge necessary to
ensure financial sustainability.
(f) The program may coordinate with a state block grant
program to use federal funding and streamline project approval
processes.
(g) The division may not award a loan to a project that
includes an entity affiliated with or controlled by the government
of China, Iran, North Korea, or Russia.
Sec. 21.133. TEXAS AIRPORT INVESTMENT PARTNERSHIP PROGRAM
FUND. (a) The Texas airport investment partnership program fund is
a special fund in the state treasury outside the general revenue
fund. The division may use money in the fund only for the purposes
of awarding loans under this subchapter. The fund consists of:
(1) money appropriated by the legislature for deposit
to the credit of the fund;
(2) gifts, grants, and donations received for the
fund;
(3) investment earnings and interest earned on amounts
credited to the fund; and
(4) money from the repayment of loans issued from the
fund.
(b) The fund is subject to periodic audits to ensure optimal
fund management and regulatory compliance with state and federal
aviation administration standards.
Sec. 21.134. OVERSIGHT COMMITTEE. (a) The oversight
committee shall be composed of division staff appointed by the
division director, with the presiding officer of the oversight
committee appointed by the governor.
(b) The oversight committee shall oversee the
administration of the program and the issuance of loans using money
in the fund.
Sec. 21.135. SELECTION OF PROJECTS. (a) An eligible
political subdivision requesting a loan under the program must
submit to the oversight committee an application detailing the
scope, estimated costs, timeline, and anticipated benefits of the
project for which a loan is requested. The application must:
(1) demonstrate the applicant's ability to repay the
loan through airport revenue, local tax revenue, or other funding
sources; and
(2) be evaluated by the oversight committee with
respect to the economic impact, feasibility, safety improvements,
and long-term sustainability of the project.
(b) In awarding loans under the program, the oversight
committee shall give priority to projects that support general
aviation airports, enhance safety, promote economic development,
or incorporate federal-private partnership models.
Sec. 21.136. OVERSIGHT AND REPORTING. (a) A loan recipient
shall submit to the division an annual progress report that details
the expenditures, project milestones, and financial performance
for a project for which a loan was provided.
(b) The oversight committee shall conduct periodic audits
to ensure compliance with loan agreements.
(c) A loan recipient that does not submit a report under
Subsection (a) or is found to be in noncompliance with the terms of
a loan through an audit conducted under Subsection (b) may be
subjected to penalties as provided by the terms of the loan
agreement, including increased interest rates, modified repayment
terms, repayment acceleration, or revocation of program
participation rights.
(d) The department shall conduct a biennial review of the
effectiveness of the program that assesses loan performance,
infrastructure improvements, and economic impact. The review
conducted under this section must be:
(1) included in the division's capital improvement
plan; and
(2) summarized, made publicly available, and
submitted to the legislature.
Sec. 21.137. RULES. The commission may adopt rules
necessary to implement this subchapter.
SECTION 2. (a) Not later than September 1, 2026, the
oversight committee established by Section 21.134, Transportation
Code, as added by this Act, shall begin accepting applications for
loans issued under Section 21.132, Transportation Code, as added by
this Act.
(b) Not later than March 1, 2027, the oversight committee
established by Section 21.134, Transportation Code, as added by
this Act, shall begin issuing loans under Section 21.132,
Transportation Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2025.