Martinez Bill Creates Airport Loan Fund And Oversight Committee

The text as introduced · 966 words

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.