HB4524 - Relating to the establishment of the Texas airport investment partnership program.

  89R15225 JAM-D     By: Martinez, Perez of Harris 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.