By: Romero, Jr., Leman, Patterson H.B. No. 1739
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain contracts regarding airports and associated air
  navigation facilities operated by or on behalf of a local
  government.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 22.019, Transportation Code, is amended
  to read as follows:
         Sec. 22.019.  CONTRACTS. Except as provided by Section
  22.0191, a [A] local government may enter into a contract necessary
  to the execution of a power granted the local government and for a
  purpose provided by this chapter.
         SECTION 2.  Subchapter B, Chapter 22, Transportation Code,
  is amended by adding Section 22.0191 to read as follows:
         Sec. 22.0191.  AIRPORT INFRASTRUCTURE OR EQUIPMENT
  CONTRACTS.  (a)  In this section, "airport infrastructure or
  equipment contract" means a contract for the acquisition,
  construction, improvement, or renovation of airport infrastructure
  or equipment, including a terminal, security system, or passenger
  boarding bridge, used at an airport or an air navigation facility
  associated with an airport.
         (b)  A local government or a person operating an airport on
  behalf of a local government may not enter into an airport
  infrastructure or equipment contract with:
               (1)  an entity that:
                     (A)  a federal court determines has
  misappropriated intellectual property or trade secrets from
  another entity organized under federal, state, or local law; and
                     (B)  is owned wholly or partly by, is controlled
  by, or receives subsidies from the government of a country that:
                           (i)  is identified under Section 182, Trade
  Act of 1974 (19 U.S.C. Section 2242), as a priority foreign country;
  or
                           (ii)  is subject to monitoring by the Office
  of the United States Trade Representative in accordance with
  Section 306, Trade Act of 1974 (19 U.S.C. Section 2416); or
               (2)  any entity that owns, controls, is owned or
  controlled by, is under common ownership with, or is a successor to
  an entity described by Subdivision (1).
         (c)  An airport infrastructure or equipment contract for
  goods or services entered into by a local government or a person
  operating an airport on behalf of a local government must contain a
  written statement by the entity with which the local government or
  person is contracting verifying that the entity is not an entity
  described by Subsection (b)(1) or (2).
         (d)  If the written statement required in an airport
  infrastructure or equipment contract under Subsection (c) is found
  to be false, the contract is voidable by the local government or
  person operating the airport.
         SECTION 3.  Section 22.020(a), Transportation Code, is
  amended to read as follows:
         (a)  A local government, by contract, lease, or other
  arrangement, on a consideration fixed by the local government and
  for a term not to exceed 99 [40] years, may authorize a qualified
  person to operate, as the agent of the local government or
  otherwise, an airport owned or controlled by the local government.
         SECTION 4.  Sections 22.021(a) and (d), Transportation Code,
  are amended to read as follows:
         (a)  In operating an airport or air navigation facility that
  it owns, leases, or controls, a local government may enter into a
  contract, lease, or other arrangement for a term not exceeding 99
  [40] years with a person:
               (1)  granting the privilege of using or improving the
  airport or air navigation facility, a portion or facility of the
  airport or air navigation facility, or space in the airport or air
  navigation facility for commercial purposes;
               (2)  conferring the privilege of supplying goods,
  services, or facilities at the airport or air navigation facility;
  or
               (3)  making available services to be furnished by the
  local government or its agents at the airport or air navigation
  facility.
         (d)  The 99-year [40-year] limit on the term of a contract,
  lease, or other arrangement provided by Subsection (a) does not
  apply to a contract, lease, or other arrangement under this section
  between a local government and this state, the United States, or an
  agency or instrumentality of this state or the United States.
         SECTION 5.  Sections 22.022(a) and (b), Transportation Code,
  are amended to read as follows:
         (a)  A lease of real property may not exceed 99 [40] years if:
               (1)  the lease is made under Section 22.011(c) or (d),
  Section 22.020, or Section 22.021; and
               (2)  at the time of the execution of the lease, the
  property is used as nonaeronautical property and is located on an
  airport on which there are active federal governmental aircraft
  operations on federal government property.
         (b)  A renewal or extension of a lease under Subsection (a)
  may not exceed 99 [40] years. If the lease provides for more than
  one renewal or extension, the renewals or extensions may not in the
  aggregate exceed 99 [40] years.
         SECTION 6.  Section 22.0191, Transportation Code, as added
  by this Act, applies only to an airport infrastructure or equipment
  contract entered into, modified, or renewed on or after the
  effective date of this Act.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.