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