Regular Session
Texas Transportation Commission • Texas Department of Transportation
Key implementation requirements and action items for compliance with this legislation
Status "Lock-In" Date: The statute does not explicitly define when a county's economic status is locked in for the purpose of the 5% rate. It is unclear if the rate is determined by the county's status at the time of *application submission* or the date of *Commission approval*.
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Schedule ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
BILL ANALYSIS |
| H.B. 4520 |
| By: Martinez |
| Transportation |
| Committee Report (Unamended) |
| BACKGROUND AND PURPOSE Under current law, the Texas Department of Transportation may provide financial assistance to support the construction and repair of certain eligible aviation facilities. This is accomplished through loans or grants which the Texas Transportation Commission must vote to approve. To qualify for state aviation grant funding, 10 percent of the total project cost must be provided by a source other than the state. The bill author has informed the committee that the 10 percent local match requirement often comes from the airport sponsor, which is either a county or city government; however, many general aviation airports do not have available funding from the airport sponsor, especially those in economically disadvantaged counties. H.B. 4520 seeks to address this issue by lowering the local match requirement for airports that are located in an economically disadvantaged county.
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| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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| ANALYSIS H.B. 4520 amends the Transportation Code to include among the requirements that the Texas Transportation Commission must require, before approving a loan or grant to a state agency with a governing board authorized to operate an airport or to a governmental entity, that at least five percent of the total project cost be provided by sources other than the state if the airport is located in an economically disadvantaged county.
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| EFFECTIVE DATE September 1, 2025.
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| H.B. No. 4520 | ||
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| relating to requirements for certain funding of aviation facilities | ||
| and projects. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 21.105(b), Transportation Code, is | ||
| amended to read as follows: | ||
| (b) Before approving a loan or grant, the commission shall | ||
| require that: | ||
| (1) the airport or facility remain in the control of | ||
| each political subdivision involved for at least 20 years; | ||
| (2) the political subdivision disclose the source of | ||
| all funds for the project and the political subdivision's ability | ||
| to finance and operate the project; | ||
| (3) at least: | ||
| (A) 10 percent of the total project cost be | ||
| provided by sources other than the state; or | ||
| (B) if the airport is located in an economically | ||
| disadvantaged county, as defined by Section 222.053, five percent | ||
| of the total project cost be provided by sources other than the | ||
| state; and | ||
| (4) the project be adequately planned. | ||
| SECTION 2. Section 21.114(b), Transportation Code, is | ||
| repealed. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
| TO: | Honorable Tom Craddick, Chair, House Committee on Transportation |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB4520 by Martinez (Relating to requirements for loans or grants provided by the Texas Transportation Commission to aviation facilities located in economically disadvantaged counties.), As Introduced |
| Source Agencies: | 601 Department of Transportation |
| LBB Staff: | JMc, AAL, TG |
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Common questions about HB4520
HB4520 mandates a reduction in the local financial match requirement from 10% to 5% for state-funded aviation projects located in "economically disadvantaged counties. " This legislation effectively halves the capital requirement for eligible political subdivisions and requires immediate adjustment to Airport Capital Improvement Plans (ACIP) and grant applications pending approval for Fiscal Year 2026. Implementation Timeline Effective Date: September 1, 2025.
HB4520 was authored by Texas Representative Armando Martinez during the Regular Session.
HB4520 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4520 is enforced by Texas Transportation Commission and Texas Department of Transportation.
The compliance urgency for HB4520 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB4520 is estimated as "low". This may vary based on industry and implementation requirements.
HB4520 addresses topics including state finances, state finances--management & control, transportation, transportation--aviation and airports.
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