HBA-MPA H.B. 3402 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3402 By: Hardcastle Transportation 3/29/1999 Introduced BACKGROUND AND PURPOSE According to a study conducted by the Texas Association of Aircraft Owners and Pilots, Texas has one of the highest levels of aviation activity in the nation. More than 48,000 pilots live in the state and more than 23,000 aircraft are based here. In addition, several types of aircraft are manufactured in Texas and both national and international commercial airlines are based in the state. The annual economic impact of civil aviation in Texas approaches $50 billion and provides jobs for more than 650,000 state residents. A significant number of general aviation airports in the state are in poor condition. Many of these airports were built years ago and are not designed to the standards required by today's corporate aircraft. These airports have runways that are not of sufficient length, width, or strength to serve business jet aircraft. Many have poor quality pavement, and few have adequate public facilities for business travelers. Many communities do not have the local tax base to develop and maintain their airport and little money is available from the state and federal government to upgrade and improve these facilities. In the past, the primary source of money available for airport development has been the Federal Aviation Trust Fund. H.B. 3402 establishes an aviation development account in the Transportation Code for publicly owned airports and airport development for the purposes of economic development efforts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1 Amends Section 21.101, Transportation Code, by adding Subsection (c), to provide for the creation of an aviation development account within the state highway fund to be utilized to meet air transportation needs in support of economic development. Requires this fund to be used for loans or grants in accordance with Chapter 21 (Administration of Aeronautics). SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.