1. (a) The department may loan or grant money to a state agency with a governing board authorized to operate an airport or to a governmental entity in this state to establish, construct, reconstruct, enlarge, or repair an airport, airstrip, or air navigational facility if:

   1. (1) the money has been appropriated to the department for that purpose; and

   2. (2) providing the money will:

      1. (A) best serve the public interest; and
      2. (B) best discharge the governmental aeronautics function of the state or its political subdivisions.
2. (b) A loan or grant under this subchapter must be made under a contract.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.