NEWPORT NEWS, Va. (WVEC) -- Virginia Transportation Secretary Aubrey Layne is laying out terms for the Newport News/Williamsburg International Airport, if they want to get their state funding back.

The state cut funds earlier this year after the Peninsula Airport Commission paid off a loan for People Express Airlines, an airline that never launched at the airport. The state said the commission improperly used at least $3.5 million of state money in the loan payoff.

On Wednesday night, Layne and the commission agreed that money will have to be paid back.

The state will also withhold half the entitlement funds meant for the airport. The rest of the money will go into an escrow account, and will be released as the airport uses money from other sources, dollar-for-dollar.

The airport commissioners must also get training about conflicts of interest, and the Freedom of Information Act.

Secretary Layne also suggested term limits for commissioners, which the commission says it was already considering.