BILL ANALYSIS H.B. 3133 By: Dukes 04-26-95 Committee Report (Unamended) BACKGROUND Current law does not provide for the creation of an Airport Authority for Travis County. Because of the growth of Austin, the city needs a larger airport. Citizens recently approved a bond issue to convert Bergstrom Air Force Base in Austin (which was closed by the Pentagon in defense cuts) into a new municipal airport. The size and traffic of the new airport necessitates the formation of an Airport Authority to administer the new facility. PURPOSE H.B. 3133 relates to the creation, administration, powers, duties, operation, and financing of the Travis County Airport Authority; granting the authority to issue bonds; and granting the power of eminent domain. 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. SECTION BY SECTION ANALYSIS Article 1 defines terms within this Act, including (1)Authority, (2)Board, (3)City Council, (4)Commissioners Court, and (5)Director. Sec. 1.02 provides for the creation, maintenance, operation, and financing of the Travis County Airport Authority in accordance with Article IX, Section 12, of the Texas Constitution. Sec. 1.03 establishes the boundaries of the authority as the boundaries of Travis County. Article 2 provides for the creation of the Authority as follows: Sec. 2.01 provides that the authority can be created only after the presentation of a petition and the approval of Travis County qualified voters Sec. 2.02 provides for ordering such an election by 5% of the registered taxpaying voters of Travis County. This election must be held within 60 of the presentation of the petition to the commissioners court. Subsection (c) provides for the appointment of the Authority Board on the decision of the City Council. Sec. 2.04 indicates that the order calling the election must include: (1)the nature of the election, the proposal, and the election of directors if applicable, (2)the date of the election, (3) the polling hours, and (4)the location of polling stations. Sec. 2.05 provides that the commissioners court shall publish notice of such an election in local papers once per week for two consecutive weeks, with the first notice appearing at least 35 days before the election date. Sec. 2.06 provides for the filing of candidates for the board of directors. Sec. 2.07 States the time of the election as no less than 45 nor more than 60 days after the date it is ordered. Sec. 2.08 provides for the ballot printing, including the proposition. Sec. 2.09 provides for the canvassing of returns by the Commissioners Court. (b)If the court decides that the results are favorable, then the authority is created. (c)If not, another creation election may be held within one year, but the petition for it must have signatures of 10% of registered voters. Article 3 provides for the administration of the authority as follows: Sec. 3.01 states that the Authority is to be governed by a board of seven directors. Sec. 3.02 provides for the appointment of the directors, (b)their terms of office, (c)their qualifications for office, the election of board officers, and their compensation; (d)provides that each appointment must be approved by the city council and the commissioners court must consult them before making an appointment. Sec. 3.05 restricts directors to residents of Travis County. Sec. 3.06 provides for filling vacant terms in office by appointment. Sec. 3.07 provides for the election of officers from the board. This section also indicates that the secretary of the board need not be a director. Sec. 3.08 establishes that the board terms are one year and the board must fill vacancies for unexpired terms. Sec. 3.09 provides for no compensation for board members. Directors may be reimbursed for actual expenses incurred in official duties. These expenses must be accounted for by the board. Sec. 3.10 provides for the voting requirements of board members. Decisions are made by majority vote. Sec. 3.11 (a)indicates that the board appoints an administrator, assistant administrator, and attorney, (b)they serve at the will of the board, (c)which also determines their salary. Sec. 3.12 indicates that the authority may hire employees or delegate hiring powers to the administrator. Sec. 3.13 provides for the general duties of the administrator to direct the affairs of the authority. Sec. 3.14 provides for retirements benefits for employees of the board. Article 4 grants the Authority the general powers as follows: Sec. 4.01 provides for powers conferred by Article IX, Section 12, of the Texas Constitution Sec. 4.02 also provides for powers granted by the Municipal Airports Act (V.T.C.S., Article 46d-1 et seq.) which are not inconsistent with this Act, but precludes the levying of a property tax. Sec. 4.03 provides for the board to adopt rules of operation for the authority and all facilities and duties of staff. Sec. 4.04 (a)provides that the board prescribe the method of making purchases and expenditures and (b)prescribe accounting and control procedures for the authority. Sec. 4.05 (a)provides that the authority may acquire an interest in an existing airport facility which is publicly owned. Sec. 4.06 grants the Authority the ability to acquire, lease, or sell property, facilities. Sec. 4.07 provides for the authority to enter into construction contracts. Sec. 4.08 provides that the board may enter into management contracts relating to airport facilities. Sec. 4.09 to exercise the power of eminent domain. Sec. 4.10 provides for expenses incurred by the authority in moving utilities and railroads. Sec. 4.11 provides that the authority may request and accept funds, gifts, and endowments. Sec. 4.12 grants the Authority the ability to sue and be sued. Article 5 provides for the establishment and organization of authority finances as follows: Sec. 5.01 sets the operations of the authority by fiscal year which may not be changed when revenue bonds are outstanding or more than one in a 24-month period. Sec. 5.02 directs the board to establish an annual audit. Sec. 5.03 provides that audit results and other authority records are open records and subject to inspection during business hours. Sec. 5.04 directs the administrator to prepare a budget. This budget must contain statements of the outstanding obligations of the authority, cash on hand, all annual revenues for the previous year, the money available to the authority in the next year, the amount of balances expected at the end of the year, and the estimated revenues to meet the proposed budget. Sec. 5.05 provides that the authority give notice in local papers and hold a public hearing on the proposed budget. Sec. 5.06 provides that the board may approve amendments to the original budget. Sec. 5.07 provides that the all money spent must be accounted for in the budget. Sec. 5.08 provides that the administrator prepare a sworn statement on the money the authority has and the disbursements. Sec. 5.09 provides limitations on spending to provisions of Sections 4.07(a), 6.01 and 6.05 of this Act. This section also provides that the board may only invest in funds or securities specified in Article 836 and 837, Revised Statutes. Sec. 5.10 provides for naming a bank as a depository for the Airport Authority. Article 6 authorizes the Authority the ability to issue revenue bonds as follows: Sec. 6.01 provides that the authority may issue revenue bonds to purchase, condemn or acquire airport facilities. Sec. 6.02 provides that bonds issued mature no longer than 50 years and bear interest at a rate permitted by state law. These bonds must also conform to Chapter 8 Business and Commerce Code and must be issued and signed by the board. Sec. 6.03 provides for the funding to maintain any bond issues. Sec. 6.04 provides for the approval of tax-free bonds, subject to review by the attorney general. Sec. 6.05 allows the authority to issued bonds to refund and pay off outstanding debts. These bonds must be issues under V.T.C.S., Article 717k-3. This section also requires that any bonds issued to repay outstanding debt must be issued and payments made according to V.T.C.S., Article 717k. Sec. 6.06 authorizes airport authority bonds as legal investments for banks, savings banks, trusts, savings and loan, insurance companies, a fiduciary, trustee, guardian or the sinking fund of a municipality or political subdivision of the state including the school districts and the permanent school fund. Sec. 6.07 provides that Authority bonds are legal bonds under V.T.C.S., Article 717k-6. Sec. 6.08 provides that any bonds issued, and financial transaction made and any profits generated are tax exempt. Article 7 Emergency Clause and Effective Date as upon passage. SUMMARY OF COMMITTEE ACTION Pursuant to a public notice posted on April 21, 1995, at 4:04 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 26, 1995, at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol Extension and was called to order at 6:13 p.m. by the Chair, Representative Clyde Alexander. Pursuant to the suspension of the five day posting rule announced from the House floor on April 24, 1995, the Chair laid out H.B. 3133 and recognized Representative Dukes to explain H.B. 3133. There were no witnesses testifying in support of, or in opposition to H.B. 3133. Representative Bosse moved that the Committee report H.B. 3133, without amendments, to the full House with the recommendation that it do pass. The motion prevailed by the following vote: Ayes (6), Nayes (0), Absent (3), Present not voting (0).