By Dukes H.B. No. 3133
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the Travis County Airport Authority;
1-4 granting the authority to issue bonds; and granting the power of
1-5 eminent domain.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. DEFINITIONS. In this Act:
1-9 (1) "Authority" means the Travis County Airport
1-10 Authority.
1-11 (2) "Board" means the board of directors of the
1-12 authority.
1-13 (3) "City council" means the city council of the city
1-14 of Austin.
1-15 (4) "Commissioners court" means the Commissioners
1-16 Court of Travis County.
1-17 (5) "Director" means a member of the board.
1-18 SECTION 1.02. AUTHORITY AUTHORIZATION. The Travis County
1-19 Airport Authority may be created and established and, if created,
1-20 must be maintained, operated, and financed in the manner provided
1-21 by Article IX, Section 12, of the Texas Constitution.
1-22 SECTION 1.03. BOUNDARIES. The boundaries of the authority
1-23 are coextensive with the boundaries of Travis County, Texas.
2-1 ARTICLE 2. CREATION OF AUTHORITY
2-2 SECTION 2.01. CREATION ELECTION. The authority may be
2-3 created only if the creation is approved by a majority of the
2-4 qualified voters of Travis County voting at an election called and
2-5 held for that purpose.
2-6 SECTION 2.02. ORDERING ELECTION. On presentation of a
2-7 petition for a creation election signed by at least five percent of
2-8 the registered taxpaying voters of Travis County, the commissioners
2-9 court shall order a creation election to be held. The election
2-10 shall be called not later than the 60th day after the date on which
2-11 the petition is presented to the commissioners court.
2-12 SECTION 2.03. APPOINTMENT <OR ELECTION> OF BOARD. (a) <The
2-13 city council shall determine whether the directors for the proposed
2-14 authority should be appointed or elected. The city council shall
2-15 notify the commissioners court of its decision not later than the
2-16 40th day before the date on which a creation election is held under
2-17 this Act.>
2-18 <(b) If the city council decides that the board should be
2-19 appointed,> the commissioners court shall appoint the initial board
2-20 as prescribed by Section 3.02 of this Act.
2-21 (c) If the city council decides that the board should be
2-22 elected, the initial directors shall be elected at the creation
2-23 election.
2-24 SECTION 2.04. ELECTION ORDER. The order calling the
2-25 election must state:
3-1 (1) the nature of the election, including the
3-2 proposition that is to appear on the ballot, and if applicable, the
3-3 fact that the initial directors are to be elected at that election;
3-4 (2) the date of the election;
3-5 (3) the hours during which the polls will be open; and
3-6 (4) the location of the polling places.
3-7 SECTION 2.05. NOTICE. The commissioners court shall give
3-8 notice of the election by publishing a substantial copy of the
3-9 election order in a newspaper with general circulation in Travis
3-10 County once a week for two consecutive weeks. The first
3-11 publication must appear at least 35 days before the date set for
3-12 the election.
3-13 SECTION 2.06. APPLICATION FOR ELECTION. (a) If the
3-14 directors are to be elected, a person who wishes to have the
3-15 person's name printed on the ballot as a candidate for director
3-16 must file with the commissioners court an application asking that
3-17 the person's name be placed on the ballot.
3-18 (b) The person must file the application with the
3-19 commissioners court not later than the 31st day before the date of
3-20 the election.
3-21 SECTION 2.07. TIME FOR ELECTION. (a) The election shall be
3-22 held not less than 45 days nor more than 60 days after the date on
3-23 which the election is ordered.
3-24 (b) Section 41.001(a), Election Code, does not apply to an
3-25 election ordered under this article.
4-1 SECTION 2.08. BALLOT PROPOSITION. The ballot for the
4-2 election shall be printed to permit voting for or against the
4-3 proposition: "The creation of the Travis County Airport
4-4 Authority."
4-5 SECTION 2.09. CANVASSING RETURNS. (a) The commissioners
4-6 court shall meet and canvass the returns of the election.
4-7 (b) If the commissioners court finds that the election
4-8 results are favorable to the proposition to create the authority,
4-9 the commissioners court shall issue an order declaring the
4-10 authority created.
4-11 (c) If the commissioners court finds that the election
4-12 results are not favorable to the proposition to create the
4-13 authority, another creation election may not be held before the
4-14 first anniversary of the election at which voters disapproved the
4-15 proposition, and the petition required under Section 2.02 of this
4-16 Act must be signed by at least 10 percent of the registered
4-17 taxpaying voters of Travis County.
4-18 ARTICLE 3. AUTHORITY ADMINISTRATION
4-19 SECTION 3.01. BOARD OF DIRECTORS. The authority is governed
4-20 by a board of seven directors.
4-21 SECTION 3.02. METHOD OF APPOINTMENT; STAGGERED TERMS; TERM
4-22 OF OFFICE. <(a) If the directors are to be appointed,> the
4-23 commissioners court shall appoint the initial board not later than
4-24 the 30th day after the date on which the authority is created.
4-25 (b) In making initial appointments, the commissioners court
5-1 shall appoint three persons to serve until February 1 of the first
5-2 odd-numbered year after the year in which the authority is created,
5-3 and four persons to serve until February 1 of the second
5-4 odd-numbered year after the year in which the district is created.
5-5 (c) After the initial appointment of directors, the
5-6 commissioners court shall appoint the appropriate number of
5-7 directors each odd-numbered year to serve four-year terms that
5-8 expire on February 1.
5-9 (d) Each appointment must be made with the consent of the
5-10 city council, and the commissioners court shall consult with the
5-11 city council before making an appointment.
5-12 <SECTION 3.03. METHOD OF ELECTION; STAGGERED TERMS; TERM OF
5-13 OFFICE; ELECTION DATE. (a) If the board is to be elected, the
5-14 members of the board of directors shall be elected at large from
5-15 Travis County.>
5-16 <(b) The seven candidates receiving the highest number of
5-17 votes at the creation election are directors for the authority. If
5-18 two or more persons tie for the seventh-highest vote, the
5-19 commissioners court shall select the seventh member from those
5-20 tying for the place. The four directors receiving the highest
5-21 number of votes at the creation election serve until successor
5-22 directors are elected at the second regular directors' election
5-23 following the creation of the authority. The remaining directors
5-24 serve until successor directors are elected at the first regular
5-25 directors' election following the creation of the authority.>
6-1 <(c) After the initial election of directors, an election
6-2 shall be held on the first Saturday in May each even numbered year,
6-3 and the appropriate number of successor directors shall be elected
6-4 for four year terms.>
6-5 <SECTION 3.04. NOTICE OF DIRECTORS' ELECTION AND
6-6 APPLICATION. (a) If the directors are elected, notice of the
6-7 election shall be published one time in a newspaper with general
6-8 circulation in Travis County at least 35 days before the date of
6-9 each election of directors.>
6-10 <(b) A person who wishes to have the person's name printed
6-11 on the ballot as a candidate for director must file with the
6-12 secretary of the authority an application asking that the person's
6-13 name be placed on the ballot. The application must be filed with
6-14 the secretary not later than the 31st day before the date of the
6-15 election.>
6-16 SECTION 3.05. QUALIFICATIONS FOR OFFICE. A person is not
6-17 eligible to be appointed as<, to be a candidate for,> or to serve
6-18 as a director unless the person is a resident of Travis County and
6-19 a qualified voter.
6-20 SECTION 3.06. BOARD VACANCY. A vacancy in the office of
6-21 director shall be filled for the unexpired term by appointment by
6-22 the commissioners court and as prescribed by Section 3.02(d) of
6-23 this Act.
6-24 SECTION 3.07. OFFICERS. The board shall elect from among
6-25 its members a president and a vice-president. The board shall also
7-1 appoint a secretary. The secretary need not be a director.
7-2 SECTION 3.08. OFFICERS' TERMS; VACANCY. (a) Each officer
7-3 of the board serves for a term of one year.
7-4 (b) The board shall fill a vacancy in a board office for the
7-5 unexpired term.
7-6 SECTION 3.09. COMPENSATION. Directors and officers serve
7-7 without compensation but may be reimbursed for actual expenses
7-8 incurred in the performance of official duties. Those expenses
7-9 must be reported in the authority's minute book or other authority
7-10 records and must be approved by the board.
7-11 SECTION 3.10. VOTING REQUIREMENT. A concurrence of a
7-12 majority of the members of the board <voting> is necessary in
7-13 matters relating to the business of the authority.
7-14 SECTION 3.11. ADMINISTRATOR, ASSISTANT ADMINISTRATOR, AND
7-15 ATTORNEY. (a) The board may appoint qualified persons as
7-16 administrator of the authority, assistant administrator, and
7-17 attorney for the authority.
7-18 (b) The administrator, assistant administrator, and attorney
7-19 serve at the will of the board.
7-20 (c) The administrator, assistant administrator, and attorney
7-21 are entitled to compensation as determined by the board.
7-22 SECTION 3.12. EMPLOYEES. The authority may employ necessary
7-23 employees or delegate to the administrator the authority to employ
7-24 persons for the authority.
7-25 SECTION 3.13. GENERAL DUTIES OF ADMINISTRATOR. The
8-1 administrator shall supervise the work and activities of the
8-2 authority and shall direct the general affairs of the authority,
8-3 subject to the limitations prescribed by the board.
8-4 SECTION 3.14. RETIREMENT BENEFITS. The board may provide
8-5 retirement benefits for employees of the authority by establishing
8-6 or administering a retirement program or by electing to participate
8-7 in the Texas County and District Retirement System or in any other
8-8 statewide retirement system in which the authority is eligible to
8-9 participate.
8-10 ARTICLE 4. POWERS AND DUTIES
8-11 SECTION 4.01. GENERAL POWERS AND DUTIES. (a) The authority
8-12 has all of the rights, powers, privileges, authority, and functions
8-13 conferred by Article IX, Section 12, of the Texas Constitution.
8-14 (b) The authority has all of the powers granted to a
8-15 municipality in the operation of an airport by the Municipal
8-16 Airports Act (Article 46d-1 et seq., Vernon's Texas Civil Statutes)
8-17 that are not inconsistent with this Act.
8-18 (c) The authority may adopt and enforce appropriate zoning
8-19 regulations under Chapter 241, Local Government Code, and may
8-20 exercise the power granted to a political subdivision by that
8-21 chapter.
8-22 (d) The authority may not levy a property tax.
8-23 SECTION 4.02. MANAGEMENT, CONTROL, AND ADMINISTRATION. The
8-24 board shall manage, control, and administer the authority and its
8-25 facilities and the funds and resources of the authority.
9-1 SECTION 4.03. AUTHORITY RULES. The board may adopt rules
9-2 governing the operation of the authority and its facilities and the
9-3 duties, functions, and responsibilities of authority staff and
9-4 employees.
9-5 SECTION 4.04. METHODS AND PROCEDURES. (a) The board may
9-6 prescribe the method of making purchases and expenditures by and
9-7 for the authority.
9-8 (b) The board may prescribe accounting and control
9-9 procedures for the authority.
9-10 SECTION 4.05. ACQUISITION OF EXISTING AIRPORT. (a) The
9-11 authority may acquire by purchase, gift, or eminent domain an
9-12 interest in an existing airport facility that is publicly owned and
9-13 financed and that is served by a certificated airline.
9-14 (b) The authority shall fully assume any outstanding revenue
9-15 bonds secured by a pledge of the revenues of the existing airport
9-16 facility and any bonds that are a lien against the airport facility
9-17 and shall discharge the bonds according to their terms.
9-18 SECTION 4.06. AIRPORT PROPERTY, FACILITIES, AND EQUIPMENT.
9-19 (a) The board may acquire property, facilities, and equipment for
9-20 the authority and may mortgage or pledge the property, facilities,
9-21 or equipment acquired as security for the payment of the purchase
9-22 price.
9-23 (b) The board may lease airport facilities on behalf of the
9-24 authority.
9-25 (c) The board may sell or otherwise dispose of property,
10-1 facilities, or equipment on behalf of the authority.
10-2 SECTION 4.07. CONSTRUCTION CONTRACTS. (a) The board may
10-3 enter into construction contracts on behalf of the authority;
10-4 however, the board may enter into construction contracts that
10-5 involve spending more than $10,000 only after competitive bidding
10-6 as provided by Subchapter B, Chapter 271, Local Government Code.
10-7 (b) Article 5160, Revised Statutes, as it relates to
10-8 performance and payment bonds, applies to construction contracts
10-9 let by the authority.
10-10 SECTION 4.08. AUTHORITY OPERATING AND MANAGEMENT CONTRACTS.
10-11 The board may enter into operating or management contracts relating
10-12 to airport facilities on behalf of the authority.
10-13 SECTION 4.09. EMINENT DOMAIN. (a) The authority may
10-14 exercise the power of eminent domain to acquire by condemnation a
10-15 fee simple or other interest in property located in the authority
10-16 if the property interest is necessary to the exercise of the rights
10-17 or authority conferred by this Act.
10-18 (b) The authority must exercise the power of eminent domain
10-19 in the manner provided by Chapter 21, Property Code, but the
10-20 authority is not required to deposit in the trial court money or a
10-21 bond as provided by Section 21.021(a), Property Code.
10-22 (c) In a condemnation proceeding brought by the authority,
10-23 the authority is not required to pay in advance or give bond or
10-24 other security for costs in the trial court, to give bond for the
10-25 issuance of a temporary restraining order or a temporary
11-1 injunction, or to give bond for costs or supersedeas on an appeal
11-2 or writ of error.
11-3 SECTION 4.10. EXPENSES FOR MOVING FACILITIES OF RAILROADS
11-4 AND UTILITIES. In exercising the power of eminent domain, if the
11-5 board requires relocating, raising, lowering, rerouting, changing
11-6 the grade, or altering the construction of any railroad, highway,
11-7 pipeline, or electric transmission and electric distribution,
11-8 telegraph, or telephone lines, conduits, poles, or facilities, the
11-9 authority must bear the actual cost of relocating, raising,
11-10 lowering, rerouting, changing the grade, or altering the
11-11 construction to provide comparable replacement without enhancement
11-12 of facilities, after deducting the net salvage value derived from
11-13 the old facility.
11-14 SECTION 4.11. FUNDS, GIFTS, AND ENDOWMENTS. (a) The
11-15 authority may request and accept money from a federal or state
11-16 agency, political subdivision, or other legal entity to carry out
11-17 the provisions of this Act.
11-18 (b) On behalf of the authority, the board may accept gifts
11-19 and endowments to be held in trust for any purpose and under any
11-20 direction, limitation, or provision prescribed in writing by the
11-21 donor that is consistent with the proper management of the
11-22 authority.
11-23 SECTION 4.12. AUTHORITY TO SUE AND BE SUED. The board may
11-24 sue and be sued on behalf of the authority.
11-25 ARTICLE 5. AUTHORITY FINANCES
12-1 SECTION 5.01. FISCAL YEAR. (a) The authority operates on
12-2 the fiscal year established by the board.
12-3 (b) The fiscal year may not be changed when revenue bonds of
12-4 the authority are outstanding or more than once in a 24-month
12-5 period.
12-6 SECTION 5.02. ANNUAL AUDIT. Annually, the board shall have
12-7 an audit made of the financial condition of the authority.
12-8 SECTION 5.03. AUTHORITY AUDIT AND RECORDS. The annual audit
12-9 and other authority records are open to inspection during regular
12-10 business hours at the principal office of the authority.
12-11 SECTION 5.04. ANNUAL BUDGET. (a) The administrator of the
12-12 authority shall prepare a proposed annual budget for the authority.
12-13 (b) The proposed budget must contain a complete financial
12-14 statement, including a statement of:
12-15 (1) the outstanding obligations of the authority;
12-16 (2) the amount of cash on hand to the credit of each
12-17 fund of the authority;
12-18 (3) the amount of money received by the authority from
12-19 all sources during the previous year;
12-20 (4) the amount of money available to the authority
12-21 from all sources during the ensuing year;
12-22 (5) the amount of the balances expected at the end of
12-23 the year in which the budget is being prepared; and
12-24 (6) the estimated amount of revenues and balances
12-25 available to cover the proposed budget.
13-1 SECTION 5.05. NOTICE; HEARING; ADOPTION OF BUDGET. (a) The
13-2 board shall hold a public hearing on the proposed annual budget.
13-3 (b) The board shall publish notice of the hearing in a
13-4 newspaper of general circulation in the authority not later than
13-5 the 10th day before the date of the hearing.
13-6 (c) Any resident of the authority is entitled to be present
13-7 and participate at the hearing.
13-8 (d) At the conclusion of the hearing, the board shall adopt
13-9 a budget by acting on the budget proposed by the administrator.
13-10 The board may make any necessary changes in the proposed budget.
13-11 (e) The budget is effective only after adoption by the
13-12 board.
13-13 SECTION 5.06. AMENDING BUDGET. After adoption, the annual
13-14 budget may be amended on the board's approval.
13-15 SECTION 5.07. LIMITATION ON EXPENDITURES. Money may not be
13-16 spent for an expense not included in the annual budget or an
13-17 amendment to it.
13-18 SECTION 5.08. SWORN STATEMENT. As soon as practicable after
13-19 the close of the fiscal year, the administrator shall prepare for
13-20 the board a sworn statement of the amount of money that belongs to
13-21 the authority and an account of the disbursements of that money.
13-22 SECTION 5.09. SPENDING AND INVESTMENT LIMITATIONS. (a)
13-23 Except as provided by Sections 4.07(a), 6.01, and 6.05 of this Act,
13-24 the authority may not incur a debt payable from revenues of the
13-25 authority other than the revenues on hand or to be on hand in the
14-1 current and immediately following fiscal year of the authority.
14-2 (b) The board may invest operating, depreciation, or
14-3 building reserves only in funds or securities specified by Article
14-4 836 or 837, Revised Statutes.
14-5 SECTION 5.10. DEPOSITORY. (a) The board shall name at
14-6 least one bank to serve as depository for authority funds.
14-7 (b) Authority funds, other than those invested as provided
14-8 by Section 5.09(b) of this Act and those transmitted to a bank of
14-9 payment for bonds or obligations issued or assumed by the
14-10 authority, shall be deposited as received with the depository bank
14-11 and must remain on deposit. This subsection does not limit the
14-12 power of the board to place a portion of authority funds on time
14-13 deposit or to purchase certificates of deposit.
14-14 (c) Before the authority deposits funds in a bank in an
14-15 amount that exceeds the maximum amount secured by the Federal
14-16 Deposit Insurance Corporation, the bank must execute a bond or
14-17 other security in an amount sufficient to secure from loss the
14-18 authority funds that exceed the amount secured by the Federal
14-19 Deposit Insurance Corporation.
14-20 ARTICLE 6. BONDS
14-21 SECTION 6.01. REVENUE BONDS. (a) The board may issue
14-22 revenue bonds to:
14-23 (1) purchase, condemn, acquire, construct,
14-24 reconstruct, repair, equip, or renovate an airport, landing fields,
14-25 runways, airport buildings, hangars, facilities, and equipment; or
15-1 (2) purchase, condemn, or acquire real or personal
15-2 property necessary to establish, equip, operate, and maintain an
15-3 airport.
15-4 (b) The bonds must be payable from and secured by a pledge
15-5 of all or part of the revenues derived from the operation of the
15-6 airport facilities. The bonds may be additionally secured by a
15-7 mortgage or deed of trust lien on all or part of the authority's
15-8 property.
15-9 SECTION 6.02. TERMS; FORM. (a) The authority may issue its
15-10 bonds in various series or issues.
15-11 (b) Bonds may mature serially or otherwise not more than 50
15-12 years after the date of their issuance and must bear interest at a
15-13 rate permitted by state law.
15-14 (c) The bonds and interest coupons, if any, are investment
15-15 securities under the terms of Chapter 8, Business & Commerce Code,
15-16 and may be issued registrable as to principal or as to principal
15-17 and interest or may be issued in book entry form and may be made
15-18 redeemable before maturity at the option of the authority or may
15-19 contain a mandatory redemption provision.
15-20 (d) The bonds may be issued in the form, denominations, and
15-21 manner and under the terms, conditions, and details and shall be
15-22 signed and executed as provided by the board in the resolution or
15-23 order authorizing the bonds.
15-24 SECTION 6.03. BOND PROVISIONS. (a) In the orders or
15-25 resolutions authorizing the issuance of bonds, including refunding
16-1 bonds, the board may provide for the flow of funds, the
16-2 establishment and maintenance of the interest and sinking fund, the
16-3 reserve fund, and other funds and may make additional covenants
16-4 with respect to the bonds and the pledged fees.
16-5 (b) The orders or resolutions of the board authorizing the
16-6 issuance of bonds may prohibit the further issuance of bonds or
16-7 other obligations payable from the pledged fees or may reserve the
16-8 right to issue additional bonds to be secured by a pledge of and
16-9 payable from the fees on a parity with or subordinate to the pledge
16-10 in support of the bonds being issued.
16-11 (c) The orders or resolutions of the board issuing bonds may
16-12 contain other provisions and covenants as the board may determine.
16-13 (d) The board may adopt and have executed any other
16-14 proceedings or instruments necessary and convenient in the issuance
16-15 of bonds.
16-16 SECTION 6.04. APPROVAL AND REGISTRATION. (a) Bonds issued
16-17 by the authority and the records relating to their issuance must be
16-18 submitted to the attorney general for examination as to their
16-19 validity.
16-20 (b) If the attorney general finds that the bonds have been
16-21 authorized in accordance with law, the attorney general shall
16-22 approve them, and the comptroller shall register the bonds.
16-23 (c) Following approval and registration, the bonds are
16-24 incontestable and are binding obligations according to their terms.
16-25 SECTION 6.05. REFUNDING BONDS. (a) Refunding bonds of the
17-1 authority may be issued to refund and pay off an outstanding
17-2 indebtedness the authority has issued or assumed.
17-3 (b) The bonds must be issued in the manner provided by
17-4 Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
17-5 (Article 717k-3, Vernon's Texas Civil Statutes).
17-6 (c) The refunding bonds may be sold and the proceeds applied
17-7 to the payment of outstanding indebtedness or may be exchanged in
17-8 whole or in part for not less than a similar principal amount of
17-9 outstanding indebtedness. If the refunding bonds are to be sold
17-10 and the proceeds applied to the payment of outstanding
17-11 indebtedness, the refunding bonds must be issued and payments made
17-12 in the manner provided by Chapter 503, Acts of the 54th
17-13 Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
17-14 Civil Statutes).
17-15 SECTION 6.06. LEGAL INVESTMENTS; SECURITY FOR DEPOSITS. (a)
17-16 Authority bonds are legal and authorized investments for:
17-17 (1) a bank;
17-18 (2) a savings bank;
17-19 (3) a trust company;
17-20 (4) a savings and loan association;
17-21 (5) an insurance company;
17-22 (6) a fiduciary;
17-23 (7) a trustee;
17-24 (8) a guardian; and
17-25 (9) the sinking fund of a municipality, county, school
18-1 district, or other political subdivision of the state and other
18-2 public funds of the state and its agencies, including the permanent
18-3 school fund.
18-4 (b) Authority bonds may secure deposits of public funds of
18-5 the state or a municipality, county, school district, or other
18-6 political subdivision of the state. The bonds are lawful and
18-7 sufficient security for deposits to the extent of their value, if
18-8 accompanied by all unmatured coupons.
18-9 SECTION 6.07. APPLICATION OF OTHER LAWS. Authority bonds
18-10 are considered bonds under the Bond Procedures Act of 1981 (Article
18-11 717k-6, Vernon's Texas Civil Statutes).
18-12 SECTION 6.08. TAX STATUS OF BONDS. Because the authority
18-13 created under this Act is a public entity performing an essential
18-14 public function, bonds issued by the authority, any transaction
18-15 relating to the bonds, and profits made in the sale of the bonds
18-16 are free from taxation by the state or by a municipality, county,
18-17 special district, or other political subdivision of the state.
18-18 ARTICLE 7. EMERGENCY
18-19 SECTION 7.01. EMERGENCY. The importance of this legislation
18-20 and the crowded condition of the calendars in both houses create an
18-21 emergency and an imperative public necessity that the
18-22 constitutional rule requiring bills to be read on three several
18-23 days in each house be suspended, and this rule is hereby suspended,
18-24 and that this Act take effect and be in force from and after its
18-25 passage, and it is so enacted.