By Cain                                               S.B. No. 1480
         76R8803 DRH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the sharing of revenue among a municipality and other
 1-3     municipalities that jointly operate an airport in the territory of
 1-4     the municipality.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter D, Chapter 22, Transportation Code, is
 1-7     amended by adding Section 22.0781 to read as follows:
 1-8           Sec. 22.0781.  REVENUE SHARING AGREEMENT WITH MUNICIPALITY.
 1-9     (a)  A municipality, a joint board for which the constituent
1-10     agencies are  populous home-rule municipalities, and the
1-11     constituent agencies may make an agreement under which a portion of
1-12     the revenue derived from a tax or fee of the municipality imposed
1-13     in the territory of the municipality for which the joint board has
1-14     exclusive power under Section 22.074(d) may be transferred to the
1-15     constituent agencies if under the agreement the joint board agrees
1-16     to  encourage development opportunities in the territory of the
1-17     municipality that are feasible and consistent with the development
1-18     policies of the joint board.
1-19           (b)  A tax or fee that may be transferred under an agreement
1-20     includes a sales and use tax, an ad valorem property tax, a mixed
1-21     beverage tax, a fine, a franchise fee, a cost of court, and a hotel
1-22     occupancy tax.
1-23           (c)  The agreement may provide for the inclusion of revenue
1-24     from a tax imposed under Chapter 334, Local Government Code, in the
 2-1     transfer only if the election approving that tax is held after the
 2-2     date the agreement is made under this section.  If any revenue from
 2-3     a tax imposed under Chapter 334, Local Government Code, is to be
 2-4     transferred, the municipality must provide general notice of that
 2-5     fact in the order calling the election and in the ballot
 2-6     proposition.  The specifics of the transfer agreement are not
 2-7     required to be placed in the order or in the ballot proposition and
 2-8     only the municipality that will transfer its revenue is required to
 2-9     hold an election for the agreement to be effective.  The ballot for
2-10     an election held under this subsection shall be prepared to permit
2-11     voting for or against the proposition:  "Authorizing _______(insert
2-12     name of municipality) to impose a _______(insert type of tax) tax
2-13     at the rate of  ______ (insert the maximum rate of the tax) with
2-14     the revenue to be shared with ________ (insert name of each
2-15     constituent agency covered by the agreement) under a revenue
2-16     sharing agreement."
2-17           (d)  A constituent agency may use revenue received under an
2-18     agreement under this section for one or more of the following:
2-19                 (1)  the acquisition, construction, improvement, and
2-20     renovation of any public work, including land, buildings,
2-21     materials, supplies, equipment, furnishings, and machinery;
2-22                 (2)  to secure and pledge in support of the payment of
2-23     bonds or other obligations issued by or on behalf of the
2-24     constituent agency after the effective date of the agreement for
2-25     any purpose for which the constituent agency, or an entity created
2-26     by the constituent agency to act on its behalf, may issue bonds or
2-27     obligations; and
 3-1                 (3)  to pay the cost of a credit agreement, as defined
 3-2     by  Section 1, Chapter 656, Acts of the 68th Legislature, Regular
 3-3     Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
 3-4           (e)  To the extent of any conflict between this section and
 3-5     another provision of law, including a charter provision, this
 3-6     section controls.
 3-7           SECTION 2.  An agreement described by Section 22.0781,
 3-8     Transportation Code, as added by this Act, that was made before the
 3-9     effective date of this Act is validated as of the date the
3-10     agreement was made.
3-11           SECTION 3.  The importance of this legislation and the
3-12     crowded condition of the calendars in both houses create an
3-13     emergency and an imperative public necessity that the
3-14     constitutional rule requiring bills to be read on three several
3-15     days in each house be suspended, and this rule is hereby suspended,
3-16     and that this Act take effect and be in force from and after its
3-17     passage, and it is so enacted.