1-1 By: Cain S.B. No. 1480 1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; April 12, 1999, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 5, Nays 0; 1-6 April 12, 1999, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1480 By: Nixon 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the sharing of revenue among a municipality and other 1-11 municipalities that jointly operate an airport in the territory of 1-12 the municipality. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Subchapter D, Chapter 22, Transportation Code, is 1-15 amended by adding Section 22.0781 to read as follows: 1-16 Sec. 22.0781. REVENUE SHARING AGREEMENT WITH MUNICIPALITY. 1-17 (a) A municipality, a joint board for which the constituent 1-18 agencies are populous home-rule municipalities, and the constituent 1-19 agencies may make an agreement under which a portion of the revenue 1-20 derived from a tax or fee of the municipality imposed in the 1-21 territory of the municipality for which the joint board has 1-22 exclusive power under Section 22.074(d) may be transferred to the 1-23 constituent agencies if under the agreement the joint board agrees 1-24 to encourage development opportunities in the territory of the 1-25 municipality that are feasible and consistent with the development 1-26 policies of the joint board. 1-27 (b) A tax or fee that may be transferred under an agreement 1-28 includes a sales and use tax, an ad valorem property tax, a mixed 1-29 beverage tax, a fine, a franchise fee, a cost of court, and a hotel 1-30 occupancy tax. 1-31 (c) The agreement may provide for the inclusion of revenue 1-32 from a tax imposed under Chapter 334, Local Government Code, in the 1-33 transfer only if the election approving that tax is held after the 1-34 date the agreement is made under this section. If any revenue from 1-35 a tax imposed under Chapter 334, Local Government Code, is to be 1-36 transferred, the municipality must provide general notice of that 1-37 fact in the order calling the election and in the ballot 1-38 proposition. The specifics of the transfer agreement are not 1-39 required to be placed in the order or in the ballot proposition and 1-40 only the municipality that will transfer its revenue is required to 1-41 hold an election for the agreement to be effective. The ballot for 1-42 an election held under this subsection shall be prepared to permit 1-43 voting for or against the proposition: "Authorizing _______(insert 1-44 name of municipality) to impose a _______(insert type of tax) tax 1-45 at the rate of ______ (insert the maximum rate of the tax) with 1-46 the revenue to be shared with ________ (insert name of each 1-47 constituent agency covered by the agreement) under a revenue 1-48 sharing agreement." 1-49 (d) A constituent agency may use revenue received under an 1-50 agreement under this section for one or more of the following: 1-51 (1) the acquisition, construction, improvement, and 1-52 renovation of any public work, including land, buildings, 1-53 materials, supplies, equipment, furnishings, and machinery; 1-54 (2) to secure and pledge in support of the payment of 1-55 bonds or other obligations issued by or on behalf of the 1-56 constituent agency after the effective date of the agreement for 1-57 any purpose for which the constituent agency, or an entity created 1-58 by the constituent agency to act on its behalf, may issue bonds or 1-59 obligations; and 1-60 (3) to pay the cost of a credit agreement, as defined 1-61 by Section 1, Chapter 656, Acts of the 68th Legislature, Regular 1-62 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes). 1-63 (e) Notwithstanding any other law, a municipality may use 1-64 revenue retained under an agreement for any governmental purpose. 2-1 (f) Notwithstanding any other provision of Chapter 334, 2-2 Local Government Code, a tax imposed under Chapter 334 that is 2-3 subject to an agreement under this section continues in effect 2-4 until the governing body of the municipality that imposed the tax 2-5 acts at its discretion to repeal the tax. 2-6 (g) To the extent of any conflict between this section and 2-7 another provision of law, including a charter provision, this 2-8 section controls. 2-9 SECTION 2. An agreement described by Section 22.0781, 2-10 Transportation Code, as added by this Act, that was made before the 2-11 effective date of this Act is validated as of the date the 2-12 agreement was made. 2-13 SECTION 3. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended, 2-18 and that this Act take effect and be in force from and after its 2-19 passage, and it is so enacted. 2-20 * * * * *