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.
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