SRC-SEW, JEC C.S.S.B. 881 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 881
By: Nelson
Intergovernmental Relations
4/16/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

C.S.S.B. 881 institutes a financial sharing system by which certain airport
revenues are shared by nonconstituent municipalities (those municipalities
that have territory within the boundaries of an airport that is governed by
a joint board for which the constituent agencies are populous home-rule
municipalities and in which are located three or more airport passenger
terminal buildings that are owned jointly by the constituent agencies) and
constituent agencies according to certain stated ratios.  This bill also
sets forth guidelines regarding a newly created non-constituent
municipality advisory board. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authorty to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 22D, Transportation Code, by adding Sections
22.089 and 22.090, as follows: 

Sec.  22.089.  AIRPORT REVENUE OF NON-CONSTITUENT MUNICIPALITIES. (a)
Defines "airport revenue," "excess airport revenue," and "non-constituent
municipality." 

(b) Requires each non-constituent municipality, not later than March 31 of
each year, to pay to the constituent agencies an amount equal to 60 percent
of the non-constituent municipality's excess airport revenues for the
preceding calendar year.  Requires the constituent agencies to divide the
payment according to their respective ownership interests in the airport to
which the revenue was attributable. 

(c) Requires each non-constituent municipality, as part of its annual
audit, to retain an independent auditor to verify the non-constituent
municipality's excess airport revenue. Requires the constituent agencies to
reimburse each non-constituent municipality for 60 percent of the cost of
the verification.  Requires the portion of the reimbursement to be paid by
each constituent agency to be based on certain factors.  Authorizes each
constituent agency, once each calendar year, to audit a non-constituent
municipality's records relating to the excess airport revenue at the sole
expense of the constituent agency.   

(d) Requires each non-constituent municipality to determine the amount of
the municipality's airport revenue according to available statistical data
indicating the estimated or actual total revenue attributable to that
portion of the municipality that lies within the boundaries of the airport.

Sec.  22.090.  NON-CONSTITUENT MUNICIPALITY ADVISORY BOARD.  Provides that
the non-constituent municipality advisory board consists of members
appointed by the nonconstituent municipalities of an airport.  Requires the
joint board to be available to meet  quarterly with the non-constituent
municipality advisory board to receive advice and comments from the
advisory board on certain issues.  Requires the governing body of each
nonconstituent municipality to appoint one member to the advisory board and
requires the governing body to appoint one member by ordinance or order to
establish the term of the municipality's member.   

SECTION 2.  Effective date: September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Amends As Filed S.B. 881 as follows:

SECTION 1.  Omits original SECTION 1.  Adds a new SECTION 1.  

SECTION 2.  Provides that this Act becomes effective not upon passage, but
on September 1, 2001.