77R8988 JAT-D                           
         By Lewis of Tarrant                                   H.B. No. 2083
         Substitute the following for H.B. No. 2083:
         By Alexander                                      C.S.H.B. No. 2083
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of certain revenue by certain municipalities
 1-3     that have territory within the boundaries of certain airports.
 1-5           SECTION 1.  Subchapter D, Chapter 22, Transportation Code, is
 1-6     amended by adding Section 22.089 to read as follows:
 1-7           Sec. 22.089.  AIRPORT REVENUE OF NON-CONSTITUENT
 1-8     MUNICIPALITIES.  (a)  In this section:
 1-9                 (1)  "Airport revenue" means revenue that is not
1-10     already pledged or dedicated for another purpose and is received by
1-11     a non-constituent municipality from:
1-12                       (A)  maintenance and operations ad valorem taxes
1-13     imposed on real and personal property located within the boundaries
1-14     of the airport by the municipality;
1-15                       (B)  the sales and use tax imposed by the
1-16     municipality under Chapter 321, Tax Code, derived only from the
1-17     sale or use of taxable items in that portion of the municipality
1-18     located within the boundaries of the airport;
1-19                       (C)  franchise fees, right-of-way fees, and other
1-20     compensation paid to the municipality by a utility for the use of
1-21     the public right-of-way or other public property located within the
1-22     boundaries of the airport;
1-23                       (D)  money collected by the municipal court,
1-24     including fines, fees, and court costs derived only from
 2-1     convictions for offenses that occur in that portion of the
 2-2     municipality located within the boundaries of the airport;
 2-3                       (E)  the mixed beverage taxes received by the
 2-4     municipality under Section 183.051, Tax Code, derived only from the
 2-5     sale, preparation, or service of a taxable item in that portion of
 2-6     the municipality located within the boundaries of the airport;
 2-7                       (F)  the hotel occupancy tax imposed by the
 2-8     municipality under Chapter 351, Tax Code, derived only from an
 2-9     occupancy of a hotel in that portion of the municipality located
2-10     within the boundaries of the airport; and
2-11                       (G)  all other taxes attributable to that portion
2-12     of the municipality within the airport's boundaries and deposited
2-13     to the credit of the municipality's general fund.
2-14                 (2)  "Excess airport revenue" means that amount of
2-15     revenue received by a non-constituent municipality in a calendar
2-16     year that exceeds the amount of airport revenue of the municipality
2-17     in the later of:
2-18                       (A)  the year 2001; or
2-19                       (B)  the first year in which the airport is fully
2-20     operational.
2-21                 (3)  "Non-constituent municipality" means a
2-22     municipality that has territory:
2-23                       (A)  within the boundaries of an airport that is
2-24     governed by a joint board for which the constituent agencies are
2-25     populous home-rule municipalities; and
2-26                       (B)  in which are located three or more airport
2-27     passenger terminal buildings that are owned jointly by the
 3-1     constituent agencies.
 3-2           (b)  Not later than March 31 of each year, each
 3-3     non-constituent municipality shall pay to the constituent agencies
 3-4     an amount equal to two-thirds of the non-constituent municipality's
 3-5     excess airport revenues for the preceding calendar year. The
 3-6     constituent agencies shall divide the payment according to their
 3-7     respective ownership interests in the airport to which the revenue
 3-8     was attributable.
 3-9           (c)  Each year, each non-constituent municipality shall
3-10     retain an independent auditor to verify the non-constituent
3-11     municipality's excess airport revenue. The constituent agencies
3-12     shall reimburse each non-constituent municipality for two-thirds of
3-13     the cost of the verification. The portion of the reimbursement to
3-14     be paid by each constituent agency shall be based on the respective
3-15     ownership interests in the airport to which the increased revenues
3-16     were attributable.  Once each calendar year, each constituent
3-17     agency may audit a non-constituent municipality's records relating
3-18     to the excess airport revenue at the sole expense of the
3-19     constituent agency.
3-20           (d)  Each non-constituent municipality shall determine the
3-21     amount of the municipality's airport revenue according to available
3-22     statistical data indicating the estimated or actual total revenue
3-23     attributable to that portion of the municipality that lies within
3-24     the boundaries of the airport.
3-25           SECTION 2.  This Act takes effect September 1, 2001.