By Lewis of Tarrant                                   H.B. No. 2083
         77R3662 JAT-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of certain revenue by non-constituent
 1-3     municipalities that have territory within the boundaries of certain
 1-4     airports.
 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 22.089 to read as follows:
 1-8           Sec. 22.089.  AIRPORT REVENUE OF NON-CONSTITUENT
 1-9     MUNICIPALITIES.  (a)  In this section:
1-10                 (1)  "Airport revenue" means revenue that is not
1-11     already pledged or dedicated for another purpose and is received by
1-12     a non-constituent municipality from:
1-13                       (A)  maintenance and operations ad valorem taxes
1-14     imposed on real and personal property located within the boundaries
1-15     of the airport by the municipality;
1-16                       (B)  the sales and use tax imposed by the
1-17     municipality under Chapter 321, Tax Code, derived only from the
1-18     sale or use of taxable items in that portion of the municipality
1-19     located within the boundaries of the airport;
1-20                       (C)  franchise fees, right-of-way fees, and other
1-21     compensation paid to the municipality by a utility for the use of
1-22     the public right-of-way or other public property located within the
1-23     boundaries of the airport;
1-24                       (D)  money collected by the municipal court,
 2-1     including fines, fees, and court costs derived only from
 2-2     convictions for offenses that occur in that portion of the
 2-3     municipality located within the boundaries of the airport;
 2-4                       (E)  the mixed beverage taxes received by the
 2-5     municipality under Section 183.051, Tax Code, derived only from the
 2-6     sale, preparation, or service of a taxable item in that portion of
 2-7     the municipality located within the boundaries of the airport;
 2-8                       (F)  the hotel occupancy tax imposed by the
 2-9     municipality under Chapter 351, Tax Code, derived only from an
2-10     occupancy of a hotel in that portion of the municipality located
2-11     within the boundaries of the airport; and
2-12                       (G)  all other taxes attributable to that portion
2-13     of the municipality within the airport's boundaries and deposited
2-14     to the credit of the municipality's general fund.
2-15                 (2)  "Excess airport revenue" means that amount of
2-16     revenue received by a non-constituent municipality in a calendar
2-17     year that exceeds the amount of airport revenue of the municipality
2-18     in the later of:
2-19                       (A)  the year 2001; or
2-20                       (B)  the first year in which the airport is fully
2-21     operational.
2-22                 (3)  "Non-constituent municipality" means a
2-23     municipality that has territory within the boundaries of an airport
2-24     that is governed by a joint board for which the constituent
2-25     agencies are populous home-rule municipalities.
2-26           (b)  Not later than March 31 of each year, each
2-27     non-constituent municipality shall pay to the constituent agencies
 3-1     an amount equal to two-thirds of the non-constituent municipality's
 3-2     excess airport revenues for the preceding calendar year. The
 3-3     constituent agencies shall divide the payment according to their
 3-4     respective ownership interests in the airport to which the revenue
 3-5     was attributable.
 3-6           (c)  Each year, each non-constituent municipality shall
 3-7     retain an independent auditor to verify the non-constituent
 3-8     municipality's excess airport revenue. The constituent agencies
 3-9     shall reimburse each non-constituent municipality for two-thirds of
3-10     the cost of the verification. The portion of the reimbursement to
3-11     be paid by each constituent agency shall be based on the respective
3-12     ownership interests in the airport to which the increased revenues
3-13     were attributable.  Once each calendar year, each constituent
3-14     agency may audit a non-constituent municipality's records relating
3-15     to the excess airport revenue at the sole expense of the
3-16     constituent agency.
3-17           (d)  Each non-constituent municipality shall determine the
3-18     amount of the municipality's airport revenue according to available
3-19     statistical data indicating the estimated or actual total revenue
3-20     attributable to that portion of the municipality that lies within
3-21     the boundaries of the airport.
3-22           SECTION 2.  This Act takes effect September 1, 2001.