By:  Cain, Moncrief, Brown                             S.B. No. 569
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of certain revenue by, and other rights and
 1-3     responsibilities of, certain municipalities that have territory
 1-4     within the boundaries of certain airports.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subsection (a), Section 22.074, Transportation
 1-7     Code, is amended to read as follows:
 1-8           (a)  Public agencies acting jointly under this subchapter
 1-9     shall create a joint board consisting of members appointed by the
1-10     governing authority of each participating public agency.  Subject
1-11     to Section 22.0745, the [The] joint agreement shall provide for the
1-12     number to be appointed and the members' terms and compensation, if
1-13     any.  The joint board shall organize, select officers for terms to
1-14     be provided by the agreement, and adopt rules for its own
1-15     procedures.
1-16           SECTION 2.  Subchapter D, Chapter 22, Transportation Code, is
1-17     amended by adding Section 22.0745 to read as follows:
1-18           Sec. 22.0745.  NONCONSTITUENT MUNICIPALITY REPRESENTATION ON
1-19     JOINT BOARD.  (a)  In this section, "nonconstituent municipality"
1-20     means a municipality that has territory within the boundaries of an
1-21     airport that is governed by a joint board for which the constituent
1-22     agencies are populous home-rule municipalities.
1-23           (b)  A joint board for which the constituent agencies are
1-24     populous home-rule municipalities must include in its membership a
1-25     nonvoting member jointly appointed by the airport's nonconstituent
 2-1     municipalities.
 2-2           (c)  A member appointed under Subsection (b) serves a
 2-3     one-year term.  The nonconstituent municipalities by agreement
 2-4     shall establish an order under which members are appointed under
 2-5     Subsection (b) that ensures that each nonconstituent municipality
 2-6     has a representative on the joint board on a rotating basis.
 2-7           (d)  The member appointed under Subsection (b) is not
 2-8     entitled to:
 2-9                 (1)  attend or participate in a meeting of the joint
2-10     board that is a closed meeting under Chapter 551, Government Code;
2-11     or
2-12                 (2)  inspect or copy information that is collected,
2-13     assembled, or maintained by the joint board, if the information is
2-14     confidential or excepted from public disclosure under Chapter 552,
2-15     Government Code.
2-16           SECTION 3.  Subchapter D, Chapter 22, Transportation Code, is
2-17     amended by adding Sections 22.089 and 22.090 to read as follows:
2-18           Sec. 22.089.  AIRPORT REVENUE OF NONCONSTITUENT
2-19     MUNICIPALITIES.  (a)  In this section:
2-20                 (1)  "Airport revenue" means revenue that is not
2-21     already pledged or dedicated for another purpose and is received by
2-22     a nonconstituent municipality from:
2-23                       (A)  maintenance and operations ad valorem taxes
2-24     imposed on real and personal property located within a revenue
2-25     sharing area by the municipality;
2-26                       (B)  the sales and use tax imposed by the
 3-1     municipality under Chapter 321, Tax Code, derived only from the
 3-2     sale or use of taxable items in the revenue sharing area;
 3-3                       (C)  franchise fees, right-of-way fees, and other
 3-4     compensation paid to the municipality by a utility for the use of
 3-5     the public right-of-way or other public property located within the
 3-6     revenue sharing area;
 3-7                       (D)  money collected by the municipal court,
 3-8     including fines, fees, and court costs derived only from
 3-9     convictions for offenses that occur in the revenue sharing area;
3-10                       (E)  the mixed beverage taxes received by the
3-11     municipality under Section 183.051, Tax Code, derived only from the
3-12     sale, preparation, or service of a taxable item in the revenue
3-13     sharing area;
3-14                       (F)  all other taxes attributable to the revenue
3-15     sharing area and deposited to the credit of the municipality's
3-16     general fund; and
3-17                       (G)  as agreed by the joint board and the
3-18     nonconstituent municipality, from commercial development in an area
3-19     of the municipality within the boundaries of the airport that is
3-20     not a revenue sharing area.
3-21                 (2)  "Excess airport revenue" means that amount of
3-22     airport revenue received by a nonconstituent municipality in the
3-23     municipality's fiscal year that exceeds the amount of airport
3-24     revenue of the municipality in the later of:
3-25                       (A)  the municipality's fiscal year 2000; or
3-26                       (B)  the first fiscal year of the municipality in
 4-1     which the airport is fully operational.
 4-2                 (3)  "Nonconstituent municipality" means a
 4-3     municipality:
 4-4                       (A)  that has territory within the boundaries of
 4-5     an airport that is governed by a joint board for which the
 4-6     constituent agencies are populous home-rule municipalities; and
 4-7                       (B)  that has not entered into an agreement under
 4-8     Section 22.0781 with the joint board.
 4-9                 (4)  "Revenue sharing area" means the area of a
4-10     nonconstituent municipality located within the boundaries of the
4-11     airport that is not separated from the airport passenger terminal
4-12     buildings by a controlled access highway, as defined by Section
4-13     203.001, that runs through the municipality.
4-14           (b)  Not later than December 31 of each year, each
4-15     nonconstituent municipality shall pay to the constituent agencies
4-16     an amount equal to two-thirds of the nonconstituent municipality's
4-17     excess airport revenues for the preceding fiscal year.  The
4-18     constituent agencies shall divide the payment according to their
4-19     respective ownership interests in the airport to which the revenue
4-20     was attributable.
4-21           (c)  Each year, as part of its annual audit, each
4-22     nonconstituent municipality shall retain an independent auditor to
4-23     verify the nonconstituent municipality's excess airport revenue.
4-24     The constituent agencies shall reimburse each nonconstituent
4-25     municipality for two-thirds of the cost of the verification.  The
4-26     portion of the reimbursement to be paid by each constituent agency
 5-1     shall be based on the respective ownership interests in the airport
 5-2     to which the increased revenues were attributable.  Once each
 5-3     calendar year, each constituent agency may audit a nonconstituent
 5-4     municipality's records relating to the excess airport revenue at
 5-5     the sole expense of the constituent agency.
 5-6           (d)  Each nonconstituent municipality shall determine the
 5-7     amount of the municipality's airport revenue according to available
 5-8     statistical data indicating the estimated or actual total revenue
 5-9     attributable to that portion of the municipality that lies within
5-10     the boundaries of the airport.
5-11           Sec. 22.090.  RETAIL DEVELOPMENT WITHIN AIRPORT BOUNDARIES IN
5-12     NONCONSTITUENT MUNICIPALITY.  (a)  A person may not develop a
5-13     retail establishment in an area of a nonconstituent municipality,
5-14     as defined by Section 22.089, that is separated from the airport
5-15     passenger terminal buildings by a controlled access highway, as
5-16     defined by Section 203.001, without the consent of the joint board
5-17     and the nonconstituent municipality.  This subsection does not
5-18     affect the powers of a joint board under Section 22.074.
5-19           (b)  This section expires August 31, 2021.
5-20           SECTION 4.  This Act takes effect September 1, 2001.