By:  Cain                                              S.B. No. 569
         2001S0419/1                            
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the allocation of increased revenues between certain
 1-3     municipalities jointly involved in operating an airport.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 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.  ALLOCATION OF INCREASED REVENUES.  (a)  If one
 1-8     or more airport passenger terminal buildings that are owned jointly
 1-9     by populous home-rule municipalities that are constituent agencies
1-10     are located within the boundaries of a municipality that is not a
1-11     constituent agency, the populous home-rule municipalities that are
1-12     constituent agencies are entitled to receive annually a portion of
1-13     the increased annual revenues of the municipality that is not a
1-14     constituent agency in accordance with Subsection (b).
1-15           (b)  One-third of the increased annual revenues of the
1-16     municipality that is not a constituent agency shall be retained by
1-17     that municipality and two-thirds of the increased annual revenues
1-18     of that municipality shall be shared by the populous home-rule
1-19     municipalities that are constituent agencies in proportion to their
1-20     respective ownership interests in the airport from which the
1-21     increased annual revenues were generated.  The municipality that is
1-22     not a constituent agency shall pay each populous home-rule
1-23     municipality that is a constituent agency its share of the
1-24     increased annual revenues for a calendar year by March 31 of the
1-25     following calendar year.
 2-1           (c)  The amount of increased annual revenues shall be
 2-2     verified each year by an independent auditor retained by the
 2-3     municipality that is not a constituent agency.  The populous
 2-4     home-rule municipalities that are constituent agencies shall
 2-5     reimburse the municipality that is not a constituent agency for
 2-6     two-thirds of the cost of the verification in proportion to their
 2-7     respective ownership interests in the airport from which the
 2-8     increased annual revenues were generated.  Not more frequently than
 2-9     once each calendar year, each populous home-rule municipality that
2-10     is a constituent agency may audit, at its own expense, the records
2-11     of the increased annual revenues of the municipality that is not a
2-12     constituent agency.
2-13           (d)  In this section:
2-14                 (1)  "Base year revenues" means the total of the taxes
2-15     and revenues identified in Subdivisions (2)(A)-(F) collected,
2-16     credited to, or received by a municipality in the calendar year
2-17     2001 that were generated from that part of the municipality lying
2-18     within the geographic boundaries of an airport subject to the
2-19     authority of a joint board.
2-20                 (2)  "Increased annual revenues" means an amount equal
2-21     to the sum of the following amounts collected, credited to, or
2-22     received by a municipality in any calendar year, that are generated
2-23     from that part of the municipality lying within the geographic
2-24     boundaries of an airport subject to the authority of a joint board
2-25     and that are in excess of base year revenues:
2-26                       (A)  the annual maintenance and operation portion
 3-1     of the ad valorem tax levy on real and personal property, excluding
 3-2     the portion necessary for general obligation debt service of the
 3-3     municipality;
 3-4                       (B)  sales and use taxes, excluding sales and use
 3-5     tax levies dedicated for specific purposes authorized by law;
 3-6                       (C)  utility franchise taxes;
 3-7                       (D)  municipal court revenues, including fines,
 3-8     fees, and court costs resulting from citations written for
 3-9     violations of law occurring within the geographic boundaries of the
3-10     airport;
3-11                       (E)  mixed beverage taxes;
3-12                       (F)  hotel occupancy taxes; and
3-13                       (G)  all other general revenue tax levies.
3-14           SECTION 2.  This Act takes effect January 1, 2002.