1-1     By:  Cain, Moncrief                                    S.B. No. 569
 1-2           (In the Senate - Filed February 6, 2001; February 8, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; April 17, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     April 17, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 569                  By:  Staples
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the use of certain revenue by certain municipalities
1-11     that have territory within the boundaries of certain airports.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter D, Chapter 22, Transportation Code, is
1-14     amended by adding Section 22.089 to read as follows:
1-15           Sec. 22.089.  AIRPORT REVENUE OF NON-CONSTITUENT
1-16     MUNICIPALITIES.  (a)  In this section:
1-17                 (1)  "Airport revenue" means revenue that is not
1-18     already pledged or dedicated for another purpose and is received by
1-19     a non-constituent municipality from:
1-20                       (A)  maintenance and operations ad valorem taxes
1-21     imposed on real and personal property located within the boundaries
1-22     of the airport by the municipality;
1-23                       (B)  the sales and use tax imposed by the
1-24     municipality under Chapter 321, Tax Code, derived only from the
1-25     sale or use of taxable items in that portion of the municipality
1-26     located within the boundaries of the airport;
1-27                       (C)  franchise fees, right-of-way fees, and other
1-28     compensation paid to the municipality by a utility for the use of
1-29     the public right-of-way or other public property located within the
1-30     boundaries of the airport;
1-31                       (D)  money collected by the municipal court,
1-32     including fines, fees, and court costs derived only from
1-33     convictions for offenses that occur in that portion of the
1-34     municipality located within the boundaries of the airport;
1-35                       (E)  the mixed beverage taxes received by the
1-36     municipality under Section 183.051, Tax Code, derived only from the
1-37     sale, preparation, or service of a taxable item in that portion of
1-38     the municipality located within the boundaries of the airport;
1-39                       (F)  the hotel occupancy tax imposed by the
1-40     municipality under Chapter 351, Tax Code, derived only from an
1-41     occupancy of a hotel in that portion of the municipality located
1-42     within the boundaries of the airport; and
1-43                       (G)  all other taxes attributable to that portion
1-44     of the municipality within the airport's boundaries and deposited
1-45     to the credit of the municipality's general fund.
1-46                 (2)  "Excess airport revenue" means that amount of
1-47     revenue received by a non-constituent municipality in a calendar
1-48     year that exceeds the amount of airport revenue of the municipality
1-49     in the later of:
1-50                       (A)  the year 2001; or
1-51                       (B)  the first year in which the airport is fully
1-52     operational.
1-53                 (3)  "Non-constituent municipality" means a
1-54     municipality that has territory:
1-55                       (A)  within the boundaries of an airport that is
1-56     governed by a joint board for which the constituent agencies are
1-57     populous home-rule municipalities; and
1-58                       (B)  in which are located three or more airport
1-59     passenger terminal buildings that are owned jointly by the
1-60     constituent agencies.
1-61           (b)  Not later than March 31 of each year, each
1-62     non-constituent municipality shall pay to the constituent agencies
1-63     an amount equal to two-thirds of the non-constituent municipality's
1-64     excess airport revenues for the preceding calendar year.  The
 2-1     constituent agencies shall divide the payment according to their
 2-2     respective ownership interests in the airport to which the revenue
 2-3     was attributable.
 2-4           (c)  Each year, each non-constituent municipality shall
 2-5     retain an independent auditor to verify the non-constituent
 2-6     municipality's excess airport revenue.  The constituent agencies
 2-7     shall reimburse each non-constituent municipality for two-thirds of
 2-8     the cost of the verification.  The portion of the reimbursement to
 2-9     be paid by each constituent agency shall be based on the respective
2-10     ownership interests in the airport to which the increased revenues
2-11     were attributable.  Once each calendar year, each constituent
2-12     agency may audit a non-constituent municipality's records relating
2-13     to the excess airport revenue at the sole expense of the
2-14     constituent agency.
2-15           (d)  Each non-constituent municipality shall determine the
2-16     amount of the municipality's airport revenue according to available
2-17     statistical data indicating the estimated or actual total revenue
2-18     attributable to that portion of the municipality that lies within
2-19     the boundaries of the airport.
2-20           SECTION 2.  This Act takes effect September 1, 2001.
2-21                                  * * * * *