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 * * * * *