1-1     By:  Nelson                                            S.B. No. 881
 1-2           (In the Senate - Filed February 22, 2001; February 26, 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. 881                  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 Sections 22.089 and 22.090 to read as follows:
1-15           Sec. 22.089.  AIRPORT REVENUE OF NONCONSTITUENT
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 nonconstituent 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)  municipal court fines derived only from
1-32     convictions for offenses for which a citation was issued by an
1-33     airport police officer or airport security personnel commissioned
1-34     as a peace officer under Article 2.12, Code of Criminal Procedure,
1-35     in that portion of the municipality located within the boundaries
1-36     of the airport;
1-37                       (E)  the mixed beverage taxes received by the
1-38     municipality under Section 183.051, Tax Code, derived only from the
1-39     sale, preparation, or service of a taxable item in that portion of
1-40     the municipality located within the boundaries of the airport; and
1-41                       (F)  all other taxes attributable to that portion
1-42     of the municipality within the airport's boundaries and deposited
1-43     to the credit of the municipality's general fund.
1-44                 (2)  "Excess airport revenue" means that amount of
1-45     revenue received by a nonconstituent municipality in a calendar
1-46     year that exceeds the amount of airport revenue of the municipality
1-47     in the later of:
1-48                       (A)  the year 2000; or
1-49                       (B)  the first year in which the airport is fully
1-50     operational.
1-51                 (3)  "Nonconstituent municipality" means a municipality
1-52     that has territory:
1-53                       (A)  within the boundaries of an airport that is
1-54     governed by a joint board for which the constituent agencies are
1-55     populous home-rule municipalities; and
1-56                       (B)  in which are located three or more airport
1-57     passenger terminal buildings that are owned jointly by the
1-58     constituent agencies.
1-59           (b)  Not later than March 31 of each year, each
1-60     nonconstituent municipality shall pay to the constituent agencies
1-61     an amount equal to 60 percent of the nonconstituent municipality's
1-62     excess airport revenues for the preceding calendar year.  The
1-63     constituent agencies shall divide the payment according to their
1-64     respective ownership interests in the airport to which the revenue
 2-1     was attributable.
 2-2           (c)  Each year, as part of its annual audit, each
 2-3     nonconstituent municipality shall retain an independent auditor to
 2-4     verify the nonconstituent municipality's excess airport revenue.
 2-5     The constituent agencies shall reimburse each nonconstituent
 2-6     municipality for 60 percent of the cost of the verification.  The
 2-7     portion of the reimbursement to be paid by each constituent agency
 2-8     shall be based on the respective ownership interests in the airport
 2-9     to which the increased revenues were attributable.  Once each
2-10     calendar year, each constituent agency may audit a nonconstituent
2-11     municipality's records relating to the excess airport revenue at
2-12     the sole expense of the constituent agency.
2-13           (d)  Each nonconstituent municipality shall determine the
2-14     amount of the municipality's airport revenue according to available
2-15     statistical data indicating the estimated or actual total revenue
2-16     attributable to that portion of the municipality that lies within
2-17     the boundaries of the airport.
2-18           Sec. 22.090.  NONCONSTITUENT MUNICIPALITY ADVISORY BOARD.
2-19     (a)  The nonconstituent municipality advisory board consists of
2-20     members appointed by the nonconstituent municipalities of an
2-21     airport.
2-22           (b)  The joint board shall be available to meet quarterly
2-23     with the nonconstituent municipality advisory board to receive
2-24     advice and comments from the advisory board on airport issues
2-25     affecting the nonconstituent municipalities, including the division
2-26     of revenue under Section 22.089.
2-27           (c)  The governing body of each nonconstituent municipality
2-28     shall appoint one member to the advisory board and by ordinance or
2-29     order shall establish the term of the municipality's member.
2-30           SECTION 2.  This Act takes effect September 1, 2001.
2-31                                  * * * * *