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 * * * * *