HBA-GUM S.B. 1480 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1480
By: Cain
Ways & Means
5/3/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the Dallas/Fort Worth International Airport Board has entered
into two interlocal agreements with the cities of Euless and Irving for the
sharing of incremental tax revenues and fees in exchange for the airport
board and the cities of Dallas and Fort Worth to encourage and give
consideration to development of the airport's property within the municipal
boundaries of the cities of Euless and Irving.  S.B. 1480 ensures that
current and future tax sharing agreements between a joint airport board and
constituent agencies may be effectively implemented.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter D, Chapter 22, Transportation Code, by adding
Section 22.0781, as follows:  

Sec. 22.0781.  REVENUE SHARING AGREEMENT WITH MUNICIPALITY.  (a) Authorizes
a municipality, a joint airport board for which the constituent agencies
are populous homerule municipalities, and the constituent agencies to make
an agreement under which a portion of the revenue derived from a tax or fee
of the municipality imposed in the territory of the municipality for which
the joint board has exclusive power under Section 22.074(d) (relating to
the powers of a joint aviation board) may be transferred to the constituent
agencies.  Provides that the agreement is authorized only if the joint
board agrees to encourage economic development opportunities in the
territory of the municipality that are feasible and consistent with the
development policies of the joint board.  

(b)  Provides that a tax or fee that may be transferred under an agreement
includes a sales and use tax, an ad valorem property tax, a mixed beverage
tax, a fine, a franchise tax, a cost of court, and a hotel occupancy tax.  

(c)  Authorizes the agreement to provide for the inclusion of revenue from
a tax imposed under Chapter 334 (Sports and Community Venues), Local
Government Code, in the transfer only if the election approving that tax is
held after the date an agreement is made under this section.  Requires the
municipality to provide general notice in the order calling the election
and in the ballot proposition, if any revenue from a tax imposed under
Chapter 334, Local Government Code, is to be transferred.  Provides that
the specifics of the transfer agreement are not required to be placed in
the order or in the ballot proposition and only the municipality that will
transfer its revenue is required to hold an election for the agreement to
be effective.  Sets forth the ballot language for a proposition in an
election held under this section.  

(d)  Authorizes a constituent agency to use revenue received under an
agreement under this section for certain specified projects related to
public works, issued obligations, and credit agreements.   

(e)  Authorizes a municipality to use revenue retained under an agreement
for any governmental purpose, notwithstanding any other law.  

 (f)  Provides that notwithstanding any other provision of Chapter 334,
Local Government Code, a tax imposed under Chapter 334 that is subject to
an agreement under this section continues in effect until the governing
body of the municipality that imposed the tax acts at its discretion to
repeal the tax.  

(g)  Provides that to the extent of any conflict between this section and
another provision of law, this section controls.  

SECTION 2.  Provides that agreements made before the effective date of the
Act are validated as of the date the agreement was made.  

SECTION 3.  Emergency clause.
  Effective date: upon passage.