HBA-CMT C.S.H.B. 2083 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2083
By: Lewis, Glenn
Transportation
4/18/2001
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

The Dallas/Fort Worth International Airport is owned by the cities of
Dallas and Fort Worth, but the airport's property is located within the
municipal boundaries of Grapevine, Irving, Euless, and Coppell. Because the
airport is within their boundaries, these municipalities receive a
significant amount of tax revenue from activities on property of the
airport that Dallas and Fort Worth do not receive.  Several years ago, the
Joint Airports Policy Committee directed the airport to initiate
discussions with these cities in hopes of reaching an agreement to share
taxes that are generated on airport property.  After several months of
negotiations, the cities of Dallas and Fort Worth secured tax-sharing
agreements with the cities of Euless and Irving. Dallas and Fort Worth,
however, still seek to enter such an agreement with Grapevine. C.S.H.B.
2083 requires certain non-constituent municipalities with property in a
county or municipal airport to pay the constituent agencies of the airport
two-thirds of the excess airport revenue received by the nonconstituent
municipality.  

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. 

ANALYSIS

C.S.H.B. 2083 amends the Transportation Code to require each
non-constituent municipality in which three or more airport passenger
terminal buildings are located (municipality) that are owned jointly by the
constituent agencies to pay, no later than March 31 of each year to the
constituent agencies of a county or municipal airport an amount equal to
two-thirds of the municipality's  excess airport revenues for the preceding
calendar year.  The constituent agencies are required to divide the payment
according to their respective ownership interests in the airport.  The bill
requires each municipality to retain an independent auditor to verify the
municipality's excess airport revenue each year.  The constituent agencies
are required to reimburse each municipality for two-thirds of the cost of
the verification. The bill requires the portion of the reimbursement to be
paid by each constituent agency to be based on the respective ownership
interests in the airport.  Once each calendar year, each constituent agency
is authorized to audit a municipality's records relating to the excess
airport revenue at the sole expense of the constituent agency.  Each
municipality is required to determine the amount of the municipality's
airport revenue according to available statistical data indicating the
estimated or actual total revenue attributable to that portion of the
municipality that lies within the boundaries of the airport.  

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2083 modifies the original bill by providing that a
non-constituent municipality is one which has territory in which three or
more airport passenger terminal buildings are located that are owned
jointly by the constituent agencies of the airport.