HBA-CMT S.B. 569 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 569 By: Cain Transportation 5/9/2001 Engrossed 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. Senate Bill 569 requires certain nonconstituent 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 Senate Bill 569 amends the Transportation Code to provide that a county or municipal airport joint board for which the constituent agencies are populous home-rule municipalities must include in its membership a nonvoting member jointly appointed by the airport's nonconstituent municipalities. The bill sets forth provisions pertaining to the member representing the nonconstituent municipalities. The bill requires each nonconstituent municipality that has not entered into an agreement with the joint board to pay no later than December 31 of each year to the constituent agencies 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 nonconstituent municipality to retain an independent auditor to verify the municipality's excess airport revenue each year. The constituent agencies are required to reimburse the nonconstituent municipality for two-thirds of the cost of the verification based on each constituent municipality's respective ownership interests in the airport. Once each calendar year, as part of its annual budget, each constituent agency is authorized to audit a nonconstituent municipality's records relating to the excess airport revenue at the sole expense of the constituent agency. Each nonconstituent 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. The bill prohibits a person until August 31, 2021 from developing a retail establishment in an area of a nonconstituent municipality that is separated from the airport passenger terminal building by a controlled access highway without the consent of the joint board and the nonconstituent municipality. EFFECTIVE DATE September 1, 2001.