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.