SRC-SEW, JEC S.B. 569 77(R)BILL ANALYSIS


Senate Research CenterS.B. 569
By: Cain
Intergovernmental Relations
6/14/2001
Enrolled


DIGEST AND PURPOSE 

Currently, the City of Grapevine, which encompasses nearly 8,000 acres of
the Dallas/Fort Worth International Airport (DFW Airport), receives and has
received since the airport opened in 1974 all the tax revenues generated
from activities on the airport's property within its city limits.  The
property was purchased and is owned by the cities of Fort Worth and Dallas,
which provide all municipal services, including police, fire, ambulance,
water, sewer, roadway repair, mowing, and permitting, on airport property
located within Grapevine's city limits at no cost to Grapevine.  In 1995,
expenses for these services in Grapevine topped more than $32 million.
Latest estimates show that Grapevine receives, in taxes alone,
approximately $11 million annually from activities at DFW Airport, and the
estimated annual economic impact on the city totals more than $350 million.
Two neighboring cities that also receive revenue from DFW Airport, Euless
and Irving, have signed revenue-sharing agreements with Dallas and Forth
Worth in order to remedy tax inequities.  However, numerous efforts made by
airport officials to secure a similar agreement with Grapevine have proved
unfruitful.  S.B. 569 institutes a financial sharing system by which
airport revenues are shared according to certain stated ratios.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 22.074(a), Transportation Code, to add a
reference to Section 22.0745. 

SECTION 2.  Amends Chapter 22D, Transportation Code, by adding Section
22.0745, as follows: 

Sec.  22.0745.  NONCONSTITUENT MUNICIPALITY REPRESENTATION ON JOINT BOARD.
Defines "nonconstituent municipality."  Requires a joint board for which
the constituent agencies are populous home-rule municipalities to include
in its membership a nonvoting member jointly appointed by the airport's
nonconstituent municipalities.  Provides that a member appointed under this
section serves a one-year term.  Requires the nonconstituent municipalities
by agreement to establish an order under which members are appointed under
this section that ensures that each nonconstituent municipality has a
representative on the joint board on a rotating basis.  Provides that a
member appointed under this section is not entitled to certain privileges.

SECTION 3. Amends Chapter 22D, Transportation Code, to add Sections 22.089
and 22.090, as follows: 

Sec. 22.089.  AIRPORT REVENUE OF NON-CONSTITUENT MUNICIPALITIES.  (a)
Defines "airport revenue," "excess airport revenue," "nonconstitutent
municipality," and "revenue sharing area." 

 (b) Requires each non-constituent municipality, not later than December 31
of each year, to pay to the constituent agencies two-thirds of the
non-constituent municipality's excess airport revenues for the preceding
fiscal year.  Requires the constituent agencies to divide the payment
according to their respective ownership interests in the airport to which
the revenue was attributable.     

(c) Requires each non-constituent municipality each year, as part of its
annual audit, to retain an independent auditor to verify the
non-constituent municipality's excess airport revenue.  Requires the
constituent agencies to reimburse each non-consituent municipality for
two-thirds the cost of the verification.  Requires a portion of the
reimbursement paid by each constituent agency to be based on the respective
ownership interests in the airport to which the increased revenues were
attributable. Authorizes each constituent agency, once each calendar year,
to audit a non-constituent municipality's records relating to the excess
airport revenue at the sole expense of the constituent agency. 

(d) Requires each non-constituent municipality to determine the amount of
the municipality's airport revenue according to certain data. 

Sec. 22.090.  RETAIL DEVELOPMENT WITHIN AIRPORT BOUNDARIES IN
NONCONSTITUENT MUNICIPALITY.  Prohibits a person from developing a retail
establishment in an area of a nonconstituent municipality, as defined by
Section 22.089, that is separated from the airport passenger terminal
buildings by a controlled access highway, as defined by Section 203.001,
without the consent of the joint board and the nonconstituent municipality.
Provides that this subsection does not affect the powers of a joint board
under Section 22.074.  Provides that this section expires August 31, 2021. 

SECTION 4.  Effective date: September 1, 2001.