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.