SRC-JEC S.B. 881 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 881
By: Nelson
Intergovernmental Relations
3/15/2001
As Filed


DIGEST AND PURPOSE 

Currently, the 1968 Dallas Fort Worth Regional Airport Agreement exempts
land within airport boundaries from ad valorem taxation and states that the
airport has "no desire to create a 'private industrial' park."  A
commercial development project has been planned which would offer
commercial enterprises exemption from property taxes, directly violating
the spirit and terms of the agreement.  As proposed, S.B. 881 requires the
development of a land use plan for all property within airport boundaries
and the divestiture of property not planned for essential airport services.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Department of
Transportation in SECTION 1 (Section 22.080, Transportation Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 3, Chapter 22, Transportation Code, to add Section
22.080, as follows: 

Sec. 22.080.  DISPOSAL OF PROPERTY.  (a)  Sets forth state policy
concerning the disposal of airport property. 

(b)  Requires an airport described in this subchapter to determine its
long-term plans for all of the real property situated within its boundaries
and designate the uses for the land in a report to the Texas Department of
Transportation (department) no later than December 31, 2001.  Requires an
airport's land use report to specify the current and planned uses of the
land over the next five years, including any planned expansion that will
require annexation. 

(c)  Requires an airport described in this subchapter to divest itself of
ownership of any real property that is not designated for essential airport
services in the land use report described in Subsection (b).  Defines
"essential airport service" for the purposes of this subsection.  Sets
forth instances in which improvements such as commercial buildings may be
considered to be used for essential airport services.  Authorizes the
department to approve all designations of essential airport services made
under this section. Requires an airport to sell real property not planned
to be utilized for essential airport services before the fifth anniversary
of the submission to the department of the land use report.  Authorizes the
airport, if the real property cannot be sold for fair market value as
determined by an independent appraisal, to be allowed to retain ownership
of the property, upon the approval of the department, providing that the
municipality in which the land is located is authorized to regulate the use
of the land through its zoning authority, notwithstanding any other law to
the contrary. 

(d)  Requires the department to perform an audit of each airport that is
jointly owned by two municipalities each fifth year after the effective
date of this Act, and if it determines that land that remains owned by the
airport is not used for essential airport  services, to issue a warning to
the airport that said finding has been made.  Requires the department, if
the next audit finds the real property identified in the prior audit is
still not used for essential airport services, to commence an action to
enforce the intent of this Act and to secure the divestiture of the real
property immediately. 

(e)  Requires an airport owned by two municipalities to reimburse the
department for the costs incurred in performing the audits required in this
section. 

(f)  Authorizes the department to adopt rules to implement the intent of
this section. 

Section 2.  Effective date: upon passage or September 1, 2001.