SRC-JEC S.B. 1228 77(R) BILL ANALYSIS Senate Research Center S.B. 1228 By: Carona Intergovernmental Relations 3/15/2001 As Filed DIGEST AND PURPOSE Currently, the Dallas/Fort Worth International Airport is managed by the DFW International Airport Board, owned by the cities of Dallas and Fort Worth, and located in the host cities of Grapevine, Irving, Euless, and Coppell. The four host cities gain tax benefits from the location of the airport, and the airport provides necessary municipal services such as annual maintenance and public safety activities. Tax revenue-sharing agreements have been reached with Euless and Irving; however, Grapevine receives an estimated $11 million in annual revenues from airport activities and $32 million in airport services, and does not reimburse the airport. As proposed, S.B. 1228 authorizes the DFW Airport Board to require a city in which one of the passenger terminal buildings is located to reimburse the airport for expenses incurred in providing municipal services. 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 Chapter 22D, Transportation Code, by adding Section 22.089, as follows: Sec. 22.089. REIMBURSEMENT FOR PROVISION OF MUNICIPAL SERVICES. (a) Provides that, if one or more airport passenger terminal buildings owned jointly by populous home-rule municipalities that are constituent agencies are located within the boundaries of a municipality that is not a constituent agency, the municipality that is not a constituent agency is required to reimburse the airport for expenses incurred by the airport in providing one or more of the services listed in Section 43.056(b) (Provision of Services to Annexed Area), Local Government Code, in accordance with Subsection (b). (b) Authorizes the governing body of the airport, if it so elects, to require the municipality that is not a constituent agency to reimburse the airport or the constituent agencies for the expenses incurred by the airport an amount equal to the lesser of: the total cost to the airport of providing one or more services listed in Section 43.056(b), Local Government Code, provided within the corporate boundaries of the municipality that is not a constituent agency; or the sum of certain amounts collected, credited to, or received by a municipality in any calendar year that are generated from that part of the municipality lying within the geographic boundaries of an airport subject to the authority of a joint board. (c) Requires reimbursements required under this section to be paid yearly by March 31 of the calendar year following the calendar year in which the expenses were incurred. (d) Provides that this section applies only to a municipality that is not a constituent agency and that has not entered into an agreement as authorized under Section 22.0781. SECTION 2. Effective date: January 1, 2002.