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.