By Chavez, Solis                                      H.B. No. 2808
         77R9391 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation and powers of a North American Free Trade
 1-3     Agreement impact zone.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle A, Title 12, Local Government Code, is
 1-6     amended by adding Chapter 379 to read as follows:
 1-7        CHAPTER 379.  NORTH AMERICAN FREE TRADE AGREEMENT IMPACT ZONE
 1-8           Sec. 379.001.  DEFINITION.  In this chapter, "zone" means a
 1-9     North American Free Trade Agreement impact zone created by a
1-10     municipality under this chapter.
1-11           Sec. 379.002.  CREATION OF ZONE.  A municipality may create a
1-12     zone covering a part of the municipality if the municipality
1-13     determines the creation of the zone would promote:
1-14                 (1)  business opportunities for local businesses in the
1-15     zone;
1-16                 (2)  an increase in economic development in the zone;
1-17     or
1-18                 (3)  employment opportunities for residents of the
1-19     zone.
1-20           Sec. 379.003.  ADOPTION OF ZONE.  (a)  A municipality may
1-21     create a zone if the governing body of the municipality adopts a
1-22     resolution containing:
1-23                 (1)  the determination described by Section 379.002;
1-24                 (2)  a description of the boundaries of the zone; and
 2-1                 (3)  a finding by the governing body that the creation
 2-2     of the zone satisfies the requirements of Section 312.202, Tax
 2-3     Code.
 2-4           (b)  A municipality may create more than one zone and may
 2-5     include an area in more than one zone.
 2-6           Sec. 379.004.  ADDITIONAL POWERS.  A municipality may:
 2-7                 (1)  waive or adopt fees related to the construction of
 2-8     buildings in the zone, including fees related to the inspection of
 2-9     buildings and impact fees;
2-10                 (2)  enter into agreements, for a period of not more
2-11     than 10 years, for the purpose of benefiting the zone, for sales
2-12     tax refunds or abatements of municipal sales tax on sales made in
2-13     the zone;
2-14                 (3)  enter into agreements abating municipal property
2-15     taxes on property in the zone subject to the duration limits of
2-16     Section 312.204, Tax Code; and
2-17                 (4)  set baseline performance standards, such as the
2-18     Energy Star Program as developed by the Department of Energy, to
2-19     encourage the use of alternative building materials that address
2-20     concerns relating to the environment or to building costs,
2-21     maintenance, or energy consumption.
2-22           Sec. 379.005.  NAFTA DISPLACED WORKERS. (a)  A business that
2-23     operates in a zone and receives benefits as a result of a
2-24     municipality's action under Section 379.004(1), (2), or (3) shall
2-25     make a good faith effort to hire individuals receiving NAFTA
2-26     transitional adjustment assistance under 19 U.S.C. Section 2331.
2-27           (b)  A business described by Subsection (a) shall annually
 3-1     report to the governing body of the municipality on what percentage
 3-2     of the total number of individuals hired by the business during the
 3-3     year covered by the report is comprised of individuals described by
 3-4     Subsection (a).
 3-5           SECTION 2.  This Act takes effect immediately if it receives
 3-6     a vote of two-thirds of all the members elected to each house, as
 3-7     provided by Section 39, Article III, Texas Constitution.  If this
 3-8     Act does not receive the vote necessary for immediate effect, this
 3-9     Act takes effect September 1, 2001.