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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2808 was passed by the House on
May 11, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2808 was passed by the Senate on
May 22, 2001, by the following vote: Yeas 30, Nays 0, 1 present,
not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor