1-1 By: Chavez, Solis (Senate Sponsor - Shapleigh) H.B. No. 2808 1-2 (In the Senate - Received from the House May 11, 2001; 1-3 May 11, 2001, read first time and referred to Committee on Business 1-4 and Commerce; May 11, 2001, reported favorably by the following 1-5 vote: Yeas 4, Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the creation and powers of a North American Free Trade 1-9 Agreement impact zone. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subtitle A, Title 12, Local Government Code, is 1-12 amended by adding Chapter 379 to read as follows: 1-13 CHAPTER 379. NORTH AMERICAN FREE TRADE AGREEMENT IMPACT ZONE 1-14 Sec. 379.001. DEFINITION. In this chapter, "zone" means a 1-15 North American Free Trade Agreement impact zone created by a 1-16 municipality under this chapter. 1-17 Sec. 379.002. CREATION OF ZONE. A municipality may create a 1-18 zone covering a part of the municipality if the municipality 1-19 determines the creation of the zone would promote: 1-20 (1) business opportunities for local businesses in the 1-21 zone; 1-22 (2) an increase in economic development in the zone; 1-23 or 1-24 (3) employment opportunities for residents of the 1-25 zone. 1-26 Sec. 379.003. ADOPTION OF ZONE. (a) A municipality may 1-27 create a zone if the governing body of the municipality adopts a 1-28 resolution containing: 1-29 (1) the determination described by Section 379.002; 1-30 (2) a description of the boundaries of the zone; and 1-31 (3) a finding by the governing body that the creation 1-32 of the zone satisfies the requirements of Section 312.202, Tax 1-33 Code. 1-34 (b) A municipality may create more than one zone and may 1-35 include an area in more than one zone. 1-36 Sec. 379.004. ADDITIONAL POWERS. A municipality may: 1-37 (1) waive or adopt fees related to the construction of 1-38 buildings in the zone, including fees related to the inspection of 1-39 buildings and impact fees; 1-40 (2) enter into agreements, for a period of not more 1-41 than 10 years, for the purpose of benefiting the zone, for sales 1-42 tax refunds or abatements of municipal sales tax on sales made in 1-43 the zone; 1-44 (3) enter into agreements abating municipal property 1-45 taxes on property in the zone subject to the duration limits of 1-46 Section 312.204, Tax Code; and 1-47 (4) set baseline performance standards, such as the 1-48 Energy Star Program as developed by the Department of Energy, to 1-49 encourage the use of alternative building materials that address 1-50 concerns relating to the environment or to building costs, 1-51 maintenance, or energy consumption. 1-52 Sec. 379.005. NAFTA DISPLACED WORKERS. (a) A business that 1-53 operates in a zone and receives benefits as a result of a 1-54 municipality's action under Section 379.004(1), (2), or (3) shall 1-55 make a good faith effort to hire individuals receiving NAFTA 1-56 transitional adjustment assistance under 19 U.S.C. Section 2331. 1-57 (b) A business described by Subsection (a) shall annually 1-58 report to the governing body of the municipality on what percentage 1-59 of the total number of individuals hired by the business during the 1-60 year covered by the report is comprised of individuals described by 1-61 Subsection (a). 1-62 SECTION 2. This Act takes effect immediately if it receives 1-63 a vote of two-thirds of all the members elected to each house, as 1-64 provided by Section 39, Article III, Texas Constitution. If this 2-1 Act does not receive the vote necessary for immediate effect, this 2-2 Act takes effect September 1, 2001. 2-3 * * * * *