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                                  * * * * *