LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 11, 2001
  
  
          TO:  Honorable David Sibley, Chair, Senate Committee on
               Business & Commerce
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2808  by Chavez (Relating to the creation and powers of
               a North American Free Trade Agreement impact zone.), As
               Engrossed
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would allow a city to create a North American Free Trade
Agreement Impact Zone.

Any city would be able to create a zone if it determines that creation of
the zone would promote local business opportunities, increase economic
development, or encourage employment opportunities for residents of the
zone including a good faith effort to hire individuals receiving NAFTA
transitional adjustment assistance.  The city could waive or adopt
construction, building inspection, and impact fees.  A city would also
be able to enter into agreements for the abatement or refund of sales
taxes in the zone, enter into property tax abatement agreements on
property in the zone, and set baseline performance standards to
encourage the use of alternative building materials in the zone.
  
Local Government Impact
  
Only cities wishing to create a zone and offer incentives would be
affected.  It is unknown which cities might elect to create a zone,
however, to the extent that cities did participate in the creation of a
zone, some amount of local revenue would be lost.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, JC, JO, BR