HBA-EDN H.B. 2808 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2808
By: Chavez
Economic Development
3/20/2001
Introduced



BACKGROUND AND PURPOSE 

Many areas of the state have experienced prosperity but border communities
have frequently not benefited from this economic growth.  The North
American Free Trade Agreement has given hope of economic growth to many
stagnant border communities.  In order to encourage the construction of new
businesses in these communities, it may be helpful to establish zones in
which certain construction fees are waived, taxes are refunded or reduced,
and baseline performance standards are established to encourage the use of
alternative building materials that address concerns relating to the
environment or to building cost, maintenance, or energy consumption.  House
Bill 2808 authorizes a municipality to establish North American Free Trade
Agreement impact zones.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2808 amends the Local Government Code to authorize a
municipality to create a North American Free Trade Agreement impact zone
(zone) covering a part of the municipality if the municipality determines
that the creation of such a zone would promote: 

_business opportunities for local businesses in the zone;

_an increase in economic development in the zone; or

_employment opportunities for residents of the zone.

The bill authorizes a municipality to create a zone if the governing body
of the municipality adopts a resolution containing the determination
described above, a description of the boundaries of the zone, and a finding
by the governing body that the creation of the zone satisfies the
requirements of  criteria for a reinvestment zone.  A municipality is
authorized to create more than one zone and to include an area in more than
one zone.  The bill sets forth additional powers of a municipality relating
to a zone. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.