Honduras Discusses Statute to Regulate 'Charter Cities'

The new law defines RED’s as autonomous cities, which will be led by an "executive governor", a "policy board" and a "constitutional council". The governor will also serve as executive chairman, who will issue policy advice laws and finally the "constitutional council" will apply the laws through judges.

"According to its proponents, charter cities are defined as urban communities designed to bring rapid development to the country through rapid economic growth and low taxes to encourage investment.

According to Article 4 of the Act,..., RED’s are autonomous cities that have a legal persona, have their own system of government, issue their own rules, have their own law courts and can act in all instances, including and ultimately in the defense of constitutional guarantees. They have a minimum duration of 99 years. "

Source: laprensahn.com

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Honduras Approves Law on Charter Cities

July 2011

Congress has approved a law governing the Special Development Regions (REDs in Spanish).

The law states that the REDs are allowed to have their own budget, the right to collect and administer their own taxes, to determine the rates they charge for their services, to hold all types of contracts that extend to the next period of government, and manage their own internal and external debts as long as they have the approval of the State of Honduras.