Section 20.15 of the mysql manual for v3.23.22beta says...
"If you have a problem with SELECT NOW() returning values in GMT and not your local time, you have to set the TZ environment variable to your current timezone. This should be done for the environment in which the server runs, for example in safe_mysqld or mysql.server. See section A Environment variables."
I don't find any reference to the switch you're referring to. Where was that documented?