BILL ANALYSIS



H.B. 1434
By: Hochberg
03-08-95
Committee Report (Unamended)


BACKGROUND

Section 11.23(j), Tax Code, exempts all real and personal property
owned by a nonprofit corporation from all ad valorem taxation that
is held for use in the development of a medical center.  The Texas
Medical Center currently holds over thirty properties for use in
developing the Texas Medical Center campus in Houston and for which
it must annually apply for an exemption separately for each
property each year.

Section 11.43, Tax Code, lists several exemptions that once
allowed, need not be claimed in subsequent years unless ownership
changes or the criteria for the exemption are no longer met.  If
this treatment were extended for medical center property, those
resources the medical centers use for the administrative duties of
annually filing for the exemptions, could be redirected to other
purposes.

PURPOSE

The bill would add property that is held by a nonprofit corporation
for use in the development of a medical center to the list of ad
valorem tax exemptions that do not require annual applications.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.43(c), Tax Code, by adding Section
           11.23(j) to the list of exemptions that do not require
           annual applications.  Section 11.23(j) exempts from all
           ad valorem taxation, property that is held by a
           nonprofit corporation for use in the development of a
           medical center.  The property is eligible as long as it
           is not leased out, or used with a view to profit.  The
           exemption continues until completion of the medical
           center.

SECTION 2. Effective Date: January 1, 1996.

SECTION 3. Emergency Clause.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on March 7, 1995.  By a record vote of 7 ayes, 0
nays, 0 present not voting and 4 absent, the committee voted to
report H.B. 1434 to the House without amendment with the
recommendation that it be sent to the Local and Consent Calendar
and that it do pass.