BILL ANALYSIS


                                                        H.B. 1434
                                           By: Hochberg (Sponsor)
                                                          Finance
                                                         05-10-95
                              Senate Committee Report (Unamended)
BACKGROUND

Current law 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 30 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. 
Furthermore, current law 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
annual exemption filing could be directed to other purposes.

PURPOSE

As proposed, H.B. 1434 adds 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.43(c), Tax Code, by adding Section
11.23(j), which exempts from all ad valorem taxation, property that
is held by a nonprofit corporation for use in the development of a
medical center, to the list of exemptions that do not require
annual applications.  Makes a nonsubstantive change.

SECTION 2. Effective date:  January 1, 1996.

SECTION 3. Emergency clause.