SWB C.S.H.B. 2680 75(R)BILL ANALYSIS


WAYS & MEANS
C.S.H.B. 2680
By: Hunter
5-12-97
Committee Report (Substituted)


BACKGROUND 

Currently, Section 11.18, Tax Code (Charitable Organizations), provides ad
valorem tax exemptions for qualifying charitable organizations.  Current
codes may not have envisioned the development or expansion of a continuum
of services such as Independent Housing, Assisted Living, or Wellness
Clinics on a campus.  As a result, these new services are subject to
taxation. 

PURPOSE

The bill exempts certain retirement communities and nursing homes from ad
valorem taxation. 

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 11.18, Tax Code (Charitable Organizations), by
amending Subsection (d) and adding Subsection (k) as follows: 

(d) Adds an organization providing housing and related services to elderly
individuals by: 1) a nursing home, if the home provides charity and
governmentsponsored indigent health care to its residents in an amount
equal to at least four percent of the nursing home's net resident revenue;
2) a retirement community, if the community provides assisted living
services and nursing services to its residents on a single campus without
regard to the resident's ability to pay or in an amount equal to at least
four percent of the community's combined net resident revenue, to the list
of acceptable activities performed by an organization to qualify that
organization as charitable. 

(k) Defines, in connection with a nursing home or retirement community,
for purposes of Subsection (d), "Assisted living services," "Charity
care," "Nursing care services," "Retirement Community," and "Single
campus." 

SECTION 2.Effective date: January 1, 1998.

SECTION 3.Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2680 defines and establishes requirements to be a nursing home
and retirement community that qualify the organization as charitable and
establishes a manner in which a home or community must provide services. 

C.S.H.B. 2680 also provides specific definitions for the terms: "assisted
living services," "charity care," "nursing care services," "retirement
community," and "single campus" which were not included in H.B. 2680.