By West H.B. No. 137 75R1116 JD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the qualifications of certain charitable organizations 1-3 for an exemption from ad valorem taxation. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 11.18(e), Tax Code, is amended to read as 1-6 follows: 1-7 (e) A charitable organization must be operated in a way that 1-8 does not result in accrual of distributable profits, realization of 1-9 private gain resulting from payment of compensation in excess of a 1-10 reasonable allowance for salary or other compensation for services 1-11 rendered, or realization of any other form of private gain and, if 1-12 the organization performs one or more of the charitable functions 1-13 specified by Subsection (d) of this section other than a function 1-14 specified in Subdivision (1), (2), (3), (8), (9), (12), (13), or 1-15 (16), be organized as a nonprofit corporation as defined by the 1-16 Texas Non-Profit Corporation Act. 1-17 SECTION 2. This Act takes effect January 1, 1998. 1-18 SECTION 3. The importance of this legislation and the 1-19 crowded condition of the calendars in both houses create an 1-20 emergency and an imperative public necessity that the 1-21 constitutional rule requiring bills to be read on three several 1-22 days in each house be suspended, and this rule is hereby suspended.