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.