1-1                                   AN ACT

 1-2     relating to the exemption from ad valorem taxation of certain

 1-3     public property.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 11.11, Tax Code, is amended by adding

 1-6     Subsection (h) to read as follows:

 1-7           (h)  For purposes of this section, tangible personal property

 1-8     is owned by this state or a political subdivision of this state if

 1-9     it is subject to a lease-purchase agreement providing that the

1-10     state or political subdivision, as applicable, is entitled to

1-11     compel delivery of the legal title to the property to the state or

1-12     political subdivision, as applicable, at the end of the lease term.

1-13     The property ceases to be owned by the state or political

1-14     subdivision, as applicable, if, not later than the 30th day after

1-15     the date the lease terminates, the state or political subdivision,

1-16     as applicable, does not exercise its right to acquire legal title

1-17     to the property.

1-18           SECTION 2.  This Act takes effect January 1, 1998.

1-19           SECTION 3.  The importance of this legislation and the

1-20     crowded condition of the calendars in both houses create an

1-21     emergency and an imperative public necessity that the

1-22     constitutional rule requiring bills to be read on three several

1-23     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 846 was passed by the House on May 2,

         1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 846 was passed by the Senate on May

         23, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor