75R11636 SMH-D                           

         By King                                                H.B. No. 846

         Substitute the following for H.B. No. 846:

         By Horn                                            C.S.H.B. No. 846

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

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

 1-3     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, property is owned by this

 1-8     state or a political subdivision of this state if it is subject to

 1-9     a lease-purchase agreement providing that the state or political

1-10     subdivision, as applicable, is entitled to compel delivery of the

1-11     legal title to the property to the state or political subdivision,

1-12     as applicable, at the end of the lease term.  The property ceases

1-13     to be owned by the state or political subdivision, as applicable,

1-14     if, not later than the 30th day after the date the lease

1-15     terminates, the state or political subdivision, as applicable, does

1-16     not exercise its right to acquire legal title to the property.

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.