1-1     By:  King (Senate Sponsor - Zaffirini)                 H.B. No. 846

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on Finance;

 1-4     May 16, 1997, reported favorably by the following vote:  Yeas 11,

 1-5     Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the exemption from ad valorem taxation of certain

 1-9     public property.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 11.11, Tax Code, is amended by adding

1-12     Subsection (h) to read as follows:

1-13           (h)  For purposes of this section, tangible personal property

1-14     is owned by this state or a political subdivision of this state if

1-15     it is subject to a lease-purchase agreement providing that the

1-16     state or political subdivision, as applicable, is entitled to

1-17     compel delivery of the legal title to the property to the state or

1-18     political subdivision, as applicable, at the end of the lease term.

1-19     The property ceases to be owned by the state or political

1-20     subdivision, as applicable, if, not later than the 30th day after

1-21     the date the lease terminates, the state or political subdivision,

1-22     as applicable, does not exercise its right to acquire legal title

1-23     to the property.

1-24           SECTION 2.  This Act takes effect January 1, 1998.

1-25           SECTION 3.  The importance of this legislation and the

1-26     crowded condition of the calendars in both houses create an

1-27     emergency and an imperative public necessity that the

1-28     constitutional rule requiring bills to be read on three several

1-29     days in each house be suspended, and this rule is hereby suspended.

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