By Moreno                                        H.B. No. 941

      75R4629 SMH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

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

 1-3     property of a religious organization.

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

 1-5           SECTION 1.  Section 11.20(c), Tax Code, is amended to read as

 1-6     follows:

 1-7           (c)  To qualify as a religious organization for the purposes

 1-8     of this section, an organization (whether operated by an

 1-9     individual, as a corporation, or as an association) must:

1-10                 (1)  be organized and operated primarily for the

1-11     purpose of engaging in religious worship or promoting the spiritual

1-12     development or well-being of individuals;

1-13                 (2)  be operated in a way that does not result in

1-14     accrual of distributable profits, realization of private gain

1-15     resulting from payment of compensation in excess of a reasonable

1-16     allowance for salary or other compensation for services rendered,

1-17     or realization of any other form of private gain;  [and]

1-18                 (3)  by charter, bylaw, or other regulation adopted by

1-19     the organization to govern its affairs:

1-20                       (A)  pledge its assets for use in performing the

1-21     organization's religious functions;  and

1-22                       (B)  direct that on discontinuance of the

1-23     organization by dissolution or otherwise the assets are to be

1-24     transferred to this state or to a charitable, educational,

 2-1     religious, or other similar organization that is qualified as a

 2-2     charitable organization under Section 501(c)(3), Internal Revenue

 2-3     Code of 1986 [1954], as amended; and

 2-4                 (4)  with regard to property described by Subsection

 2-5     (a)(1), be in compliance with each requirement of Title III,

 2-6     Americans with Disabilities Act of 1990 (42 U.S.C. Section 12181 et

 2-7     seq.), and its subsequent amendments, relating to the accessibility

 2-8     to and usability by individuals with disabilities of the facilities

 2-9     of a place of public accommodation.

2-10           SECTION 2.  Section 11.43, Tax Code, is amended by adding

2-11     Subsection (j) to read as follows:

2-12           (j)  An application for an exemption under Section 11.20 must

2-13     be accompanied by a certification from the organization that the

2-14     organization is in compliance with Section 11.20(c)(4).

2-15     Notwithstanding Subsection (c) of this section, a religious

2-16     organization must apply for an exemption if the organization makes

2-17     improvements to property described by Section 11.20(a)(1) that

2-18     affect or could affect the organization's compliance with Section

2-19     11.20(c)(4).

2-20           SECTION 3.  To receive an exemption from ad valorem taxation

2-21     under Section 11.20, Tax Code, as amended by this Act, for the 1999

2-22     tax year a religious organization must apply for the exemption in

2-23     the manner provided by Section 11.43, Tax Code, regardless of

2-24     whether the organization received the exemption for the 1998 tax

2-25     year.

2-26           SECTION 4.  This Act takes effect January 1, 1999.

2-27           SECTION 5.  The importance of this legislation and the

 3-1     crowded condition of the calendars in both houses create an

 3-2     emergency and an imperative public necessity that the

 3-3     constitutional rule requiring bills to be read on three several

 3-4     days in each house be suspended, and this rule is hereby suspended.