SRC-DPW H.B. 541 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 541
By: Maxey (Barrientos)
Finance
5/6/1999
Engrossed


DIGEST 

Currently, the Texas Association of Community Health Centers (TACHC)
operates as a nonprofit organization and has been designated by the U.S.
Department of Health and Human Services as the primary care association for
the state.  TACHC provided health care services to over 415,000 Texans,
approximately 237,000 of whom were uninsured.  This bill would provide for
property tax exemptions to associations that provide assistance to
ambulatory care facilities and that meet the criteria for a charitable
organization. 

PURPOSE

As proposed, H.B. 541 establishes criteria for eligibility for exemption
from ad valorem taxation for property of an association of ambulatory
health care centers. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 11B, Tax Code, by adding Section 11.183, as
follows: 

Sec. 11.183. ASSOCIATION PROVIDING ASSISTANCE TO AMBULATORY HEALTH CARE
CENTERS. Entitles an association to an exemption from taxation of the
property it owns and uses exclusively for the purposes for which the
association is organized if the association: is exempt from federal income
taxation; complies with the criteria for a charitable organization; engages
exclusively in providing assistance to ambulatory health care centers that
provide medical care without regard to the individual's ability to pay; is
funded or assists health centers that are funded by a grant under Section
330, Public Health Service Act (42 U.S.C. Section 254b); and does not
perform or provide abortions or provide assistance to health care centers
that do so.  Provides that the use of an association's property by another
person does not affect the associations eligibility for exemption from
taxation if the use benefits the ambulatory health care centers to which
the association provides assistance or the individuals to whom the health
care centers provide medical care.  Provides that the performance of
noncharitable functions by an association does not affect its eligibility
for exemption from taxation.   

SECTION 2. Amends Section 11.43(c), Tax Code, to provide that an exemption
provided by Section 11.183 of this code need not be claimed in subsequent
years. 

SECTION 3. Effective date: January 1, 2000.

SECTION 4. Emergency clause.