SRC-PNG H.B. 2821 76(R)BILL ANALYSIS


Senate Research CenterH.B. 2821
By: McCall (Cain)
Finance
5/6/1999
Committee Report (Amended)


DIGEST 

Section 11.18, Tax Code, regarding charitable organizations, was enacted in
1979.  Since that time there has been  a trend toward the creation of
multi-institutional health care systems.  Current law does not include
provisions that specifically allow for property tax exemptions of
properties owned by parent companies of certain health care systems.
Property owned by individual hospitals may be granted property tax
exemptions, but the law does not specifically address the parent companies
which do not directly perform certain necessary charitable functions.  The
parent company operates to provide the necessary support to health care
organizations so those organizations may focus on performing charitable
functions.  This bill would provide for a property tax exemption for
properties owned by parent holding companies that operate to provide
necessary support services to affiliated charitable organizations. 

PURPOSE

As proposed, H.B. 2821 provides for a property tax exemption for properties
owned by parent holding companies that operate to provide necessary support
services to affiliated charitable organizations. 

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 Section 11.18(h), Tax Code, to provide that division of
responsibilities between a charitable organization and another organization
will not jeopardize the exemption of property or properties owned or used
by either organization if the collaboration furthers the provision of one
or more of certain charitable functions and the other organization meets
certain criteria. 

SECTION 2. Amends Section 11.435, Tax Code, by amending Subsections (a) and
(e) as follows: 

(a) Requires the chief appraiser to accept and approve an application,
rather than requiring the chief appraiser to accept and approve, or deny an
application, of an exemption under Sections 11.18(d)(2) or (5) of this code
after the filing deadline provided by Section 11.43 of this code, if the
application is filed by a certain date. 

(e) Prohibits an application from being filed after December 31, 1999,
rather than 1997. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 2. 

Amends Section 11.435, Tax Code, by amending Subsections (a) and (e) as
follows: 

 (a) Requires the chief appraiser to accept and approve an application,
rather than requiring the chief appraiser to accept and approve, or deny an
application, of an exemption under Sections 11.18(d)(2) or (5) of this code
after the filing deadline provided by Section 11.43 of this code, if the
application is filed by a certain date. 

(e) Prohibits an application from being filed after December 31, 1999,
rather than 1997. Redesignates proposed SECTIONS 2-3 as SECTIONS 3-4.