SRC-JXG S.B. 523 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 523
By: Cain
Finance
3/9/1999
As Filed


DIGEST 

Currently, Texas law does not include provisions for property tax
exemptions for parent holding companies, which operate exclusively to
provide support to health care organizations that focus on performing
charitable functions described in Section 11.18(d), Tax Code. Property tax
exemptions for a parent holding company is inconsistent from one appraisal
district to another. Appraisal districts that recognize the structure of
multi-institutional health care systems grant parent companies of
multi-institutional health care systems property tax exemptions. S.B. 523
would provide property tax exemptions for properties owned by parent
companies that operate exclusively to provide support services to
affiliated health care organizations, and would provide consistent property
tax exemptions for parent companies. 

PURPOSE

As proposed, S.B. 523 provides property tax exemptions for 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 the division
of responsibilities between an organization that qualifies as a charitable
organization under Subsection (c) 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
the charitable functions described in Subsection (d) and if the other
organization meets certain requirements. 

SECTION 2. Amends Chapter 42B, Tax Code, by adding Section 42.27, as
follows: 

Sec. 42.27. REMEDY FOR EXEMPTION DENIAL. Requires a court to grant an
exemption and order the removal of the property from the taxable portion of
the appraisal roll, if the court determines that a charitable organization
providing the services described in Section 11.18(d)(1), (2), (3), (15), or
(16) or a commonly controlled organization that meets the criteria
described by Section 11.18(h) has been improperly denied an exemption. 

SECTION 3. Amends Section 42.29(a), Tax Code, to authorize a property owner
who prevails in an appeal to the court under Section 42.25, 42.26, or 42.27
to be awarded reasonable attorney's fees.  
Makes a nonsubstantive change.

SECTION 4. Effective date: September 1, 1999. 
           Makes application of this Act prospective.

SECTION 5. Emergency clause.