By Maxey                                               H.B. No. 541
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an exemption from ad valorem taxation for property of
 1-3     an association of ambulatory health care centers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
 1-6     adding Section 11.183 to read as follows:
 1-7           Sec. 11.183.  ASSOCIATION PROVIDING ASSISTANCE TO AMBULATORY
 1-8     HEALTH CARE CENTERS.  (a)  An association is entitled to an
 1-9     exemption from taxation of the property it  owns and uses
1-10     exclusively for the purposes for which the association is organized
1-11     if the association:
1-12                 (1)  is exempt from federal income taxation under
1-13     Section 501(a), Internal Revenue Code of 1986, as an organization
1-14     described by Section 501(c)(3) of that code;
1-15                 (2)  complies with the criteria for a charitable
1-16     organization under Sections 11.18(e) and (f);
1-17                 (3)  except as provided by Subsection (b), engages
1-18     exclusively in providing assistance to ambulatory health care
1-19     centers that provide medical care to individuals without regard to
1-20     the individuals' ability to pay, including providing policy
1-21     analysis, disseminating information, conducting continuing
1-22     education, providing research,  collecting and analyzing data, or
1-23     providing technical assistance to the health care centers;
1-24                 (4)  is funded wholly or partly, or assists ambulatory
 2-1     health care centers that are funded wholly or partly, by a grant
 2-2     under Section 330, Public Health Service Act (42 U.S.C. Section
 2-3     254b), and its subsequent amendments; and
 2-4                 (5)  does not perform abortions or provide abortion
 2-5     referrals or provide assistance to ambulatory health care centers
 2-6     that perform abortions or provide abortion referrals.
 2-7           (b)  Use of the property by a person other than the
 2-8     association does not affect the eligibility of the property for an
 2-9     exemption  authorized by this section if the use is incidental to
2-10     use by the association and limited to activities that benefit:
2-11                 (1)  the ambulatory health care centers to which the
2-12     association provides assistance; or
2-13                 (2)  the individuals to whom the health care centers
2-14     provide medical care.
2-15           (c)  Performance of noncharitable functions by the
2-16     association does not affect the eligibility of the property for  an
2-17     exemption  authorized by this section if those other functions are
2-18     incidental to the association's charitable functions.
2-19           SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
2-20     follows:
2-21           (c)  An exemption provided by Section 11.13, 11.17, 11.18,
2-22     11.183, 11.19, 11.20, 11.21, 11.22, 11.23(j), 11.29, 11.30, or
2-23     11.31 of this code, once allowed, need not be claimed in subsequent
2-24     years, and except as otherwise provided by Subsection (e) of this
2-25     section, the exemption applies to the property until it changes
2-26     ownership or the person's qualification for the exemption changes.
2-27     However, the chief appraiser may require a person allowed one of
 3-1     the exemptions in a prior year to file a new application to confirm
 3-2     the person's current qualification for the exemption by delivering
 3-3     a written notice that a new application is required, accompanied by
 3-4     an appropriate application form, to the person previously allowed
 3-5     the exemption.
 3-6           SECTION 3.  This Act takes effect January 1, 2000.
 3-7           SECTION 4.  The importance of this legislation and the
 3-8     crowded condition of the calendars in both houses create an
 3-9     emergency and an imperative public necessity that the
3-10     constitutional rule requiring bills to be read on three several
3-11     days in each house be suspended, and this rule is hereby suspended.