1-1     By:  Maxey (Senate Sponsor - Barrientos)               H.B. No. 541
 1-2           (In the Senate - Received from the House April 30, 1999;
 1-3     May 3, 1999, read first time and referred to Committee on Finance;
 1-4     May 10, 1999, reported favorably by the following vote:  Yeas 11,
 1-5     Nays 0; May 10, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to an exemption from ad valorem taxation for property of
 1-9     an association of ambulatory health care centers.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter B, Chapter 11, Tax Code, is amended by
1-12     adding Section 11.183 to read as follows:
1-13           Sec. 11.183.  ASSOCIATION PROVIDING ASSISTANCE TO AMBULATORY
1-14     HEALTH CARE CENTERS.  (a)  An association is entitled to an
1-15     exemption from taxation of the property it  owns and uses
1-16     exclusively for the purposes for which the association is organized
1-17     if the association:
1-18                 (1)  is exempt from federal income taxation under
1-19     Section 501(a), Internal Revenue Code of 1986, as an organization
1-20     described by Section 501(c)(3) of that code;
1-21                 (2)  complies with the criteria for a charitable
1-22     organization under Sections 11.18(e) and (f);
1-23                 (3)  except as provided by Subsection (b), engages
1-24     exclusively in providing assistance to ambulatory health care
1-25     centers that provide medical care to individuals without regard to
1-26     the individuals' ability to pay, including providing policy
1-27     analysis, disseminating information, conducting continuing
1-28     education, providing research,  collecting and analyzing data, or
1-29     providing technical assistance to the health care centers;
1-30                 (4)  is funded wholly or partly, or assists ambulatory
1-31     health care centers that are funded wholly or partly, by a grant
1-32     under Section 330, Public Health Service Act (42 U.S.C. Section
1-33     254b), and its subsequent amendments; and
1-34                 (5)  does not perform abortions or provide abortion
1-35     referrals or provide assistance to ambulatory health care centers
1-36     that perform abortions or provide abortion referrals.
1-37           (b)  Use of the property by a person other than the
1-38     association does not affect the eligibility of the property for an
1-39     exemption  authorized by this section if the use is incidental to
1-40     use by the association and limited to activities that benefit:
1-41                 (1)  the ambulatory health care centers to which the
1-42     association provides assistance; or
1-43                 (2)  the individuals to whom the health care centers
1-44     provide medical care.
1-45           (c)  Performance of noncharitable functions by the
1-46     association does not affect the eligibility of the property for  an
1-47     exemption  authorized by this section if those other functions are
1-48     incidental to the association's charitable functions.
1-49           SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
1-50     follows:
1-51           (c)  An exemption provided by Section 11.13, 11.17, 11.18,
1-52     11.183, 11.19, 11.20, 11.21, 11.22, 11.23(j), 11.29, 11.30, or
1-53     11.31 of this code, once allowed, need not be claimed in subsequent
1-54     years, and except as otherwise provided by Subsection (e) of this
1-55     section, the exemption applies to the property until it changes
1-56     ownership or the person's qualification for the exemption changes.
1-57     However, the chief appraiser may require a person allowed one of
1-58     the exemptions in a prior year to file a new application to confirm
1-59     the person's current qualification for the exemption by delivering
1-60     a written notice that a new application is required, accompanied by
1-61     an appropriate application form, to the person previously allowed
1-62     the exemption.
1-63           SECTION 3.  This Act takes effect January 1, 2000.
1-64           SECTION 4.  The importance of this legislation and the
 2-1     crowded condition of the calendars in both houses create an
 2-2     emergency and an imperative public necessity that the
 2-3     constitutional rule requiring bills to be read on three several
 2-4     days in each house be suspended, and this rule is hereby suspended.
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