1-1                                   AN ACT
 1-2     relating to property tax exemptions for charitable organizations.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 11.18(h), Tax Code, is amended to read as
 1-5     follows:
 1-6           (h)  Performance of noncharitable functions by a charitable
 1-7     organization that owns or uses exempt property does not result in
 1-8     loss of an exemption authorized by this section if those other
 1-9     functions are incidental to the organization's charitable
1-10     functions.  The division of responsibilities between an
1-11     organization that qualifies as a charitable organization under
1-12     Subsection (c) and another organization will not disqualify the
1-13     organizations or any property owned or used by either organization
1-14     from receiving an exemption under this section if the collaboration
1-15     furthers the provision of one or more of the charitable functions
1-16     described in Subsection (d) and if the other organization:
1-17                 (1)  is exempt from federal income taxation under
1-18     Section 501(a), Internal Revenue Code of 1986, as an organization
1-19     described by Section 501(c)(3) of that code;
1-20                 (2)  meets the criteria for a charitable organization
1-21     under Subsections (e) and (f); and
1-22                 (3)  is under common control with the charitable
1-23     organization described in this subsection.
1-24           SECTION 2.  This Act takes effect September 1, 1999.
 2-1           SECTION 3.  The importance of this legislation and the
 2-2     crowded condition of the calendars in both houses create an
 2-3     emergency and an imperative public necessity that the
 2-4     constitutional rule requiring bills to be read on three several
 2-5     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2821 was passed by the House on April
         20, 1999, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 2821 on May 21, 1999, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 2821 on May 30, 1999, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2821 was passed by the Senate, with
         amendments, on May 18, 1999, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 2821 on May 30, 1999,
         by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor