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