By Kuempel                                             H.J.R. No. 4
         76R1702 JD-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment to authorize the exemption of
 1-2     property owned by institutions of public charity, as defined by
 1-3     general law, from ad valorem taxation.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 2(a), Article VIII, Texas Constitution,
 1-6     is amended to read as follows:
 1-7           (a)  All occupation taxes shall be equal and uniform upon the
 1-8     same class of subjects within the limits of the authority levying
 1-9     the tax;  but the legislature may, by general laws, exempt from
1-10     taxation public property used for public purposes;  actual places
1-11     of religious worship, also any property owned by a church or by a
1-12     strictly religious society for the exclusive use as a dwelling
1-13     place for the ministry of such church or religious society, and
1-14     which yields no revenue whatever to such church or religious
1-15     society;  provided that such exemption shall not extend to more
1-16     property than is reasonably necessary for a dwelling place and in
1-17     no event more than one acre of land;  places of burial not held for
1-18     private or corporate profit;  solar or wind-powered energy devices;
1-19     all buildings used exclusively and owned by persons or associations
1-20     of persons for school purposes and the necessary furniture of all
1-21     schools and property used exclusively and reasonably necessary in
1-22     conducting any association engaged in promoting the religious,
1-23     educational and physical development of boys, girls, young men or
1-24     young women operating under a State or National organization of
 2-1     like character;  also the endowment funds of such institutions of
 2-2     learning and religion not used with a view to profit; and when the
 2-3     same are invested in bonds or mortgages, or in land or other
 2-4     property which has been and shall hereafter be bought in by such
 2-5     institutions under foreclosure sales made to satisfy or protect
 2-6     such bonds or mortgages, that such exemption of such land and
 2-7     property shall continue only for two years after the purchase of
 2-8     the same at such sale by such institutions and no longer, and
 2-9     institutions of [purely] public charity as defined by general law;
2-10     and all laws exempting property from taxation other than the
2-11     property mentioned in this Section shall be null and void.
2-12           SECTION 2.  Section 71(b), Article XVI, Texas Constitution,
2-13     is amended to read as follows:
2-14           (b)  The legislature by law may establish a Texas small
2-15     business incubator fund to be used without further appropriation
2-16     solely in furtherance of a program established by the legislature
2-17     to foster and stimulate the development of small businesses in the
2-18     state.  The fund shall contain a project account, an interest and
2-19     sinking account, and other accounts authorized by the legislature.
2-20     A small business incubator operating under the program is exempt
2-21     from ad valorem taxation in the same manner as an institution of
2-22     [purely] public charity under Article VIII, Section 2, of this
2-23     constitution.  To carry out the program authorized by this
2-24     subsection, the legislature may authorize loans and grants of money
2-25     in the Texas small business incubator fund and the issuance of up
2-26     to $20 million of general obligation bonds to provide initial
2-27     funding of the Texas small business incubator fund.  The Texas
 3-1     small business incubator fund is composed of the proceeds of the
 3-2     bonds authorized by this subsection, loan repayments, and other
 3-3     amounts received by the state for loans or grants made under this
 3-4     subsection and any other amounts required to be deposited in the
 3-5     Texas small business incubator fund by the legislature.
 3-6           SECTION 3.  Article VIII, Texas Constitution, is amended by
 3-7     adding the following temporary provision:
 3-8           TEMPORARY PROVISION.  The constitutional amendment proposed
 3-9     by the 76th Legislature, Regular Session, 1999, to authorize the
3-10     exemption of property of institutions of public charity as defined
3-11     by the general law from ad valorem taxation takes effect January 1,
3-12     2000, and applies only to taxes imposed on or after that date.
3-13     This temporary provision expires January 1, 2002.
3-14           SECTION 4.  This proposed constitutional amendment shall be
3-15     submitted to the voters at an election to be held November 2, 1999.
3-16     The ballot shall be printed to permit voting for or against the
3-17     proposition: "The constitutional amendment to authorize the
3-18     legislature to exempt property owned by institutions of public
3-19     charity, as defined by the legislature, from ad valorem taxation."