1-1     By:  Kuempel (Senate Sponsor - Wentworth)              H.J.R. No. 4
 1-2           (In the Senate - Received from the House May 11, 1999;
 1-3     May 12, 1999, read first time and referred to Committee on Finance;
 1-4     May 14, 1999, reported favorably by the following vote:  Yeas 9,
 1-5     Nays 0; May 14, 1999, sent to printer.)
 1-6                           HOUSE JOINT RESOLUTION
 1-7     proposing a constitutional amendment to authorize the exemption of
 1-8     property owned by institutions of public charity, as defined by
 1-9     general law, from ad valorem taxation.
1-10           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 2(a), Article VIII, Texas Constitution,
1-12     is amended to read as follows:
1-13           (a)  All occupation taxes shall be equal and uniform upon the
1-14     same class of subjects within the limits of the authority levying
1-15     the tax;  but the legislature may, by general laws, exempt from
1-16     taxation public property used for public purposes;  actual places
1-17     of religious worship, also any property owned by a church or by a
1-18     strictly religious society for the exclusive use as a dwelling
1-19     place for the ministry of such church or religious society, and
1-20     which yields no revenue whatever to such church or religious
1-21     society;  provided that such exemption shall not extend to more
1-22     property than is reasonably necessary for a dwelling place and in
1-23     no event more than one acre of land;  places of burial not held for
1-24     private or corporate profit;  solar or wind-powered energy devices;
1-25     all buildings used exclusively and owned by persons or associations
1-26     of persons for school purposes and the necessary furniture of all
1-27     schools and property used exclusively and reasonably necessary in
1-28     conducting any association engaged in promoting the religious,
1-29     educational and physical development of boys, girls, young men or
1-30     young women operating under a State or National organization of
1-31     like character;  also the endowment funds of such institutions of
1-32     learning and religion not used with a view to profit; and when the
1-33     same are invested in bonds or mortgages, or in land or other
1-34     property which has been and shall hereafter be bought in by such
1-35     institutions under foreclosure sales made to satisfy or protect
1-36     such bonds or mortgages, that such exemption of such land and
1-37     property shall continue only for two years after the purchase of
1-38     the same at such sale by such institutions and no longer, and
1-39     institutions of [purely] public charity as defined by general law;
1-40     and all laws exempting property from taxation other than the
1-41     property mentioned in this Section shall be null and void.
1-42           SECTION 2.  Section 71(b), Article XVI, Texas Constitution,
1-43     is amended to read as follows:
1-44           (b)  The legislature by law may establish a Texas small
1-45     business incubator fund to be used without further appropriation
1-46     solely in furtherance of a program established by the legislature
1-47     to foster and stimulate the development of small businesses in the
1-48     state.  The fund shall contain a project account, an interest and
1-49     sinking account, and other accounts authorized by the legislature.
1-50     A small business incubator operating under the program is exempt
1-51     from ad valorem taxation in the same manner as an institution of
1-52     [purely] public charity under Article VIII, Section 2, of this
1-53     constitution.  To carry out the program authorized by this
1-54     subsection, the legislature may authorize loans and grants of money
1-55     in the Texas small business incubator fund and the issuance of up
1-56     to $20 million of general obligation bonds to provide initial
1-57     funding of the Texas small business incubator fund.  The Texas
1-58     small business incubator fund is composed of the proceeds of the
1-59     bonds authorized by this subsection, loan repayments, and other
1-60     amounts received by the state for loans or grants made under this
1-61     subsection and any other amounts required to be deposited in the
1-62     Texas small business incubator fund by the legislature.
1-63           SECTION 3.  Article VIII, Texas Constitution, is amended by
1-64     adding the following temporary provision:
 2-1           TEMPORARY PROVISION.  The constitutional amendment proposed
 2-2     by the 76th Legislature, Regular Session, 1999, to authorize the
 2-3     exemption of property of institutions of public charity as defined
 2-4     by the general law from ad valorem taxation takes effect January 1,
 2-5     2000, and applies only to taxes imposed on or after that date.
 2-6     This temporary provision expires January 1, 2002.
 2-7           SECTION 4.  This proposed constitutional amendment shall be
 2-8     submitted to the voters at an election to be held November 2, 1999.
 2-9     The ballot shall be printed to permit voting for or against the
2-10     proposition: "The constitutional amendment to authorize the
2-11     legislature to exempt property owned by institutions of public
2-12     charity, as defined by the legislature, from ad valorem taxation."
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