Amend HB 1689 as follows:
      (1)  On page 5, between lines 12 and 13, insert the following
section, appropriately numbered:
      SECTION ___.  Section 11.23, Tax Code, is amended by adding
Subsection (h) to read as follows:
      (h)  County Fair Associations.  A county fair association
organized to hold agricultural fairs and encourage agricultural
pursuits is entitled to an exemption from taxation of the land and
buildings that it owns and  uses to hold agricultural fairs.  An
association that holds a license under the Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes) to conduct a horse
race meeting or a greyhound race meeting with pari-mutuel wagering
is not entitled to an exemption under this subsection.  Land or a
building used to conduct a horse race meeting or a greyhound race
meeting with pari-mutuel wagering under that Act may not be
exempted under this subsection.  To qualify for an exemption under
this subsection, a county fair association must:
            (1)  be a nonprofit corporation as defined by the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes);
            (2)  be exempt from federal income taxes as an
organization described by Section 501(c)(3), (4), or (5), Internal
Revenue Code of 1986, as amended;
            (3)  qualify for an exemption from the franchise tax
under Section 171.060; and
            (4)  meet the requirements of a charitable organization
provided by Sections 11.18(e) and (f), for which purpose the
functions for which the association is organized are considered to
be charitable functions.
      (2)  Strike page 5, lines 19-22, and substitute the
following:
      SECTION ___. (a)  This Act takes effect September 1, 2001,
except that Section 11.23(h), Tax Code, as added by this Act, takes
effect January 1, 2002.
      (b)  This Act applies only to taxes imposed for a tax year
that begins on or after January 1, 2002.
      (3)  Renumber the sections of the bill accordingly.