SRC-JEC S.B. 1189 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1189
77R8415 JD-FBy: Ellis, Rodney
Intergovernmental Relations
4/5/2001
As Filed


DIGEST AND PURPOSE 

Currently, the Texas Medical Center Central Heating and Cooling Services
Cooperative Association (TECO) is reorganizing as a nonprofit organization.
TECO provides chilled water and steam to nonprofit and governmental
entities located in the Texas Medical Center.  Current law grants TECO an
exemption from ad valorem taxes.  As proposed, S.B. 1189 permits the
successor nonprofit corporation to retain the exemption from ad valorem
taxes already granted TECO. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 11.11, Tax Code, by adding Subsection (i), to
exempt from taxation of property, as though the property were owned by the
state and used for health or educational purposes, a corporation organized
under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
V.T.C.S.) that engages exclusively in providing chilled water and steam to
an eligible institution as defined by Section 301.031 (Definitions), Health
and Safety Code. 

SECTION 2.  Effective date: upon passage or September 1, 2001.