1-1                                   AN ACT
 1-2     relating to the exemption from ad valorem taxation of property
 1-3     owned by certain nonprofit county fair associations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.23, Tax Code, is amended by adding
 1-6     Subsection (h) to read as follows:
 1-7           (h)  County Fair Associations.  A county fair association
 1-8     organized to hold agricultural fairs and encourage agricultural
 1-9     pursuits is entitled to an exemption from taxation of the land and
1-10     buildings that it owns and  uses to hold agricultural fairs.  An
1-11     association that holds a license issued after January 1, 2001,
1-12     under the Texas Racing Act (Article 179e, Vernon's Texas Civil
1-13     Statutes) to conduct a horse race meeting or a greyhound race
1-14     meeting with pari-mutuel wagering is not entitled to an exemption
1-15     under this subsection.  Land or a building used to conduct a horse
1-16     race meeting or a greyhound race meeting with pari-mutuel wagering
1-17     under a license issued after January 1, 2001, under that Act may
1-18     not be exempted under this subsection.  To qualify for an exemption
1-19     under this subsection, a county fair association must:
1-20                 (1)  be a nonprofit corporation as defined by the Texas
1-21     Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
1-22     Texas Civil Statutes);
1-23                 (2)  be exempt from federal income taxes as an
1-24     organization described by Section 501(c)(3), (4), or (5), Internal
 2-1     Revenue Code of 1986, as amended;
 2-2                 (3)  qualify for an exemption from the franchise tax
 2-3     under Section 171.060; and
 2-4                 (4)  meet the requirements of a charitable organization
 2-5     provided by Sections 11.18(e) and (f), for which purpose the
 2-6     functions for which the association is organized are considered to
 2-7     be charitable functions.
 2-8           SECTION 2.  This Act takes effect January 1, 2002, and
 2-9     applies only to taxes imposed for a tax year that begins on or
2-10     after that date.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 824 was passed by the House on May
         11, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 824 on May 24, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 824 was passed by the Senate, with
         amendments, on May 21, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor