By Hochberg                                           H.B. No. 2175
         77R9546 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an exemption from ad valorem taxation of property owned
 1-3     by nonprofit corporations that provide chilled water and steam to
 1-4     certain health-related institutions of this state.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 11.11, Tax Code, is amended by adding
 1-7     Subsection (i) to read as follows:
 1-8           (i)  A corporation organized under the Texas Non-Profit
 1-9     Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
1-10     Statutes) that engages exclusively in providing chilled water and
1-11     steam to an eligible institution, as defined by Section 301.031,
1-12     Health and Safety Code, is entitled to an exemption from taxation
1-13     of the property the corporation owns, as though the property of the
1-14     corporation were owned by this state and used for health or
1-15     educational purposes.
1-16           SECTION 2.  This Act takes effect immediately if it receives
1-17     a vote of two-thirds of all the members elected to each house, as
1-18     provided by Section 39, Article III, Texas Constitution.  If this
1-19     Act does not receive the vote necessary for immediate effect, this
1-20     Act takes effect September 1, 2001.