By Hochberg                                           H.B. No. 2175
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to ad valorem tax exemption for nonprofit corporations
 1-3     providing chilled water and steam.
 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 amending
 1-6     Subsection (l) as follows:
 1-7           (l)  Nonprofit Provider of Chilled Water and Steam.  All real
 1-8     and personal property owned by a nonprofit corporation, as defined
 1-9     in the Texas Non-Profit Corporation Act which provides chilled
1-10     water and steam to eligible institutions as defined in Section
1-11     301.031 et seq of the Texas Health and Safety Code is exempt from
1-12     all ad valorem taxation as though such property were owned and held
1-13     by the state for health and educational purposes.
1-14           (m)  Incomplete Improvements.  A person described by
1-15     Subsection (a)-(e), (g), or (i)-(l)[(k)] is entitled to an
1-16     exemption from taxation of the real property owned by the person
1-17     consisting of an incomplete improvement that is under active
1-18     construction or other physical preparation and that is designed and
1-19     intended to be used by the person for a purpose described by that
1-20     subsection when complete and the land on which the incomplete
1-21     improvement is located that will be reasonably necessary for the
1-22     person's use of the improvement for that purpose.  A property may
 2-1     not be exempted under this subsection for more than three years.
 2-2     For purposes of this subsection, an incomplete improvement is under
 2-3     physical preparation if the person has:
 2-4                 (1)  engaged in architectural or engineering work, soil
 2-5     testing, land clearing activities, or site improvement work
 2-6     necessary for the construction of the improvement; or
 2-7                 (2)  conducted an environmental or land use study
 2-8     relating to the construction of the improvement.
 2-9           SECTION 2. EFFECTIVE DATE.  This Act takes effect immediately
2-10     if it receives a vote of two-thirds of all the members elected to
2-11     each house, as provided by Section 39, Article III, Texas
2-12     Constitution.  If this Act does not receive the vote necessary for
2-13     immediate effect, this Act takes effect September 1, 2001.