LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 2, 2001
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1557  by Reyna, Arthur (Relating to the exemption from
               ad valorem taxation of property of certain retirement
               communities that qualify as charitable organizations.),
               As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Section 11.18 of the Tax Code to require retirement
communities to provide open admission to the public on a
nondiscriminatory basis (subject only to reasonable restrictions relating
to the availability of facilities or services, and an applicant's age or
financial or medical needs) before the retirement community could
qualify as a charitable organization for property tax purposes.

Under current law, to qualify as a charitable organization under Section
11.18, organizations must meet certain federal tax requirements
applicable to non-profit charitable organizations.  These requirements
directly imply compliance with federal statutory and constitutional
provisions relating to discrimination on account of such characteristics
as race, color, sex, and age.  The bill would provide additional state
statutory requirements for retirement communities.  If the bill were to
become law, organizations that do not currently have nondiscrimination
policies would be required to adopt such policies or lose their
exemption.  It is not anticipated that this additional state statutory
requirement would result in any significant fiscal impact for the state
or units of local government given the current federal statutory
requirements.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, BR