78R7909 KEG-D

By:  Lindsay                                                      S.B. No. 948



A BILL TO BE ENTITLED

AN ACT

relating to the authority of the board of a hospital district and 
the commissioners court of the county in which the district is 
located to take certain actions relating to ad valorem taxes 
imposed for the benefit of the hospital district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 281, Health and Safety 
Code, is amended by adding Section 281.096 to read as follows:
	Sec. 281.096.  AUTHORITY TO TAKE ACTIONS RELATING TO AD 
VALOREM TAXES.  (a)  With respect to the imposition or collection of 
an ad valorem tax imposed for the benefit of a hospital district, 
the commissioners court of the county in which the district is 
located has the authority assigned by law to the governing body of 
the hospital district, including the authority to:
		(1)  adopt an exemption, partial exemption, or other 
form of relief from an ad valorem tax;
		(2)  elect to tax property that would otherwise be 
exempt from an ad valorem tax; and
		(3)  exercise a power granted to a taxing unit under 
Section 6.30, Tax Code.
	(b)  The board of a hospital district may not exercise a 
power granted by Subsection (a) to the commissioners court with 
respect to the imposition or collection of an ad valorem tax imposed 
for the benefit of the hospital district.
	SECTION 2.  (a)  This Act takes effect September 1, 2003.                      
	(b)  Section 281.096, Health and Safety Code, as added by 
this Act, applies only to the exemption or taxation of property for 
a tax year that begins on or after January 1, 2004.  The exemption or 
taxation of property for a tax year that begins before that date is 
governed by the applicable law in effect before the effective date 
of this Act, and that law is continued in effect for that purpose.
	(c)  Section 281.096, Health and Safety Code, as added by 
this Act, does not affect a contract entered into under Section 
6.30(c), Tax Code, before the effective date of this Act.