BILL ANALYSIS

H.B. 2999

By: Bonnen, Dennis

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

According to interested parties, recent changes to the Texas Constitution require updates to the law relating to the exemption from property taxation of property owned by certain medical centers in certain counties. H.B. 2999 seeks to provide for these updates, along with certain clarifications.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2999 amends the Tax Code to revise the property tax exemption for property owned by certain medical centers in certain counties by clarifying that the county in which eligible property is located is a county with a population of 3.3 million or more; by changing the eligible owner from a nonprofit corporation as defined in the Texas Non-Profit Corporation Act to a nonprofit corporation as defined by the Business Organizations Code that is organized exclusively for benevolent, charitable, and educational purposes; by including research uses and uses reasonably related to such use as those uses for which the property must be held, in addition to auxiliary uses to support the corporation's benevolent, charitable, and educational functions; by removing the condition that property not be leased or otherwise used with a view to profit; and by removing the specification that the exemption function as though the property were, during the applicable time, owned and held by the state for health and educational purposes.

EFFECTIVE DATE

January 1, 2018.