BILL ANALYSIS

H.B. 453

By: Shaheen

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been noted that the state's existing health care programs for the needy struggle to meet demand, consistently experience funding shortfalls, and frustrate medical providers. It has been suggested that an arduous reimbursement process and unattractive reimbursement rates for medical providers are two major reasons why the needy receive inferior health care services. H.B. 453, the enabling legislation for H.J.R. 33, seeks to address these problems and increase the number of physicians who provide high quality care to those most in need by providing for a local option residence homestead property tax exemption for certain physicians who provide health care services for which payment is not sought.

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. 453 amends the Tax Code to entitle a licensed physician who provides health care services to qualifying county residents and who does not seek payment for those services from any source, including the Medicaid program or otherwise from the state or from the federal government, to an exemption from taxation by a county of less than or equal to 50 percent of the appraised value of the physician's residence homestead if the exemption is adopted by the county commissioners court in the applicable manner provided by law. For purposes of that exemption, the bill defines "qualifying county resident" as a resident of a county that adopts the exemption and who is indigent or a Medicaid recipient.

H.B. 453 requires the commissioners court to specify the number of qualifying county residents to whom a physician must provide health care services during a tax year to be eligible to receive the exemption in the order adopting the exemption and authorizes the commissioners court to express the number as a percentage of the physician's total practice. The bill requires the commissioners court to submit to the chief appraiser a copy of the order adopting the exemption and any subsequent order adopted by the commissioners court that relates to the exemption and authorizes the chief appraiser to require a physician seeking the exemption to present additional information establishing eligibility for the exemption. The bill authorizes the commissioners court to repeal the exemption in the applicable manner provided by law.

EFFECTIVE DATE

January 1, 2020, if the constitutional amendment authorizing a local option exemption from property taxation by a county of a portion of the value of the residence homestead of a physician who provides health care services for which the physician agrees not to seek payment from any source, including the Medicaid program or otherwise from the state or from the federal government, to county residents who are indigent or who are Medicaid recipients is approved by the voters.