Office of House Bill AnalysisH.B. 541
By: Maxey
Ways & Means


The Texas Association of Community Health Centers (TACHC) was established
in 1983 as a 501(c)(3) nonprofit organization.  It serves and represents 32
Federally Qualified Health Centers (FQHC) in Texas and has been designated
by the U.S. Department of Health and Human Services as the Primary Care
Association for the state.  In 1997, TACHC member centers provided health
care services to over 415,000 Texans, approximately 237,000 of whom were

The primary goal of TACHC is to provide for the advancement of high quality
ambulatory health care to medically underserved populations.  TACHC
provides a variety of services, training, and technical assistance in areas
pertaining to the administration and maintenance of a health center. H.B.
541 provides for property tax exemptions to associations that provide
assistance to ambulatory care facilities and that meet the criteria for a
charitable organization. 


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


SECTION 1.  Amends Subchapter B, Chapter 11, Tax Code, by adding Section
11.183, as follows: 

CENTERS.  (a)  Entitles an association to an exemption from taxation of the
property it owns and uses exclusively for the purposes for which the
association is organized if the association:  

(1)  is exempt from federal income taxation under Section 501(a) (Exemption
from tax on corporations, certain trusts, etc.), Internal Revenue Code of
1986, as an organization described by Section 501(c)(3) of that code;   

(2)  complies with criteria for a charitable organization under Sections
11.18(e) and (f) (Charitable Organizations);  

(3)  engages exclusively in assistance to ambulatory health care centers
providing medical care to individuals regardless of the individuals'
ability to pay, except as provided by Subsection (b);  

(4)  is funded wholly or partly, or assists ambulatory health care centers
that are funded wholly or partly, by a grant under Section 330, Public
Health Service Act (42 U.S.C. Section 254b) (which authorize grants to
health services such as outreach networks, for-profit entities approved by
a grantee of a nonprofit entity, telemedicine networks, and health centers
for the medically underserved population of migratory and seasonal
agricultural workers, the homeless, and public housing residents); and 

(5)  does not perform abortions or provide abortion referrals or provide
assistance to ambulatory health care centers that perform abortions or
provide abortion referrals. 
(b)  Provides that use of the property by a person other than the
association does not affect the property's eligibility for an authorized
exemption if the use is incidental to use by the association and limited to
activities benefitting either the ambulatory health care centers that the
association assists or the individuals to whom the health care centers
provide medical care.  

(c)  Provides that performance of noncharitable functions by the
association does not affect the property's eligibility for  an  authorized
exemption if those other functions are incidental to the association's
charitable functions.  

SECTION 2.  Amends Section 11.43(c), Tax Code, to include Section 11.183 in
a list of sections for which exemption of this code, once allowed, need not
be claimed in subsequent years. 

SECTION 3.  Effective date: January 1, 2000.

SECTION 4.  Emergency clause.