HBA-AMW S.B. 1007 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1007
By: Barrientos
Ways & Means
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

Current law exempts from property taxes charitable organizations that
provide support  for children with specific needs such as orphans,
delinquent, dependent, or handicapped children in need of residential care.
Senate Bill 1007 extends this exemption to nonprofit organizations
providing child care under certain conditions. 

RULEMAKING AUTHORITY

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. 

ANALYSIS

Senate Bill 1007 amends the Tax Code to add to the list of charitable
organizations that are exempt from ad valorem taxation of certain property
an organization that engages exclusively in providing child care for all or
part of the day, directly by the organization in a child-care facility
licensed by the Department of Protective and Regulatory Services (PRS),
through a contract with a child-care facility licensed by PRS, or in
association with a provider of a Head Start program that provides
educational services to children in a child-care facility licensed by PRS,
if the organization provides the child care using: 

 _donated funds, state funds, federal funds, or a combination of those
funds, without regard to the beneficiaries' ability to pay; or  

 _money derived from fees paid for the child care on a sliding scale based
on the beneficiaries' ability to pay. 

EFFECTIVE DATE

January 1, 2002.