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      By: Guillen H.B. No. 3438       A BILL TO BE ENTITLED   AN ACT   relating to the property tax exemption for certain nonprofit   community business organizations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subsection (a), Section 11.231, Tax Code, is   amended to read as follows:          (a)  In this section, "nonprofit community business   organization" means an organization that meets the following   requirements:                (1)  the organization has been in existence for at   least the preceding five years;                (2)  the organization:                      (A)  is a nonprofit corporation organized under   the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,   Vernon's Texas Civil Statutes) or a nonprofit corporation formed   under the Texas Nonprofit Corporation Law, as described by Section   1.008, Business Organizations Code;                      (B)  is a nonprofit organization described by   Section 501(c)(6), Internal Revenue Code of 1986; and                      (C)  is not a statewide organization;                (3)  for at least the preceding three years, the   organization has maintained a dues-paying membership of at least 50   members; and                (4)  the organization:                      (A)  has a board of directors elected by the   members;                      (B)  does not compensate members of the board of   directors for service on the board;                      (C)  with respect to its activities in this state,   is engaged primarily in performing functions listed in Subsection   (d);                      (D)  is primarily supported by membership dues and   other income from activities substantially related to its primary   functions; and                      (E)  is not , and has not formed[ , and does not   financially support ] a political committee as defined by Section   251.001, Election Code.          SECTION 2.  This Act applies only to an ad valorem tax year   that begins on or after the effective date of this Act.          SECTION 3.  This Act takes effect January 1, 2026.