HBA-TYH H.J.R. 43 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 43
By: Brimer
Financial Institutions
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Section 51 (Amount of Homestead; Uses), Article XVI, Texas
Constitution, limits the homestead to one acre of land if used for the
purposes of an urban home.  Section 50 (Homestead; Extension of Credit
Secured by Lien; Protection from Forced Sale; Mortgages, Trust Deeds, and
Liens), Article XVI, Texas Constitution, prohibits the use of collateral
other than the homestead as security for a home equity loan.  Thus, Texans
living on tracts of land exceeding one acre are constitutionally prevented
from using the equity in their homes. 

H.J.R. 43 increases the maximum size of a homestead to 10 acres, provides
that the homestead must be on contiguous lots, provides that an urban
homestead includes only the residential home and a business located on the
tract of land and not elsewhere, and recognizes existing lending practices. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 51, Article XVI, Texas Constitution, by
requiring the homestead in a city, town or village, to consist of a lot or
contiguous lots amounting to not more than 10 acres, rather than one acre,
of land, together with any improvements on the land, and requiring that it
be used for the purposes of a home, rather than as the home or place to
exercise the calling or business, of the homestead claimant.  Provides that
a release or refinance of an existing lien against a homestead, as to a
part of the homestead, does not create an additional burden on the part of
the homestead property that is unreleased or subject to the refinance, and
a new lien is not invalid only for that reason. 

SECTION 2.  Requires this proposed constitutional amendment be submitted to
the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot.