HBA-NLM .S.J.R. 15 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.J.R. 15
By: Harris
Financial Institutions
4/11/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, Texas law provides three ways for the spouse of an incapacitated
person to sign transactions for the incapacitated spouse.  However,
language in transactions involving home equity loans refers only to the
required consent of a spouse.  This causes lenders to believe that normal
consent does not apply to home equity loans.  This bill would legitimize
the giving of consent by an incapacitated spouse regarding transactions in
connection with a homestead.  As proposed, S.J.R. 15 requires the
submission to the voters of a constitutional amendment authorizing the
consent or execution of a lien, contract, or other instrument by the owner
of the homestead or that owner's spouse when the owner or spouse is
considered or presumed incapacitated, to be obtained as provided by law and
provides that a third party may rely on the consent or execution, if
Section 50 (Homestead; Extension of Credit Secured by Lien; Protection From
Forced Sale; Mortgages, Trust Deeds, and Liens), Article XVI, Texas
Constitution, requires such consent or execution. 

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 50, Article XVI, Texas Constitution, by adding
Subsection (t), as follows: 

(t)  Provides that if this section requires the consent or execution of a
lien, contract, or other instrument by the owner of the homestead or that
owner's spouse and the owner or spouse is considered or presumed
incapacitated, the consent or execution may be obtained as provided by law
and a third party may rely on the consent or execution. 

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