HBA-KDB, JLV H.J.R. 48 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 48
By: Dutton
Financial Institutions
3/16/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the Texas Constitution prohibits an encumbrance, which is a
claim or liability that is attached to a property that may lessen its
value, from being fixed on homestead property except for purchase money,
taxes on property, work and material used in improvement construction,
owelty of partition against the property, and the refinance of a lien
against the homestead, including federal tax liens.  However, current law
does not permit an encumbrance to be fixed for a debt of property owners'
association fees.  As proposed,  House Joint Resolution 48 requires the
submission to the voters of a constitutional amendment permitting an
encumbrance to be fixed on  homestead property for an obligation to pay
certain property owners' association fees without permitting the forced
sale of the homestead. 

RULEMAKING AUTHORITY

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

ANALYSIS

House Joint Resolution 48 amends the Texas Constitution to provide
authorization for an encumbrance to be fixed on a homestead property if
there exists a debt of property owners' association fees.  The resolution
also provides protection for the homestead from forced sale for the payment
of property owners' association fees. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001.