HBA-MSH, CCH H.J.R. 5 77(R)BILL ANALYSIS Office of House Bill AnalysisH.J.R. 5 By: Solomons Business & Industry 8/8/2001 Enrolled BACKGROUND AND PURPOSE The Texas Constitution currently provides that homesteads are protected from forced sale for the payment of all debts, except in certain situations. One exception is for work and material used in constructing new improvements thereon, if contracted for in writing, or work and material used to repair or renovate existing improvements if the contract for the work and material is not executed with a specified time after the owner makes an application for any extension of credit for work and material. State law prior to the 77th Legislature provided that the specified time is 12 days. Many home improvement contractors contend that the waiting period is too long, since the extension of credit may be approved sooner. Current law also requires that the contract be signed in the office of a lawyer, title company, or lender. As proposed, House Joint Resolution 5 requires the submission to the voters of a constitutional amendment to shorten the waiting period to five days. 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 5 amends the Texas Constitution by modifying the conditions under which the homestead of a family, or of a single adult person, may be forcibly sold by changing the deadline by which a contract must be executed by an owner or the owner's spouse from the 12th day to the 5th day after the owner makes written application for any extension of credit for specified work and material. The resolution protects the homestead of a family or of a single adult person from forced sale for the payment of all debts except for the conversion and refinance of a personal property lien secured by a manufactured home to a lien on real property, including the refinance of the purchase price of the manufactured home, the cost of installing the manufactured home on the real property, and the refinance of the purchase price of the real property. FOR ELECTION November 6, 2001.