HBA-CCH H.J.R. 5 77(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 5 By: Solomons Business & Industry 3/9/2001 Introduced 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. Current law provides 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, and 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 to shorten, from twelve days to five days, for a contract for work and material used in constructing new improvements to be executed after filing a written application for credit extension for work and material. FOR ELECTION This proposed constitutional amendment shall be submitted to voters at an election to be held on November 6, 2001.