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.