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.