Enrolled Bill Summary

            Senate Bill 496 amends the Property Code to increase the maximum size of an urban homestead from 1 to 10 acres, to authorize the use of an urban homestead as both a home and a place of business, and, if the homestead comprises more than one lot, to require the lots to be contiguous. The act specifies that to be considered urban the homestead must be located within a municipality or its extraterritorial jurisdiction and must have certain protection and utility services available at the location. The act provides that certain state law provisions relating to limits on the amount of homestead property exempt from seizure prevail over conflicting federal law to the extent allowed under federal law. Finally, the act specifically exempts Texas homesteads from the doctrine or rule prohibiting the extension of an existing lien on part of a homestead to another part of the homestead not charged with the debts secured by the existing lien.

            Provisions relating to conflicts with federal law take effect on voter approval of Senate Joint Resolution 22. Provisions relating to location of and services to an urban homestead and the doctrine prohibiting the extension of an existing lien to another part of the homestead not pledged as security take effect September 1, 1999. Provisions relating to an increase in the size of an urban homestead take effect January 1, 2000, contingent on voter approval of the constitutional amendment proposed by Senate Joint Resolution 22, increasing the maximum size of an urban homestead to 10 acres, prescribing permissible uses of urban homesteads, and preventing the overburdening of a homestead.