By:  Harris                                           S.B. No. 1032
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to encumbrances that may be fixed on homestead property.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3                               ARTICLE 1
    1-4        SECTION 1.01.  Subsection (b), Section 41.001, Property Code,
    1-5  is amended to read as follows:
    1-6        (b)  Encumbrances may be properly fixed on homestead property
    1-7  for:
    1-8              (1)  purchase money, including:
    1-9                    (A)  consideration paid or to be paid for the
   1-10  purchase of the property; or
   1-11                    (B)  an owelty of partition imposed against the
   1-12  entirety of the property designated as a homestead by a court order
   1-13  or by written agreement of the parties to the partition, including
   1-14  a debt of one spouse in favor of the other spouse resulting from a
   1-15  division or an award of a family homestead in a divorce proceeding;
   1-16              (2)  taxes on the property, including:
   1-17                    (A)  ad valorem property taxes;
   1-18                    (B)  a federal tax lien resulting from the tax
   1-19  debt of both spouses, if the homestead is a family homestead, or
   1-20  from the tax debt of the owner; and
   1-21                    (C)  a refinance by a third party of ad valorem
   1-22  taxes or a federal tax lien; or
   1-23              (3)  work and material used in constructing
   1-24  improvements on the property if contracted for in writing as
    2-1  provided by Sections 53.059(a), (b), and (c).
    2-2        SECTION 1.02.  This article takes effect immediately.
    2-3                               ARTICLE 2
    2-4        SECTION 2.01. Subsection (b), Section 41.001, Property Code,
    2-5  is amended to read as follows:
    2-6        (b)  Encumbrances may be properly fixed on homestead property
    2-7  for:
    2-8              (1)  purchase money;
    2-9              (2)  taxes on the property; <or>
   2-10              (3)  work and material used in constructing
   2-11  improvements on the property if contracted for in writing as
   2-12  provided by Sections 53.059(a), (b), and (c);
   2-13              (4)  an owelty of partition imposed against the
   2-14  entirety of the property designated as a homestead by a court order
   2-15  or by a written agreement of the parties to the partition,
   2-16  including a debt of one spouse in favor of the other spouse
   2-17  resulting from a division or an award of a family homestead in a
   2-18  divorce proceeding; or
   2-19              (5)  the refinance of a lien against a homestead,
   2-20  including a federal tax lien resulting from the tax debt of both
   2-21  spouses, if the homestead is a family homestead, or from the tax
   2-22  debt of the owner.
   2-23        SECTION 2.02.  This article takes effect on the date the
   2-24  constitutional amendment proposed by S.J.R. No. 46, 74th
   2-25  Legislature, Regular Session, 1995, takes effect, and on that date
   2-26  the amendment by this article of Subsection (b), Section 41.001,
   2-27  Property Code, supersedes the amendment of that subsection by
    3-1  Article 1 of this Act.  If that amendment is not approved by the
    3-2  voters, this article has no effect.
    3-3                               ARTICLE 3
    3-4        SECTION 3.01. The importance of this legislation and the
    3-5  crowded condition of the calendars in both houses create an
    3-6  emergency and an imperative public necessity that the
    3-7  constitutional rule requiring bills to be read on three several
    3-8  days in each house be suspended, and this rule is hereby suspended,
    3-9  and that this Act take effect and be in force according to its
   3-10  terms, and it is so enacted.