SRC-JRN H.B. 882 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 882
By: Horn (Nelson)
State Affairs
5-16-97
Engrossed


DIGEST 

Currently, a person may file a document with the county clerk's office or
the appraisal district to officially designate a homestead for execution
and taxation purposes.  Confusion may exist to individuals and creditor
organizations regarding these two homestead exemptions, because some
entities may inform homeowners of the need to designate a homestead for
execution purposes, and then offer to make this designation for the
homeowner at an inflated price.  This bill allows a person to make a
designation of a homestead with an appraisal district for tax purposes
sufficient for execution purposes. 

PURPOSE

As proposed, H.B. 882 allows a person to make a designation of a homestead
with an appraisal district for tax purposes sufficient for execution
purposes. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 41.005, Property Code, as follows:

Sec. 41.005. VOLUNTARY DESIGNATION OF HOMESTEAD.  Provides that to
designate property as a homestead, a person is required to designate the
property in an instrument that is signed and acknowledged or proved in the
manner required for the recording of other instruments, except as provided
by Subsection (e) or Subchapter B. Authorizes a person to change the
boundaries of a homestead designated under Subsection (c), rather than
this section, by executing and recording an instrument in the manner
required for a voluntary designation under that subsection.  Provides that
property on which a person receives an exemption from taxation under
Section 11.43, Tax Code, is considered to have been designated as the
person's homestead for purposes of this subchapter if the property is
listed as the person's residence homestead on the most recent appraisal
roll for the appraisal district established for the county in which the
property is located, except as otherwise provided by this subsection.
Authorizes the designation of property under Subsection (c) or Subchapter
(b) to prevail, as applicable, if a person designates property as a
homestead under Subsection (c) or Subchapter B and a different property is
considered to have been designated as the person's homestead under this
subsection.  Makes conforming and nonsubstantive changes. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.