BWM H.B. 882 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
H.B. 882
By: Horn
2-24-97
Committee Report (Unamended)



BACKGROUND 

Under section 41.005 of the Property Code, a person may file a document
with the county clerk's office to officially designate a homestead for
execution purposes. A person may also designate their homestead with the
appraisal district for taxation purposes under Chapter 11 of the Property
Tax Code. There is widespread confusion among both individuals and
creditor organizations regarding the two homestead exemptions. In
addition, certain entities have made a practice of informing homeowners
that they need to make the designation for execution purposes, and then
offering to do so on their behalf for an inflated price. 

PURPOSE

To make a designation of a homestead with an appraisal district for tax
purposes sufficient for execution purposes as well. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 41.005 of the Property Code, thus making a
designation of a homestead with an appraisal district for tax purposes
sufficient for execution purposes as well. If the designation for
execution purposes conflicts with the designation for tax purposes, the
designation for execution purposes is controlling. 
 
SECTION 2. Effective date.

SECTION 3. Emergency clause.