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.