SRC-JFA S.J.R. 38 75(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 38
By: Ellis
State Affairs
3-24-97
As Filed


DIGEST 

Currently, under the Texas Supreme Court decision of Inwood North
Homeowners' Association v. Charlie Harris, Jr. et al. and Rolando M.
Pamilar, et al., property owner associations have the power to foreclose
on a homestead to collect delinquent assessments.  This joint resolution
would propose a constitutional amendment permitting an encumbrance to be
fixed on homestead property for an obligation to pay certain property
owners' associations fees, but would not allow the forced sale of the
homestead by the property owner associations to collect delinquent
assessments arising from such fees.     

PURPOSE

As proposed, S.J.R. 38 proposes a constitutional amendment permitting an
encumbrance to be fixed on homestead property for an obligation to pay
certain property owners' association fees without permitting the forced
sale of the homestead by the property owners' association to collect
delinquent assessments arising from such fees.  

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 50, Article XVI, Texas Constitution, to provide
that an obligation to pay property owners' association fees for
maintenance and ownership of common facilities and services is a debt for
which an encumbrance may be fixed on homestead property.  Provides that
the homestead is protected from forced sale for the payment of a debt
described by this section.  Makes conforming and nonsubstantive changes. 

SECTION 2. Requires the proposed constitutional amendment to be submitted
to the voters at an election to be held November 4, 1997.  Sets forth the
required ballot language.