SRC-AXB C.S.S.J.R. 15 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.J.R. 15
76R5229  DWS-FBy: Harris
State Affairs
2/11/1999
Committee Report (Substituted)


DIGEST 

Currently, Texas law provides three ways for the spouse of an incapacitated
person to sign transactions for the incapacitated spouse.  However,
language in transactions involving home equity loans refers only to the
required consent of a spouse.  This causes lenders to believe that normal
consent does not apply to home equity loans.  This bill would legitimize
the giving of consent by an incapacitated spouse regarding transactions in
connection with a homestead. 

PURPOSE

As proposed, C.S.S.J.R. 15 requires the submission to the voters of a
constitutional amendment to make an incapacitated person's choice to extend
credit secured by a homestead bound by laws of the Texas Constitution. 

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, by adding
Subsection (t) to authorize the consent or execution of a lien, contract,
or other instrument by the owner of a homestead, or that owner's spouse, if
the owner or spouse is considered or presumed incapacitated, and a third
party may rely on the consent or execution.  Provides that this subsection
does not impair the homestead owners' ability to execute a power of
attorney in connection with the consent or other instrument relating to the
homestead. 

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters on November 2, 1999.  Sets forth the required language for
the ballot. 

SUMMARY OF COMMITTEE CHANGES

Relating Clause.

Amends the relating clause to clarify that this joint resolution relates to
transactions by an incapacitated person in connection with a homestead,
rather than transactions in connection with an encumbrance on a homestead
by an incapacitated person. 

SECTION 1.

Amends Section 50(t), Article XVI, Texas Constitution, to include a lien or
other instrument as transactions an incapacitated person would participate
in, which require legal consent. Authorizes a third party to rely on the
consent or execution of a transaction by an incapacitated person, and adds
text establishing that Subsection (t) does not impair the homesteaders'
ability to execute a power of attorney as provided by law. 

SECTION 2.

 Changes the required language for the ballot to be submitted to voters on
November 2, 1999.