AN ACT
 1-1     relating to increasing the maximum size of an urban homestead to 10
 1-2     acres, prescribing permissible uses of rural and urban homesteads,
 1-3     and permitting an existing lien upon part of a homestead to extend
 1-4     to another part of the homestead.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subsection (a), Section 41.002, Property Code, is
 1-7     amended to read as follows:
 1-8           (a)  If used for the purposes of an urban home or as both an
 1-9     urban home and a place to exercise a calling or business [in the
1-10     same urban area], the homestead of a family or a single, adult
1-11     person, not otherwise entitled to a homestead, shall consist of not
1-12     more than 10 acres [one acre] of land which may be in one or more
1-13     contiguous lots, together with any improvements thereon.
1-14           SECTION 2.  Subsection (c), Section 41.002, Property Code, is
1-15     amended to read as follows:
1-16           (c)  A homestead is considered to be urban [rural] if, at the
1-17     time the designation is made, the property is:
1-18                 (1)  located within the limits of a municipality or its
1-19     extraterritorial jurisdiction or a platted subdivision; and
1-20                 (2)  served by police protection, paid or volunteer
1-21     fire protection, and at least three of the following services
1-22     provided by a municipality or under contract to a municipality:
1-23                       (A)  electric;
1-24                       (B)  natural gas;
 2-1                       (C)  sewer;
 2-2                       (D)  storm sewer; and
 2-3                       (E)  water [not served by municipal utilities and
 2-4     fire and police protection].
 2-5           SECTION 3.  Subsection (b), Section 41.005, Property Code, is
 2-6     amended to read as follows:
 2-7           (b)  If an urban homestead of a family, or an urban homestead
 2-8     of a single adult person not otherwise entitled to a homestead, is
 2-9     part of one or more contiguous lots containing a total of more than
2-10     10 acres [one acre], the head of the family and, if married, that
2-11     person's spouse or the single adult person, as applicable, may
2-12     voluntarily designate not more than 10 acres [one acre] of the
2-13     property as the homestead.
2-14           SECTION 4.  Subchapter A, Chapter 41, Property Code, is
2-15     amended by adding Section 41.008 to read as follows:
2-16           Sec. 41.008.  CONFLICT WITH FEDERAL LAW.  To the extent of
2-17     any conflict between this subchapter and any federal law that
2-18     imposes an upper limit on the amount, including the monetary amount
2-19     or acreage amount, of homestead property a person may exempt from
2-20     seizure, this subchapter prevails to the extent allowed under
2-21     federal law.
2-22           SECTION 5.  Subsection (a), Section 5.042, Property Code, is
2-23     amended to read as follows:
2-24           (a)  The common-law rules known as the rule in Shelley's
2-25     case, the rule forbidding a remainder to the grantor's heirs, [and]
2-26     the doctrine of worthier title, and the doctrine or rule
 3-1     prohibiting an existing lien upon part of a homestead from
 3-2     extending to another part of the homestead not charged with the
 3-3     debts secured by the existing lien upon part of the homestead do
 3-4     not apply in this state.
 3-5           SECTION 6.  Sections 2 and 5 of this Act take effect
 3-6     September 1, 1999.
 3-7           SECTION 7.  (a)  Sections 1, 3, and 7 of this Act take effect
 3-8     January 1, 2000, but only if the constitutional amendment proposed
 3-9     by the 76th Legislature, Regular Session, 1999, relating to
3-10     increasing the maximum size of an urban homestead to 10 acres,
3-11     prescribing permissible uses of urban homesteads, and preventing
3-12     the overburdening of a homestead, is approved by the voters.  If
3-13     the proposed constitutional amendment is not approved by the
3-14     voters, Sections 1, 3, 4, and 7 of this Act have no effect.
3-15           (b)  The change in law made by Sections 1 and 3 of this Act
3-16     applies to execution under a writ of execution issued on or after
3-17     January 1, 2000.  Execution under a writ of execution issued before
3-18     January 1, 2000, is governed by the law in effect on the date the
3-19     writ of execution was issued, and the prior law is continued in
3-20     effect for that purpose.
3-21           (c)  The change in law made by Sections 1 and 3 of this Act
3-22     does not affect the validity of a voluntary or involuntary lien on
3-23     real property that was acquired before January 1, 2000.  A
3-24     voluntary or involuntary lien on real property that was acquired
3-25     before January 1, 2000, is governed by the law in effect on the
3-26     date that the lien was acquired, and the prior law is continued in
 4-1     effect for that purpose.
 4-2           (d)  The change in law made by Sections 1 and 3 of this Act
 4-3     does not affect the exemption from seizure of the sale proceeds of
 4-4     a homestead under Subsection (c), Section 41.001, Property Code, on
 4-5     real property that was sold before January 1, 2000.  The exemption
 4-6     from seizure of the sale proceeds of a homestead on real property
 4-7     that was sold before January 1, 2000, is governed by the law in
 4-8     effect on the date that the property was sold, and the prior law is
 4-9     continued in effect for that purpose.
4-10           SECTION 8.  The importance of this legislation and the
4-11     crowded condition of the calendars in both houses create an
4-12     emergency and an imperative public necessity that the
4-13     constitutional rule requiring bills to be read on three several
4-14     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 496 passed the Senate on
         March 18, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 28, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 496 passed the House, with
         amendment, on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor