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