By: Harris S.B. No. 496
A BILL TO BE ENTITLED
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. Subsection (a), Section 5.042, Property Code, is
2-15 amended to read as follows:
2-16 (a) The common-law rules known as the rule in Shelley's
2-17 case, the rule forbidding a remainder to the grantor's heirs, [and]
2-18 the doctrine of worthier title, and the doctrine or rule
2-19 prohibiting an existing lien upon part of a homestead from
2-20 extending to another part of the homestead not charged with the
2-21 debts secured by the existing lien upon part of the homestead do
2-22 not apply in this state.
2-23 SECTION 5. Sections 2 and 4 of this Act take effect
2-24 September 1, 1999.
2-25 SECTION 6. (a) Sections 1, 3, and 6 of this Act take effect
2-26 January 1, 2000, but only if the constitutional amendment proposed
3-1 by the 76th Legislature, Regular Session, 1999, relating to
3-2 increasing the maximum size of an urban homestead to 10 acres,
3-3 prescribing permissible uses of urban homesteads, and preventing
3-4 the overburdening of a homestead, is approved by the voters. If
3-5 the proposed constitutional amendment is not approved by the
3-6 voters, Sections 1, 3, and 6 of this Act have no effect.
3-7 (b) The change in law made by Sections 1 and 3 of this Act
3-8 applies to execution under a writ of execution issued on or after
3-9 January 1, 2000. Execution under a writ of execution issued before
3-10 January 1, 2000, is governed by the law in effect on the date the
3-11 writ of execution was issued, and the prior law is continued in
3-12 effect for that purpose.
3-13 (c) The change in law made by Sections 1 and 3 of this Act
3-14 does not affect the validity of a voluntary or involuntary lien on
3-15 real property that was acquired before January 1, 2000. A
3-16 voluntary or involuntary lien on real property that was acquired
3-17 before January 1, 2000, is governed by the law in effect on the
3-18 date that the lien was acquired, and the prior law is continued in
3-19 effect for that purpose.
3-20 (d) The change in law made by Sections 1 and 3 of this Act
3-21 does not affect the exemption from seizure of the sale proceeds of
3-22 a homestead under Subsection (c), Section 41.001, Property Code, on
3-23 real property that was sold before January 1, 2000. The exemption
3-24 from seizure of the sale proceeds of a homestead on real property
3-25 that was sold before January 1, 2000, is governed by the law in
3-26 effect on the date that the property was sold, and the prior law is
4-1 continued in effect for that purpose.
4-2 SECTION 7. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended.