By Harris                                              S.B. No. 496
         76R5515 MLS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to increasing the maximum size of an urban homestead to 10
 1-3     acres and prescribing permissible uses of rural and urban
 1-4     homesteads.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 41.002(a), Property Code, is amended to
 1-7     read as follows:
 1-8           (a)  If used for the purposes of an urban home [or as a place
 1-9     to exercise a calling or business in the same urban area], the
1-10     homestead of a family or a single, adult person, not otherwise
1-11     entitled to a homestead, shall consist of not more than 10 acres
1-12     [one acre] of land which may be in one or more contiguous lots,
1-13     together with any improvements thereon.
1-14           SECTION 2.  Section 41.002(c), Property Code, is amended to
1-15     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.  Section 41.005(b), Property Code, is amended to
 2-6     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.  Section 2 of this Act takes effect September 1,
2-15     1999.
2-16           SECTION 5.  (a)  Sections 1, 3, and 5 of this Act take effect
2-17     January 1, 2000, but only if the constitutional amendment proposed
2-18     by the 76th Legislature, Regular Session, 1999, relating to
2-19     increasing the maximum size of an urban homestead to 10 acres,
2-20     prescribing permissible uses of urban homesteads, and preventing
2-21     the overburdening of a homestead, is approved by the voters.  If
2-22     the proposed constitutional amendment is not approved by the
2-23     voters, Sections 1, 3, and 5 of this Act have no effect.
2-24           (b)  The change in law made by Sections 1 and 3 of this Act
2-25     applies to execution under a writ of execution issued on or after
2-26     January 1, 2000.  Execution under a writ of execution issued before
2-27     January 1, 2000, is governed by the law in effect on the date the
 3-1     writ of execution was issued, and the prior law is continued in
 3-2     effect for that purpose.
 3-3           (c)  The change in law made by Sections 1 and 3 of this Act
 3-4     does not affect the validity of a voluntary or involuntary lien on
 3-5     real property that was acquired before January 1, 2000.  A
 3-6     voluntary or involuntary lien on real property that was acquired
 3-7     before January 1, 2000, is governed by the law in effect on the
 3-8     date that the lien was acquired, and the prior law is continued in
 3-9     effect for that purpose.
3-10           (d)  The change in law made by Sections 1 and 3 of this Act
3-11     does not affect the exemption from seizure of the sale proceeds of
3-12     a homestead under Section 41.001(c), Property Code, on real
3-13     property that was sold before January 1, 2000.  The exemption from
3-14     seizure of the sale proceeds of a homestead on real property that
3-15     was sold before January 1, 2000, is governed by the law in effect
3-16     on the date that the property was sold, and the prior law is
3-17     continued in effect for that purpose.
3-18           SECTION 6.  The importance of this legislation and the
3-19     crowded condition of the calendars in both houses create an
3-20     emergency and an imperative public necessity that the
3-21     constitutional rule requiring bills to be read on three several
3-22     days in each house be suspended, and this rule is hereby suspended.