1-1     By:  Harris                                            S.B. No. 496
 1-2           (In the Senate - Filed February 12, 1999; February 15, 1999,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     March 15, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 8, Nays 0; March 15, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                            By:  Shapleigh
 1-7     Amend S.B. No. 496 as follows:
 1-8           (1)  Add a new Section 4 to read as follows:
 1-9           "SECTION 4.  Subsection (a), Section 5.042, Property Code, is
1-10     amended to read as follows:
1-11           (a)  The common-law rules known as the rule in Shelley's
1-12     case, the rule forbidding a remainder to the grantor's heirs, [and]
1-13     the doctrine of worthier title, and the doctrine or rule
1-14     prohibiting an existing lien upon part of a homestead from
1-15     extending to another part of the homestead not charged with the
1-16     debts secured by the existing lien upon part of the homestead do
1-17     not apply in this state."
1-18           (2)  In existing SECTION 4 (Introduced version page 2,
1-19     line 7), strike "Section 2 of this Act takes" and substitute
1-20     "Sections 2 and 4 of this Act take"
1-21           (3)  In existing SECTION 5, in the first and second sentences
1-22     of Subsection (a) (Introduced version page 2, lines 9 and 16),
1-23     strike "5 of this Act" and substitute "6 of this Act"
1-24           (4)  Renumber SECTIONS accordingly
1-25     COMMITTEE AMENDMENT NO. 2                                By:  Brown
1-26     Amend S.B. No. 496 as follows:
1-27           (1)  On lines 38 and 39, after the words "an urban home",
1-28     insert the following: "or as both an urban home and a place to
1-29     exercise a calling or business"
1-30                            A BILL TO BE ENTITLED
1-31                                   AN ACT
1-32     relating to increasing the maximum size of an urban homestead to 10
1-33     acres and prescribing permissible uses of rural and urban
1-34     homesteads.
1-35           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-36           SECTION 1.  Subsection (a), Section 41.002, Property Code, is
1-37     amended to read as follows:
1-38           (a)  If used for the purposes of an urban home [or as a place
1-39     to exercise a calling or business in the same urban area], the
1-40     homestead of a family or a single, adult person, not otherwise
1-41     entitled to a homestead, shall consist of not more than 10 acres
1-42     [one acre] of land which may be in one or more contiguous lots,
1-43     together with any improvements thereon.
1-44           SECTION 2.  Subsection (c), Section 41.002, Property Code, is
1-45     amended to read as follows:
1-46           (c)  A homestead is considered to be urban [rural] if, at the
1-47     time the designation is made, the property is:
1-48                 (1)  located within the limits of a municipality or its
1-49     extraterritorial jurisdiction or a platted subdivision; and
1-50                 (2)  served by police protection, paid or volunteer
1-51     fire protection, and at least three of the following services
1-52     provided by a municipality or under contract to a municipality:
1-53                       (A)  electric;
1-54                       (B)  natural gas;
1-55                       (C)  sewer;
1-56                       (D)  storm sewer; and
1-57                       (E)  water [not served by municipal utilities and
1-58     fire and police protection].
1-59           SECTION 3.  Subsection (b), Section 41.005, Property Code, is
1-60     amended to read as follows:
1-61           (b)  If an urban homestead of a family, or an urban homestead
 2-1     of a single adult person not otherwise entitled to a homestead, is
 2-2     part of one or more contiguous lots containing a total of more than
 2-3     10 acres [one acre], the head of the family and, if married, that
 2-4     person's spouse or the single adult person, as applicable, may
 2-5     voluntarily designate not more than 10 acres [one acre] of the
 2-6     property as the homestead.
 2-7           SECTION 4.  Section 2 of this Act takes effect September 1,
 2-8     1999.
 2-9           SECTION 5.  (a)  Sections 1, 3, and 5 of this Act take effect
2-10     January 1, 2000, but only if the constitutional amendment proposed
2-11     by the 76th Legislature, Regular Session, 1999, relating to
2-12     increasing the maximum size of an urban homestead to 10 acres,
2-13     prescribing permissible uses of urban homesteads, and preventing
2-14     the overburdening of a homestead, is approved by the voters.  If
2-15     the proposed constitutional amendment is not approved by the
2-16     voters, Sections 1, 3, and 5 of this Act have no effect.
2-17           (b)  The change in law made by Sections 1 and 3 of this Act
2-18     applies to execution under a writ of execution issued on or after
2-19     January 1, 2000.  Execution under a writ of execution issued before
2-20     January 1, 2000, is governed by the law in effect on the date the
2-21     writ of execution was issued, and the prior law is continued in
2-22     effect for that purpose.
2-23           (c)  The change in law made by Sections 1 and 3 of this Act
2-24     does not affect the validity of a voluntary or involuntary lien on
2-25     real property that was acquired before January 1, 2000.  A
2-26     voluntary or involuntary lien on real property that was acquired
2-27     before January 1, 2000, is governed by the law in effect on the
2-28     date that the lien was acquired, and the prior law is continued in
2-29     effect for that purpose.
2-30           (d)  The change in law made by Sections 1 and 3 of this Act
2-31     does not affect the exemption from seizure of the sale proceeds of
2-32     a homestead under Subsection (c), Section 41.001, Property Code, on
2-33     real property that was sold before January 1, 2000.  The exemption
2-34     from seizure of the sale proceeds of a homestead on real property
2-35     that was sold before January 1, 2000, is governed by the law in
2-36     effect on the date that the property was sold, and the prior law is
2-37     continued in effect for that purpose.
2-38           SECTION 6.  The importance of this legislation and the
2-39     crowded condition of the calendars in both houses create an
2-40     emergency and an imperative public necessity that the
2-41     constitutional rule requiring bills to be read on three several
2-42     days in each house be suspended, and this rule is hereby suspended.
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