AN ACT
 1-1     relating to use of homestead property to secure debts of decedents'
 1-2     estates.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 270, Texas Probate Code, is amended to
 1-5     read as follows:
 1-6           Sec. 270.  LIABILITY OF HOMESTEAD FOR DEBTS.  The homestead
 1-7     shall not be liable for the payment of any of the debts of the
 1-8     estate, except for:
 1-9                 (1)  the purchase money thereof;
1-10                 (2)  [,] the taxes due thereon;
1-11                 (3)  [, or] work and material used in constructing
1-12     improvements thereon if the requirements of Section 50(a)(5),
1-13     Article XVI, Texas Constitution, are met;
1-14                 (4)  an owelty of partition imposed against the
1-15     entirety of the property by court order or by a written agreement
1-16     of the parties to the partition, including a debt of one spouse in
1-17     favor of the other spouse resulting from a division or an award of
1-18     a family homestead in a divorce proceeding;
1-19                 (5)  the refinance of a lien against a homestead,
1-20     including a federal tax lien resulting from the tax debt of both
1-21     spouses, if the homestead is a family homestead, or from the tax
1-22     debt of the decedent;
1-23                 (6)  an extension of credit on the homestead if the
1-24     requirements of Section 50(a)(6), Article XVI, Texas Constitution,
 2-1     are met; or
 2-2                 (7)  a reverse mortgage [and in this last case only
 2-3     when the work and material are contracted for in writing, with the
 2-4     consent of both spouses given in the same manner as required in
 2-5     making a sale and conveyance of the homestead].
 2-6           SECTION 2.  The changes in law made by this Act apply only to
 2-7     the estate of a person who dies on or after the effective date of
 2-8     this Act.  An estate of a person who dies before the effective date
 2-9     of this Act is governed by the law in effect on the date of the
2-10     person's death, and the former law is continued in effect for that
2-11     purpose.
2-12           SECTION 3.  This Act takes effect September 1, 1999.
2-13           SECTION 4.  The importance of this legislation and the
2-14     crowded condition of the calendars in both houses create an
2-15     emergency and an imperative public necessity that the
2-16     constitutional rule requiring bills to be read on three several
2-17     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. 1553 passed the Senate on
         April 8, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1553 passed the House on
         May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor