HBA-JLV H.B. 1995 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1995 By: Marchant Financial Institutions 6/14/2001 Enrolled BACKGROUND AND PURPOSE Current law provides that encumbrances may be properly fixed on homestead property for purchase money, taxes on property, work and material used in constructing improvements on the property, an owelty of partition imposed against the property, and for the refinance of a lien against a homestead. However, the Texas Constitution also provides additional conditions under which an encumbrance may be properly fixed on homestead property or an extension of credit constituting a reverse mortgage. House Bill 1995 provides that an encumbrance may be properly fixed on homestead property for an extension of credit that meets the requirements of the Texas Constitution or a reverse mortgage that meets the requirements of the Texas Constitution. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1995 amends the Property Code to provide that an encumbrance may be properly fixed on homestead property for an extension of credit that meets the requirements of the Texas Constitution or a reverse mortgage that meets the requirements of the Texas Constitution. EFFECTIVE DATE September 1, 2001.