HBA-CCH H.J.R. 5 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 5
By: Solomons
Business & Industry
3/9/2001
Introduced



BACKGROUND AND PURPOSE 

The Texas Constitution currently provides that homesteads are protected
from forced sale for the payment of all debts, except in certain
situations.  One exception is for work and material used in constructing
new improvements thereon, if contracted for in writing, or work and
material used to repair or renovate existing improvements if the contract
for the work and material is not executed with a specified time after the
owner makes an application for any extension of credit for work and
material.  Current law provides that the specified time is 12 days.  Many
home improvement contractors contend that the waiting period is too long,
since the extension of credit may be approved sooner, and current law also
requires that the contract be signed in the office of a lawyer, title
company, or lender.  As proposed, House Joint Resolution 5 requires the
submission to the voters of a constitutional amendment to shorten the
waiting period to five days.    

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Joint Resolution 5 amends the Texas Constitution to shorten, from
twelve days to five days, for a contract for work and material used in
constructing new improvements to be executed after filing a written
application for credit extension for work and material. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to voters at an
election to be held on November 6, 2001.