HBA-KDB, JLV H.J.R. 48 77(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 48 By: Dutton Financial Institutions 3/16/2001 Introduced BACKGROUND AND PURPOSE Currently, the Texas Constitution prohibits an encumbrance, which is a claim or liability that is attached to a property that may lessen its value, from being fixed on homestead property except for purchase money, taxes on property, work and material used in improvement construction, owelty of partition against the property, and the refinance of a lien against the homestead, including federal tax liens. However, current law does not permit an encumbrance to be fixed for a debt of property owners' association fees. As proposed, House Joint Resolution 48 requires the submission to the voters of a constitutional amendment permitting an encumbrance to be fixed on homestead property for an obligation to pay certain property owners' association fees without permitting the forced sale of the homestead. 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 48 amends the Texas Constitution to provide authorization for an encumbrance to be fixed on a homestead property if there exists a debt of property owners' association fees. The resolution also provides protection for the homestead from forced sale for the payment of property owners' association fees. FOR ELECTION This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2001.