1-1                                   AN ACT
 1-2     relating to encumbrances that may be fixed on homestead property.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 41.001(b), Property Code, is amended to
 1-5     read as follows:
 1-6           (b)  Encumbrances may be properly fixed on homestead property
 1-7     for:
 1-8                 (1)  purchase money;
 1-9                 (2)  taxes on the property;
1-10                 (3)  work and material used in constructing
1-11     improvements on the property if contracted for in writing as
1-12     provided by Sections 53.254(a), (b), and (c);
1-13                 (4)  an owelty of partition imposed against the
1-14     entirety of the property by a court order or by a written agreement
1-15     of the parties to the partition, including a debt of one spouse in
1-16     favor of the other spouse resulting from a division or an award of
1-17     a family homestead in a divorce proceeding; [or]
1-18                 (5)  the refinance of a lien against a homestead,
1-19     including a federal tax lien resulting from the tax debt of both
1-20     spouses, if the homestead is a family homestead, or from the tax
1-21     debt of the owner;
1-22                 (6)  an extension of credit that meets the requirements
1-23     of Section 50(a)(6), Article XVI, Texas Constitution; or
1-24                 (7)  a reverse mortgage that meets the requirements of
 2-1     Sections 50(k)-(p), Article XVI, Texas Constitution.
 2-2           SECTION 2. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1995 was passed by the House on April
         27, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1995 was passed by the Senate on May
         17, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor