By Chisum H.J.R. No. 67 A JOINT RESOLUTION 1-1 proposing a constitutional amendment to extend residence homestead 1-2 ad valorem tax exemptions and protection from forced sale to a 1-3 homestead owned by a family-owned business. 1-4 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 1-b, Article VIII, Texas Constitution, is 1-6 amended by adding Subsection (h) to read as follows: 1-7 (h) The residence of a person that is owned by a 1-8 family-owned business, as defined by general law, in which the 1-9 person owns an interest is considered the person's residence 1-10 homestead for purposes of an exemption under this section, a tax 1-11 limitation under Subsection (d) of this section, or a limitation on 1-12 appraisal increases authorized by Section 1(i) of this article if 1-13 the person otherwise qualifies for the exemption or limitation. 1-14 The eligibility of the residence homestead of a person or the 1-15 person's spouse or surviving spouse for an exemption under this 1-16 section, a tax limitation under Subsection (d) of this section, or 1-17 a limitation on appraisal increases authorized by Section 1(i) of 1-18 this article is not affected by a conveyance of the residence by 1-19 the owner to a family-owned business, as defined by general law, in 1-20 which the owner owns an interest. 1-21 SECTION 2. Section 51, Article XVI, Texas Constitution, is 1-22 amended to read as follows: 1-23 Sec. 51. (a) For purposes of this section and Section 50 of 1-24 this article, the homestead of a family or single adult person may 2-1 consist of property described by this section that is owned by a 2-2 family-owned business, as defined by general law, in which a member 2-3 of the family or the single adult person owns an interest. The 2-4 homestead rights of the family or single adult person are subject 2-5 and subordinate to the rights of creditors of and purchasers of 2-6 property from the family-owned business and do not affect the 2-7 validity or enforceability of any conveyance, mortgage, or 2-8 encumbrance of the property by the family-owned business. 2-9 (b) The homestead, not in a town or city, shall consist of 2-10 not more than two hundred acres of land, which may be in one or 2-11 more parcels, with the improvements thereon; the homestead in a 2-12 city, town or village, shall consist of a lot or contiguous lots 2-13 amounting to not more than 10 acres of land, together with any 2-14 improvements on the land; provided, that the homestead in a city, 2-15 town or village shall be used for the purposes of a home, or as 2-16 both an urban home and a place to exercise a calling or business, 2-17 of the homestead claimant, whether a single adult person, or the 2-18 head of a family; provided also, that any temporary renting of the 2-19 homestead shall not change the character of the same, when no other 2-20 homestead has been acquired; provided further if the homestead 2-21 claimant conveys the homestead to a family-owned business, as 2-22 defined by general law, in which the homestead claimant owns an 2-23 interest, the homestead claimant may continue to claim homestead 2-24 rights in the homestead, subject to the provisions of Subsection 2-25 (a) of this section; provided further that a release or refinance 2-26 of an existing lien against a homestead as to a part of the 2-27 homestead does not create an additional burden on the part of the 3-1 homestead property that is unreleased or subject to the refinance, 3-2 and a new lien is not invalid only for that reason. 3-3 SECTION 3. The following temporary provision is added to the 3-4 Texas Constitution: 3-5 TEMPORARY PROVISION. (a) This temporary provision applies to 3-6 the constitutional amendment proposed by H.J.R. No. 67, 77th 3-7 Legislature, Regular Session, 2001, and expires January 1, 2004. 3-8 (b) The amendment takes effect January 1, 2002. 3-9 SECTION 4. This proposed constitutional amendment shall be 3-10 submitted to the voters at an election to be held November 6, 2001. 3-11 The ballot shall be printed to permit voting for or against the 3-12 proposition: "The constitutional amendment to extend residence 3-13 homestead ad valorem tax exemptions and protection from forced sale 3-14 to a homestead owned by a family-owned business."