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."