Texas Residential Homestead Liens, Proposition 16 (2001)

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The Texas Residential Homestead Liens Amendment, also known as Proposition 16, was on the November 6, 2001 ballot in Texas as a legislatively-referred constitutional amendment, where it was approved. The measure prescribed requirements for imposing a lien for work and material used in the construction, repair or renovation of a residential homestead property.[1][2]

Election results

Texas Proposition 16 (2001)
ResultVotesPercentage
Approveda Yes 453,021 58.72%
No318,51741.28%

Election results via: Legislative Reference Library of Texas

Text of measure

Ballot title

The ballot title voters saw on their ballot read as:[3]

The constitutional amendment prescribing requirements for imposing a lien for work and material used in the construction, repair, or renovation of improvements on residential homestead property and including the conversion and refinance of a personal property lien secured by a manufactured home to a lien on real property as a debt on homestead property protected from a forced sale.

[4]

Full text

The full text of the measure can be read here.

Constitutional changes

Proposition 16 amended Section 50 of Article 16 of the Texas Constitution.

Ballot summary

The state government provided an explanation of Proposition 16 which read as follows:[3]

Section 50, Article XVI, Texas Constitution, currently enumerates

seven types of debt for which a residential homestead may be subject to a forced sale. One type of debt includes the construction of improvements on homestead property. One of the requirements for imposing a lien for work and material used in the construction, repair, or renovation of improvements on residential homestead property prohibits the owner or the owner’s spouse from executing a contract for the work and materials for 12 days after the owner makes a written application for any extension of credit for the work or materials. The proposed amendment would decrease this waiting period to five days.

In addition, the proposed amendment would permit a personal property lien secured by a manufactured home to be refinanced and converted to a real property lien if the manufactured home is affixed to that real property, and would permit the owner to designate the property as homestead property protected from a forced sale under Section 50, Article XVI, Texas Constitution. Further, the proposed amendment would add an eighth type of debt for which a homestead may be subject to a forced sale: the debt resulting from the refinance and conversion of the personal property lien secured by the manufactured home to a lien on real property.

In 1999, the Texas Legislature enacted Section 62.003, Property Code, as added by Section 1, Chapter 742, Acts of the 76th Legislature, Regular Session, providing for the conversion of a personal property manufactured home lien to a purchase money lien on real property by operation of law. The intent of the legislature was to provide the homestead protection under Section 50, Article XVI, Texas Constitution, by statute. On March 27, 2001, Texas Attorney General John Cornyn in Opinion No. JC-0357 ruled that “Section 62.003 of the Property Code, which converts a personal property lien on a manufactured home to a purchase money lien on real property when the manufactured home is converted to real property, does not create a valid purchase money lien on homestead property under article XVI, section 50 of the Texas Constitution.” This portion of the proposed amendment was adopted in direct response to the concerns expressed in that attorney general opinion. [4]

Path to the ballot

See also: Laws governing direct democracy in Texas

As laid out in Article 17 of the Texas Constitution, in order for a proposed constitutional amendment to be placed on the ballot, the Texas State Legislature must propose the amendment in a joint resolution of both the Texas State Senate and the Texas House of Representatives. The joint resolution can originate in either the House or the Senate. The resolution must be adopted by a vote of at least two-thirds of the membership of each house of the legislature. That amounts to a minimum of 100 votes in the House of Representatives and 21 votes in the Senate.

See also

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External links

References


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