Issue 89.4
“Follow the Money” – All the President’s Men
Director of Regulatory Affairs
To best understand the priorities of Texas leadership, you can listen to the speeches, but even better, follow the money in the proposed budgets. In their January 17th inauguration speeches both Governor Greg Abbott and Lt. Gov. Dan Patrick outlined priorities they would like to accomplish during the current legislative session. The Governor focused on education, border security and reiterated previous promises to deliver the largest property tax cut in the history of Texas. Potential uses for the $32 billion surplus funds include bolstering infrastructure, including roads, water, and improving the power grid. Specific priorities will be detailed in the Governor’s State of the State address SCHEDULED FOR SUNDAY FEBRUARY 5th and his list of Emergency Items. This list of emergency items will be the only bills the Legislature can vote upon prior to March 10th.
This past week those declarations were fully verified by the dollars committed as both the Senate and House filed their bills of proposed budgets for the next two fiscal years. Speaker Burrows described the two proposals as substantially identical, which is rarely the case. Each chamber included $1 billion of public funds for private school choice, vouchers. The Senate plan calls for $10,000 per K-12 student for accredited private school and additional expenses like textbooks. It also provides $2,000 per year for home schooling students. There is no requirement for participants to take annual standardized tests to measure learning effectiveness.
Funding other promises are, approximately $5 billion to increase public teacher pay. An additional $5 billion or doubling of funds provided last session to strengthen the power grid. Water supply and infrastructure funding of $2.5 billion. Continued funding of $6.5 billion on border security and additional funding to hire 567 new State Troopers.
Differences will need to be reconciled across the two proposed budgets over the coming months. The most significant difference may be a carryover argument on how to structure property tax relief. This debate last session led to two called special sessions before a resolution was reached. The current Senate proposal further increases the homestead exemption to $140,000 plus an extra $10,000 for seniors. The House plan sticks with its previous focus on relief through rate compression. It keeps exemptions at the $100,000 level established last session and adds an additional 6.8 cents to the 10.6 cents of rate compression in their previous efforts. Last session’s result was a comprise including both of these approaches.
Weekly Highlight
To read the full text of any of these bills you can go to Texas Legislature Online.
Bills on the Move
None until committee activity begins in March.
New Bills
HB 880 Lalani, Suleman Relating to the reporting of certain information regarding medically necessary debt on a consumer report.
HB 998 Toth, Steve Relating to the authority of an individual, before purchasing real property to be used as the individual’s residence homestead, to request from the chief appraiser.
HB 1849 Hefner, Cole Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities; creating a criminal offense.
HB 2016 Bucy, John Relating to the establishment of the housing Texas fund to be administered by the Texas Department of Housing and Community Affairs.
SB 606 West, Royce Relating to requiring consumer reporting agencies to notify a consumer when inaccurate information in the consumer’s file is corrected. (Identical SB 695)
SB 695 West, Royce Relating to requiring consumer reporting agencies to notify a consumer when inaccurate information in the consumer’s file is corrected. (Identical SB 606)
SB 929 Johnson, Nathan (SB 929 was previously filed in 88th Session as HB 4301 and its companion SB 2113. This bill passed the House, but wasn’t received into the Senate until May 15th and did not receive a hearing) Relating to deadlines and time of inception for mechanic’s and materialman’s liens.
Previously Reported Bills
HB 191 Spiller, David Relating to the purchase of or acquisition of title to real property by certain foreign entities. (Companion HB 1566)
HB 243 Spiller, David (HB 243 was previously filed in 88th Session as HB 3470 but both that bill and its companion SB 1441 were left pending in Committee without a vote.) Relating to the authority of the attorney general to acquire by eminent domain certain real property owned by aliens or foreign entities.
HB 287 Harris Davila, Caroline Relating to an annual study by the Texas A&M University Texas Real Estate Research Center of the purchase and sale of single-family homes by certain institutional buyers.
HB 329 Bell, Cecil (HB 329 was previously filed in 88th Session as HB 5133 it was left pending in Committee without a vote.) Relating to a requirement that an appraisal review board rely on an appraisal of residential real property prepared by an appraiser and submitted to the board by the property owner.
HB 360 Vasut, Cody (HB 360 was previously filed in 88th Session as HB 523 it was left pending in Committee without a hearing.) Relating to the authority of an appraisal review board to direct changes in the appraisal roll and related appraisal records if a residence homestead is sold for less than the appraised value.
HB 402 Cain, Briscoe Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
HB 414 Leo-Wilson, Terri Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companion HB 1076)
HB 518 Leo-Wilson, Terri Relating to the ownership of agricultural land by nonresident aliens or foreign entities.
HB 533 Cortez, Philip Relating to imposing liens for labor and supplies provided by cleaners.
HB 576 Shaheen, Matt (HB 576 was previously filed in 88th Session as HB 2565 it was left pending in Committee without a vote. Its companion SB1568 passed both chambers but was vetoed by the Governor.) Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion SB 372)
HB 733 Bell, Cecil Relating to verification of citizenship or legal residency for purposes of certain contracts for or concerning the purchase of residential real property located in platted subdivisions.
HB 851 Schofield, Mike Relating to the determination and reporting of the number of residence homesteads of certain property owners for which the owner is receiving certain ad valorem tax benefits.
HB 957 Toth, Steve (HB 957 was previously filed in 88th Session as HB 264 passing the House but was not assigned to a committee in the Senate.) Relating to requirements for the physical presence of a borrower for signing certain documents related to a home equity loan.
HB 963 Toth, Steve (HB 963 was previously filed in 88th Session as HB 295 it was left pending in Committee without a vote. It was also filed in the 87th Session as HB 2284) Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
HB 998 Toth, Steve (HB 998 was previously filed in 88th Session as HB 4513 it was left pending in Committee without a vote.) Relating to the authority of an individual, before purchasing real property to be used as the individual’s residence homestead, to request from the chief appraiser.
HB 1043 Bhojani, Salman Relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.
HB 1076 Pierson, Katrina Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants of a dwelling. (Companions HB 414 and SB465)
HB 1104 Cole, Sheryl (HB 1104 was previously filed in 88th Session as HB 1168 it was left pending in Committee without a vote.) Relating to a program to provide housing vouchers to emergency medical services personnel in certain counties.
HB 1129 Lopez, Janie Relating to the eligibility of mental health professionals for the Homes for Texas Heroes home loan program.
HB 1139 Oliverson, Tom Relating to venue in certain actions involving a contract for an improvement to real property.
HB 1243 Guillen, Ryan Relating to the authority of spouses who occupy separate properties as their principal residences to each qualify the property in which they reside as their residence homestead for ad valorem tax purposes.
HB 1566 Patterson, Jared Relating to the purchase of or acquisition of title to real property by certain foreign entities. (Companion HB 191)
HB 1623 Louderback, AJ Relating to the eligibility of certain foreign individuals or entities for a limitation on the taxable value of property for school district maintenance and operations ad valorem tax purposes.
HB 1743 Little, Mitch Relating to the holding or acquisition of an interest in real property by or on behalf of certain foreign individuals or entities.
HB 1753 Manuel, Christian Relating to a court order for the exclusive occupancy of the primary residence or other residential property by a spouse during the pendency of a suit for dissolution of a marriage.
HB 1766 Landgraf, Brooks Relating to a requirement that an appraisal district rely on an appraisal of real property prepared by an appraiser and submitted to the district by the property owner when determining the value of the property.
HJR 40 Swanson, Valoree (HJR 40 was previously filed in 88th Session as HJR 124 it was left pending in Committee without a vote.) Proposing a constitutional amendment to remove the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
HJR 71 Schofield, Mike Proposing a constitutional amendment providing that a residence homestead is not subject to seizure or sale for delinquent ad valorem taxes.
HJR 75 Toth, Steve Proposing a constitutional amendment authorizing the legislature to provide for exceptions to the requirement that a home equity loan be closed only at the office of the lender, an attorney at law, or a title company.
HJR 102 Gervin-Hawkins, Barbara Proposing a constitutional amendment to authorize the legislature to provide for an exemption from ad valorem taxation of the amount of the market value of residential real property.
SB 74 Zaffirini, Judith (SB 74 was previously filed in 88th Session as SB 2426 it was left pending in Committee without a vote.) Relating to an exemption from residential mortgage loan originator licensing requirements.
SB 103 Hall, Bob Relating to prohibiting the purchase of or acquisition of title to real property by and contracts or other agreements with certain aliens or foreign entities.
SB 208 West, Royce Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state.
SB 234 Johnson, Nathan Relating to the establishment of the workforce housing program by the Texas Department of Housing and Community Affairs.
SB 244 Flores, Pete Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
SB 307 Kolkhorst, Lois Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
SB 372 Campbell, Donna (SB372 was previously filed in 88th Session as SB 1568 it passed both chambers but was vetoed by the Governor.) Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property. (Companion HB 576)
SB 443 Hinojosa, Chuy Relating to single-family homes held by corporate owners for rental purposes.
SB 465 Campbell, Donna Relating to the unauthorized entry, occupancy, sale, rental, lease, advertisement for sale, rental, or lease, or conveyance of real property, including the removal of certain unauthorized occupants. (Companion HB 1076)
SB 477 Middleton, Mayes (SB477 was previously filed in 88th Session as SB1065 it was left pending in Committee without a vote.) Relating to the limitation on increases in the appraised value of a residence homestead for ad valorem tax purposes.
SB 534 Kolkhorst, Lois Relating to the statutes of limitations for certain suits to recover real property held by another in adverse possession.
SB 583 West, Royce Relating to lists of public real property suitable for use or to be developed for use as affordable housing by certain municipalities and counties.
SB 647 West, Royce Relating to the filing or recording of documents or instruments conveying or purporting to convey an interest in real or personal property.
SB 648 West, Royce Relating to recording requirements for certain instruments concerning real property.
SB 693 West, Royce Relating to creating a criminal offense for the use of a notary seal or counterfeit seal on a fraudulent document or instrument.
If you have questions about these specific bills or the Texas legislative process in general, please reach out to Doug Foster or one of our firm’s attorneys or representatives at: https://www.mortgagelaw.com/our-team/