Early voting starts on Monday

Seven propositions on state-wide ballot

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Early voting for a state-wide ballot which has seven proposed amendments to the Texas Constitution that would change state law begins Monday. Election Day is Nov. 7.
Proposition 1: Homestead exemption for partially donated homes of disabled veterans:
HB 150 would expand tax laws to extend partially disabled veterans a partial property tax exemption for a homestead that was donated at some cost to the veteran, as long as the veteran’s cost was no more than 50 percent of the estimated market value of the home. The veteran would be entitled to an exemption from taxation on a percentage of the market value of the home equal to the veteran’s disability rating.
According to the House Research Organization's Focus Report for the Texas House of Representatives, supporters feel Prop. 1 would clarify the intent of existing law and provide the same well-earned property tax exemption to a greater number of partially disabled veterans who receive donated homes.
The focus report conversely states opponents of Prop. 1 feel the amendment would continue a pattern of giving tax exemptions to specialized groups, when instead the Legislature should focus its efforts on reducing the aggregate property tax burden. Exempting a specific category of people, regardless of how deserving they may be, erodes the tax base and results in an increased tax burden on other homeowners.
Proposition 2: Revising home equity loan provisions
According to the focus report the proposed amendment would lower the cap on fees charged to borrowers and revise the type of fees that count toward the cap. The cap would be lowered from three percent to two percent of the principal of the loan. The proposition also would allow home equity loans to be refinanced as non-home equity loans and secured with a lien against a home if certain conditions were met. The lender would be required to give the owner a written notice, prescribed in the Constitution, within three business days of a loan application being submitted and at least 12 days before the loan was closed. The notice would specify differences between home equity and non-home equity loans. The proposition would also repeal a current restriction on home equity lines of credit that prohibits additional advances on a loan from being made if the principal amount outstanding exceeds 50 percent of the home’s fair market value. The proposed amendment also would repeal a prohibition on home equity loans for homesteads designated for agricultural use.
The report states supporters have said Prop. 2 would adjust the state’s home equity lending framework to help make loans more accessible, lower costs for borrowers, and give consumers more choice; Prop. 2 would balance consumer protection with an appropriate standard for lenders by lowering the ceiling on fees that may be charged while removing certain fees from the calculation of the cap; Prop. 2 would establish reasonable parameters on such refinances, including retaining the requirement for home equity loans that the total amount secured by the homestead could not exceed 80 percent of the home’s value; Prop. 2 would repeal an unnecessary restriction on home equity lines of credit that has resulted in consumers being unable to access funds for which they were approved. In such instances, owners must repay funds in order to access the remaining line of credit; and, Prop. 2 also would grant the owners of agricultural homesteads the same choice as other Texans by allowing them to take out home equity loans on their agricultural homesteads.
Opponents are reported to have said Prop. 2 could raise costs for borrowers and roll back important consumer protections; Prop. 2 would lower the overall cap, it also would exclude major charges from the cap calculation.
Proposition 3: Limiting terms for certain appointees of the governor
The governor makes certain appointments to state boards, commissions, and councils that carry out the laws and direct the policies of state government. The governor also names members of task forces that advise the governor or executive agencies on specific issues and policies. Many appointments are volunteer positions, but such appointees may be entitled to travel and per diem expenses to attend meetings and conduct official business.
According to the governor’s office, members of most boards and commissions serve six-year, staggered terms, with one-third of the terms expiring every two years and most terms expiring in odd-numbered years. The appointment process for most boards and commissions requires Senate confirmation of the nominee. The Senate may consider confirmations during regular or special legislative sessions.
The report concludes that supporters of the proposition feel Prop. 3 would address concerns about some gubernatorial appointees being held over in their positions long after their terms have expired; The proposed amendment also would help ensure that the Texas Senate had adequate time to consider and confirm nominees during regular legislative sessions; and, the wording of the proposal would provide sufficient time for the governor’s office to nominate replacements.
Opponents are reported to have said Prop. 3 could result in important appointed offices remaining vacant if a successor had not been duly qualified within the time limits specified by the proposed amendment.
Proposition 4: Court notice to attorney general of constitutional challenge to state laws
Proposition 4 would amend the Texas Constitution authorizing the Legislature to require courts to notify the attorney general when a party to litigation filed a petition, motion, or other pleading challenging the constitutionality of a state statute if the party notified the court of the challenge. The proposition also would authorize the Legislature to establish a period of up to 45 days after a court gave the required notice during which the court could not enter a judgment holding the statute unconstitutional.
Supporters are reported to have said Prop. 4 would ensure that the state has an opportunity to defend Texas laws from constitutional challenges; Prop. 4 would amend the Constitution to make it clear that the Legislature may require courts to provide notice of a constitutional challenge and may establish a reasonable period for the attorney general to respond after receiving such notice; Prop. 4 would protect the prerogative of the Legislature to pass laws on behalf of Texans and to have those laws maintained; Without Prop. 4, laws enacted by the Legislature could be struck down without the state having a chance to defend them; Prop. 4 would be in line with a similar rule relating to federal law and would not deny anyone relief in state courts. Prop. 4 simply would provide the attorney general’s office with information so it could decide whether to take action to defend a state law.
Opponents are reported to have said The Texas Constitution should not be amended to undermine the state’s separation of powers doctrine, which ensures that each branch of government may exercise its powers without interference from the others; The Legislature should not be authorized to enact laws that might erode the doctrine by establishing a period during which a court may not exercise its power. The Legislature should not be able to establish procedures that could intrude on the workings of the judiciary and potentially delay relief for those challenging a law as unconstitutional; and, the proposed constitutional amendment could create confusion about the attorney general’s role in criminal cases.
Proposition 5: Amending eligibility requirements for sports team charitable raffles
Texas Constitution requires the Legislature to prohibit lotteries and gift enterprises in the state, with certain exceptions such as the state lottery, charitable bingo games, and charitable raffles conducted by various nonprofit or religious organizations.
Proposition 5 would amend Art. 3, sec. 47(d-1) to expand the number of professional sports team charitable foundations eligible to conduct charitable raffles.
HB 975 has defined a “professional sports team” as a team organized in Texas that is a member of Major League Baseball, the National Basketball Association, the National Hockey League, the National Football League, or Major League Soccer.
Supporters say Prop. 5 would expand the number of professional sports team charitable foundations eligible to hold charitable raffles at home sports games; The prop., along with HB 3125, its enabling legislation, would work together to allow the charitable foundations of a greater number of professional leagues and their teams to hold charitable raffles for cash prizes at each of their team’s home games; Prop. 5 would add sports teams and competitions that represent more rural and suburban communities, bringing charitable revenue to new and different parts of the state and uniting sports teams and their communities to help disadvantaged Texans; Prop. 5 would expand gambling in Texas by increasing the number of sports team foundations that could conduct such raffles, which could prompt other groups to request the authority to offer them.
Opponents say the state should be cautious about expanding the number of participants allowed to conduct charitable raffles. Prop. 5 would expand gambling in Texas by increasing the number of sports team foundations that could conduct such raffles, which could prompt other groups to request the authority to offer them.
Proposition 6: Homestead exemption for surviving spouses of certain first responders
Prop. 6 would amend Texas Constitution, Art. 8, sec. 1-b to allow the Legislature to give a partial or total homestead exemption to the surviving spouse of a first responder who was killed or fatally injured in the line of duty, provided that the spouse had not remarried since the first responder’s death. If the surviving spouse moved to a new homestead after receiving an exemption, the Legislature could entitle the spouse to an exemption on the new homestead equal to the dollar amount of the exemption for the previous homestead in the last year in which it was received.
Supporters have said Prop. 6 would allow the Legislature to provide valuable tax relief to the families of first responders killed in the line of duty by extending to their surviving spouses the same well-deserved property tax exemption currently given to surviving spouses of service members killed in action.
Opponents have said Prop. 6 would continue a pattern of giving tax exemptions to specialized groups, when instead the Legislature should focus its efforts on reducing the aggregate property tax burden. Exempting a specific category of people, regardless of how deserving they may be, erodes the tax base and results in an increased tax burden on other homeowners.
Proposition 7: Authorizing Legislature to allow banks to hold raffles promoting savings
Texas Constitution, Art. 3, sec. 47 requires the Legislature to prohibit lotteries and gift enterprises in the state, with certain exceptions, including the state lottery, charitable bingo games, and charitable raffles conducted by various nonprofit or religious organizations.
Prop. 7 would amend Art. 3, sec. 47 of the Texas Constitution to allow the Legislature to permit credit unions and other financial institutions to conduct promotional activities to encourage savings. Prizes could be awarded to one or more of the institution’s depositors selected by lot.
Supporters have said Prop. 7 would authorize the Legislature to allow banks and credit unions to host savings promotion raffles, also known as prize-linked savings accounts (PLSAs), which offer incentives to save rather than spend or gamble away earnings; Prop. 7 is nonetheless necessary and would head off any constitutional questions
Opponents say Prop. 7 would be a carve-out for one industry to conduct a raffle, which would be the only non-charitable raffle allowed in the state and the state should consider the equity of allowing a single industry to conduct such raffles.
Other opponents say Prop. 7 is unnecessary because the Texas Constitution requires the prohibition of lotteries, which involve some form of payment or consideration to enter; and, Prop. 7 would have no functional effect.
Constitutional amendments take effect when the official vote canvass confirms statewide majority approval, unless a later date is specified. Statewide election results are tabulated by the secretary of state and must be canvassed by the governor 15 to 30 days following the election.

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