* lisp/hl-line.el (hl-line-make-overlay): New fun. Set priority.

(hl-line-highlight, global-hl-line-highlight): Use it.
(hl-line-overlay): Use defvar-local.

Fixes: debbugs:16192

lisp/ChangeLog

+2013-12-19  Stefan Monnier  <monnier@iro.umontreal.ca>
+
+	* hl-line.el (hl-line-make-overlay): New fun.  Set priority (bug#16192).
+	(hl-line-highlight, global-hl-line-highlight): Use it.
+	(hl-line-overlay): Use defvar-local.
+
 2013-12-19  Jan Djärv  <jan.h.d@swipnet.se>
 
 	* term/ns-win.el: Require dnd.
 	(global-map): Remove drag items.
 	(ns-insert-text, ns-set-foreground-at-mouse)
-	(ns-set-background-at-mouse): Remove
-	(ns-drag-n-drop, ns-drag-n-drop-other-frame)
-	(ns-drag-n-drop-as-text, ns-drag-n-drop-as-text-other-frame): New
-	functions.
+	(ns-set-background-at-mouse):
+	Remove (ns-drag-n-drop, ns-drag-n-drop-other-frame)
+	(ns-drag-n-drop-as-text, ns-drag-n-drop-as-text-other-frame):
+	New functions.
 
 2013-12-19  Glenn Morris  <rgm@gnu.org>
 
@@ -79,8 +85,8 @@
 
 2013-12-18  Tassilo Horn  <tsdh@gnu.org>
 
-	* textmodes/reftex-vars.el (reftex-label-alist-builtin): Reference
-	tables with ~\ref{...} instead of only \ref{...}.
+	* textmodes/reftex-vars.el (reftex-label-alist-builtin):
+	Reference tables with ~\ref{...} instead of only \ref{...}.
 
 2013-12-18  Chong Yidong  <cyd@gnu.org>
 
@@ -113,8 +119,8 @@
 
 2013-12-18  Le Wang  <l26wang@gmail.com>
 
-	* comint.el (comint-previous-matching-input-from-input): Retain
-	point (Bug#13404).
+	* comint.el (comint-previous-matching-input-from-input):
+	Retain point (Bug#13404).
 
 2013-12-18  Chong Yidong  <cyd@gnu.org>
 

lisp/hl-line.el

-;;; hl-line.el --- highlight the current line
+;;; hl-line.el --- highlight the current line  -*- lexical-binding:t -*-
 
 ;; Copyright (C) 1998, 2000-2013 Free Software Foundation, Inc.
 
@@ -61,9 +61,8 @@
 
 ;;; Code:
 
-(defvar hl-line-overlay nil
+(defvar-local hl-line-overlay nil
   "Overlay used by Hl-Line mode to highlight the current line.")
-(make-variable-buffer-local 'hl-line-overlay)
 
 (defvar global-hl-line-overlay nil
   "Overlay used by Global-Hl-Line mode to highlight the current line.")
@@ -155,13 +154,18 @@ addition to `hl-line-highlight' on `post-command-hook'."
     (remove-hook 'change-major-mode-hook #'hl-line-unhighlight t)
     (remove-hook 'pre-command-hook #'hl-line-unhighlight t)))
 
+(defun hl-line-make-overlay ()
+  (let ((ol (make-overlay (point) (point))))
+    (overlay-put ol 'priority -50)           ;(bug#16192)
+    (overlay-put ol 'face hl-line-face)
+    ol))
+
 (defun hl-line-highlight ()
   "Activate the Hl-Line overlay on the current line."
   (if hl-line-mode	; Might be changed outside the mode function.
       (progn
         (unless hl-line-overlay
-          (setq hl-line-overlay (make-overlay 1 1)) ; to be moved
-          (overlay-put hl-line-overlay 'face hl-line-face))
+          (setq hl-line-overlay (hl-line-make-overlay))) ; To be moved.
         (overlay-put hl-line-overlay
                      'window (unless hl-line-sticky-flag (selected-window)))
 	(hl-line-move hl-line-overlay))
@@ -200,8 +204,7 @@ Global-Hl-Line mode uses the functions `global-hl-line-unhighlight' and
   (when global-hl-line-mode	; Might be changed outside the mode function.
     (unless (window-minibuffer-p)
       (unless global-hl-line-overlay
-        (setq global-hl-line-overlay (make-overlay 1 1)) ; to be moved
-        (overlay-put global-hl-line-overlay 'face hl-line-face))
+        (setq global-hl-line-overlay (hl-line-make-overlay))) ; To be moved.
       (overlay-put global-hl-line-overlay 'window
 		   (unless global-hl-line-sticky-flag
 		     (selected-window)))