Texas 2009 - 81st Regular

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11 2009S0001-1 09/22/08
22 By: Estes S.B. No. 18
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the use of eminent domain authority.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Chapter 2206, Government Code, is amended to
1010 read as follows:
1111 CHAPTER 2206. [LIMITATIONS ON USE OF] EMINENT DOMAIN
1212 SUBCHAPTER A. GENERAL PROVISIONS
1313 Sec. 2206.001. DEFINITION OF PUBLIC USE. Except as
1414 otherwise provided by this chapter, "public use," with respect to
1515 the use of eminent domain authority, means a use of property,
1616 including a use described by Section 2206.051(c), that allows the
1717 state, a political subdivision of the state, or the general public
1818 of the state to possess, occupy, and enjoy the property.
1919 SUBCHAPTER B. LIMITATIONS ON PURPOSE AND USE OF PROPERTY
2020 ACQUIRED THROUGH EMINENT DOMAIN
2121 Sec. 2206.051. LIMITATION ON EMINENT DOMAIN FOR PRIVATE
2222 PARTIES OR ECONOMIC DEVELOPMENT PURPOSES. (a) This section
2323 applies to the use of eminent domain under the laws of this state,
2424 including a local or special law, by any governmental or private
2525 entity, including:
2626 (1) a state agency, including an institution of higher
2727 education as defined by Section 61.003, Education Code;
2828 (2) a political subdivision of this state; or
2929 (3) a corporation created by a governmental entity to
3030 act on behalf of the entity.
3131 (b) A governmental or private entity may not take private
3232 property through the use of eminent domain if the taking:
3333 (1) confers a private benefit on a particular private
3434 party through the use of the property;
3535 (2) is for a public use that is merely a pretext to
3636 confer a private benefit on a particular private party; [or]
3737 (3) is for economic development purposes, unless the
3838 economic development is a secondary purpose resulting from
3939 municipal community development or municipal urban renewal
4040 activities to eliminate an existing affirmative harm on society
4141 from slum or blighted areas under:
4242 (A) Chapter 373 or 374, Local Government Code,
4343 other than an activity described by Section 373.002(b)(5), Local
4444 Government Code; or
4545 (B) Section 311.005(a)(1)(I), Tax Code; or
4646 (4) is not for a public use.
4747 (c) This section does not affect the authority of an entity
4848 authorized by law to take private property through the use of
4949 eminent domain for:
5050 (1) transportation projects, including, but not
5151 limited to, railroads, airports, or public roads or highways;
5252 (2) entities authorized under Section 59, Article XVI,
5353 Texas Constitution, including:
5454 (A) port authorities;
5555 (B) navigation districts; and
5656 (C) any other conservation or reclamation
5757 districts that act as ports;
5858 (3) water supply, wastewater, flood control, and
5959 drainage projects;
6060 (4) public buildings, hospitals, and parks;
6161 (5) the provision of utility services;
6262 (6) a sports and community venue project approved by
6363 voters at an election held on or before December 1, 2005, under
6464 Chapter 334 or 335, Local Government Code;
6565 (7) the operations of:
6666 (A) a common carrier pipeline [subject to Chapter
6767 111, Natural Resources Code, and Section B(3)(b), Article 2.01,
6868 Texas Business Corporation Act]; or
6969 (B) an energy transporter, as that term is
7070 defined by Section 186.051, Utilities Code;
7171 (8) a purpose authorized by Chapter 181, Utilities
7272 Code;
7373 (9) underground storage operations subject to Chapter
7474 91, Natural Resources Code;
7575 (10) a waste disposal project; or
7676 (11) a library, museum, or related facility and any
7777 infrastructure related to the facility.
7878 (d) This section does not affect the authority of a
7979 governmental entity to condemn a leasehold estate on property owned
8080 by the governmental entity.
8181 (e) The determination by the governmental or private entity
8282 proposing to take the property that the taking does not involve an
8383 act or circumstance prohibited by Subsection (b) does not create a
8484 presumption with respect to whether the taking involves that act or
8585 circumstance.
8686 Sec. 2206.052. LIMITATIONS ON EASEMENTS. (a) A property
8787 owner whose property is acquired through the use of eminent domain
8888 under Chapter 21, Property Code, for the purpose of creating an
8989 easement through that owner's property may construct streets or
9090 roads, including a gravel, asphalt, or concrete road, at any
9191 locations above the easement that the property owner chooses.
9292 (b) The portion of a road constructed under this section
9393 that is over the easement may not exceed 40 feet in width.
9494 SUBCHAPTER C. PROCEDURES REQUIRED TO INITIATE
9595 EMINENT DOMAIN PROCEEDINGS
9696 Sec. 2206.101. SHORT TITLE. This subchapter may be cited as
9797 the Truth in Condemnation Procedures Act.
9898 Sec. 2206.102. APPLICABILITY. The procedures in this
9999 subchapter apply only to the use of eminent domain under the laws of
100100 this state by a governmental entity.
101101 Sec. 2206.103. VOTE ON USE OF EMINENT DOMAIN. (a) Before a
102102 governmental entity initiates a condemnation proceeding by filing a
103103 petition under Section 21.012, Property Code, the governmental
104104 entity must authorize the initiation of the condemnation
105105 proceedings at a public meeting by a record vote. If the motion
106106 required by Subsection (c) indicates that the first record vote
107107 applies to all units of property to be condemned, and the minutes of
108108 the entity reflect that the first vote applies to all of those
109109 units, a single ordinance, resolution, or order may be adopted for
110110 all of those units of property. If more than one member of the
111111 governing body objects to adopting a single ordinance, resolution,
112112 or order by a record vote for all units of property for which
113113 condemnation proceedings are to be initiated, a separate record
114114 vote must be taken for each unit of property.
115115 (b) For the purposes of Subsection (a), if two or more units
116116 of real property are owned by the same person, the governmental
117117 entity may treat those units of property as one unit of property.
118118 (c) The motion to adopt an ordinance, resolution, or order
119119 authorizing the initiation of condemnation proceedings under
120120 Chapter 21, Property Code, must be made in a form substantially
121121 similar to the following: "I move that the (name of governmental
122122 entity) authorize the use of the power of eminent domain to acquire
123123 (describe the property) for (describe the public use)." The
124124 description of the property required by this subsection is
125125 sufficient if the description of the location of and interest in the
126126 property that the governmental entity seeks to acquire is
127127 substantially similar to the description that is or could properly
128128 be used in a petition to condemn the property under Section 21.012,
129129 Property Code.
130130 (d) If a project for a public use described by Section
131131 2206.051(c)(3) will require a governmental entity to acquire
132132 multiple tracts or units of property to construct facilities
133133 connecting one location to another location, the governing body of
134134 the entity may adopt a single ordinance, resolution, or order by a
135135 record vote that delegates the authority to initiate condemnation
136136 proceedings to the chief administrative official of the
137137 governmental entity.
138138 (e) An ordinance, resolution, or order adopted under
139139 Subsection (d) is not required to identify specific properties that
140140 the governmental entity will acquire. The ordinance, resolution,
141141 or order must identify the general area to be covered by the project
142142 or the general route that will be used by the governmental entity
143143 for the project in a way that provides property owners in and around
144144 the area or along the route reasonable notice that the owners'
145145 properties may be subject to condemnation proceedings during the
146146 planning or construction of the project.
147147 SECTION 2. Subchapter B, Chapter 21, Property Code, is
148148 amended by adding Section 21.0113 to read as follows:
149149 Sec. 21.0113. BONA FIDE OFFER REQUIRED. An entity with
150150 eminent domain authority that wants to acquire real property for a
151151 public use must make a bona fide offer to acquire the property from
152152 the property owner voluntarily. A bona fide offer is an offer that
153153 is not arbitrary or capricious and is based on a reasonably thorough
154154 investigation and honest assessment of the amount of the just
155155 compensation due to the landowner as a result of the taking.
156156 SECTION 3. Subsection (b), Section 21.012, Property Code,
157157 is amended to read as follows:
158158 (b) The petition must:
159159 (1) describe the property to be condemned;
160160 (2) state the purpose for which the entity intends to
161161 use the property;
162162 (3) state the name of the owner of the property if the
163163 owner is known;
164164 (4) state that the entity and the property owner are
165165 unable to agree on the damages; [and]
166166 (5) if applicable, state that the entity provided the
167167 property owner with the landowner's bill of rights statement in
168168 accordance with Section 21.0112; and
169169 (6) state that the entity made a bona fide offer to
170170 acquire the property from the property owner voluntarily.
171171 SECTION 4. Section 21.023, Property Code, is amended to
172172 read as follows:
173173 Sec. 21.023. DISCLOSURE OF INFORMATION REQUIRED AT TIME OF
174174 ACQUISITION. A governmental entity shall disclose in writing to
175175 the property owner, at the time of acquisition of the property
176176 through eminent domain, that:
177177 (1) the owner or the owner's heirs, successors, or
178178 assigns are entitled to repurchase the property if the public use
179179 for which the property was acquired through eminent domain is
180180 canceled before the 10th anniversary of the date of acquisition;
181181 and
182182 (2) the repurchase price is the price paid to the owner
183183 by the governmental entity at the time the governmental entity
184184 acquired the property through eminent domain [fair market value of
185185 the property at the time the public use was canceled].
186186 SECTION 5. Subchapter B, Chapter 21, Property Code, is
187187 amended by adding Section 21.025 to read as follows:
188188 Sec. 21.025. PRODUCTION OF INFORMATION BY CERTAIN ENTITIES.
189189 (a) Notwithstanding any other law, an entity that is not subject
190190 to Chapter 552, Government Code, and is authorized by law to acquire
191191 private property through the use of eminent domain is required to
192192 produce information as provided by this section if the information
193193 is:
194194 (1) requested by a person who owns property that is the
195195 subject of a proposed or existing eminent domain proceeding; and
196196 (2) related to the taking of the person's private
197197 property by the entity through the use of eminent domain.
198198 (b) An entity described by Subsection (a) is required under
199199 this section only to produce information relating to the
200200 condemnation of the specific property owned by the requestor as
201201 described in the request. A request under this section must contain
202202 sufficient details to allow the entity to identify the specific
203203 tract of land in relation to which the information is sought.
204204 (c) The entity shall respond to a request in accordance with
205205 the Texas Rules of Civil Procedure as if the request was made in a
206206 matter pending before a state district court.
207207 (d) Exceptions to disclosure provided by this chapter and
208208 the Texas Rules of Civil Procedure apply to the disclosure of
209209 information under this section.
210210 (e) Jurisdiction to enforce the provisions of this section
211211 resides in:
212212 (1) the court in which the condemnation was initiated;
213213 or
214214 (2) if the condemnation proceeding has not been
215215 initiated:
216216 (A) a court that would have jurisdiction over a
217217 proceeding to condemn the requestor's property; or
218218 (B) a court with eminent domain jurisdiction in
219219 the county in which the entity has its principal place of business.
220220 (f) If the entity refuses to produce information requested
221221 in accordance with this section and the court determines that the
222222 refusal violates this section, the court may award the requestor's
223223 reasonable attorney's fees incurred to compel the production of the
224224 information.
225225 (g) If an entity that received a request in accordance with
226226 this section does not produce the requested information on or
227227 before the 30th day after the request is made, the attorney general
228228 may file an action in a court described by Subsection (e) to enforce
229229 this section on the request of the person who made the request for
230230 the information. If the court determines that the failure to
231231 produce the information is a violation of this section, the court
232232 may award the attorney general's reasonable expenses incurred to
233233 compel the production of the information.
234234 (h) If the attorney general files an action under Subsection
235235 (g), the person who requested that the attorney general file the
236236 action may not file a private action to enforce this section with
237237 respect to the same request for information.
238238 SECTION 6. Section 21.041, Property Code, is amended to
239239 read as follows:
240240 Sec. 21.041. EVIDENCE. (a) For the purposes of this
241241 section, market value is the price a property will bring when
242242 offered for sale by a person who desires to sell the property, but
243243 is not obliged to sell the property, and is bought by a person who
244244 desires to buy the property, but is not under a necessity to buy the
245245 property.
246246 (b) As the basis for assessing actual damages to a property
247247 owner from a condemnation, the special commissioners shall, subject
248248 to the Texas Rules of Evidence, admit evidence on:
249249 (1) the market value, before the condemnation, of the
250250 property being condemned;
251251 (2) subject to Section 21.042, the net change to the
252252 market value of [the injury to the property owner;
253253 [(3) the benefit to] the property owner's remaining
254254 property, considering both injury and benefit to the property
255255 owner; and
256256 (3) [(4)] the use of the property for the purpose of
257257 the condemnation.
258258 SECTION 7. Subsection (e), Section 21.042, Property Code,
259259 is amended to read as follows:
260260 (e) If a portion of a tract or parcel of real property is
261261 condemned for the use, construction, operation, or maintenance of
262262 the state highway system or of a county toll project described by
263263 Chapter 284, Transportation Code, that is eligible for designation
264264 as part of the state highway system, the special commissioners
265265 shall consider any diminished access to the highway and to or from
266266 the remaining property to the extent that it affects the present
267267 market value of the real property, including any factors considered
268268 when determining actual fair market value of property for ad
269269 valorem tax purposes [or for the use, construction, development,
270270 operation, or maintenance of an improvement or project by a
271271 metropolitan rapid transit authority created before January 1,
272272 1980, with a principal municipality having a population of less
273273 than 1.9 million and established under Chapter 451, Transportation
274274 Code, the special commissioners shall determine the damage to the
275275 property owner regardless of whether the property owner makes a
276276 claim for damages to the remaining property. In awarding
277277 compensation or assessing the damages, the special commissioners
278278 shall consider any special and direct benefits that arise from the
279279 highway improvement or the transit authority improvement or project
280280 that are peculiar to the property owner and that relate to the
281281 property owner's ownership, use, or enjoyment of the particular
282282 parcel of remaining real property].
283283 SECTION 8. Subsections (a) and (b), Section 21.046,
284284 Property Code, are amended to read as follows:
285285 (a) A department, agency, instrumentality, or political
286286 subdivision of this state shall [may] provide a relocation advisory
287287 service for an individual, a family, a business concern, a farming
288288 or ranching operation, or a nonprofit organization that [if the
289289 service] is compatible with the Federal Uniform Relocation
290290 Assistance Advisory Program, 23 U.S.C.A. 501, et seq.
291291 (b) This state or a political subdivision of this state
292292 shall [may], as a cost of acquiring real property, pay moving
293293 expenses and rental supplements, make relocation payments, provide
294294 financial assistance to acquire replacement housing, and
295295 compensate for expenses incidental to the transfer of the property
296296 if an individual, a family, the personal property of a business, a
297297 farming or ranching operation, or a nonprofit organization is
298298 displaced in connection with the acquisition.
299299 SECTION 9. The heading to Section 21.047, Property Code, is
300300 amended to read as follows:
301301 Sec. 21.047. ASSESSMENT OF COSTS AND FEES.
302302 SECTION 10. Section 21.047, Property Code, is amended by
303303 adding Subsection (d) to read as follows:
304304 (d) If a court hearing a suit under this chapter determines
305305 that a condemning entity did not make a bona fide offer to acquire
306306 the property from the property owner voluntarily as required by
307307 Section 21.0113, the court shall abate the suit and order the
308308 condemnor to make a bona fide offer. If the court finds that by
309309 filing a petition under Section 21.012 or by filing any other motion
310310 or pleading in the proceeding initiated by the filing of that
311311 petition the condemnor violated Chapter 10, Civil Practice and
312312 Remedies Code, the court shall order the condemnor to pay:
313313 (1) all costs as provided by Subsection (a); and
314314 (2) any reasonable attorney's fees incurred by the
315315 owner that are directly related to the violation.
316316 SECTION 11. Subsection (a), Section 21.101, Property Code,
317317 is amended to read as follows:
318318 (a) Except as provided in Subsection (b), this subchapter
319319 applies only to a real property interest acquired by a governmental
320320 entity other than a port that is acquiring property for deep water
321321 navigation through eminent domain for a public use. A person from
322322 whom the property interest is acquired or that person's heirs,
323323 successors, or assigns are entitled to repurchase the property as
324324 provided by this subchapter if that public use was canceled before
325325 the 10th anniversary of the date of acquisition or the governmental
326326 entity fails to begin the operation or construction of the project
327327 for which the property was acquired before the 10th anniversary of
328328 that date.
329329 SECTION 12. Section 21.102, Property Code, is amended to
330330 read as follows:
331331 Sec. 21.102. NOTICE TO PREVIOUS PROPERTY OWNER AT TIME OF
332332 CANCELLATION OF PUBLIC USE OR ON FAILURE TO BEGIN OPERATION OR
333333 CONSTRUCTION OF PROJECT. Not later than the 180th day after the
334334 date of the cancellation of the public use for which real property
335335 was acquired through eminent domain from a property owner under
336336 Subchapter B or the 180th day after the 10th anniversary of the date
337337 on which the property was acquired if the governmental entity fails
338338 to begin the operation or construction of the project for which the
339339 property was acquired before the 10th anniversary of that date, the
340340 governmental entity shall send by certified mail, return receipt
341341 requested, to the property owner or the owner's heirs, successors,
342342 or assigns a notice containing:
343343 (1) an identification, which is not required to be a
344344 legal description, of the property that was acquired;
345345 (2) an identification of the public use for which the
346346 property had been acquired and a statement that the public use has
347347 been canceled or the governmental entity has failed to begin the
348348 operation or construction of the project for which the property was
349349 acquired; and
350350 (3) a description of the person's right under this
351351 subchapter to repurchase the property.
352352 SECTION 13. Subsection (b), Section 21.103, Property Code,
353353 is amended to read as follows:
354354 (b) As soon as practicable after receipt of a [the]
355355 notification under Subsection (a), the governmental entity shall
356356 offer to sell the property interest to the person for the price paid
357357 to the owner by the governmental entity at the time the governmental
358358 entity acquired the property through eminent domain [fair market
359359 value of the property at the time the public use was canceled]. The
360360 person's right to repurchase the property expires on the 90th day
361361 after the date on which the governmental entity makes the offer.
362362 SECTION 14. Subchapter B, Chapter 111, Natural Resources
363363 Code, is amended by adding Section 111.0195 to read as follows:
364364 Sec. 111.0195. RIGHT OF EMINENT DOMAIN: ADDITIONAL
365365 PROCEDURES. (a) This section applies only to a condemnation
366366 proceeding initiated by a common carrier, as that term is defined by
367367 Section 111.002.
368368 (b) A common carrier that intends to exercise the power of
369369 eminent domain must serve the owner of the property to be acquired
370370 with notice that the common carrier intends to initiate
371371 condemnation proceedings on or before the date the common carrier
372372 files a condemnation petition.
373373 (c) The special commissioners in an eminent domain
374374 proceeding to which this section applies:
375375 (1) may not schedule a hearing to assess damages
376376 before the 30th day after the date of the special commissioners'
377377 appointment; and
378378 (2) must serve a property owner with notice informing
379379 the property owner of the time and place of the hearing not later
380380 than the 21st day before the date set for the hearing.
381381 (d) A court that has jurisdiction over a condemnation
382382 proceeding may appoint a replacement special commissioner if:
383383 (1) the property owner or the common carrier objects
384384 to the appointment of a special commissioner by filing a written
385385 statement of the person's objections on the grounds of:
386386 (A) a conflict of interest; or
387387 (B) other good cause; and
388388 (2) the court determines in a hearing that good cause
389389 is shown.
390390 (e) The special commissioners may delay scheduling a
391391 hearing for a reasonable period if, by motion to the court that has
392392 jurisdiction over the condemnation proceeding, the property owner
393393 requests and is granted a delay by the court for good cause shown.
394394 (f) A notice required under this section must be served by:
395395 (1) regular mail; and
396396 (2) certified mail, return receipt requested, to the
397397 property owner.
398398 (g) A common carrier has the burden of proof to establish
399399 that notice was provided as required by Subsection (b).
400400 SECTION 15. Subchapter G, Chapter 13, Water Code, is
401401 amended by adding Section 13.258 to read as follows:
402402 Sec. 13.258. EMINENT DOMAIN. (a) A water and sewer
403403 utility that is operating in accordance with its certificate of
404404 convenience and necessity may acquire by condemnation only
405405 easements or lesser property interests reasonably necessary to
406406 comply with federal and state regulations relating to sanitation.
407407 (b) The water and sewer utility shall exercise the power of
408408 eminent domain in the manner provided by Chapter 21, Property Code.
409409 (c) The water and sewer utility may not exercise the power
410410 of eminent domain to condemn land to acquire rights to underground
411411 water or for water or water rights.
412412 (d) A water and sewer utility may not exercise the power of
413413 eminent domain in a municipality with a population of more than 1.7
414414 million or in the municipality's extraterritorial jurisdiction to
415415 condemn land in which the municipality owns a fee, easement, or
416416 lesser property interest.
417417 SECTION 16. Subchapter D, Chapter 101, Government Code, is
418418 amended by adding Section 101.06151 to read as follows:
419419 Sec. 101.06151. DISTRICT COURT FEES AND COSTS: PROPERTY
420420 CODE. The clerk of a district court shall collect fees and costs
421421 under the Property Code as follows:
422422 (1) court costs for each special commissioner in an
423423 eminent domain proceeding (Sec. 21.047, Property Code) . . . as
424424 taxed by the court, $10 or more; and
425425 (2) court costs, other than costs collected under
426426 Subdivision (1), and attorney's fees in an eminent domain
427427 proceeding (Sec. 21.047, Property Code) . . . as taxed by the court
428428 and as reasonable, respectively.
429429 SECTION 17. Section 101.0816, Government Code, is amended
430430 to read as follows:
431431 Sec. 101.0816. STATUTORY COUNTY COURT FEES AND COSTS:
432432 PROPERTY CODE. The clerk of a statutory county court shall collect
433433 fees and costs under the Property Code as follows:
434434 (1) [a] court costs [cost in the amount of $10 or more,
435435 as taxed by the court under Section 21.047, Property Code,] for each
436436 special commissioner in an eminent domain proceeding (Sec. 21.047,
437437 Property Code) . . . as taxed by the court, $10 or more; and
438438 (2) court costs, other than costs collected under
439439 Subdivision (1), and attorney's fees in an eminent domain
440440 proceeding (Sec. 21.047, Property Code) . . . as taxed by the court
441441 and as reasonable, respectively.
442442 SECTION 18. The following laws are repealed:
443443 (1) Section 552.0037, Government Code; and
444444 (2) Subsection (i), Section 21.024, Property Code.
445445 SECTION 19. Not later than January 1, 2011, the comptroller
446446 of public accounts shall:
447447 (1) identify all public and private entities with
448448 eminent domain authority; and
449449 (2) make recommendations to the legislature and the
450450 governor regarding:
451451 (A) which entities have, need, or should have
452452 eminent domain authority;
453453 (B) whether that eminent domain authority of
454454 those entities should be continued, expanded, or limited; and
455455 (C) the cause and effect of continuing,
456456 eliminating, expanding, or limiting the eminent domain authority of
457457 those entities.
458458 SECTION 20. The changes in law made by Chapter 2206,
459459 Government Code, and Chapter 21, Property Code, as amended by this
460460 Act, apply only to a condemnation proceeding in which the petition
461461 is filed on or after the effective date of this Act and to any
462462 property condemned through the proceeding. A condemnation
463463 proceeding in which the petition is filed before the effective date
464464 of this Act and any property condemned through the proceeding is
465465 governed by the law in effect immediately before that date, and that
466466 law is continued in effect for that purpose.
467467 SECTION 21. Section 111.0195, Natural Resources Code, as
468468 added by this Act, applies only to a condemnation proceeding in
469469 which the petition is filed on or after the effective date of this
470470 Act and to any property condemned through the proceeding. A
471471 condemnation proceeding in which the petition is filed before the
472472 effective date of this Act and any property condemned through the
473473 proceeding is governed by the law in effect immediately before that
474474 date, and that law is continued in effect for that purpose.
475475 SECTION 22. This Act takes effect September 1, 2009.