Relating to the exercise of eminent domain authority by private entities.
Impact
The proposed changes are designed to establish clearer criteria for private entities exercising eminent domain. The bill requires that any condemnation petition made by a private entity demonstrates that the requested property is necessary for a public use that is not prohibited by existing laws. Such changes could redefine the legal landscape governing how private companies can claim land, potentially making it more challenging for them to do so without adequate justification. The bill also introduces an alternative damages mechanism, allowing property owners to receive a percentage of the profits derived from the easement's usage, rather than a one-time compensation, aligning interests between the property owners and private entities.
Summary
Senate Bill 728 aims to modify the exercise of eminent domain authority by private entities, specifically in the context of acquiring real property for public use. The bill amends several sections of the Property Code and Government Code, enhancing the disclosure requirements for entities seeking to exercise condemnation. One of the significant provisions mandates that both the entity seeking to purchase property and the property owner must disclose existing appraisal reports related to the property. This measure is intended to increase transparency during the condemnation process, ensuring property owners are fully informed about valuation assessments affecting their property.
Contention
Notable points of contention surrounding SB 728 involve concerns about how it may affect property rights, particularly regarding the balance of power between private companies and individual landowners. Proponents argue that the bill strengthens property owner rights by enforcing stricter disclosure and justification requirements, enhancing accountability among private entities. However, critics are wary that increasing restrictions on the use of eminent domain might hinder necessary infrastructure development and economic growth initiatives. They express fears that such measures could lead to delays in project completion and impose additional burdens on private entities engaged in public works.
Relating to the failure to disclose certain appraisal reports by an entity with eminent domain authority in connection with an offer to acquire real property.