SIGNIFICANT FLOOR ACTIONS

S.B. 18 (Estes), relating to the use of eminent domain authority.  As passed by the Senate, the bill would do the following:

1. provide that a governmental or private entity may not take private property through the use of eminent domain if the taking is not for a “public use.”

2. require a record vote with specific procedures and wording to take each parcel of land through the use of eminent domain.

3. require that any entity authorized to exercise the power of eminent domain must submit to the state comptroller, by December 31, 2012, a letter stating that the entity is authorized to exercise the power of eminent domain and identifying the provision or provisions of law that grant the entity that authority, and would provide that the entity’s authority to use eminent domain will expire if the letter is not sent by the deadline.

4. provide, among other things, that an entity with eminent domain authority that wants to acquire real property shall disclose to the property owner any and all appraisal reports produced or acquired by the entity relating specifically to the owner’s property and prepared in the ten years preceding the offer.

5. provide that: (1) an entity seeking to acquire property may not include a confidentiality provision in an offer or agreement to acquire the property; and (2) the entity shall inform the owner of the property that the owner has the right to: (a) discuss any offer or agreement regarding the entity’s acquisition of the property with others; or (b) keep the offer or agreement confidential (subject to the requirements of the Texas Public Information Act).

6. require an entity with eminent domain authority that wants to acquire real property for a public use to make a bona fide offer to acquire the property from the property owner voluntarily, and list specific criteria that must be met to meet the bona fide offer requirement.

7. provide that a court that determines that a condemnor did not make a bona fide offer to acquire the property from the property owner voluntarily must abate the suit, order the condemnor to make a bona fide offer, and order the condemnor to pay costs and attorneys’ and other professionals’ fees.

8. provide that a condemnation petition must state with specificity the public use for which the entity intends to acquire the property and that the city made a bona fide offer to acquire the property voluntarily.

9. provide, among other things, that each party has a reasonable period to strike one of the three special commissioners appointed by the judge in the case, with the judge appointing a replacement.

10. provide that the special commissioners shall consider an injury or benefit that is peculiar to the property owner and that relates to the property owner’s ownership, use, or enjoyment of the particular parcel of real property, including a material impairment of direct access on or off the remaining property that affects the market value of the remaining property, but they may not consider an injury or benefit that the property owner experiences in common with the general community, including circuity of travel and diversion of traffic.

11. require a city, as a cost of acquiring real property, to: (a) provide a relocation advisory service for an individual, a family, a business concern, a farming or ranching operation, or a nonprofit organization that is compatible with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act; and (b) pay moving expenses and rental supplements, make relocation payments, provide financial assistance to acquire replacement housing, and compensate for expenses incidental to the transfer of the property if an individual, a family, the personal property of a business, a farming or ranching operation, or a nonprofit organization is displaced in connection with the acquisition.

12. provide that an entity that is not subject to the Public Information Act, such a gas pipeline operator, must disclose certain information relating to its use of eminent domain upon request.

13. modify the current provisions that allow a property owner to repurchase the property if it isn’t used by the condemnor within ten years of the date of acquisition.

14. provide that a city council may adopt a development plan for a public use project at a public hearing to toll the 10-year right to repurchase.

15. modify the standard for determination of the fair value of the state’s interest in access rights to a highway right-of-way to be the same legal standard that is applied by the Texas Transportation Commission according to the Texas Transportation Code, which may include the impairment of highway access to or from real property where the real property adjoins the highway.


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No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the
Texas Municipal League.

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