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Senate Bill 18 |
Senate Author: Estes et al. |
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Effective: 9-1-11 |
House Sponsor: Geren et al. |
Senate Bill 18 amends the Government Code to add a taking that is not for a public use to the list of prohibited private property takings through the use of eminent domain by a governmental or private entity. The bill specifies that provisions relating to the limitation on eminent domain for private parties or economic development purposes do not affect the authority of an entity authorized by law to take private property through the use of eminent domain for the operations of a common carrier pipeline. The bill authorizes a property owner whose property is acquired through the use of eminent domain for the purpose of creating an oil or gas pipeline easement, subject to certain requirements, to construct streets or roads at any location above the easement.
The bill establishes the Truth in Condemnation Procedures Act. The bill requires a governmental entity, before initiating an eminent domain condemnation proceeding by filing an applicable petition, to authorize the initiation of the condemnation proceeding at a public meeting by a record vote and include in the required notice for the public meeting the consideration of the use of eminent domain to condemn property as an agenda item. The bill authorizes a single ordinance, resolution, or order to be adopted for multiple units of property to be condemned under certain circumstances and sets out related provisions.
The bill requires an entity, including a private entity, authorized by the state by a general or special law to exercise the power of eminent domain, not later than December 31, 2012, to submit to the comptroller of public accounts a letter stating that the entity is authorized by the state to exercise the power of eminent domain and identifying each provision of law that grants the entity that authority. The bill provides for the expiration of the authority of an entity to exercise the power of eminent domain beginning September 1, 2013, unless the entity submits such a letter. The bill requires the comptroller, not later than March 1, 2013, to submit to specified recipients a report that contains the name of each entity that submitted a letter and a corresponding list of the provisions granting eminent domain authority as identified by each entity. The bill requires the Texas Legislative Council to prepare for consideration by the 84th Legislature a nonsubstantive revision of Texas statutes as necessary to reflect the state of the law after the expiration of an entity's eminent domain authority.
Senate Bill 18 amends the Education Code to authorize an independent school district to exercise the right of eminent domain to acquire real property for a public use necessary for the district. The bill amends the Local Government Code to authorize a municipality or county to exercise the right of eminent domain for a public use, rather than a public purpose.
Senate Bill 18 amends the Property Code to refer to "entity" rather than "governmental entity" in the general law on eminent domain proceedings. The bill requires an entity with eminent domain authority that wants to acquire real property for a public use to disclose to the property owner at the time an offer to purchase or lease the property is made all appraisal reports relating to the property prepared in the 10 years preceding the offer date. The bill requires a property owner, by a certain deadline, to disclose all current and existing appraisal reports to the entity seeking to acquire the property. The bill prohibits an entity seeking to acquire property that the entity is authorized to obtain through eminent domain from including a confidentiality provision in an offer or agreement to acquire the property and requires the entity to inform the owner of certain owner rights. The bill requires 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 owner voluntarily and establishes the requirements for a bona fide offer.
The bill, in a provision authorizing the United States, the State of Texas, a political subdivision of the state, a corporation with eminent domain authority, or an irrigation, water improvement, or water power control district created by law that wants to acquire real property for public use but is unable to agree with the owner of the property on the amount of damages to begin a condemnation proceeding by filing a petition in the proper court, removes the specification of types of entities and instead refers to an entity with eminent domain authority. The bill amends petition requirements.
The bill establishes several procedural changes to proceedings relating to the condemnation of property as well as disclosure obligations on the entity seeking to acquire private property. The bill requires a department, agency, instrumentality, or political subdivision of the state to provide a relocation advisory service for certain entities that is compatible with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. The bill requires the state or a political subdivision of the state, as a cost of acquiring real property, to 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 an acquisition.
The bill requires a court hearing an eminent domain suit that determines that a condemnor did not make a bona fide offer to acquire property from a property owner voluntarily as required by the bill to abate the suit, order the condemnor to make a bona fide offer, and order the condemnor to pay all costs of an eminent domain proceeding and any reasonable attorney's fees and other professional fees incurred by the property owner that are directly related to the violation.
Senate Bill 18 extends the right to repurchase from a condemning entity a real property interest acquired by an entity through eminent domain for a public use to the heirs, successors, or assigns of the person from whom the property was acquired and establishes the conditions under which such persons are entitled to repurchase the property to include the following: if the public use for which the property was acquired through eminent domain is canceled before the property is used for that public use; if no actual progress is made toward the public use for which the property was acquired between the date of acquisition and the 10th anniversary of that date; or if the property becomes unnecessary for the public use for which the property was acquired, or a substantially similar public use, before the 10th anniversary of the date of acquisition. The bill eliminates language making provisions on the repurchase of real property from a governmental entity applicable only to a real property interest acquired through eminent domain for a public use that was canceled before the 10th anniversary of the date of acquisition. The bill removes language making the repurchase of real property provisions inapplicable to a right-of-way under the jurisdiction of a county, a municipality, or the Texas Department of Transportation. The bill defines the term "actual progress."
The bill requires an entity that acquired a real property interest through eminent domain that determines the former property owner is entitled to repurchase the property, by a certain deadline, to send, by certified mail, return receipt requested, to the property owner or the owner's heirs, successors, or assigns a certain notice. The bill authorizes a property owner or the owner's heirs, successors, or assigns, on or after the 10th anniversary of the date on which real property was acquired by an entity through eminent domain, to request that the condemning entity make a determination and provide a statement and other relevant information regarding the condemned property and its public use. The bill requires the entity, by a certain deadline, to send a written response by certified mail, return receipt requested, to the requestor. The bill establishes that the right to repurchase real property from a condemning entity is extinguished on the first anniversary of the expiration of the period for an entity to provide notice under certain circumstances. The bill requires an entity, as soon as practicable after receipt of a notice of intent to repurchase condemned property, to offer to sell the property interest for the price paid to the owner by the entity at the time the entity acquired the property through eminent domain.
Senate Bill 18 amends the Transportation Code, in a provision on the sale and transfer of real property no longer needed for a state highway purpose, to establish that the standard for determining the fair value of the state's interest in access rights to a highway right-of-way is the same legal standard that the Texas Transportation Commission applies in the acquisition of access rights for a controlled access highway and in the payment of damages in the exercise of its control of access authority for impairment of highway access to or from real property where the real property adjoins the highway.
Senate Bill 18 amends the Water Code to prohibit a municipal utility district from exercising the power of eminent domain outside its boundaries to acquire a site or easement for a road project. The bill removes the acquisition of a trail as an exception to the prohibition on a municipal utility district exercising the power of eminent domain outside its boundaries to acquire a site for a park, swimming pool, or other recreational facility. The bill removes the prohibition on a municipal utility district exercising the power of eminent domain outside its boundaries to acquire a site for a trail on real property designated as a homestead.
Senate Bill 18 amends the law to prohibit certain nonprofit corporations incorporated under Texas law for purely charitable purposes from exercising the power of eminent domain and condemnation to acquire certain property.
Senate Bill 18 repeals provisions relating to the production of information by a nongovernmental body authorized to exercise eminent domain and relating to production of information on condemnation by certain entities considered to be critical infrastructure.