BILL ANALYSIS H.B. 1266 By: Hilderbran April 10, 1995 Committee Report (Unamended) BACKGROUND Many property owners have invested their retirement income, or a substantial portion of their savings in a piece of property. Further, the decline in rural wealth has left many property owners with their property as the only portion of an estate that can be passed on to the next generation. Because environmental rules and regulations are becoming increasingly complex, private property owners are, at times, unaware that their customary land use techniques are now limited by those rules and regulations. In such instances, the affected property owner is at the mercy of regulatory takings without the benefit of sound legal advice. PURPOSE To create an office of Ombudsman for Private Property Rights. The Ombudsman will research and advise property owners on regulatory takings issues, assist property owners in legal, administrative and legislative proceedings, and inform private property owners of other governmental services available to them. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1 Amends Chapter 402 of the Government Code by adding; Subchapter D. Ombudsman for Private Property Rights Section 402.061. Definitions: (1) "Private property" is defined as property protected by the 5th and 14th Amendment to the U.S. Constitution, or Section 17, Article I, of the Texas Constitution. (2) "Taking" is defined as acquisition or proposed acquisition of private property by a state agency, that requires that agency to compensate landowners. Section 402.062. Applicability: (a) This act applies only to actions by a state agency involving: (1) a proposed rule or emergency rule limiting the use of private property; (2) a proposed or implemented licensing or permitting circumstance affecting the use of private property; or (3) a required dedication or exaction from property owners. (b) This act does not apply actions by a state agency involving: (1) eminent domain; (2) repeal or amendment of a rule to discontinue a governmental program that limits the uses of private property; (3) seizure or forfeiture of property for a violation of law, or evidence of a crime; or (4) an order authorized by statute that is issued by the state, or a court that results from a violation of law. Section 402.063 Ombudsman for Private Property Rights. (a) Establishes an Ombudsman for Private Property Rights in the Texas Attorney General's Office. (b) Authorizes the Attorney General to employ staff. (c) Requires the Attorney General to prepare a quarterly report to the Governor, Lt. Governor and Speaker. Section 402.064 Powers and Duties. (a) The ombudsman office may: (1) research takings issues; (2) advise private property owners on takings issues; (3) assist property owners in judicial, administrative or legislative proceedings; and (4) inform private property owners of available services. (b) Requires ombudsman office to: (1) receive inquiries from private property owners; and (2) keep records of inquiries from private property owners, and determine their general concerns. SECTION 2. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B. 1266 was considered by the committee in a public hearing on March 14, 1995. The following persons testified in favor of the bill: Dan Byfield, representing the Farm Credit Bank of Texas; Bill Powers, representing the Texas Farm Bureau; and Rodney W. Eckert, representing himself. The following person testified neutrally on the bill: Sandra Skrei, representing the National Audubon Society. The bill was referred to the Subcommittee on Property Rights. After being recalled from subcommittee, the bill was considered by the committee in a formal meeting on April 6, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.