BILL ANALYSIS


                                                        H.B. 2609
                                             By: Craddick (Lucio)
                                                          Finance
                                                         05-25-95
                              Senate Committee Report (Unamended)
BACKGROUND

Section 23.01, Tax Code, establishes that all taxable property is
appraised at its market value, as determined by the application of
generally accepted appraisal techniques.  Each property, however,
must be appraised based upon the individual characteristics that
affect the property's market value.  Section 21.041, Property Code,
establishes the guidelines for evidence of damages and costs in
eminent domain cases.  As the basis for assessing actual damages to
a property owner from a condemnation, the special commissioners
must admit evidence on: (1) the value of the property; (2) the
injury to the property owner; (3) the benefit to the property
owner's remaining property; and (4) the use of the property for the
purpose of the condemnation.

In State v. Schmidt 867 S.W.2d 769 (Tex. 1993), the Texas Supreme
Court, raised questions concerning the determination of market
value in the condemnation arena.  Specifically, the Court indicated
that in determining the decrease in market value to a condemnee's
remaining property following from a condemnation, market value
should not include consideration of factors such as visibility and
accessibility.

PURPOSE

As proposed, H.B. 2609 includes a property's location, visibility,
and highest and best possible use and the access to and from the
property among items to be considered when appraising a property's
market value and when assessing actual damages to a property owner
for condemnation.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does grant rulemaking
authority to a state officer, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 23.01(b), Tax Code, to include a
property's location, visibility, and highest and best use and the
access to and from the property among the characteristics upon
which the property must be appraised.

SECTION 2. Amends Section 21.041. Property Code, to include
individual characteristics that affect a property's value,
including the property's location, visibility, and highest and best
use and the access to and from the property among evidence to be
admitted in assessing actual damages to a property owner from a
condemnation.

SECTION 3. Effective date: September 1, 1995.

SECTION 4. Emergency clause.