BILL ANALYSIS



S.B. 390
By: Harris (Counts)
May 4, 1995
Committee Report (Amended)


BACKGROUND

Currently, when the government applies the process of eminent
domain for the purpose of condemnation of private property, the
governmental agency will obtain an appraisal of the property to be
condemned.  Since there is no requirement for a governmental agency
to share the details of this appraisal with the property owner,
governmental agencies routinely withhold this information from the
property owner.  The property owner has to retain an appraiser in
order to be satisfied as to the offer being made for the property. 
Unnecessary litigation frequently arises from the distrust that
grows because of this practice.

PURPOSE

As proposed, S.B. 390 requires a governmental entity with eminent
domain authority that wants to acquire real property to disclose
all relevant property information to the property owner at the time
an offer to purchase is made.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1  Amends Chapter 21B, Property Code, by adding Section
           21.0111, as follows:

           Sec. 21.0111.  DISCLOSURE OF INFORMATION REQUIRED. 
           Requires a governmental entity or corporation 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 is made any and
           all existing appraisal reports produced or acquired by
           the governmental entity or corporation relating
           specifically to the owner's property and used in
           determining the final valuation offer.  Requires a
           property owner to disclose to the acquiring governmental
           entity or corporation any and all existing appraisal
           reports produced or acquired by the property owner
           relating specifically to the owner's property and used
           in determining the owner's opinion of value.  Requires
           such disclosure to take place within 10 days of receipt
           of appraisal report(s) but no later then 10 days prior
           to the special commissioners's hearing.  Authorizes a
           subsequent bona fide purchaser for value from the
           governmental entity or corporation to conclusively
           presume that the requirement of this section has been
           met.  Provides that this section does not apply to
           acquisitions of real property for which a governmental
           entity or corporation does not have eminent domain
           authority.

SECTION 2  Makes application of this Act prospective.

SECTION 3  Emergency clause.





EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT NO. 1

           Deletes all references in the bill to corporations. 
           Thus, the bill will only apply to governmental entities
           and not to corporations with eminent domain authority.

SUMMARY OF COMMITTEE ACTION

S.B. 390 was considered by the committee in a public hearing on May
2, 1995.

The committee considered one amendment to the bill.  The amendment
was adopted without objection.

The bill was reported favorably as amended, with the recommendation
that it do pass and be printed and be sent to the Committee on
Local and Consent Calendars, by a record vote of 7 ayes, 0 nays, 0
pnv, 2 absent.