BILL ANALYSIS C.S.S.B. 842 By: Turner Jurisprudence 5-4-95 Committee Report (Substituted) BACKGROUND When a state or a political subdivision needs to obtain land for public purposes (such as building highways, installing water and sewer lines, etc.) and the landowner is unwilling to sell, the Texas Constitution and state law allows the land to be acquired through condemnation. During the condemnation process, a court appoints a panel of special commissioners to determine the value of the property. Section 23.01, Tax Code, establishes that all taxable property is appraised at its market value, as determined by the applications of generally accepted appraisal techniques; however, each property shall 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. The three criteria for assessing actual damages to a property owner from a condemnation are the value of the property, the injury to the property owner, the benefit to the property owner's remaining property, and the use of the property for the purpose of the condemnation. In State v. Schmidt 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, C.S.S.B. 842 amends the procedure for assessment and preservation of property rights in condemnation proceedings and uniformity in assessment of market value. 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 Section 6, Article 1105b, V.T.C.S., by adding Subsection (e), to require an assessment to be made where equitable for the special benefit conferred on an adjoining property by the new construction or improvement of any street. Requires the determination of special benefit to be measured by the increase of the market value of the adjoining property caused by the new construction or improvement and offset by any special damage caused by the new construction or improvement. Requires the market value estimation to be made only after considering every factor that affects the adjoining property's market value that would be considered in the marketplace including, but not limited to, any effect the new construction or improvement may have on the access to and from and visibility of the adjoining property and the use and enjoyment of the property during the construction and after its completion. SECTION 2. Amends Article 1209, V.T.C.S., to make a conforming change. SECTION 3. Amends Section 21.041, Property Code, as follows: Sec. 21.041. EVIDENCE. Sets forth the required method for calculating market value for evidence, in estimating the compensation to which a property owner is entitled in a condemnation proceeding, which shall be admitted from the condemnor and the property owner. Deletes existing Subdivision (4). SECTION 4. Amends Section 21.042, Property Code, by amending Subsections (a), (c), and (d), to make conforming and nonsubstantive changes. SECTION 5. Effective date: September 1, 1995. SECTION 6. Emergency clause.