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.