BILL ANALYSIS


                                                         S.B. 899
                                                    By: Henderson
                                                    Jurisprudence
                                                           4-5-95
                                     Committee Report (Unamended)
BACKGROUND

The announcement of a future public project may adversely impact
those private properties which are scheduled to be and are later
actually acquired for the proposed improvement.  This phenomenon is
commonly referred to as "condemnation blight."  An improved
property which is later condemned may have first suffered
decreasing rental rates and high vacancy as a direct result of the
pending acquisition.  In such cases, the property owner may suffer
injuries because of the public project which are not shared by the
community generally and which are not compensated under the
traditional market value test.

In its Westgate decision, the Texas Supreme Court recently held
that these losses may not be separately compensated in the
subsequent condemnation action unless malice or ill will motivated
the condemnor's delay.  This bill provides an alternate remedy for
the condemnee who can demonstrate that the person suffered injuries
directly caused by the announcement of the public project.  By
allowing the owner to make the date of taking earlier under certain
specific and limited circumstances, the bill reinforces the
existing condemnation rule that properties are valued for
compensation purposes without consideration of market changes
brought about by the announcement of proposed public improvements.

PURPOSE

As proposed, S.B. 899 authorizes the owner of property that has
entirely or in part been condemned to establish an earlier date of
valuation of the property at the time of the special commissioners'
hearing.

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 21.042(b), Property Code, to authorize
a property owner, if part of or an entire tract or parcel of real
property is condemned, to elect at the time of the special
commissioners' hearing to establish an earlier date of valuation
and taking by proving that the condemning authority manifested
publicly the intention to take the property at such earlier date,
that the market value of the landowner's property was higher than
at the date of valuation used by the condemnor, and that the
manifestation adversely affected the value of the real property.

SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.