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.