CPC C.S.H.B. 1794 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT C.S.H.B. 1794 By: Krusee 4-29-97 Committee Report (Substituted) BACKGROUND The government's acquisition of private property through the power of condemnation can sometimes be a lengthy and protracted process, especially when such acquisition is for large projects such as major highways. It is not uncommon for the condemnation of the numerous parcels needed for a significant highway improvement to take several years. During this period of time, the impending threat of condemnation has the effect of artificially driving down the values of the properties that are the later ones to be acquired. The longer the condemnation process takes, the more severe the impact on property values. The condemning authority is thus able to take unfair advantage of the property owner by keeping the property under the threat of condemnation for years, causing values to drop as a result of that, and then using the date when the condemning authority finally get the property to a special commissioners hearing as the date of valuation. PURPOSE HB 1794 facilitates fairness and equity in the condemnation process by allowing property owners to establish a date at the beginning of condemnation process for a large project as the date of valuation, rather than having the property owner suffer and artificial devaluation of his property as a result of the condemnation process itself. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Sec. 21.042, Property Code, is amended by amending Subsections (b), (c), and (e), and adding Subsection (f) as follows: Sec. 21.042(b) Allows a property owner whose property is taken by condemnation to establish, at the property owner's election, a date of valuation which may be as early as the date of the first offer by the condemnor to acquire a tract or parcel of real property for the same project if: (1) the property owner gives notice of that choice by filling, not later than the seventh day before the first day of the special commissioners' hearing, a written statement of that choice with the court in which the condemnation proceeding is pending; (2) the condemnor has made an offer for one or more other tracts or parcels of real property for the same project; and (3) the special commissioners' hearing is held after the first anniversary of the date the first offer was made for any tract or parcel of real property for the same project. (c) State that if a portion of a tract of parcel of real property is condemned, the special commissioners shall determine the damage to the property owner after estimating the extent of the injury and benefit to the property owner, including the effect of the condemnation on the value of the property owner's remaining property. For purpose of this subsection, the value of property is determined in the same manner as authorized of the determining the value of property under Subsection (b). (e) Strikes Article 6795b 1, Vernon's Texas Civil Statues and adds reference the to "Chapter 284, Transportation Code" and strikes "city" and adds "municipality." This subsection also states that the value of property is determined in the same manner as authorized for determining the value of property under Subsection (b). (f) Provides a definition for "same project." SECTION 2. The changes in law made by this Act apply only to assessment of damages in a condemnation proceeding for which special commissioners are appointed on or after the effective date of this Act. SECTION 3. Effective Date. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 1794 adds a requirement that the property owner gives notice of that choice by filling, not later than the seventh day before the first day of the special commissioners' hearing, a written statement of that choice with the court in which the condemnation proceeding is pending. This provision was not contained in the original legislation.