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.