CPC C.S.H.B. 3339 75(R)BILL ANALYSIS


LAND & RESOURCE MANAGEMENT
C.S.H.B. 3339
By: Hilbert
4-30-97
Committee Report (Substituted)



BACKGROUND 

A split among courts of  civil appeals  have resulted in confusion
regarding the intent of Sec. 21.09 of the Property Code.   In current law,
Sec. 21.09(b) of the Property Code states that  the court may make an
allowance to the property owner for reasonable and necessary fees and
expenses incurred by the property owner to the date of the hearing or
judgment. However, the condemnor may contest the expenses that the
property owner seeks to recover, forcing the property owner to incur
additional expenses that, in fact, may be even greater than those incurred
up to the date of the hearing.  Some argue this situation provides the
condemnor with great leverage to force the property owner to settle for
less than all expenses incurred.   

PURPOSE

CSHB 3339 clarifies current law to ensure that the property owner receives
an appropriate allowance for the value of the property while the property
is in the possession of the condemnor, any damages that the condemnor may
have caused the property owner, and for expenses the property owner incurs
in connection with the condemnation. 

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.  Amends Sec. 21.019, Property Tax Code, as follows: 

 Sec. 21.019.  DISMISSAL OF CONDEMNATION PROCEEDINGS.

 (a) Allows a party that files a condemnation petition may move to dismiss
the proceedings, and the court shall conduct a hearing on the motion.  The
court may grant the motion only if the court determines that the property
owner's interest will not be materially affected by the dismissal.  A
condemnor may not dismiss a condemnation proceedings merely to institute
new proceeding that involve substantially the same condemnation against
the same property owner solely to obtain a lower condemnation award.   

 (b) Requires that if a court dismisses a condemnation proceeding, the
court shall make an allowance to the property owner for the value of the
condemnor's use of the property while in possession of the property, any
damages that the condemnation has caused to the property owner, and any
expenses the property owner has incurred in connection with the
condemnation, including reasonable and necessary fees for attorneys. 

SECTION 2. Effective Date.

SECTION 3.  Emergency clause.



 COMPARISON OF ORIGINAL TO SUBSTITUTE

CSHB 3339 states that a party that files a condemnation petition may move
to dismiss the proceedings, and the court shall conduct a hearing on the
motion.  The court may grant the motion only if the court determines that
the property owner's interest will not be materially affected by the
dismissal.  A condemnor may not dismiss a condemnation proceedings merely
to institute new proceeding that involve substantially the same
condemnation against the same property owner solely to obtain a lower
condemnation award.  The original legislation did not contain this exact
language.  

CSHB 3339 states that if a court dismisses a condemnation proceeding, the
court shall make an allowance to the property owner for the value of the
condemnor's use of the property while in possession of the property, any
damages that the condemnation has caused to the property owner, and any
expenses the property owner has incurred in connection with the
condemnation, including reasonable and necessary fees for attorneys.  The
original legislation did not contain this exact language.  

CSHB 3339 added the Emergency Clause.  The original legislation did not
contain an Emergency Clause.