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.