Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Uher                                         H.B. No. 2740

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the preservation of the rights of property owners

 1-3     through a uniform assessment of market value in condemnation

 1-4     proceedings.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 21.042, Property Tax Code, is amended to

 1-7     read as follows:

 1-8           Sec. 21.042.  Assessment of Damages.  (a)  The special

 1-9     commissioners shall assess damages in a condemnation proceeding

1-10     according to the evidence presented at the hearing which shall

1-11     comport with the valuation conditions described in this section.

1-12           (b)  If an entire tract or parcel of real property is

1-13     condemned, the amount of compensation to which a property owner is

1-14     entitled shall be based on the market value of that property as of

1-15     the date of taking, except as provided for in Subsection (g).

1-16           (c)  If less than the entire tract or parcel of real property

1-17     is condemned and the property owner seeks to recover damages to the

1-18     remaining property caused by the condemnation, the total amount of

1-19     compensation both for the property condemned and any damages to the

1-20     remaining property shall be based on the difference in the market

1-21     value of the entire property immediately before the taking and the

1-22     market value of the remaining property immediately after the

1-23     taking, considering any benefits or injuries that the construction

1-24     and operation of the condemnor's project may have on the remaining

 2-1     property's market value.

 2-2           (d)  Any increase or decrease in the market value of an

 2-3     entire tract or parcel or real property caused by the condemnor's

 2-4     proposed project before the taking shall be disregarded in

 2-5     estimating the market value of that property before the taking.

 2-6     However, any increase or decrease in the market value of any

 2-7     remaining property caused by the condemnor's proposed project after

 2-8     the taking shall be considered in estimating the market value of

 2-9     that property after the taking.

2-10           (e)  The estimation of the market value of property taken,

2-11     and the remaining property if only part of an entire tract or

2-12     parcel of real property is taken, shall include consideration of

2-13     all factors considered in the marketplace that may affect the

2-14     property's market value including, but not limited to, the

2-15     following characteristics that affect a property's location:

2-16                 (1)  vehicular and pedestrian access to and from and on

2-17     and off the property;

2-18                 (2)  traffic circulation and count in and around the

2-19     property;

2-20                 (3)  visibility and appearance of and from the

2-21     property;

2-22                 (4)  productivity and convenience of use of the

2-23     property, including its highest and best use; and

2-24                 (5)  the property's access to utilities and drainage.

2-25           (f)  The effect that the condemnation may have on any of the

2-26     market value characteristics considered within Subsection (e) of

2-27     this section shall be considered in estimating the market value of

2-28     any remainder property regardless of whether some or all other

2-29     properties in the neighborhood may be similarly impacted by the

2-30     condemnation.

 3-1           (g)  If the property condemned is owned by the public entity

 3-2     or other person organized and operated on a non-profit basis, the

 3-3     compensation measure shall be not less than the cost of financial

 3-4     replacement if the property is devoted to and is needed by the

 3-5     owner in good faith to perform a public function, or to render

 3-6     non-profit educational, charitable or eleemosynary services.

 3-7           (b)  [If an entire tract or parcel of real property is

 3-8     condemned, the damage to the property owner is the local market

 3-9     value of the property at the time of the special commissioners'

3-10     hearing.]

3-11           [(c)  If a portion of a tract or parcel of real property is

3-12     condemned, the special commissioners shall determine the damage to

3-13     the property owner after estimating the extent of the injury and

3-14     benefit to the property owner, including the effect of the

3-15     condemnation on the value of the property owner's remaining

3-16     property.]

3-17           [(d)  In estimating injury or benefit under Subsection (c),

3-18     the special commissioners shall consider an injury or benefit that

3-19     is peculiar to the property owner and that relates to the property

3-20     owner's ownership, use, or enjoyment of the particular parcel of

3-21     real property, but they may not consider an injury or benefit that

3-22     the property owner experiences in common with the general

3-23     community.]

3-24           [(e)  If a portion of a tract or parcel of real property is

3-25     condemned for the use, construction, operation, or maintenance of

3-26     the state highway system or of a county toll project described by

3-27     Chapter 304, Acts of the 50th Legislature, Regular Session, 1947

3-28     (Article 6795b-1, Vernon's Texas Civil Statutes), that is eligible

3-29     for designation as part of the state highway system, or for the

3-30     use, construction, development, operation, or maintenance of an

 4-1     improvement or project by a metropolitan rapid transit authority

 4-2     created before January 1, 1980, with a principal city having a

 4-3     population of less than 1,200,000 and established under Chapter

 4-4     141, Acts of the 63rd Legislature, Regular Session (Article 1118x,

 4-5     Vernon's Texas Civil Statutes, the special commissioners shall

 4-6     determine the damage to the property owner regardless of whether

 4-7     the property owner makes a claim for damages to the remaining

 4-8     property.  In awarding compensation or assessing the damages, the

 4-9     special commissioners shall consider any special and direct

4-10     benefits that arise from the highway improvement or the transit

4-11     authority improvement or project that are peculiar to the property

4-12     owner and that relate to the property owner and that relate to the

4-13     property owner's ownership, use, or enjoyment of the particular

4-14     parcel of remaining real property.]

4-15           SECTION 2.  The importance of this legislation and the

4-16     crowded condition of the calendars in both houses create an

4-17     emergency and an imperative public necessity that the

4-18     constitutional rule requiring bills to be read on three several

4-19     days in each house be suspended, and this rule is hereby suspended,

4-20     and that this Act take effect and be in force from and after its

4-21     passage, and it is so enacted.