Amend CSSB 2 (House committee printing) by adding the
following appropriately numbered new SECTION to the bill and
renumbering subsequent SECTIONS of the bill accordingly:
      SECTION ____. (a)  Subchapter C, Chapter 21, Property Code,
is amended by adding Section 21.0421 to read as follows:
      Sec. 21.0421.  ASSESSMENT OF DAMAGES: GROUNDWATER RIGHTS. (a)
In a condemnation proceeding initiated by a municipality under this
chapter, the special commissioners or court shall admit evidence
relating to the market value of groundwater rights as property
apart from the land in addition to the local market value of the
real property if:
            (1)  the municipality proposes to condemn the fee title
of real property; and
            (2)  the special commissioners or court finds, based on
evidence submitted at the hearing, that the real property may be
used by the municipality to develop or use the rights to
groundwater for a public purpose.
      (b)  The evidence submitted under Subsection (a) on the
market value of the groundwater rights as property apart from the
land shall be based on generally accepted appraisal methods and
techniques, including the methods of appraisal under Subchapter A,
Chapter 23, Tax Code.
      (c)  If the special commissioners or court finds that the
right to groundwater may be developed or used for municipal
purposes, the special commissioners or court may assess damages to
the property owner based on:
            (1)  the local market value of the real property,
excluding the value of the groundwater in place, at the time of the
hearing; and
            (2)  the market value of the groundwater rights as
property apart from the land at the time of the hearing.
      (d)  This section does not:
            (1)  authorize groundwater rights appraised separately
from the real property under this section to be appraised
separately from real property for property tax appraisal purposes;
or
            (2)  subject real property condemned for the purpose
described by Subsection (a) to an additional tax as provided by
Section 23.46 or 23.55, Tax Code.
      (b)  The change in law made by Section 21.0421, Property
Code, as added by this section, does not affect any litigation
pending on September 1, 2001, that relates to the assessment of
damages in a condemnation proceeding under Chapter 21, Property
Code.