SRC-JEC S.B. 438 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 438
77R4359 PAM-FBy: Madla
Intergovernmental Relations
2/9/2001
As Filed


DIGEST AND PURPOSE 

Currently, while assessing damages to a property owner under condemnation
proceedings, a court will accept evidence for the existence of certain
natural resources which increase the "rental value" of the property.
However, a property owner cannot be compensated for the fair market value
of the natural resources separately from the real property, even if the
condemner's intended use of the property is to develop and use that natural
resource.  As proposed, S.B. 438 allows property owners to submit evidence
and be compensated for the fair market value of natural resources when the
stated purpose for which the land is to be condemned is to develop and use
the natural resources.  It also applies only to condemnation proceedings
initiated by local government entities and does not require the court or
commissioners to award the property owner damages for the fair market value
of the natural resources, but they will have that option. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 21C, Property Code, to add Section 21.0421, as
follows: 

Sec. 21.0421.  ASSESSMENT OF DAMAGES:  NATURAL RESOURCES.  (a)  Defines
"natural resources." 

(b)  Requires the special commissioners (three disinterested freeholders
who reside in the county, appointed by the judge of a court in which a
condemnation petition is filed or to which an eminent domain case is
assigned, to assess the damages of the owner of the property being
condemned), if a political subdivision states in its petition filed under
Section 21.012 that the intended purpose for acquiring real property is to
develop or use the natural resources located on or under the real property,
to admit evidence in the special commissioners' hearing relating to the
local market value of the natural resources in addition to the local market
value of the real property. 

(c)  Authorizes the special commissioners, if they are required to admit
evidence relating to the local market value of natural resources under
Subsection (b), to assess damage to the property owner based on the local
market value of the property at the time of the hearing, and the local
market value of the natural resources on or under the property at the time
of the hearing. 

SECTION 2.   Effective date:  September 1, 2001.
Provides that this Act does not affect any litigation pending on September
1, 2001, in any court of competent jurisdiction that relates to the
assessment of damages in a condemnation proceeding under Chapter 21
(Eminent Domain), Property Code.