By Madla                                               S.B. No. 438
         77R4359 PAM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to permitting the value of natural resources to be
 1-3     included in the assessment of damages in a condemnation proceeding
 1-4     in certain circumstances.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter C, Chapter 21, Property Code, is
 1-7     amended by adding Section 21.0421 to read as follows:
 1-8           Sec. 21.0421.  ASSESSMENT OF DAMAGES: NATURAL RESOURCES. (a)
 1-9     In this section, "natural resources" means timber, sand or gravel,
1-10     water, oil, natural gas, or other mineral deposits located on or
1-11     under real property.
1-12           (b)  If a political subdivision states in its petition filed
1-13     under Section 21.012 that the intended purpose for acquiring real
1-14     property is to develop or use the natural resources located on or
1-15     under the real property, the special commissioners shall admit
1-16     evidence in the special commissioners' hearing relating to the
1-17     local market value of the natural resources in addition to the
1-18     local market value of the real property.
1-19           (c)  If the special commissioners are required to admit
1-20     evidence relating to the local market value of natural resources
1-21     under Subsection (b), the special commissioners may assess damage
1-22     to the property owner based on:
1-23                 (1)  the local market value of the real property at the
1-24     time of the special commissioners' hearing; and
 2-1                 (2)  the local market value of the natural resources on
 2-2     or under the real property at the time of the special
 2-3     commissioners' hearing.
 2-4           SECTION 2. (a)  This Act takes effect September 1, 2001.
 2-5           (b)  This Act does not affect any litigation pending on
 2-6     September 1, 2001, in any court of competent jurisdiction that
 2-7     relates to the assessment of damages in a condemnation proceeding
 2-8     under Chapter 21, Property Code.