SRC-JEC S.B. 1708 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1708
By: Wentworth
State Affairs
6/27/2003
Enrolled


DIGEST AND PURPOSE 

Currently, no mechanism exists to allow a person whose property was
acquired by the government through eminent domain, when the project for
which the property was acquired is canceled, to get the property back,
other than a bidding process.  S.B. 1708 requires the government to
contact the last owner and offer the person the property before it is set
for sale through the bidding process. 

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 Subchapter B, Chapter 21, Property Code, by adding
Section 21.023, as follows: 

Sec. 21.023.  DISCLOSURE OF INFORMATION REQUIRED AT TIME OF ACQUISITION.
Requires a governmental entity to disclose in writing to a property owner,
at the time of acquisition of the property owner through eminent domain,
that the owner or the owner's heirs, successors, or assigns are entitled
to repurchase the property if the public use for which the property was
acquired through eminent domain is canceled before the 10th anniversary of
the date of acquisition, and that the repurchase price is the fair market
value of the property at the time the public use was canceled. 

SECTION 2.  Amends Chapter 21, Property Code, by adding Subchapter E, as
follows: 

SUBCHAPTER E. REPURCHASE OF REAL PROPERTY FROM GOVERNMENTAL ENTITY

Sec. 21.101.  APPLICABILITY.  (a)  Provides that this subchapter applies
only to a real property interest acquired by a governmental entity through
eminent domain for a public use that was canceled before the 10th
anniversary of the date of acquisition, except as provided by Subsection
(b). 

(b)  Provides that this subchapter does not apply to a right-of-way under
the jurisdiction of a county, municipality, or the Texas Department of
Transportation. 

Sec. 21.102.  NOTICE TO PREVIOUS PROPERTY OWNER AT TIME OF CANCELLATION OF
PUBLIC USE.  Requires a governmental entity, not later than the 180th day
after the date of the cancellation of the public use for which real
property was acquired through eminent domain from a property owner under
Subchapter B, to send by certified mail, return receipt requested, to the
property owner or the owner's heirs, successors, or assigns, a notice
containing certain information. 

Sec. 21.103.  RESALE OF PROPERTY; PRICE.  (a) Requires the property owner
or the  owner's heirs, successors, or assigns, not later than the 180th
day after the date of the postmark on the notice sent under Section
21.102, to notify the governmental entity of the person's intent to
repurchase the property interest under this subchapter. 

(b)  Requires the governmental entity, as soon as practicable after
receipt of the notification under Subsection (a), to offer to sell the
property interest to the person for the fair market value of the property
at the time the public use was canceled.  Provides that the person's right
to repurchase the property expires on the 90th day after the date on which
the governmental entity makes the offer. 

SECTION 3.  Makes application of Subchapter E, Chapter 21, Property Code,
as added by this Act, prospective. 

SECTION 4.  Effective date:  January 1, 2004.