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


Senate Research Center   S.B. 1708
78R8320 MXM-DBy: Wentworth
State Affairs
4/4/2003
As Filed


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.  As proposed, 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 Chapter 21, Property Code, by adding Subchapter E, as
follows: 

SUBCHAPTER E. REPURCHASE OF REAL PROPERTY FROM GOVERNMENTAL ENTITY

Sec. 21.101.  APPLICABILITY.  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 later cancelled. 

Sec. 21.102.  NOTICE TO PREVIOUS PROPERTY OWNER.  (a)  Requires the
governmental entity, not later than the first anniversary of the date of
the cancellation of the public use for which real property was acquired
through eminent domain, to make a diligent effort to discover each
property owner, or the heirs of the property owner if the property owner
is deceased, who owned the real property interest immediately before the
governmental entity acquired the property interest. 

(b)  Requires the governmental entity to personally deliver or send by
certified mail, return receipt requested, to each property owner
identified under Subsection (a) a notice containing certain information. 

Sec. 21.103.  RESALE OF PROPERTY; PRICE.  Requires the governmental
entity, not later than the first anniversary of the date on which a person
receives notice under Section 21.102, or sooner on request of the person,
to offer to sell the property interest to that person, or the person's
heirs if the person is deceased.  Requires the sale price, if the person
accepts the offer, to be the lesser of fair market value or the price paid
to the owner by the governmental entity when the governmental entity
acquired the interest by eminent domain. 

SECTION 2.  (a)  Provides that Chapter 21E, Property Code, as added by
this Act, applies only to a real property interest acquired by a
governmental entity on or after January 1, 1980. 

(b)  Provides that for real property that was acquired before the
effective date of this Act through eminent domain for a public use and for
which the public use was canceled before the effective date of this Act,
the one-year period described by Section 21.102,  Property Code, as added
by this Act, shall be computed as if the date of cancellation were the
effective date of this Act. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.