By:  Janek                                                        S.B. No. 62 
	(In the Senate - Filed June 30, 2005; June 30, 2005, read 
first time and referred to Committee on State Affairs; 
July 8, 2005, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 7, Nays 0; July 8, 2005, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 62                                     By:  Madla


A BILL TO BE ENTITLED

AN ACT


relating to limiting the use of eminent domain to take private 
property for private parties or economic development purposes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle E, Title 10, Government Code, is 
amended by adding Chapter 2206 to read as follows:

CHAPTER 2206.  LIMITATION ON USE OF EMINENT DOMAIN FOR PRIVATE 
PARTIES OR ECONOMIC DEVELOPMENT PURPOSES
	Sec. 2206.001.  LIMITATION ON EMINENT DOMAIN FOR PRIVATE 
PARTIES OR ECONOMIC DEVELOPMENT PURPOSES.  (a)  This section 
applies to the use of eminent domain under the laws of this state by 
any governmental or private entity, including:
		(1)  a state agency, including an institution of higher 
education as defined by Section 61.003, Education Code;
		(2)  a political subdivision of this state; or                         
		(3)  a corporation created by a governmental entity to 
act on behalf of the entity.
	(b)  A governmental or private entity may not take private 
property through the use of eminent domain if the taking:
		(1)  confers a private benefit on a particular private 
party through the use of the property;
		(2)  is for a public use that is merely a pretext to 
confer a private benefit on a particular private party; or
		(3)  is for economic development purposes, unless the 
economic development is a secondary purpose resulting from 
municipal community development or municipal urban renewal 
activities under Chapter 373 or 374, Local Government Code, to 
eliminate an existing affirmative harm on society from slum or 
blighted areas.
	(c)  This section does not affect the authority of an entity 
authorized by law to take private property through the use of 
eminent domain for:
		(1)  transportation projects, including railroads, 
ports, airports, or public roads or highways; or
		(2)  the provision of utility services.                                
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect November 1, 2005.



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