By: Corte H.B. No. 12
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 and
to certain eminent domain procedures.
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,
including a local or special law, 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 is for
economic development purposes, unless the economic development is a
secondary purpose resulting from municipal community development
or municipal urban renewal activities to eliminate an existing
affirmative harm on society from slum or blighted areas under:
(1) Chapter 374, Local Government Code, or
(2) Section 311.005(a)(1)(I), Tax Code.
(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
acting as common carriers, ports, airports, or public roads or
highways;
(2) water supply, wastewater, flood control, and
drainage projects;
(3) the operations of a common carrier subject to the
provision of Chapter 111 of the Natural Resources Code and Art. 2.01
B(3)(b) of the Business Corporations Act, underground storage
operations subject to the provisions of Chapter 91 of the Natural
Resources Code, entities having the power or eminent domain under
Chapter 181 of the Utilities Code or regulated energy transporter
as defined in Sec. 186.051 of the Utilities Code;
(4) the provision of utility services;
(5) a sports stadium project approved by voters at an
election held on or before December 1, 2005, under Chapter 334 or
335, Local Government Code;
(6) the operation and industrial development of ports
and waterways, including the following entities authorized under
Section 59, Article XVI, Texas Constitution;
(A) port authorities; and
(B) navigation districts and conservation and
reclamation districts that act as ports; or
(7) waste disposal projects.
(d) This section does not affect the authority of a
governmental entity to condemn leasehold estates on property owned
by the governmental entity.
(e) The question of whether a taking of private property
through the use of eminent domain violates Subsection (b) is a
question of fact. The determination by the governmental or private
entity proposing to take the property that the taking does not
involve an act or circumstances prohibited by Subsection (b) does
not create a presumption with respect to whether the taking
involves that act or circumstance.
Sec. 2206.002. AMOUNT OF DAMAGES FOR TAKING OF PROPERTY.
(a) If property is taken under the power of eminent domain and if
the purpose of the taking is economic development, the owner of the
property is entitled to compensation in an amount equal to the
greater of:
(1) the actual damages resulting resulting from the
taking of the property; or
(2) the value necessary to replace the property with
other comparable property.
SECTION 2. Subchapter A, Chapter 552, Government Code, is
amended by adding Section 552.0037 to read as follows:
Sec. 552.0037. CERTAIN ENTITIES AUTHORIZED TO TAKE PROPERTY
THROUGH EMINENT DOMAIN. Not withstanding any other law,
information collected, assembled, or maintained by an entity that
is not a governmental body but is authorized by law to take private
property through the use of eminent domain is subject to this
chapter in the same manner as information collected, assembled, or
maintained by a governmental body, but only if the information is
related to the taking of private property by the entity through the
use of eminent domain.
SECTION 3. Section 65.33, Education Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) Notwithstanding Subsection (a), the board may not use
the power of eminent domain to acquire land to be used for a lodging
facility or for parking or a parking structure intended to be used
in connection with the use of the lodging facility if the land has
been used for the same commercial purpose for at least 20 years. In
this subsection, the term "lodging facility" does not include a
dormitory or other student housing facility.
SECTION 4. Section 203.052, Transportation Code, as amended
by H.B. No. 2702, Acts of the 79th Legislature, Regular Session,
2005, is amended by amending Subsection (b) and adding Subsection
(c) to read as follows:
(b) Property necessary or convenient to a state highway for
purposes of Subsection (a) includes an interest in real property, a
property right, or a material that the commission determines is
necessary or convenient to:
(1) protect a state highway;
(2) drain a state highway;
(3) divert a stream, river, or other watercourse from
the right-of-way of a state highway;
(4) store materials or equipment for use or used in the
construction or maintenance of a state highway;
(5) construct or operate a warehouse or other facility
used in connection with construction, maintenance, or operation of
a state highway;
(6) lay out, construct, or maintain a roadside park;
(7) lay out, construct, or maintain a parking lot that
will contribute to maximum use of a state highway with the least
possible congestion;
(8) mitigate an adverse environmental effect that
directly results from construction or maintenance of a state
highway;
(9) subject to Subsection (c), provide a location for
an ancillary facility that is anticipated to generate revenue for
use in the design, development, financing, construction, station,
garage, store, hotel, restaurant, or other commercial facility;
(10) construct or operate a toll booth, toll plaza,
service center, or other facility used in connection with the
construction, maintenance, or operation of a toll project; or
(11) accomplish any other purpose related to the
location, construction, improvement, maintenance, beautification,
preservation, or operation of a state highway.
(c) The commission may not acquire property for an ancillary
facility through the exercise of eminent domain, unless the
acquisition of the property is for one of multiple ancillary
facilities included in a comprehensive development plan approved by
the county commissioners court of each county in which the property
is located.
SECTION 5. Section 227.041(b), Transportation Code, as
amended by H.B. No. 2702, Acts of the 79th Legislature, Regular
Session, 2005, is amended to read as follows:
(b) An interest in real property or a property right is
necessary or convenient for the construction or operation of a
facility if it is located in or contiguous to an existing or planned
segment of the Trans-Texas Corridor or is needed for mitigation of
adverse environmental effects, and if its acquisition will further
the primary purposes of the Trans-Texas Corridor. Primary purposes
include:
(1) providing right-of-way or a location for a
facility;
(2) providing land for mitigation of adverse
environmental effects;
(3) providing buffer zones for scenic or safety
purposes;
(4) allowing for possible future expansion of any
facility; and
(5) subject to Section 203.052(c), providing a
location for a gas station, convenience store, or similar ancillary
facility.
SECTION 6. Section 227.041(e), Transportation Code, as
added by H.B. No. 2702, Acts of the 79th Legislature, Regular
Session, 2005, is repealed.
SECTION 7. (a) An interim committee is created to study the
use of the power of eminent domain.
(b) The interim committee consists of:
(1) five members of the senate appointed by the
lieutenant governor;
(2) five members of the house of representatives
appointed by the speaker of the house of representatives; and
(3) five members appointed by the governor.
(c) The speaker of the house of representatives shall
designate one member of the house of representatives appointed to
the committee to act as co-chair. The lieutenant governor shall
designate one senator appointed to the interim committee to act as
co-chair.
(d) The interim committee shall:
(1) study the use of the power of eminent domain,
including the use of the power of eminent domain for economic
development purposes; and
(2) prepare a report of the committee's study for the
80th Legislature.
(e) The report required by Subsection (d)(2) of this section
must be filed with the lieutenant governor and speaker of the house
of representatives not later than November 1, 2006.
SECTION 8. Chapter 2206, Government Code, as added by this
Act, applies to the taking of private property by eminent domain
pending on the effective date of this Act. For purposes of this
section, a taking is pending if a condemnation petition is filed
under Section 21.012, Property Code, and a judgment awarding
possession of the property to the condemning entity has not become
final.
SECTION 9. 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.