By:  Janek, Nelson                                                S.B. No. 7  



A BILL TO BE ENTITLED
AN ACT
relating to limiting the use of eminent domain to take private property. 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. LIMITATIONS ON USE OF EMINENT DOMAIN
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: (1) confers a private benefit on a particular private party through the use of the property, except to the extent necessary to accomplish the secondary purpose described in Subdivision (3); (2) 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, or Chapter 311, Tax Code, to eliminate the conditions described in 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, but not limited to, railroads, ports, airports, or public roads or highways; (2) water supply, wastewater, flood control, and drainage projects; (3) other public infrastructure, including public buildings, hospitals, and parks; (4) the operations of a common carrier or regulated energy transporter; (5) the provision of utility services; (6) a sports and community venue project approved by voters at an election held on or before December 1, 2005, under Chapter 334 or 335, Local Government Code; (7) a library, museum, auditorium, or similar facility and related infrastructure; or (8) radioactive waste disposal projects. SECTION 2. Section 21.001, Property Code, is amended to read as follows: Sec. 21.001. CONCURRENT JURISDICTION. District courts and county courts at law have concurrent jurisdiction in eminent domain cases in every county in the state, notwithstanding any other law. A county court has no jurisdiction in eminent domain cases. SECTION 3. Section 21.013, Property Code, is amended to read as follows: Sec. 21.013. VENUE; FEES AND PROCESSING FOR ACTION [SUIT] FILED IN DISTRICT COURT. (a) The venue of a condemnation proceeding is the county in which the owner of the property being condemned resides if the owner resides in a county in which part of the property is located. Otherwise, the venue of a condemnation proceeding is any county in which at least part of the property is located. (b) Except where otherwise provided by law, a party initiating a condemnation proceeding [in a county in which there is one or more county courts at law with jurisdiction] shall file the petition with any clerk authorized to handle such filings for a [that] court that has jurisdiction in eminent domain cases [or courts]. (c) [A party initiating a condemnation proceeding in a county in which there is not a county court at law must file the condemnation petition with the district clerk.] The filing fee shall be due at the time of filing in accordance with Section 51.317, Government Code. (d) District and county clerks shall assign an equal number of eminent domain cases in rotation to each court with jurisdiction that the clerk serves. SECTION 4. Subsection (b), Section 203.052, Transportation Code, as amended by H.B. No. 2702, Acts of the 79th Legislature, Regular Session, 2005, is amended 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 the 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) provide a location for [an ancillary facility that is anticipated to generate revenue for use in the design, development, financing, construction, maintenance, or operation of a toll project, including] a gas 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. SECTION 5. Section 203.052, Transportation Code, is amended by adding Subsection (c) to read as follows: (c) The commission may not condemn property for a purpose described in Subsection (b)(9) unless: (1) subject to the provisions of Section 227.041(b-1), the purpose is for a gas station, convenience store, or similar facility; or (2) the purpose is to provide a location between the main lanes of a highway or between a highway and a department rail facility for a gas station, convenience store, or similar facility that: (A) provides services to and directly benefits users of a toll project; and (B) is not located within 10 miles of an intersection of the toll project and a segment of another state highway that is designated as an interstate highway. SECTION 6. (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; and (2) five members of the house of representatives appointed by the speaker of the house of representatives. (c) The lieutenant governor shall designate one senator appointed to the interim committee to act as chair. The speaker of the house of representatives shall designate one member of the house of representatives appointed to the committee to act as vice 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 December 1, 2006. SECTION 7. Sections 21.001 and 21.013, Property Code, as amended by this Act, apply only to a condemnation proceeding initiated on or after the effective date of this Act. A condemnation proceeding initiated before the effective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose. SECTION 8. 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 on the 91st day after the last day of the legislative session.