S.B. No. 7
AN ACT
relating to limits on the use of the power of eminent domain.
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;
(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 to eliminate an existing affirmative harm on society
from slum or blighted areas under:
(A) Chapter 373 or 374, Local Government Code,
other than an activity described by Section 373.002(b)(5), Local
Government Code; or
(B) 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, airports, or public roads or highways;
(2) entities authorized under Section 59, Article XVI,
Texas Constitution, including:
(A) port authorities;
(B) navigation districts; and
(C) any other conservation or reclamation
districts that act as ports;
(3) water supply, wastewater, flood control, and
drainage projects;
(4) public buildings, hospitals, and parks;
(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) the operations of:
(A) a common carrier subject to Chapter 111,
Natural Resources Code, and Section B(3)(b), Article 2.01, Texas
Business Corporation Act; or
(B) an energy transporter, as that term is
defined by Section 186.051, Utilities Code;
(8) a purpose authorized by Chapter 181, Utilities
Code;
(9) underground storage operations subject to Chapter
91, Natural Resources Code;
(10) a waste disposal project; or
(11) a library, museum, or related facility and any
infrastructure related to the facility.
(d) This section does not affect the authority of a
governmental entity to condemn a leasehold estate on property owned
by the governmental entity.
(e) The determination by the governmental or private entity
proposing to take the property that the taking does not involve an
act or circumstance prohibited by Subsection (b) does not create a
presumption with respect to whether the taking involves that act or
circumstance.
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. Notwithstanding 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 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 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) 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,
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.
(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 4. Subsection (b), Section 227.041, 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 acquistion 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 5. Subchapter Z, Chapter 51, Education Code, is
amended by adding Section 51.9045 to read as follows:
Sec. 51.9045. LIMITATION ON USE OF EMINENT DOMAIN. (a) In
this section:
(1) "Institution of higher education" has the meaning
assigned by Section 61.003.
(2) "Lodging facility" does not include a dormitory or
other student housing facility.
(b) The governing board of an institution of higher
education 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 a lodging
facility.
SECTION 6. Section 6, Chapter 178, Acts of the 56th
Legislature, Regular Session, 1959 (Article 3183b-1, Vernon's
Texas Civil Statutes), is amended to read as follows:
Sec. 6. (a) Except as provided by Subsection (b) of this
section, the [The] power of eminent domain granted by this Act shall
be exercised in accordance with Chapter 21, Property Code [the
procedure, conditions, and provisions as prescribed in Title 52,
Revised Civil Statutes of Texas, 1925, as amended].
(b) If a charitable corporation to which this Act applies
seeks to acquire any real property by condemnation or seeks to
purchase any real property that the corporation intends to use in a
manner that would not comply with any deed restriction that applies
to the property immediately before the purchase, before the
charitable corporation initiates condemnation proceedings or
records the deed conveying title to the property the charitable
corporation shall, in addition to providing any other notice
required by law, provide written notice by certified mail to the
owner of record, as recorded in the real property records of the
county, of each unit of real property:
(1) that the charitable corporation seeks to acquire
or purchase; or
(2) that is not more than 200 feet from any boundary of
any unit of real property the charitable corporation seeks to
acquire or purchase.
SECTION 7. Subsection (e), Section 227.041, Transportation
Code, as added by H.B. No. 2702, Acts of the 79th Legislature,
Regular Session, 2005, is repealed.
SECTION 8. (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 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 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 the issue of what constitutes adequate
compensation for property taken through the use of eminent domain;
and
(2) prepare a report of the committee's study for the
80th Legislature.
(e) The report required by Subdivision (2), Subsection (d)
of this section, must be filed with the lieutenant governor and
speaker of the house of representatives not later than December 1,
2006.
SECTION 9. The changes in law made by this Act to Chapter
178, Acts of the 56th Legislature, Regular Session, 1959 (Article
3183b-1, Vernon's Texas Civil Statutes), apply to the acquisition
of real property by eminent domain or the purchase of real property
on or after the effective date of this Act unless condemnation
proceedings are initiated or a deed conveying title to the property
is filed before the effective date of this Act, in which event the
acquisition or purchase is governed by the law in effect at the time
the proceedings are initiated or the deed is filed, and the former
law is continued in effect for that purpose. The changes in law
made by this Act to Chapter 178, Acts of the 56th Legislature,
Regular Session, 1959 (Article 3183b-1, Vernon's Texas Civil
Statutes), do not apply to acquisition of real property by eminent
domain or the purchase of real property before the effective date of
this Act.
SECTION 10. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 7 passed the Senate on
August 9, 2005, by the following vote: Yeas 25, Nays 4; and that
the Senate concurred in House amendments on August 16, 2005, by the
following vote: Yeas 19, Nays 5.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 7 passed the House, with
amendments, on August 10, 2005, by the following vote: Yeas 140,
Nays 1, three present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor