79S20055 AJA-F



By:  Shapleigh                                                    S.B. No. 26 







A BILL TO BE ENTITLED



AN ACT



relating to 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.  DEFINITION.  In this chapter, "economic 

development" means efforts to promote prosperity and comfort in a 

community, stimulate the economy, expand employment opportunities, 

encourage the establishment and growth of commerce and industry, or 

expand the property and sales tax base.

	Sec. 2206.002.  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;

		(3)  is for economic development purposes; or                          

		(4)  is to raise revenue to meet the cost of a public 

project if the property being taken is not otherwise necessary for 

the successful or safe operation of that public project.

	(c)  This section does not prohibit the distribution of 

surplus toll revenue as otherwise allowed by law.  Toll revenue 

raised from a part of a transportation system may be used to help 

fund the transportation system generally if otherwise allowed by 

law.

	(d)  This section does not affect the authority of an entity 

authorized by law to take private property through the use of 

eminent domain if:

		(1)  there is a definite public right or use in the 

purpose to which the property is to be devoted other than economic 

development;

		(2)  the taking of the property is reasonably essential 

for the successful operation of a public project in which there is a 

definite public right or use as described by Subdivision (1); or

		(3)  the taking:                                                       

			(A)  prevents a menace to the health, safety, 

morals, and welfare of citizens; or

			(B)  is part of municipal community development or 

municipal urban renewal activities under Chapter 373 or 374, Local 

Government Code, or Section 311.005(a)(1)(I), Tax Code, to 

eliminate an existing affirmative harm on society from slum or 

blighted areas.

	SECTION 2.  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 or 

federal highway.

	SECTION 3.  (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 January 1, 2007.

	SECTION 4.  Chapter 2206, Government Code, as added by this 

Act, applies to a 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 5.  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.