By: Seliger S.B. No. 1254

(In the Senate - Filed March 2, 2009; March 17, 2009, read first time and referred to Committee on Natural Resources; April 2, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 10, Nays 0; April 2, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1254 By: Seliger

A BILL TO BE ENTITLED

AN ACT

relating to general law limits on the eminent domain power of certain water and other special purpose districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 49.222, Water Code, is amended by amending Subsection (a) and adding Subsections (d), (e), (f), (g), and (h) to read as follows:

(a) Except as provided by and subject to this section, a [A] district or water supply corporation may acquire by condemnation any land, easements, or other property inside or outside the district boundaries, or the boundaries of the certificated service area for a water supply corporation, necessary for water, sanitary sewer, storm drainage, or flood drainage or control purposes or for any other of its projects or purposes, and may elect to condemn either the fee simple title or a lesser property interest.

(d) A district may not exercise the power of eminent domain to acquire land, an easement, or other property that is located more than five miles outside the district's boundaries unless:

(1) the district provides notice of the hearing required under Subdivision (2) to the owners of the land that the district seeks to condemn not later than two weeks before the date of the hearing;

(2) the commissioners court in the county in which the eminent domain power is to be exercised, after notice and hearing, officially approves the exercise; and

(3) after approval by the commissioners court, the commission issues an order approving the district's application to exercise that power.

(e) A district that seeks commission approval for the district's planned exercise of eminent domain power:

(1) shall submit to the commission a written application for approval of the exercise of that power that includes a copy of the commissioners court's resolution approving the district's proposed condemnation of property; and

(2) shall provide notice of the application in the manner prescribed by the commission.

(f) After publication of notice, an opportunity for public comment, and an opportunity for public hearing on an application under this section, the commission may issue an order approving the application if the commission finds that:

(1) all procedural requirements have been satisfied;

(2) the requested exercise of the power of eminent domain:

(A) is necessary and serves a purpose for which the district was created; and

(B) will encourage regionalization of water supply and distribution; and

(3) granting the request will:

(A) serve the public interest; and

(B) benefit the residents of the district.

(g) The commission by rule shall establish procedures for public notice and hearing of applications under this section. The procedures must include provision of notice to elected state and local officials who represent residents of the district and of the property proposed for condemnation.

(h) A district may not exercise the power of eminent domain to acquire land, an easement, or other property that is located more than 75 miles outside the district's boundaries.

SECTION 2. Section 49.222, Water Code, as amended by this Act, applies only to an exercise of the power of eminent domain by a district that has filed a condemnation petition on or after January 1, 2010. An exercise of the power of eminent domain by a district that has filed a condemnation petition before January 1, 2010, is governed by the law in effect on the date the condemnation petition is filed, and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2009.

* * * * *