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H.B. No. 803
AN ACT
relating to the authority of political subdivisions to exercise the
power of eminent domain to acquire rights to water and the
assessment of damages in condemnation proceedings initiated for
that purpose.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 21, Property Code, is
amended by adding Section 21.0121 to read as follows:
Sec. 21.0121. CONDEMNATION TO ACQUIRE WATER RIGHTS.
(a) In addition to the contents prescribed by Section 21.012(b), a
condemnation petition filed by a political subdivision of this
state for the purpose of acquiring rights to groundwater or surface
water must state that the facts to be proven are that the political
subdivision has:
(1) prepared a drought contingency plan;
(2) developed and implemented a water conservation
plan that will result in the highest practicable levels of water
conservation and efficiency achievable in the political
subdivision's jurisdiction;
(3) made a bona fide good faith effort to obtain
practicable alternative water supplies to the water rights the
political subdivision proposes to condemn;
(4) made a bona fide good faith effort to acquire the
rights to the water the political subdivision proposes to condemn
by voluntary purchase or lease; and
(5) made a showing that the political subdivision
needs the water rights to provide for the domestic needs of the
political subdivision within the next 10-year period.
(b) A court shall deny the right to condemn unless the
political subdivision proves to the court that the political
subdivision has met the requirements of Subsection (a).
SECTION 2. Subchapter C, Chapter 21, Property Code, is
amended by adding Section 21.0421 to read as follows:
Sec. 21.0421. ASSESSMENT OF DAMAGES: GROUNDWATER RIGHTS.
(a) In a condemnation proceeding initiated by a political
subdivision under this chapter, the special commissioners or court
shall admit evidence relating to the market value of groundwater
rights as property apart from the land in addition to the local
market value of the real property if:
(1) the political subdivision proposes to condemn the
fee title of real property; and
(2) the special commissioners or court finds, based on
evidence submitted at the hearing, that the real property may be
used by the political subdivision to develop or use the rights to
groundwater for a public purpose.
(b) The evidence submitted under Subsection (a) on the
market value of the groundwater rights as property apart from the
land shall be based on generally accepted appraisal methods and
techniques, including the methods of appraisal under Subchapter A,
Chapter 23, Tax Code.
(c) If the special commissioners or court finds that the
real property may be used by the political subdivision to develop or
use the rights to groundwater for a public purpose, the special
commissioners or court may assess damages to the property owner
based on:
(1) the local market value of the real property,
excluding the value of the groundwater in place, at the time of the
hearing; and
(2) the market value of the groundwater rights as
property apart from the land at the time of the hearing.
(d) In assessing damages based on the market value of
groundwater rights under Subsection (c)(2), the special
commissioners or court shall consider:
(1) the amount of groundwater the political
subdivision can reasonably be expected to produce from the property
on an annual basis;
(2) the number of years the political subdivision can
reasonably be expected to produce groundwater from the property;
(3) the quality of the groundwater;
(4) the location of the real property in relation to
the political subdivision for conveyance purposes;
(5) any potential environmental impact of producing
groundwater from the real property;
(6) whether or not the real property is located within
the boundaries of a political subdivision that can regulate the
production of groundwater from the real property;
(7) the cost of alternative water supplies to the
political subdivision; and
(8) any other reasonable factor that affects the
market value of a groundwater right.
(e) This section does not:
(1) authorize groundwater rights appraised separately
from the real property under this section to be appraised
separately from real property for property tax appraisal purposes;
or
(2) subject real property condemned for the purpose
described by Subsection (a) to an additional tax as provided by
Section 23.46 or 23.55, Tax Code.
SECTION 3. (a) This Act takes effect September 1, 2003.
(b) Section 21.0421, Property Code, as added by this Act,
does not affect any litigation pending on the effective date of this
Act that relates to the assessment of damages in a condemnation
proceeding under Chapter 21, Property Code.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 803 was passed by the House on April
30, 2003, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 803 on May 28, 2003, by a non-record
vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 803 was passed by the Senate, with
amendments, on May 26, 2003, by a viva-voce vote.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor