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