Texas Tightens Government's Eminent Domain Authority

In May of 2011 Texas Governor Rick Perry signed into law Senate Bill 18, ushering in significant changes to the state's eminent domain power.

The law requires the condemning authority to first make a reasonable, appraisal-based offer for a voluntary sale of the land before starting condemnation proceedings. In addition, the landowner in certain situations can buy back the property at the government's purchase price if the land is still not used by the condemnor after 10 years. Finally, the law makes several changes reinforcing the requirement that eminent domain only be made for a public use and not for the benefit of any private entity. The condemning authority is required to specifically identify the public purpose, and to record a vote on the project before proceeding.

At the same time, the law grants eminent domain authority to certain entities which could not previously exercise it, leading some to claim that Senate Bill 18 inflicts more harm to private property rights rather than offering protections. A similar measure was passed in 2007 but vetoed by Governor Perry at the time.

Meanwhile, Back in California…

Eminent domain reform continues to be included in Governor Jerry Brown's plans to balance the California state budget. Through various budget cuts and spending measures, the state's formidable $26 Billion shortfall has been trimmed to $15 Billion, and it looks like an unexpected increase in recent tax receipts will bring that figure down by another $2 Billion or more.

Governor Brown's budget has called for the elimination of the state's 425 Redevelopment Agencies, entities which exercise eminent domain for economic redevelopment, a purpose which has been considered an allowable "public use" since the U.S. Supreme Court's decision in Kelo v. City of New London in 2005. Eliminating the Redevelopment Agencies would cut another $1.7 Billion from the budget, but this move has faced strong opposition from a large bloc of lawmakers and the business-oriented lobbying groups pressuring them against such a change. In the meantime, your property may be subject to a government taking for the benefit of commercial developers. If you find yourself in such a situation, contact the Los Angeles eminent domain attorneys at Fisher & Talwar at (213) 891-0777.