SB 291

Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
positive
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest
SB 291 seeks to amend Section 21.0111(a) of the Texas Property Code to improve transparency in the eminent domain process. Under current law, entities with the authority to exercise eminent domain are required to make an initial offer to a property owner before acquiring property for public use. This bill expands those requirements by mandating that any such entity must also disclose, via certified mail, all appraisal reports specifically related to the owner's property that were produced or obtained by the entity within the 10 years preceding the date of the initial offer.

The intent behind this change is to ensure that property owners have full access to all relevant valuation information that may influence the offer being made to them. By requiring disclosure of both favorable and potentially unfavorable appraisals, the bill aims to level the playing field between property owners and entities exercising eminent domain. Additionally, if an entity fails to comply with the disclosure requirement, the bill provides that the property owner may recover reasonable attorney’s fees incurred in seeking the required information.

This legislation applies only to the acquisition of real property associated with offers made on or after the bill's effective date. Offers made before that date are governed by existing law. Overall, SB 291 enhances procedural fairness in eminent domain transactions by reinforcing the rights of property owners to be fully informed during negotiations and legal proceedings.

The originally filed version of SB 291 and the Committee Substitute are substantively similar, with only a minor but meaningful revision in the language concerning remedies available to property owners. Both versions amend Section 21.0111(a) of the Property Code to require that entities with eminent domain authority disclose all appraisal reports specific to a property and prepared within the prior 10 years when making an initial offer to purchase or lease the property.

The key difference lies in the liability provision. In the originally filed version, the bill states that an entity that fails to meet this disclosure requirement "is liable to the owner for reasonable attorney’s fees incurred by the owner in connection with the entity’s acquisition of the owner’s property." This phrasing broadly ties the recovery of attorney’s fees to the overall acquisition process, possibly including negotiation, litigation, or other associated efforts.

In contrast, the Committee Substitute narrows and clarifies this provision. It specifies that the entity is liable only for attorney’s fees "incurred by the owner to obtain a disclosure required by this subsection." This more targeted language confines the remedy strictly to fees associated with enforcing the appraisal report disclosure rather than any fees tied to the broader property acquisition process.

This change in language likely aims to limit potential legal exposure for entities with eminent domain authority while still preserving an enforcement mechanism for transparency. It reflects a compromise that ensures compliance without opening the door to broader claims for attorney’s fees beyond the scope of the specific disclosure requirement.
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Fiscal Notes

According to the Legislative Budget Board (LBB), SB 291 is not expected to have a significant fiscal impact on the State of Texas. The disclosure requirement for appraisal reports is not anticipated to impose substantial new costs on state agencies or entities with eminent domain authority. These entities are generally expected to comply with the bill’s requirements using existing administrative and legal resources.

Similarly, no significant fiscal implications are expected for local governments. The bill does not mandate new spending or infrastructure but instead modifies procedural requirements related to the disclosure of appraisal documents. Local entities that engage in eminent domain processes are assumed to be capable of managing any additional duties—such as compiling and providing appraisal records—within their current operational frameworks.

In essence, the fiscal implication of SB 291 is minimal, with no need for new appropriations or staffing increases. While some entities may incur minor administrative expenses to ensure compliance, these costs are not expected to materially affect budgets at the state or local level. This assessment reflects the limited scope of the bill’s provisions, focusing narrowly on transparency rather than expanding substantive operational duties.

Vote Recommendation Notes

SB 291 is a narrowly tailored reform that enhances transparency and accountability in the exercise of eminent domain in Texas. The bill builds upon existing statutory requirements that compel condemning entities to disclose relevant appraisal reports to property owners. The Committee Substitute strengthens this process by introducing a clear enforcement mechanism: if an entity fails to disclose the required appraisals, it becomes liable for the landowner’s reasonable attorney’s fees incurred specifically to obtain those disclosures.

The bill analysis highlights that while current law mandates disclosure, it lacks any practical means of enforcement. This often leaves property owners at a disadvantage, particularly when they suspect that unfavorable appraisals are being withheld. By enabling landowners to recoup legal fees incurred in securing access to information they are already entitled to, the bill reinforces procedural fairness without imposing new regulations or substantive burdens on public or private entities. The liability is limited and focused, ensuring that only entities that violate this transparency obligation are affected.

This modest but meaningful reform serves several core liberty principles. It supports private property rights by giving landowners tools to resist coercive undervaluation in eminent domain cases. It also upholds individual liberty by promoting access to information critical for informed decision-making and fair negotiation. Importantly, it adheres to limited government principles by adding no new regulatory powers—only reinforcing compliance with laws already on the books. With no significant fiscal impact to state or local governments and strong bipartisan alignment with principles of fairness, property protection, and transparency, Texas Policy Research recommends that lawmakers vote YES on SB 291.

  • Individual Liberty: The bill promotes individual liberty by empowering property owners with information necessary to make informed decisions when facing a potential eminent domain action. Condemnation proceedings inherently involve a significant power imbalance between the state or authorized entities and private landowners. By mandating disclosure of all appraisal reports related to a property, the bill ensures individuals can better assess the fairness of the offer and protect their own interests. It affirms the right of individuals to access critical information in defense of their property rights.
  • Personal Responsibility: While the bill places a legal obligation on condemning entities, it also expects landowners to take initiative in defending their rights. By making attorney’s fees recoverable only when used to obtain required disclosures, the law supports responsible action by property owners while discouraging frivolous litigation.
  • Free Enterprise: Although the bill primarily targets governmental entities and utilities with eminent domain power, it indirectly supports free enterprise by ensuring fair market valuation practices. Confidence in property rights and fair compensation is essential for investment, development, and economic freedom. By reducing the risk of unjust valuation in condemnation cases, the bill helps maintain a healthy property market based on voluntary exchange rather than coercive acquisition.
  • Private Property Rights: This principle is most directly affected. The bill enhances the integrity of the eminent domain process by holding condemning entities accountable to share all valuation data, not just selectively favorable reports. The provision for recovering attorney’s fees for failure to disclose ensures that landowners are not financially burdened when enforcing their rights. This reinforces the sanctity of private property and acts as a safeguard against unjust takings.
  • Limited Government: The bill strikes a careful balance by introducing a remedy for noncompliance without expanding government authority or regulatory frameworks. It strengthens an existing legal requirement rather than creating new powers or bureaucratic procedures. In doing so, it keeps government actors within the boundaries of their lawful authority, consistent with the principle that government should be constrained and operate transparently.
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