Texas 2025 - 89th 2nd C.S.

Texas House Bill HB 162

Filed
8/15/25  
Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the exercise of the power of eminent domain by a political subdivision to acquire property outside the political subdivision's boundaries.

Summary

HB 162 revises a wide range of Texas statutes governing eminent domain to generally limit political subdivisions’ ability to condemn property outside their own boundaries. The bill adds a new Government Code provision stating that, notwithstanding other law, a political subdivision may not take public or private property outside its boundaries through eminent domain. It then amends multiple statutes affecting municipalities, counties, authorities, water districts, airport-related acquisitions, mitigation banks, and other local governmental entities to align those laws with the new rule. At the same time, the bill preserves or clarifies that many entities may still acquire property outside their boundaries by purchase, gift, dedication, or other non-condemnation methods, but only within the limits expressly allowed by each statute. Several provisions are rewritten to say that condemnation is permitted only when the property is inside the municipality, county, district, or authority, depending on the entity involved. The bill also makes a targeted exception for airport-related acquisitions, allowing local governments to acquire property outside their boundaries for airport safety and operations, while limiting eminent domain to property outside the local government’s own boundaries in that context. The bill’s impact on state law is broad because it touches the Government Code, Human Resources Code, Local Government Code, Natural Resources Code, Transportation Code, and Water Code. It would narrow the extraterritorial condemnation powers of municipalities, counties, special districts, water supply corporations, and other political subdivisions, while leaving in place or expressly preserving some non-condemnation acquisition authority. It also applies prospectively only to condemnation petitions filed on or after the effective date. The overall sentiment appears to be protective of property owners and skeptical of local governments’ use of eminent domain beyond their borders, based on the bill’s structure and caption. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of debate or formal support/opposition in the available materials. The bill itself suggests a policy preference for limiting governmental reach and reducing the risk of out-of-jurisdiction takings. The main point of contention likely concerns whether local governments and special districts need extraterritorial condemnation authority to build and operate infrastructure such as water systems, airports, drainage projects, and mitigation banks. Entities that rely on regional planning or utility corridors may view the bill as restricting necessary tools, while property-rights advocates would likely favor the tighter limits. The airport exception and the many statute-specific carveouts indicate that balancing infrastructure needs against condemnation limits is a central issue.

Impact

HB 162 would substantially amend existing Texas law by adding a general prohibition on political subdivisions using eminent domain to take property outside their boundaries, and by conforming numerous specific statutes to that rule. It would restrict or eliminate extraterritorial condemnation authority for municipalities, counties, authorities, districts, water-related entities, and certain environmental and transportation uses, while preserving some non-condemnation acquisition methods and a limited airport-related exception. The bill applies only to condemnation petitions filed on or after its effective date, so pending cases would proceed under prior law.

Sentiment

No committee transcripts or vote records are available, so there is no direct evidence of floor or committee debate. Based on the bill’s text and caption, the measure appears to reflect a generally property-rights-oriented sentiment and a desire to curb local government eminent domain powers beyond jurisdictional boundaries. The absence of recorded opposition or support in the provided materials prevents a more specific assessment of legislative sentiment.

Contention

The likely controversy is whether political subdivisions should retain the ability to condemn land outside their borders for infrastructure and public-use projects. Municipalities, counties, water districts, airport authorities, and other special-purpose entities may argue that extraterritorial condemnation is sometimes necessary for utilities, drainage, airports, and mitigation banks, while landowners and property-rights advocates would likely support limiting such takings. The bill’s many targeted amendments and exceptions suggest that the legislature was trying to draw a line between necessary public projects and overbroad condemnation authority.

Companion Bills

No companion bills found.

Previously Filed As

TX SB70

Relating to the exercise of the power of eminent domain by a political subdivision to take private property outside the political subdivision's boundaries.

TX HB3055

Relating to the authority of a political subdivision to acquire real property.

TX HB2979

Relating to a prohibition on the exercise of eminent domain and the disposition of certain property acquired for certain rail projects.

TX HB2857

Relating to purchase or other acquisition of personal property by a political subdivision.

TX HB2715

Relating to the removal from office of certain officers of political subdivisions.

TX HB3590

Relating to the conduct of early voting by certain political subdivisions.

TX HB5245

Relating to the acquisition of real property by a private entity with eminent domain authority.

TX HB226

Relating to a limitation on the authority of political subdivisions to issue public securities.

TX HB1779

Relating to regulation of accessory dwelling units by political subdivisions.

TX HB2889

Relating to requiring political subdivisions to provide funding for communications from opponents of bond measures of the political subdivision.

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CA AB245

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CA SB603

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HI HB1398

Relating To Property.

HI HB1398

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TX HB2011

Relating to the right to repurchase from a condemning entity certain real property for which ad valorem taxes are delinquent.