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A BILL TO BE ENTITLED
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AN ACT
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relating to the acquisition of real property by an entity with |
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eminent domain authority. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.0113, Property Code, is amended by |
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adding Subsections (c), (d), (e), and (f) to read as follows: |
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(c) Notwithstanding Subsection (b), a private entity, as |
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defined by Section 21.031, with eminent domain authority that wants |
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to acquire real property for a public use through the exercise of |
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the power of eminent domain has made a bona fide offer only if the |
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entity: |
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(1) satisfies the requirements of Subsection (b); |
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(2) includes with the initial offer: |
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(A) an offer of compensation in an amount equal |
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to or greater than: |
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(i) the market value of the property rights |
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sought to be acquired, including an estimate of damages to the |
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property owner's remaining property, if any, based on an appraisal |
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of the property prepared by a third party who is a certified general |
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appraiser licensed under Chapter 1103, Occupations Code; |
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(ii) the estimated price or market value of |
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the property rights sought to be acquired based on data for at least |
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three comparable arm's-length sales of a property based on data |
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then available to the appraiser, broker, or private entity, as |
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applicable, and based on: |
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(a) a comparative market analysis |
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prepared by a third party who is a real estate broker licensed under |
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Chapter 1101, Occupations Code, or a certified general appraiser |
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licensed under Chapter 1103, Occupations Code; |
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(b) a broker price opinion prepared by |
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a third party who is a real estate broker licensed under Chapter |
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1101, Occupations Code; or |
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(c) a market study prepared by a third |
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party who is a real estate broker licensed under Chapter 1101, |
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Occupations Code, or a certified general appraiser licensed under |
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Chapter 1103, Occupations Code; or |
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(iii) 140 percent of the per acre value for |
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each acre or part of an acre sought to be acquired by the private |
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entity from the property owner, based on the total land value and |
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improvements, if any, for the affected property as reflected in the |
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most recent tax rolls of the central appraisal district in which the |
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property is located; |
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(B) the complete written report of the appraisal, |
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the comparative market analysis, the broker price opinion, the |
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market study, or a summary of the market study, as prepared by the |
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third party, or, if applicable, a description of the method |
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described by Paragraph (A)(iii) and the related information from |
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the central appraisal district, that forms the basis for the amount |
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of the offer of compensation under Paragraph (A); |
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(C) a deed, easement, agreement, or other |
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instrument of conveyance for the property rights sought that |
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complies with Section 21.0114(a) unless previously provided to the |
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property owner; and |
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(D) the landowner's bill of rights statement |
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prescribed by Section 21.0112, unless previously provided to the |
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property owner; and |
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(3) provides notice of the proposed project to the |
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constitutional county judge of each county that the project is |
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proposed to traverse not later than the time that an initial offer |
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is made to acquire property in the county in connection with the |
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project. |
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(d) For purposes of Subsection (c)(2)(A)(ii), a real estate |
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broker licensed under Chapter 1101, Occupations Code, is authorized |
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to prepare an estimated price based on a comparative market |
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analysis, a broker price opinion, a market study, or a summary of |
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the market study. |
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(e) A private entity that provides to a property owner an |
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easement form that is generally consistent with the language or |
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provisions required by Section 21.0114(a) is considered to have |
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complied with Section 21.0114(a) for purposes of Subsection |
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(c)(2)(C), regardless of whether the private entity subsequently |
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provides to the property owner a different deed, easement, |
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agreement, or other instrument of conveyance as authorized under |
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Section 21.0114. |
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(f) Notwithstanding any other law, a private entity, as |
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defined by Section 21.031, with eminent domain authority that wants |
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to acquire real property for a public use may not, directly or |
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indirectly, offer or pay to an agent or employee of the private |
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entity a financial incentive that would tend to encourage the agent |
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or employee to make an initial offer that the agent or employee |
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knows or should know is lower than the lowest initial offer required |
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under Subsection (c)(2)(A). |
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SECTION 2. Subchapter B, Chapter 21, Property Code, is |
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amended by adding Sections 21.0114 and 21.0115 to read as follows: |
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Sec. 21.0114. REQUIRED TERMS FOR INSTRUMENTS OF CONVEYANCE |
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BY CERTAIN PRIVATE ENTITIES. (a) Except as provided by Subsection |
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(b), a deed, easement, agreement, or other instrument of conveyance |
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provided to a property owner by a private entity, as defined by |
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Section 21.031, with eminent domain authority to acquire the |
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property interest to be conveyed for a public use and that seeks to |
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acquire the property interest through the exercise of the power of |
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eminent domain must include the following terms, as applicable: |
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(1) if the instrument conveys a pipeline right-of-way |
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easement, the following terms with respect to the easement rights |
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granted under the instrument: |
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(A) the maximum number of pipelines that may be |
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installed in the easement; |
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(B) the maximum diameter, excluding any |
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protective coating or wrapping, of each pipeline to be initially |
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installed in the easement; |
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(C) the type or category of substances permitted |
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to be transported through each pipeline to be initially installed |
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in the easement; |
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(D) a general description or illustration of the |
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location of the easement on the property in the form of a plat map, |
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aerial sketch, or other type of description or illustration; |
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(E) the maximum width of the easement; and |
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(F) the minimum depth at which each pipeline to |
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be installed in the easement will initially be installed; and |
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(2) if the instrument conveys an electric transmission |
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right-of-way easement: |
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(A) a general description of any use of the |
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surface of the easement the entity intends to acquire; |
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(B) a general description or illustration of the |
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location of the easement on the property in the form of a plat map, |
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aerial sketch, or other type of description or illustration; and |
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(C) the maximum width of the easement. |
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(b) Except as provided by this subsection, this section does |
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not prohibit a private entity or the property owner from proposing |
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or agreeing to add to, change, or omit any term required by |
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Subsection (a) at any time after the private entity first provides a |
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deed, easement, agreement, or other instrument containing the term |
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to the property owner, whether provided before or at the same time |
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as the entity's initial offer to the property owner. A private |
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entity that adds to, changes, or omits any term required by |
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Subsection (a) must provide a copy of the amended deed, easement, |
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agreement, or other instrument of conveyance to the property owner |
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before the date the private entity files a condemnation petition |
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relating to the property. |
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(c) A private entity that changes a deed, easement, |
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agreement, or other instrument of conveyance to which this section |
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applies after the initial offer or final offer is not required to |
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satisfy again any requirement of Section 21.0113 that the private |
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entity has previously satisfied. |
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Sec. 21.0115. MUTUAL AGREEMENT. Notwithstanding any other |
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provision of this chapter and regardless of whether an acquisition |
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is for a public use, a property owner and a private entity, as |
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defined by Section 21.031, are not prohibited from agreeing to |
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acquisition by the private entity of an interest in the property |
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owner's property without complying with the provisions of Section |
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21.0113(c) or 21.0114 at any time after the private entity provides |
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the landowner's bill of rights statement to the property owner in |
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accordance with Section 21.0112. |
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SECTION 3. Section 21.014(a), Property Code, is amended to |
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read as follows: |
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(a) The judge of a court in which a condemnation petition is |
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filed or to which an eminent domain case is assigned shall, not |
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later than the 15th calendar day after the date the petition is |
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filed, appoint three disinterested real property owners who reside |
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in the county as special commissioners to assess the damages of the |
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owner of the property being condemned and two disinterested real |
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property owners who reside in the county as alternate special |
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commissioners. The judge appointing the special commissioners |
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shall give preference to any persons agreed on by the parties before |
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the court appoints the special commissioners. Each party shall |
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have seven calendar days after the date of the appointment of the |
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special commissioners [The judge shall provide each party a
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reasonable period] to strike one of the three special commissioners |
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[appointed by the judge]. If a person fails to serve as a special |
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commissioner or is struck by a party to the suit in accordance with |
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this subsection, an alternate special commissioner shall serve as a |
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replacement for the special commissioner based on the order that |
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the alternate special commissioners are listed in the initial order |
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of appointment [, the judge shall appoint a replacement]. |
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SECTION 4. Section 21.015(a), Property Code, is amended to |
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read as follows: |
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(a) Unless otherwise agreed by the parties, the [The] |
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special commissioners in an eminent domain proceeding shall |
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[promptly] schedule a hearing to occur not earlier than [for the
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parties at the earliest practical time but may not schedule a
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hearing to assess damages before] the 20th day or later than the |
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45th day after the date the special commissioners were appointed. |
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The special commissioners shall schedule a hearing for the parties |
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at a place that is as near as practical to the property being |
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condemned or at the county seat of the county in which the |
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proceeding is being held. |
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SECTION 5. Section 21.016(d), Property Code, is amended to |
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read as follows: |
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(d) Notice may be served[:
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[(1)] by delivering a copy of the notice to the party |
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or to the party's agent or attorney or in another manner provided by |
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the Texas Rules of Civil Procedure for service of citation[;
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[(2)
if the property being condemned belongs to a
|
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deceased's estate or to a minor or other legally disabled person and
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the person or estate has a legal representative, by delivering a
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copy of the notice to the legal representative; or
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[(3)
if the property being condemned belongs to a
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nonresident of this state and there has been no personal service on
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the owner, if the identity or the residence of the property owner is
|
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unknown, or if the property owner avoids service of notice by
|
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hiding, by publication in the same manner as service of citation by
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publication in other civil cases in the district courts or county
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courts at law]. |
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SECTION 6. Subchapter B, Chapter 21, Property Code, is |
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amended by adding Section 21.0161 to read as follows: |
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Sec. 21.0161. FILING OF COMMISSIONERS' FINDINGS. The |
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special commissioners shall file their findings with the court not |
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later than the third calendar day after the date of the special |
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commissioners' hearing. |
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SECTION 7. Chapter 21, Property Code, is amended by adding |
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Subchapter B-1 to read as follows: |
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SUBCHAPTER B-1. ACQUISITION OF PROPERTY BY CERTAIN PRIVATE |
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ENTITIES |
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Sec. 21.031. DEFINITION. In this subchapter, "private |
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entity": |
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(1) means: |
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(A) a for-profit entity, as defined by Section |
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1.002, Business Organizations Code, however organized, including |
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an affiliate or subsidiary, authorized to exercise the power of |
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eminent domain to acquire private property for public use or a group |
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or combination of two or more such entities; or |
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(B) a corporation organized under Chapter 67, |
|
Water Code, that has a for-profit entity, however organized, as the |
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sole or majority member; and |
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(2) does not include: |
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(A) a railroad operating in this state; or |
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(B) an interstate pipeline governed by the |
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Natural Gas Act (15 U.S.C. Section 717 et seq.) that does not seek |
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to acquire property under this chapter. |
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Sec. 21.032. APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter applies only to a private entity that seeks to acquire |
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for a project for public use 25 or more tracts of real property that |
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are: |
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(1) classified as residential, agricultural, or |
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commercial property by the taxing authority that assesses ad |
|
valorem taxes on the tracts; and |
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(2) owned by at least 25 separate and unaffiliated |
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property owners. |
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(b) Except as expressly provided by Section 21.038, this |
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subchapter does not apply to a private entity that: |
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(1) operates or proposes to construct an electric |
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transmission line; and |
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(2) is subject to the jurisdiction of the Public |
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Utility Commission of Texas under Chapter 37, Utilities Code. |
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Sec. 21.033. NOTICE OF RIGHT TO REQUEST MEETING. (a) Not |
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later than the time that a private entity makes an initial offer to |
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a property owner under Section 21.0113, the private entity shall |
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provide to the property owner a written notice of the property |
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owner's right to request a meeting, subject to Section 21.0331, to |
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discuss the proposed project, including: |
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(1) if the project is a pipeline, the substances, |
|
products, materials, installations, and structures the private |
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entity intends to transport through, use for, or build as part of |
|
the project; and |
|
(2) any regulatory filings for the project existing at |
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that time, if any, as to the regulatory classification of the |
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project. |
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(b) The private entity shall send the notice to: |
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(1) the property owner listed for the property on the |
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most recent tax roll for a taxing unit with authority to levy an ad |
|
valorem tax on the property at the address for the property owner |
|
listed on the tax roll; or |
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(2) the address for the property listed on the tax roll |
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described by Subdivision (1). |
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Sec. 21.0331. PREREQUISITE FOR PROPERTY OWNER MEETING. (a) |
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A private entity is required to hold a property owner information |
|
meeting under Section 21.034 for a segment or section of a proposed |
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project route, as described by Section 21.034(a), only if at least |
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25 percent of property owners of property in the segment or section |
|
who are entitled to notice under Section 21.033 submit a request for |
|
the meeting as provided by Subsection (b). |
|
(b) A property owner request for a meeting under Section |
|
21.034 must be: |
|
(1) in writing; and |
|
(2) received by the private entity not later than the |
|
14th day after the date of the notice provided to the property owner |
|
under Section 21.033. |
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Sec. 21.0332. NOTICE OF PROPERTY OWNER INFORMATION MEETING. |
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A private entity required under Section 21.0331 to hold a property |
|
owner information meeting for a segment or section of a proposed |
|
project route, as described by Section 21.034(a), shall send notice |
|
to each property owner of property in the segment or section of the |
|
date, time, and location of the meeting. |
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Sec. 21.034. PROPERTY OWNER INFORMATION MEETING. (a) If |
|
required under Section 21.0331(a), a private entity shall hold: |
|
(1) for a proposed project that is equal to or less |
|
than 100 miles in length, at least one meeting for each contiguous |
|
linear section of the project, as designated by the private entity; |
|
and |
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(2) for a proposed project that is more than 100 miles |
|
in length, at least one meeting for each segment of the project, as |
|
designated by the private entity and not to exceed 100 miles in |
|
length. |
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(b) The private entity shall hold a meeting under Subsection |
|
(a) in a centrally located public location: |
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(1) appropriate to the size and nature of the meeting; |
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and |
|
(2) as convenient as practicable to the majority of |
|
the tracts of real property affected by the project section or |
|
segment for which the meeting is held. |
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Sec. 21.035. PERSONS AUTHORIZED TO ATTEND PROPERTY OWNER |
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INFORMATION MEETING. (a) In addition to the property owner and |
|
the private entity representatives, the following individuals may |
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attend a meeting held under Section 21.034: |
|
(1) an invited relative of the property owner who is |
|
related to the property owner within the third degree by |
|
consanguinity or affinity, as determined under Chapter 573, |
|
Government Code; |
|
(2) an attorney or licensed appraiser representing the |
|
property owner; |
|
(3) an employee or a lessee of the property owner that |
|
has direct knowledge of the property; or |
|
(4) an employee of an entity with whom the property |
|
owner has contracted for services to manage the property. |
|
(b) A private entity may include in the notice required by |
|
Section 21.0332 a requirement that the property owner, not later |
|
than five days before the date of the meeting: |
|
(1) notify the private entity that the property owner |
|
intends to attend the meeting; and |
|
(2) identify persons described by Subsections |
|
(a)(1)-(4) who intend to attend the meeting. |
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(c) The number of attendees under Subsections (a)(1)-(4) |
|
may not exceed five individuals for each separate tract of |
|
property. |
|
(d) The private entity may: |
|
(1) require attendees to: |
|
(A) provide one form of government-issued photo |
|
identification; and |
|
(B) complete a registration form that includes |
|
contact information; and |
|
(2) exclude from the meeting: |
|
(A) any person who does not provide at least one |
|
form of government-issued photo identification or complete a |
|
registration form, if required by the private entity as provided |
|
under Subdivision (1); and |
|
(B) any person described by Subsections |
|
(a)(1)-(4) who is not timely identified to the private entity, if |
|
required by the private entity as provided under Subsection (b). |
|
(e) The private entity may take reasonable steps to maintain |
|
safety and decorum at the meeting, including expelling attendees |
|
who do not meet the requirements of this subchapter or who disrupt |
|
the meeting. |
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(f) Notwithstanding Subsection (b)(1), the private entity |
|
may not deny entry to a property owner who provides proper |
|
identification and completes a registration form, if required by |
|
the private entity as provided under Subsection (d)(1). |
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Sec. 21.036. PARTICIPATION BY PRIVATE ENTITY REQUIRED. One |
|
or more representatives designated by the private entity shall: |
|
(1) attend each meeting held under Section 21.034; and |
|
(2) participate in those meetings as described by |
|
Section 21.037. |
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Sec. 21.037. PROPERTY OWNER INFORMATION MEETING AGENDA. At |
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a meeting held under Section 21.034: |
|
(1) the private entity shall present an agenda; and |
|
(2) attendees of the meeting may ask questions of and |
|
make comments to a representative of the private entity regarding: |
|
(A) the rights of the property owners; |
|
(B) the proposed public use for which the real |
|
property is to be acquired; and |
|
(C) any terms required under Section 21.0114 to |
|
be included in a deed, easement, agreement, or other instrument of |
|
conveyance provided by the private entity to a property owner. |
|
Sec. 21.038. PROCEDURES FOR CERTAIN PRIVATE ENTITIES |
|
SUBJECT TO JURISDICTION OF PUBLIC UTILITY COMMISSION. (a) This |
|
section applies only to a private entity that proposes to exercise |
|
the power of eminent domain to construct an electric transmission |
|
line and is subject to the authority of the Public Utility |
|
Commission of Texas under Chapter 37, Utilities Code. |
|
(b) At a meeting required by the Public Utility Commission |
|
of Texas to be conducted by a private entity to which this section |
|
applies in connection with an electric transmission line project: |
|
(1) the private entity shall present an agenda; and |
|
(2) attendees of the meeting may ask questions of and |
|
make comments to a representative of the private entity regarding: |
|
(A) the rights of the property owners; |
|
(B) the proposed public use for which the real |
|
property is to be acquired; and |
|
(C) any terms required under Section 21.0114 to |
|
be included in a deed, easement, agreement, or other instrument of |
|
conveyance provided by the private entity to a property owner. |
|
Sec. 21.039. PRIVATE ENTITY NONCOMPLIANCE. A condemnation |
|
proceeding may not be abated, dismissed, or delayed because a |
|
private entity does not comply with Section 21.0331, 21.0332, |
|
21.034, 21.035, 21.036, 21.037, or 21.038. |
|
SECTION 8. Section 21.047, Property Code, is amended by |
|
adding Subsection (e) to read as follows: |
|
(e) An abatement under Subsection (d) continues only until |
|
the condemnor makes a bona fide offer under Section 21.0113. |
|
SECTION 9. Chapter 21, Property Code, is amended by adding |
|
Subchapters F and G to read as follows: |
|
SUBCHAPTER F. EFFECTS OF CERTAIN CHANGES TO PROPERTY USE |
|
Sec. 21.151. CHANGE OF USE. The temporary removal of land |
|
from timber, agriculture, or open space usage due to construction |
|
in a right of way or easement under threat of eminent domain is not a |
|
change of use as that term is used for purposes of property |
|
taxation. |
|
SUBCHAPTER G. MORATORIUM ON CERTAIN LEGISLATIVE ACTS |
|
Sec. 21.201. MORATORIUM. (a) Except as provided by |
|
Subsection (b), the legislature will not add a provision to or amend |
|
or repeal a provision of this chapter during the period beginning |
|
January 1, 2020, and ending December 31, 2030, or enact, amend, or |
|
repeal other laws during that period concerning procedures for, |
|
prerequisites to, or damages available in connection with the |
|
acquisition of property for a public use by an entity with eminent |
|
domain authority. |
|
(b) Subsection (a) does not apply to: |
|
(1) a provision regarding high-speed rail, as defined |
|
by Section 112.201, Transportation Code; |
|
(2) an amendment stakeholders agree is necessary to |
|
give effect to or correct an existing provision; |
|
(3) an amendment in response to a final and |
|
unappealable judgment or order of a state or federal court; or |
|
(4) a nonsubstantive addition to, revision of, or |
|
correction in an enacted code or other law. |
|
Sec. 21.202. EXPIRATION OF SUBCHAPTER. This subchapter |
|
expires December 31, 2030. |
|
SECTION 10. If any provision of this Act or its application |
|
to any person or circumstance is finally held to be |
|
unconstitutional, the entire Act is invalid, and to this end the |
|
provisions of this Act are declared to be nonseverable. |
|
SECTION 11. (a) Notwithstanding Subsections (b), (c), and |
|
(d) of this section, Sections 21.014(a), 21.015(a), and 21.016(d), |
|
Property Code, as amended by this Act, and Section 21.0161, |
|
Property Code, as added by this Act, apply to a condemnation |
|
proceeding commenced on or after the effective date of this Act. A |
|
condemnation proceeding commenced before the effective date of this |
|
Act is governed by the law applicable to the condemnation |
|
proceeding immediately before the effective date of this Act, and |
|
that law is continued in effect for that purpose. |
|
(b) Except as provided by Subsections (a) and (c) of this |
|
section, with respect to the acquisition of real property under |
|
Chapter 21, Property Code, for a pipeline project: |
|
(1) the changes in law made by this Act apply to a |
|
pipeline for which an application for a permit to operate the |
|
pipeline is filed with the Railroad Commission of Texas or a |
|
successor agency on or after the effective date of this Act; and |
|
(2) a pipeline for which an application for a permit to |
|
operate the pipeline is filed with the Railroad Commission of Texas |
|
before the effective date of this Act is governed by the law |
|
applicable to the acquisition immediately before the effective date |
|
of this Act, and that law is continued in effect for that purpose. |
|
(c) Notwithstanding Subsection (b) of this section, the |
|
changes in law made by this Act apply to a pipeline project for |
|
which an application for a permit to operate the pipeline is filed |
|
with the Railroad Commission of Texas on or after September 1, 2019, |
|
and before the effective date of this Act, unless a written survey |
|
request is provided to a property owner on the proposed route of the |
|
project not later than the 90th day after the date the application |
|
is filed. |
|
(d) Except as provided by Subsection (a) of this section, |
|
with respect to the acquisition of real property under Chapter 21, |
|
Property Code, for an electric transmission project: |
|
(1) the changes in law made by this Act apply to an |
|
electric transmission project for which an initial offer is made on |
|
or after the effective date of this Act; and |
|
(2) an electric transmission project for which an |
|
initial offer is made before the effective date of this Act is |
|
governed by the law applicable to the acquisition immediately |
|
before the effective date of this Act, and that law is continued in |
|
effect for that purpose. |
|
SECTION 12. This Act takes effect January 1, 2020. |