Bill Text: TX SB740 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the acquisition of property by an entity with eminent domain authority.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Engrossed - Dead) 2017-05-09 - Referred to Land & Resource Management [SB740 Detail]

Download: Texas-2017-SB740-Introduced.html

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85R4643 PMO-F
By: Kolkhorst S.B. No. 740

A BILL TO BE ENTITLED
AN ACT
relating to the acquisition of property by an entity with eminent
domain authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 21.0111, Property Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) After making an offer to which Subsection (a) applies,
the entity shall disclose to the property owner any new, amended, or
updated appraisal report produced or acquired by or on behalf of the
entity after making the offer and used in determining the entity's
opinion of value. A disclosure required by this subsection must be
made not later than the earlier of:
(1) the 10th day after the date the entity receives the
appraisal report; or
(2) the third business day before the date of a special
commissioner's hearing if the appraisal report is to be used at the
hearing.
SECTION 2. Section 21.0113, Property Code, is amended by
adding Subsection (c) to read as follows:
(c) For purposes of this section, the deed, easement, or
other instrument provided under Subsection (b)(6)(B) must include:
(1) for a pipeline right-of-way easement:
(A) the maximum number of pipelines that may be
installed in the right-of-way;
(B) a reasonable description of any use of the
surface of the right-of-way that the entity intends to acquire;
(C) a metes and bounds or center line description
of the location of the easement;
(D) the width of the easement;
(E) a reservation of the property owner's right
to grant additional compatible easements in the easement area to
other parties;
(F) a requirement that the entity access the
easement area in a manner specified in the instrument;
(G) a right to damages arising from construction,
maintenance, repair, replacement, or future removal of the pipeline
in the easement, including any damages to growing crops or
livestock;
(H) a covenant to lock and close all gates and
fences as necessary to prevent damage to or destruction of
livestock; and
(I) a covenant to repair and restore areas used
or damaged outside the easement area to their original condition or
better;
(2) for an electrical transmission right-of-way
easement:
(A) the type, spacing, and maximum number of the
poles, towers, or other support apparatus to carry electrical lines
over the easement;
(B) a reasonable description of any use of the
surface of the right-of-way that the entity intends to acquire;
(C) a metes and bounds or center line description
of the location of the easement;
(D) the width of the easement;
(E) a requirement that the entity access the
easement area in a manner specified in the instrument;
(F) a right to damages arising from construction,
maintenance, repair, replacement, or future removal of lines and
support apparatus in the easement, including any damages to growing
crops or livestock;
(G) a covenant to lock and close all gates and
fences as necessary to prevent damage to or destruction of
livestock; and
(H) a covenant to repair and restore areas used
or damaged outside the easement area to their original condition or
better;
(3) a prohibition against any use of the property
being conveyed, other than a use stated in the instrument, without
the express written consent of the property owner;
(4) a covenant that the entity will indemnify and hold
the property owner harmless against any claim brought against the
property owner arising out of or relating to the use of condemned
property by the entity or the entity's agents or contractors; and
(5) a covenant that the entity will secure and keep in
full force and effect at all times while the entity continues to use
the condemned property a policy or policies of liability insurance:
(A) issued by an insurer authorized to issue such
policies in this state;
(B) insuring the property owner against
liability for personal injuries and property damage sustained by
any person that arises from or is related to the use of the property
by the entity or the entity's agents or contractors;
(C) naming the property owner or the owner's
successor in title as an insured; and
(D) providing limits of liability as specified in
the instrument.
SECTION 3. Section 21.047, Property Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) If the amount of damages awarded by the special
commissioners is at least 20 percent greater than the amount of the
condemnor's final offer made in accordance with Section 21.0113 or
if the commissioners' award is appealed and a court awards damages
in an amount that is at least 20 percent greater than the amount of
the condemnor's final offer made in accordance with Section
21.0113, the condemnor shall pay:
(1) all costs as provided by Subsection (a); and
(2) any reasonable attorney's fees and other
professional fees incurred by the property owner in connection with
the eminent domain proceeding.
SECTION 4. Section 21.063, Property Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) As a condition of appealing the decision of a trial
court in a condemnation proceeding, a nongovernmental condemnor
shall:
(1) pay to the property owner the amount of just
compensation awarded by the trial court;
(2) deposit that same amount with the court subject to
the order of the property owner; or
(3) post a surety bond in the same amount issued by a
surety company authorized to engage in business in this state,
conditioned to secure the payment of the trial court's award of just
compensation.
(d) If the property owner moves to enforce Subsection (c)
and the nongovernmental condemnor fails to comply with that
subsection before the 30th day after the date the property owner's
motion is filed:
(1) the court of appeals shall dismiss the appeal with
prejudice and order enforcement of the final judgment;
(2) the nongovernmental condemnor and its assigns
shall lose the right to remain on the property owner's property, and
any interest of the nongovernmental condemnor or its assigns in the
property reverts to the property owner; and
(3) the property owner is entitled to:
(A) any damages attributable to the
nongovernmental condemnor's occupation of the property;
(B) all reasonable expenses incurred to
remediate the property; and
(C) all reasonable and necessary fees for
attorneys, appraisers, photographers, and other experts hired in
relation to the condemnation.
SECTION 5. Section 26.11(a), Tax Code, is amended to read as
follows:
(a) If the federal government, the state, or a political
subdivision of the state acquires the right to possession of
taxable property under a court order issued in condemnation
proceedings, assumes possession of taxable property under a
possession and use agreement, or a similar agreement, that is
entered into under threat of condemnation, or acquires title to
taxable property, the amount of the tax due on the property is
calculated by multiplying the amount of taxes imposed on the
property for the entire year as determined as provided by Section
26.09 of this code by a fraction, the denominator of which is 365
and the numerator of which is the number of days that elapsed prior
to the date of the conveyance, the effective date of the agreement,
or the date of the order granting the right of possession, as
applicable.
SECTION 6. (a) Sections 21.0111 and 21.0113, Property
Code, as amended by this Act, apply only to the acquisition of real
property in connection with an initial offer made under Section
21.0113, Property Code, on or after the effective date of this Act.
An acquisition of real property in connection with an initial offer
made under Section 21.0113, Property Code, 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.
(b) Section 21.047, Property Code, as amended by this Act,
applies only to an eminent domain proceeding commenced on or after
the effective date of this Act. An eminent domain proceeding
commenced before the effective date of this Act is governed by the
law applicable to the proceeding immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
(c) Section 21.063, Property Code, as amended by this Act,
applies only to an appeal commenced on or after the effective date
of this Act. An appeal commenced before the effective date of this
Act is governed by the law applicable to the appeal immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
(d) Section 26.11, Tax Code, as amended by this Act, applies
only to an agreement entered into on or after the effective date of
this Act. An agreement entered into before the effective date of
this Act is governed by the law applicable to the agreement
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2017.