By: Kolkhorst, et al.	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 402.031(b), Government Code, is amended
	to read as follows:
	(b)  The landowner's bill of rights must notify each property
	owner that the property owner has the right to:
	(1)  receive notice of the proposed acquisition of the
	owner's property;
	(2)  contact and speak directly with an employee of the
	entity proposing to acquire the property who is qualified to
	discuss the acquisition of the property;
	(3)  receive a bona fide offer from, make a
	counteroffer to, and seek to negotiate terms and conditions with
	[good faith effort to negotiate by] the entity proposing to acquire
	the property;
	(4)  consult with a licensed real estate broker or
	sales agent, an attorney, an appraiser, or any other person
	regarding the proposed acquisition, offer of compensation, or other
	related matters at any time;
	(5)  have [(3)] an assessment made of damages to the
	owner that will result from the taking of the property;
	(6)  be provided [(4)] a hearing under Chapter 21,
	Property Code, including a hearing on the assessment of damages;
	[and]
	(7) [(5)  an] appeal [of] a judgment in a condemnation
	proceeding, including to [an] appeal [of] an assessment of damages;
	and
	(8)  contact the office of the attorney general for
	more information regarding a property owner's rights with respect
	to the condemnation process.
	SECTION 2.  Section 1101.002, Occupations Code, is amended
	by amending Subdivision (4) and adding Subdivisions (4-a), (6-a),
	and (6-b) to read as follows:
	(4)  "License" means a broker license or sales agent
	license issued under this chapter. The term does not include a
	right-of-way agent license.
	(4-a)  "License holder" means a broker or sales agent
	licensed under this chapter. The term does not include a holder of
	a right-of-way agent license.
	(6-a)  "Right-of-way agent license" means a license
	issued under Subchapter K.
	(6-b) "Right-of-way agent license holder" means a
	person licensed under Subchapter K.
	SECTION 3.  Section 1101.151(a), Occupations Code, is
	amended to read as follows:
	(a)  The commission shall:
	(1)  administer this chapter and Chapter 1102;
	(2)  adopt rules and establish standards relating to
	permissible forms of advertising by a license holder acting as a
	residential rental locator;
	(3)  maintain a list of right-of-way agent license
	[registry of certificate] holders; and
	(4)  design and adopt a seal.
	SECTION 4.  Section 1101.152(a), Occupations Code, is
	amended to read as follows:
	(a)  The commission shall adopt rules to charge and collect
	fees in amounts reasonable and necessary to cover the costs of
	administering this chapter, including a fee for:
	(1)  filing an original application for a broker
	license;
	(2)  renewal of a broker license;
	(3)  filing an original application for a sales agent
	license;
	(4)  renewal of a sales agent license;
	(5)  filing an original application for a [registration
	as an easement or] right-of-way agent license;
	(5-a)  renewal of a right-of-way agent license;
	(6)  filing an application for a license examination;
	(7)  filing a request for a branch office license;
	(8)  filing a request for a change of place of business,
	change of name, return to active status, or change of sponsoring
	broker;
	(9)  filing a request to replace a lost or destroyed
	license or right-of-way agent license [or certificate of
	registration];
	(10)  filing an application for approval of an
	education program under Subchapter G;
	(11)  annual operation of an education program under
	Subchapter G;
	(12)  filing an application for approval of an
	instructor of qualifying real estate courses;
	(13)  transcript evaluation;
	(14)  preparing a license [or registration] history;
	(15)  filing a request for a moral character
	determination; and
	(16)  conducting a criminal history check for issuing
	or renewing a license.
	SECTION 5.  Section 1101.154(a), Occupations Code, is
	amended to read as follows:
	(a)  The fee for the issuance or renewal of a:
	(1)  broker license is the amount of the fee set under
	Section 1101.152 and an additional $70 fee;
	(2)  sales agent license is the amount of the fee set
	under Section 1101.152 and an additional $20 fee; and
	(3)  right-of-way agent license [certificate of
	registration] is the amount of the fee set under Section 1101.152
	and an additional $20 fee.
	SECTION 6.  Section 1101.205, Occupations Code, is amended
	to read as follows:
	Sec. 1101.205.  COMPLAINT INVESTIGATION OF RIGHT-OF-WAY
	AGENT LICENSE [CERTIFICATE] HOLDER.  The commission shall
	investigate a signed complaint received by the commission that
	relates to an act of a right-of-way agent license [certificate]
	holder or a person required to hold a right-of-way agent license
	[certificate] under Subchapter K. Section 1101.204 applies to an
	investigation under this section.
	SECTION 7.  Subchapter K, Chapter 1101, Occupations Code, is
	amended to read as follows:
	SUBCHAPTER K. RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]
	REQUIREMENTS
	Sec. 1101.501.  RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]
	REQUIRED. (a)  A person may not sell, buy, lease, or transfer an
	easement or right-of-way [for another,] for compensation or with
	the expectation of receiving compensation[,] for an entity with
	eminent domain authority or for use in connection with
	telecommunication, utility, railroad, or pipeline service unless
	the person:
	(1)  holds a broker license or sales agent license
	issued under this chapter; or
	(2)  holds a right-of-way agent license [certificate of
	registration] issued under this subchapter.
	(b)  Subsection (a) does not apply to:
	(1)  an entity with eminent domain authority or the
	entity's employee; or
	(2)  an attorney licensed in this state.
	Sec. 1101.502.  ELIGIBILITY REQUIREMENTS FOR RIGHT-OF-WAY
	AGENT LICENSE [CERTIFICATE]. (a)  To be eligible to receive or
	renew a right-of-way agent license [a certificate of registration
	or a renewal certificate under this subchapter], a person must
	[be]:
	(1)  be, at the time of application:
	(A)  at least 18 years of age; and
	(B) [(2)]  a citizen of the United States or a
	lawfully admitted alien;
	(2)  satisfy the commission as to the applicant's
	honesty, trustworthiness, and integrity; and
	(3)  complete the required courses of study, including
	qualifying education requirements, prescribed by this subchapter.
	(b)  To be eligible to receive or renew a right-of-way agent
	license [a certificate of registration or a renewal certificate
	under this subchapter], a business entity must designate as its
	agent one of its managing officers who holds a right-of-way agent
	license issued [is registered] under this subchapter.
	Sec. 1101.503.  ISSUANCE OF RIGHT-OF-WAY AGENT LICENSE
	[CERTIFICATE]. (a)  The commission shall issue a right-of-way
	agent license [certificate of registration] to an applicant who
	meets the requirements for a right-of-way agent license under this
	subchapter [certificate of registration].
	(b)  The right-of-way agent license [certificate] remains in
	effect for the period prescribed by the commission if the
	right-of-way agent license [certificate] holder complies with this
	chapter, including the requirements of this subchapter, and pays
	the appropriate renewal fees.
	Sec. 1101.504.  RIGHT-OF-WAY AGENT LICENSE DURATION,
	[CERTIFICATE] EXPIRATION, AND RENEWAL. The provisions of Section
	1101.451 governing the duration, expiration, and renewal of a
	broker or sales agent license apply [certificate of registration
	are subject to the same provisions as are applicable under Section
	1101.451] to the duration, expiration, and renewal of a
	right-of-way agent license issued under this subchapter.
	Sec. 1101.5041.  CRIMINAL HISTORY RECORD INFORMATION
	REQUIREMENT FOR RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE].  An
	applicant for an original [certificate of registration] or renewal
	right-of-way agent license [of a certificate of registration] must
	comply with the criminal history record check requirements of
	Section 1101.3521.
	Sec. 1101.505.  DENIAL OF RIGHT-OF-WAY AGENT LICENSE
	[CERTIFICATE]. The denial of a right-of-way agent license
	[certificate of registration] is subject to the same provisions as
	are applicable under Section 1101.364 to the denial of a broker or
	sales agent license.
	Sec. 1101.506.  CHANGE OF ADDRESS. Not later than the 10th
	day after the date a right-of-way agent license [certificate]
	holder moves its place of business from a previously designated
	address, the right-of-way agent license holder shall:
	(1)  notify the commission of the move; and
	(2)  obtain a new right-of-way agent license
	[certificate of registration] that reflects the address of the new
	place of business.
	Sec. 1101.507.  DISPLAY OF RIGHT-OF-WAY AGENT LICENSE
	[CERTIFICATE]. A right-of-way agent license [certificate] holder
	shall prominently display at all times the holder's right-of-way
	agent license [certificate of registration] in the right-of-way
	agent license holder's place of business.
	Sec. 1101.508.  NOTICE TO CONSUMERS. The commission by rule
	may:
	(1)  prescribe the text of consumer notices regarding a
	right-of-way agent license holder; and
	(2)  establish the methods by which a right-of-way
	agent license holder provides a consumer notice or the statement
	prepared and provided under Section 402.031, Government Code.
	Sec 1101.509.  QUALIFYING EDUCATION REQUIREMENTS. (a)  The
	commission by rule shall approve coursework that an applicant must
	successfully complete to be eligible for a right-of-way agent
	license under this subchapter.
	(b)  An applicant for a right-of-way agent license shall
	submit evidence satisfactory to the commission that the applicant
	has completed at least 15 classroom hours of right-of-way agent
	coursework approved by the commission in:
	(1)  the law of eminent domain, including the rights of
	property owners;
	(2)  appropriate standards of professionalism in
	contacting and conducting negotiations with property owners; and
	(3)  ethical considerations in the performance of
	right-of-way acquisition services.
	Sec. 1101.510.  CONTINUING EDUCATION. (a)  To be eligible
	to renew a right-of-way agent license, the right-of-way agent
	license holder must submit evidence satisfactory to the commission
	that the right-of-way agent license holder successfully completed
	at least six classroom hours of continuing education approved by
	the commission.
	(b)  The commission by rule shall prescribe the title,
	content, administration, and duration of continuing education
	courses that a right-of-way agent license holder must successfully
	complete to renew a right-of-way agent license under this
	subchapter.
	SECTION 8.  Sections 1101.601 and 1101.602, Occupations
	Code, are amended to read as follows:
	Sec. 1101.601.  REAL ESTATE RECOVERY TRUST ACCOUNT.
	(a)  The commission shall maintain a real estate recovery trust
	account to reimburse aggrieved persons who suffer actual damages
	caused by an act described by Section 1101.602 committed by:
	(1)  a license holder;
	(2)  a right-of-way agent license [certificate]
	holder; or
	(3)  a person who does not hold a license or
	right-of-way agent license [certificate] and who is an employee or
	agent of a license holder or right-of-way agent license
	[certificate] holder.
	(b)  The license holder or right-of-way agent license
	[certificate] holder must have held the license or right-of-way
	agent license [certificate] at the time the act was committed.
	Sec. 1101.602.  ENTITLEMENT TO REIMBURSEMENT. An aggrieved
	person is entitled to reimbursement from the trust account if a
	person described by Section 1101.601 engages in conduct that
	requires a license or right-of-way agent license [certificate of
	registration] under this chapter and is described by Section
	1101.652(a-1)(1) or (b), if the person is a license holder, or
	Section 1101.653(1), (2), (3), or (4), if the person is a
	right-of-way agent license [certificate] holder.
	SECTION 9.  Sections 1101.603(a) and (e), Occupations Code,
	are amended to read as follows:
	(a)  In addition to other fees required by this chapter, the
	commission shall collect a fee of $10 to deposit to the credit of
	the trust account from an applicant for an original license or
	right-of-way agent license [certificate of registration].
	(e)  On a determination by the commission at any time that
	the balance in the trust account is less than $1 million, each
	license holder or right-of-way agent license [certificate] holder
	at the next renewal must pay, in addition to the renewal fee, an
	additional fee of $10. The commission shall deposit the additional
	fee to the credit of the trust account.
	SECTION 10.  Section 1101.605(b), Occupations Code, is
	amended to read as follows:
	(b)  When an aggrieved person brings an action for a judgment
	that may result in an agreed judgment and order for payment from the
	trust account, the aggrieved person and the license holder or
	right-of-way agent license [certificate] holder against whom the
	action is brought shall notify the commission in writing before
	entry of the agreed judgment and deliver a copy of all petitions and
	pleadings and the proposed agreed judgment to the commission. The
	commission will notify the parties not later than the 30th day after
	the date of receiving the documents if the commission intends to
	relitigate material and relevant issues as to the applicability of
	the trust account to the agreed judgment as provided by Section
	1101.608.
	SECTION 11.  Section 1101.606(a), Occupations Code, is
	amended to read as follows:
	(a)  Except as provided by Subsections (c) and (c-1), an
	aggrieved person who obtains a court judgment against a license
	holder or right-of-way agent license [certificate] holder for an
	act described by Section 1101.602 may, after final judgment is
	entered, execution returned nulla bona, and a judgment lien
	perfected, file a verified claim in the court that entered the
	judgment.
	SECTION 12.  Section 1101.607, Occupations Code, is amended
	to read as follows:
	Sec. 1101.607.  ISSUES AT HEARING. At the hearing on the
	application for payment from the trust account, the aggrieved
	person must show:
	(1)  that the judgment is based on facts allowing
	recovery under this subchapter;
	(2)  that the person is not:
	(A)  the spouse of the judgment debtor or the
	personal representative of the spouse;
	(B)  a license holder or right-of-way agent
	license [certificate] holder who is seeking to recover
	compensation, including a commission, in the real estate
	transaction that is the subject of the application for payment; or
	(C)  related to the judgment debtor within the
	first degree by consanguinity;
	(3)  that, according to the best information available,
	the judgment debtor does not have sufficient attachable assets in
	this or another state to satisfy the judgment;
	(4)  the amount that may be realized from the sale of
	assets liable to be sold or applied to satisfy the judgment; and
	(5)  the balance remaining due on the judgment after
	application of the amount under Subdivision (4).
	SECTION 13.  Sections 1101.610(b) and (c), Occupations Code,
	are amended to read as follows:
	(b)  Payments from the trust account for claims based on
	judgments against a single license holder or right-of-way agent
	license [certificate] holder may not exceed a total of $100,000
	until the license holder or right-of-way agent license
	[certificate] holder has reimbursed the trust account for all
	amounts paid.
	(c)  If the court finds that the total amount of claims
	against a license holder or right-of-way agent license
	[certificate] holder exceeds the limitations in this section, the
	court shall proportionately reduce the amount payable on each
	claim.
	SECTION 14.  Section 1101.613, Occupations Code, is amended
	to read as follows:
	Sec. 1101.613.  EFFECT ON DISCIPLINARY PROCEEDINGS.
	(a)  This subchapter does not limit the commission's authority to
	take disciplinary action against a license holder or right-of-way
	agent license [certificate] holder for a violation of this chapter
	or a commission rule.
	(b)  A license holder's or right-of-way agent license
	holder's [certificate holder's] repayment of all amounts owed to
	the trust account does not affect another disciplinary proceeding
	brought under this chapter.
	SECTION 15.  Section 1101.615, Occupations Code, is amended
	to read as follows:
	Sec. 1101.615.  NOTICE TO CONSUMERS AND SERVICE RECIPIENTS.
	[(a)]  The commission by rule shall prescribe a notice regarding
	the availability of payment from the trust account for aggrieved
	persons and establish methods by which each license holder and
	right-of-way agent license [certificate] holder shall provide the
	notice to consumers and service recipients.
	SECTION 16.  Section 1101.653, Occupations Code, is amended
	to read as follows:
	Sec. 1101.653.  GROUNDS FOR SUSPENSION OR REVOCATION OF
	RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]. The commission may
	suspend or revoke a right-of-way agent license [certificate of
	registration] issued under this chapter if the right-of-way agent
	license [certificate] holder:
	(1)  engages in dishonest dealing, fraud, unlawful
	discrimination, or a deceptive act;
	(2)  makes a misrepresentation;
	(3)  acts in bad faith;
	(4)  demonstrates untrustworthiness;
	(5)  fails to honor, within a reasonable time, a check
	issued to the commission after the commission has mailed a request
	for payment to the right-of-way agent license [certificate]
	holder's last known address according to the commission's records;
	(6)  fails to provide to a party to a transaction a
	written notice prescribed by the commission that:
	(A)  must be given before the party is obligated
	to sell, buy, lease, or transfer a right-of-way or easement; and
	(B)  contains:
	(i)  the name of the right-of-way agent
	license [certificate] holder;
	(ii)  the right-of-way agent license
	[certificate] number;
	(iii)  the name of the person the
	right-of-way agent license [certificate] holder represents;
	(iv)  a statement advising the party that
	the party may seek representation from a lawyer or broker in the
	transaction; and
	(v)  a statement generally advising the
	party that the right-of-way or easement may affect the value of the
	property; or
	(7)  disregards or violates this chapter or a
	commission rule relating to right-of-way agent license
	[certificate] holders.
	SECTION 17.  Section 1101.654, Occupations Code, is amended
	to read as follows:
	Sec. 1101.654.  SUSPENSION OR REVOCATION OF LICENSE OR
	RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE] FOR UNAUTHORIZED PRACTICE
	OF LAW. (a)  The commission shall suspend or revoke the license or
	right-of-way agent license [certificate of registration] of a
	license holder or right-of-way agent license [certificate] holder
	who is not a licensed attorney in this state and who, for
	consideration, a reward, or a pecuniary benefit, present or
	anticipated, direct or indirect, or in connection with the person's
	employment, agency, or fiduciary relationship as a license holder
	or right-of-way agent license [certificate] holder:
	(1)  drafts an instrument, other than a form described
	by Section 1101.155, that transfers or otherwise affects an
	interest in real property; or
	(2)  advises a person regarding the validity or legal
	sufficiency of an instrument or the validity of title to real
	property.
	(b)  Notwithstanding any other law, a license holder or
	right-of-way agent license [certificate] holder who completes a
	contract form for the sale, exchange, option, or lease of an
	interest in real property incidental to acting as a broker is not
	engaged in the unauthorized or illegal practice of law in this state
	if the form was:
	(1)  adopted by the commission for the type of
	transaction for which the form is used;
	(2)  prepared by an attorney licensed in this state and
	approved by the attorney for the type of transaction for which the
	form is used; or
	(3)  prepared by the property owner or by an attorney
	and required by the property owner.
	SECTION 18.  The heading to Section 1101.655, Occupations
	Code, is amended to read as follows:
	Sec. 1101.655.  REVOCATION OF LICENSE [OR CERTIFICATE] FOR
	CLAIM ON ACCOUNT.
	SECTION 19.  Sections 1101.655(a), (b), and (c), Occupations
	Code, are amended to read as follows:
	(a)  The commission shall revoke a license, approval, or
	right-of-way agent license [registration] issued under this
	chapter or Chapter 1102 if:
	(1)  the commission makes a payment from the real
	estate recovery trust account under Subchapter M on behalf of a
	license holder or right-of-way agent license [registration]
	holder; and
	(2)  the license holder or right-of-way agent license
	[registration] holder does not repay the real estate recovery trust
	account the full amount of a payment made on the license holder's or
	right-of-way agent license [registration] holder's behalf before
	the 31st day after the date the commission provides notice to the
	license holder or right-of-way agent license [registration]
	holder.
	(b)  The commission may probate an order revoking a license,
	approval, or right-of-way agent license [registration] under this
	section.
	(c)  A person is not eligible for a license or right-of-way
	agent license [certificate] until the person has repaid in full the
	amount paid from the account for the person, plus interest at the
	legal rate.
	SECTION 20.  Section 1101.657(a), Occupations Code, is
	amended to read as follows:
	(a)  If the commission proposes to deny, suspend, or revoke a
	person's license or right-of-way agent license [certificate of
	registration], the person is entitled to a hearing conducted by the
	State Office of Administrative Hearings.
	SECTION 21.  Section 1101.660(b), Occupations Code, is
	amended to read as follows:
	(b)  Rules adopted under this section must:
	(1)  provide the complainant and the license holder,
	right-of-way agent license [certificate] holder, or regulated
	entity an opportunity to be heard; and
	(2)  require the presence of:
	(A)  a public member of the commission for a case
	involving a consumer complaint; and
	(B)  at least two staff members of the commission
	with experience in the regulatory area that is the subject of the
	proceeding.
	SECTION 22.  Section 1101.663, Occupations Code, is amended
	to read as follows:
	Sec. 1101.663.  REAPPLYING AFTER REVOCATION, SURRENDER, OR
	DENIAL. A person whose license or right-of-way agent license
	[registration] has been revoked, a person who has surrendered a
	license or right-of-way agent license [registration] issued by the
	commission, or a person whose application for a license or
	right-of-way agent license [registration] has been denied after a
	hearing under Section 1101.657 may not apply to the commission for a
	license or right-of-way agent license [registration] before the
	second anniversary of the date of the revocation, surrender, or
	denial.
	SECTION 23.  The heading to Section 1101.753, Occupations
	Code, is amended to read as follows:
	Sec. 1101.753.  CIVIL PENALTY FOR CERTAIN VIOLATIONS BY
	BROKER, SALES AGENT, OR RIGHT-OF-WAY AGENT [CERTIFICATE HOLDER].
	SECTION 24.  Section 1101.753(a), Occupations Code, is
	amended to read as follows:
	(a)  In addition to injunctive relief under Sections
	1101.751 and 1101.752, a person who receives a commission or other
	consideration as a result of acting as a broker or sales agent
	without holding a license or right-of-way agent license
	[certificate of registration] under this chapter is liable to the
	state for a civil penalty of not less than the amount of money
	received or more than three times the amount of money received.
	SECTION 25.  The heading to Section 1101.754, Occupations
	Code, is amended to read as follows:
	Sec. 1101.754.  PRIVATE CAUSE OF ACTION FOR CERTAIN
	VIOLATIONS BY BROKER, SALES AGENT, OR RIGHT-OF-WAY AGENT
	[CERTIFICATE HOLDER].
	SECTION 26.  Section 1101.754(a), Occupations Code, is
	amended to read as follows:
	(a)  A person who receives a commission or other
	consideration as a result of acting as a broker or sales agent
	without holding a license or right-of-way agent license
	[certificate of registration] under this chapter is liable to an
	aggrieved person for a penalty of not less than the amount of money
	received or more than three times the amount of money received.
	SECTION 27.  The heading to Section 1101.758, Occupations
	Code, is amended to read as follows:
	Sec. 1101.758.  CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
	BROKER, SALES AGENT, OR RIGHT-OF-WAY AGENT [CERTIFICATE HOLDER].
	SECTION 28.  Section 1101.758(a), Occupations Code, is
	amended to read as follows:
	(a)  A person commits an offense if the person acts as a
	broker or sales agent without holding a license under this chapter
	or engages in an activity for which a right-of-way agent license
	[certificate of registration] is required under this chapter
	without holding a right-of-way agent license [certificate].
	SECTION 29.  Section 21.0111, Property Code, is amended by
	adding Subsections (a-1) and (a-2) to read as follows:
	(a-1)  After an offer to which Subsection (a) applies is
	made, the entity or the property owner shall disclose to the other
	party any new, amended, or updated appraisal report that is
	produced or acquired by or on behalf of the entity or property owner
	after the offer is made and that is used in determining the entity's
	or the property owner'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 or property
	owner 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.
	(a-2)  A new, amended, or updated appraisal report that is
	not disclosed as required by Subsection (a-1), and any testimony or
	other evidence based on the report, may not be presented in a
	hearing under Section 21.015.
	SECTION 30.  Section 21.0113(b), Property Code, is amended
	to read as follows:
	(b)  An entity with eminent domain authority has made a bona
	fide offer if:
	(1)  an initial offer is made in writing to a property
	owner that includes:
	(A)  a monetary offer in an amount:
	(i)  equal to or greater than 150 percent of
	the market value of the property sought to be acquired, as
	determined on a per acre or per square foot proportionate valuation
	of raw land as reflected in the appraisal of the county taxing
	authority as of the date of the initial offer; or
	(ii)  if an appraisal of the property sought
	to be acquired and any damages to any remaining property has been
	completed by a certified appraiser, equal to or greater than the
	amount provided by the appraisal report;
	(B)  a statement that the entity will not contact
	the property owner sooner than the fourth business day after the
	date of the first personal contact made by the entity after the
	entity sends the initial offer, except to respond to an inquiry from
	the property owner;
	(C)  the name and telephone number of an employee
	of the entity that the property owner may contact with questions
	regarding the initial offer; and
	(D)  a copy of the appraisal report on which the
	offer is based, if applicable;
	(2)  a final offer is made in writing to the property
	owner;
	(3)  the final offer is made on or after the 30th day
	after the date on which the entity makes a written initial offer to
	the property owner;
	(4)  before making a final offer, the entity obtains an
	[a written] appraisal report from a certified appraiser of the
	value of the property being acquired and the damages, if any, to any
	of the property owner's remaining property;
	(5)  the final offer is equal to or greater than the
	amount provided by [of] the [written] appraisal report [obtained by
	the entity];
	(6)  the following items are included with the final
	offer or have been previously provided to the owner by the entity:
	(A)  a copy of the [written] appraisal report;
	(B)  a copy of the deed, easement, or other
	instrument conveying the property sought to be acquired; and
	(C)  the landowner's bill of rights statement
	prescribed by Section 21.0112; and
	(7)  the entity provides the property owner with at
	least 14 days to respond to the final offer and the property owner
	does not agree to the terms of the final offer within that period.
	SECTION 31.  Subchapter B, Chapter 21, Property Code, is
	amended by adding Sections 21.0114 and 21.0115 to read as follows:
	Sec. 21.0114.  REQUIRED TERMS FOR INSTRUMENTS OF CONVEYANCE.
	(a)  Except as provided by Subsection (b), the deed, easement, or
	other instrument provided to a property owner under Section
	21.0113(b)(6)(B) must include the following terms, as applicable:
	(1)  if the instrument conveys a pipeline right-of-way
	easement:
	(A)  the maximum number of pipelines that may be
	installed in the right-of-way;
	(B)  the maximum diameter, excluding any
	protective coating or wrapping, of each pipeline to be installed in
	the right-of-way;
	(C)  the type or category of each substance to be
	transported through the pipelines to be installed in the
	right-of-way;
	(D)  a general description of any use of the
	surface of the right-of-way the entity intends to acquire;
	(E)  a metes and bounds or center line description
	of the location of the easement, plat, or other legally sufficient
	description of the location of the easement;
	(F)  the maximum width of the easement;
	(G)  the minimum depth at which the pipeline will
	initially be installed;
	(H)  whether the double-ditch method will be used
	for installation of the pipeline in areas that are not
	bore-drilled;
	(I)  whether the easement is assignable in whole
	or in part to any other entity, subsidiary, or company that does not
	have eminent domain authority;
	(J)  whether the entity has exclusive,
	nonexclusive, or otherwise limited rights to the right-of-way;
	(K)  a limit on access to the easement area by a
	third party for a purpose that is not related to:
	(i)  the pipeline's construction, safety,
	maintenance, or operation activities; or
	(ii)  other uses authorized by law;
	(L)  a right to recover actual monetary damages
	arising from construction, maintenance, repair, replacement, or
	future removal of the pipeline in the right-of-way, including any
	actual monetary damages to growing crops or livestock, or a
	statement that the offer includes such future damages;
	(M)  a provision regarding the use and repair of
	any gates and fences;
	(N)  a provision regarding the maintenance of the
	right-of-way;
	(O)  a provision regarding the repair and
	restoration of areas used or damaged outside the right-of-way area
	to their original condition or better, to the extent reasonably
	practicable, or the payment of actual monetary damages for areas
	not restored; and
	(P)  the manner in which the entity will access
	the right-of-way, other than in case of emergency, in which case any
	reasonable access may be used;
	(2)  if the instrument conveys an electrical
	transmission right-of-way easement:
	(A)  a general description of any use of the
	surface of the right-of-way the entity intends to acquire;
	(B)  a depiction identifying the approximate
	location of the right-of-way on the property;
	(C)  a metes and bounds or center line description
	of the location of the easement, plat, or other legally sufficient
	description of the location of the easement;
	(D)  the maximum width of the right-of-way
	easement;
	(E)  the manner in which the entity will access
	the right-of-way, other than in case of an emergency, in which case
	any reasonable access may be used;
	(F)  a limit on access to the easement area by a
	third party for a purpose that is not related to:
	(i)  the transmission line's construction,
	safety, maintenance, or operation activities; or
	(ii)  other uses authorized by law;
	(G)  a provision regarding the right to recover
	actual monetary damages arising from construction, maintenance,
	repair, replacement, or future removal of lines and support
	facilities in the right-of-way, or a statement that the offer
	includes such future damages;
	(H)  a provision regarding the use and repair of
	any gates and fences;
	(I)  a provision regarding the maintenance of the
	right-of-way;
	(J)  a provision regarding the repair and
	restoration of areas used or damaged outside the right-of-way area
	to their original condition or better, to the extent reasonably
	practicable, or the payment of actual monetary damages for areas
	not restored; and
	(K)  whether the entity has exclusive,
	nonexclusive, or otherwise limited rights to the right-of-way;
	(3)  a prohibition against any use of the property
	being conveyed, other than a use stated in the deed, easement, or
	other instrument, without the express written consent of the
	property owner;
	(4)  a statement that the landowner is protected from
	liability under Section 21.0115, including the full text of that
	section;
	(5)  if the entity is a nongovernmental entity that is
	not otherwise self-insured, an agreement that the entity will keep
	liability insurance in effect at all times during construction or,
	if the entity is a governmental entity, a statement that the entity
	is required by law to pay a judgment ordered by a court of competent
	jurisdiction if the court determines that the entity is liable to
	the property owner for personal injury 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;
	and
	(6)  a statement that the terms of the deed, easement,
	or other instrument will bind the successors and assigns of the
	parties to the instrument.
	(b)  The entity may present and include terms in addition to
	the terms required under Subsection (a).  The property owner and the
	entity may consider and agree to the additional terms, including
	rights and uses that may not be the subject of a later condemnation
	proceeding. A property owner may negotiate a deed, easement, or
	other instrument that does not include all of the terms required
	under Subsection (a).
	Sec. 21.0115.  LIMITATION OF PROPERTY OWNER LIABILITY. A
	property owner is not liable to a condemning entity, the entity's
	agents, employees, or contractors, including the contractor's
	subcontractors of any tier, or a third party for personal injury,
	death, or property damage:
	(1)  arising from the use by a person other than the
	property owner of property, including for a right-of-way, acquired
	from the property owner by condemnation; and
	(2)  not caused by the property owner's negligence or
	intentional conduct.
	SECTION 32.  Section 21.063, Property Code, is amended by
	adding Subsections (c) and (d) to read as follows:
	(c)  As a condition of appealing the final judgment of a
	trial court in a condemnation proceeding, a nongovernmental
	condemnor shall:
	(1)  deposit with the trial court the amount of the
	final judgment, less the amount of any monetary deposit made and any
	bonds posted by the condemnor under Sections 21.021(a)(2) and (3),
	subject to the order of the court of appeals; or
	(2)  post a surety bond, issued by a surety company
	authorized to engage in business in this state and conditioned to
	secure the payment of the final judgment, in the amount of the final
	judgment, less the amount of any monetary deposit made and any bonds
	posted by the condemnor under Sections 21.021(a)(2) and (3).
	(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 trial court grants
	the motion:
	(1)  the court of appeals shall dismiss the appeal with
	prejudice and order enforcement of the final judgment; and
	(2)  the property owner is entitled to all reasonable
	and necessary fees for attorneys hired in relation to the appeal of
	the condemnation.
	SECTION 33.  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 34.  Effective March 1, 2018, Section 1101.002(2),
	Occupations Code, is repealed.
	SECTION 35.  The office of the attorney general shall make
	the landowner's bill of rights statement required by Section
	402.031, Government Code, as amended by this Act, available on the
	attorney general's Internet website not later than January 1, 2018.
	SECTION 36.  Not later than September 1, 2018, the Texas Real
	Estate Commission shall adopt rules to implement Subchapter K,
	Chapter 1101, Occupations Code, as amended by this Act.
	SECTION 37.  (a)  Chapter 1101, Occupations Code, as amended
	by this Act, applies only to an application for an original or
	renewal right-of-way agent license filed on or after March 1, 2018.
	An application for an original or renewal certificate of
	registration as an easement or right-of-way agent filed before
	March 1, 2018, is governed by the law in effect on the date the
	application was filed, and the former law is continued in effect for
	that purpose.
	(b)  Sections 21.0111 and 21.0113, Property Code, as amended
	by this Act, and Sections 21.0114 and 21.0115, Property Code, as
	added 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.
	(c)  Section 21.041, 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.
	(d)  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.
	(e)  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 38.  (a)  Except as provided by Subsection (b) of
	this section, this Act takes effect September 1, 2017.
	(b)  Chapter 1101, Occupations Code, as amended by this Act,
	takes effect March 1, 2018.