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A BILL TO BE ENTITLED
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AN ACT
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relating to a landowner's repurchase of real property previously |
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acquired by a governmental entity through eminent domain. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.0121(a), Property Code, is amended to |
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read as follows: |
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(a) In addition to the contents prescribed by Section |
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21.012(b), a condemnation petition filed by a political subdivision |
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of this state for the purpose of acquiring rights to groundwater or |
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surface water must state that the facts to be proven are that the |
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political subdivision has: |
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(1) prepared a drought contingency plan; |
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(2) developed and implemented a water conservation |
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plan that will result in the highest practicable levels of water |
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conservation and efficiency achievable in the political |
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subdivision's jurisdiction; |
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(3) made a bona fide good faith effort to obtain |
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practicable alternative water supplies to the water rights the |
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political subdivision proposes to condemn; |
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(4) made a bona fide good faith effort to acquire the |
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rights to the water the political subdivision proposes to condemn |
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by voluntary purchase or lease; and |
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(5) made a showing that the political subdivision |
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needs the water rights to provide for the domestic needs of the |
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political subdivision within the next 20-year [10-year] period. |
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SECTION 2. (a) Section 21.023, Property Code, is amended to |
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read as follows: |
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Sec. 21.023. DISCLOSURE OF INFORMATION REQUIRED AT TIME OF |
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ACQUISITION. A governmental entity shall disclose in writing to |
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the property owner, at the time of acquisition of the property |
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through eminent domain, that: |
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(1) the owner or the owner's heirs, successors, or |
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assigns may be [are] entitled to repurchase the property under |
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Subchapter E [if the public use for which the property was acquired
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through eminent domain is canceled before the 10th anniversary of
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the date of acquisition]; and |
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(2) the repurchase price is the price paid to the owner |
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by the governmental entity at the time the governmental entity |
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acquired the property through eminent domain [fair market value of
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the property at the time the public use was canceled]. |
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(b) Section 21.023, Property Code, is amended to read as |
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follows: |
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Sec. 21.023. DISCLOSURE OF INFORMATION REQUIRED AT TIME OF |
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ACQUISITION. A governmental entity shall disclose in writing to |
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the property owner, at the time of acquisition of the property |
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through eminent domain, that: |
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(1) the owner or the owner's heirs, successors, or |
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assigns may be [are] entitled to repurchase the property under |
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Subchapter E [if the public use for which the property was acquired
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through eminent domain is canceled before the 10th anniversary of
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the date of acquisition]; and |
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(2) the repurchase price is the fair market value of |
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the property at the time the property becomes eligible for |
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repurchase under Section 21.101 [public use was canceled]. |
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SECTION 3. Section 21.101(a), Property Code, is amended to |
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read as follows: |
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(a) A person from whom [Except as provided in Subsection
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(b), this subchapter applies only to] a real property interest is |
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acquired by a governmental entity through eminent domain for a |
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public use or that person's heirs, successors, or assigns are |
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entitled to repurchase the property as provided by this subchapter |
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if: |
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(1) that public use was canceled before the 20th |
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[10th] anniversary of the date of acquisition; |
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(2) no actual progress, as defined by Section |
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21.104(b), is made toward that public use during the five-year |
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period between: |
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(A) the date of acquisition and the fifth |
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anniversary of that date; |
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(B) the fifth anniversary of that date and the |
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10th anniversary of that date; |
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(C) the 10th anniversary of that date and the |
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15th anniversary of that date; or |
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(D) the 15th anniversary of that date and the |
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20th anniversary of that date; |
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(3) the property becomes unnecessary for that public |
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use before the 20th anniversary of the date of acquisition; or |
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(4) a right of repurchase is established under Section |
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21.106. |
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SECTION 4. (a) Section 21.103, Property Code, is amended to |
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read as follows: |
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Sec. 21.103. RESALE OF PROPERTY; PRICE. (a) Not later than |
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the 180th day after the date of the postmark on the notice sent |
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under Section 21.102, 21.104, or 21.105, the property owner or the |
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owner's heirs, successors, or assigns must notify the governmental |
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entity of the person's intent to repurchase the property interest |
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under this subchapter. |
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(b) As soon as practicable after receipt of a [the] |
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notification under Subsection (a) or a right to repurchase a |
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property interest is established under Section 21.106, the |
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governmental entity shall offer to sell the property interest to |
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the person for the price paid to the owner by the governmental |
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entity at the time the governmental entity acquired the property |
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through eminent domain [fair market value of the property at the
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time the public use was canceled]. The person's right to repurchase |
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the property expires on the 90th day after the date on which the |
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governmental entity makes the offer. |
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(b) Section 21.103, Property Code, is amended to read as |
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follows: |
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Sec. 21.103. RESALE OF PROPERTY; PRICE. (a) Not later |
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than the 180th day after the date of the postmark on the notice sent |
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under Section 21.102, 21.104, or 21.105, the property owner or the |
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owner's heirs, successors, or assigns must notify the governmental |
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entity of the person's intent to repurchase the property interest |
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under this subchapter. |
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(b) As soon as practicable after receipt of a [the] |
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notification under Subsection (a) or a right to repurchase a |
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property interest is established under Section 21.106, the |
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governmental entity shall offer to sell the property interest to |
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the person for the fair market value of the property at the time the |
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property becomes eligible for repurchase under Section 21.101 |
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[public use was canceled]. The person's right to repurchase the |
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property expires on the 90th day after the date on which the |
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governmental entity makes the offer. |
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SECTION 5. Subchapter E, Chapter 21, Property Code, is |
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amended by adding Sections 21.104, 21.105, and 21.106 to read as |
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follows: |
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Sec. 21.104. NOTICE TO PREVIOUS PROPERTY OWNER OF ACTUAL |
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PROGRESS. (a) Not later than the 180th day after the fifth, 10th, |
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15th, and 20th anniversaries of the date on which real property was |
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acquired through eminent domain by a governmental entity, the |
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governmental entity shall send by certified mail, return receipt |
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requested, to the property owner or the owner's heirs, successors, |
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or assigns, a notice containing: |
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(1) an identification, which is not required to be a |
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legal description, of the property that was acquired; |
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(2) an identification of the public use for which the |
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property had been acquired; |
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(3) an itemized description of the actual progress |
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made toward that public use during the relevant five-year period or |
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a statement that no actual progress has been made toward that use |
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during that period, as applicable; and |
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(4) a description of the person's right under this |
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subchapter to repurchase the property if no actual progress has |
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been made during the five-year period preceding the fifth, 10th, |
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15th, or 20th anniversary of the date on which the property was |
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acquired. |
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(b) Actual progress includes: |
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(1) any labor done to develop the property or other |
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property acquired for the same public use project for which the |
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property owner's property was acquired; |
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(2) furnishing materials to develop the property or |
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other property acquired for the same public use project for which |
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the property owner's property was acquired; |
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(3) hiring an architect, engineer, or surveyor to |
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prepare a plan or plat that includes the property or other property |
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acquired for the same public use project for which the property |
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owner's property was acquired; |
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(4) applying for state or federal funds to develop the |
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property or other property acquired for the same public use project |
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for which the property owner's property was acquired; and |
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(5) acquiring a tract or parcel of real property |
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adjacent to the property for the same public use project for which |
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the owner's property was acquired. |
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Sec. 21.105. (a) NOTICE TO PREVIOUS PROPERTY OWNER |
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REGARDING NECESSITY. If, before the 20th anniversary of the date |
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real property was acquired through eminent domain, the property |
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becomes unnecessary for the public use for which the property was |
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acquired, the governmental entity shall, not later than the 180th |
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day after the date the property becomes unnecessary, send by |
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certified mail, return receipt requested, to the property owner or |
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the owner's heirs, successors, or assigns, a notice containing: |
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(1) an identification, which is not required to be a |
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legal description, of the property that was acquired; |
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(2) an identification of the public use for which the |
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property had been acquired; |
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(3) a statement that the property is no longer |
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necessary for the public use for which the property was acquired; |
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and |
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(4) a description of the person's right under this |
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subchapter to repurchase the property. |
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(b) For the purposes of this subchapter, real property |
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acquired through eminent domain is necessary if any part of the |
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tract or parcel of the real property is required to accomplish the |
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public use described in the condemnation petition required under |
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Section 21.012. |
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Sec. 21.106. PETITION FOR REPURCHASE. (a) After the 20th |
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anniversary of the date on which property was acquired through |
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eminent domain, a property owner or the owner's heirs, successors, |
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or assigns may file a petition in a court having proper jurisdiction |
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under this chapter to require the governmental entity that acquired |
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the owner's property through eminent domain to sell the property |
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interest to the person as specified by Section 21.103(b) if the |
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governmental entity does not prove that the property is necessary |
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for the public use for which the property was acquired. |
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(b) The petition must contain: |
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(1) an identification, which is not required to be a |
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legal description, of the property that was acquired; |
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(2) an identification of the public use for which the |
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property had been acquired; |
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(3) a statement that the property is no longer |
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necessary for the public use for which the property was acquired; |
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and |
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(4) a description of the person's right under this |
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subchapter to repurchase the property. |
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(c) The governmental entity that acquired the property |
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through eminent domain has the burden of establishing that the |
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property is necessary for the public use for which the property was |
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acquired. |
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(d) If a court grants the property owner the right to |
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repurchase property acquired through eminent domain under this |
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section, the court shall award the owner reasonable and necessary |
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attorney's fees. |
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SECTION 6. Section 21.101(b), Property Code, is repealed. |
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SECTION 7. The changes in law made by this Act apply only to |
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a condemnation proceeding in which the petition is filed on or after |
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the effective date of this Act and to any property condemned through |
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the proceeding. A condemnation proceeding in which the petition is |
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filed before the effective date of this Act and any property |
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condemned through the proceeding is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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SECTION 8. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2007. |
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(b) Sections 2(a) and 4(a) of this Act, amending Sections |
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21.023 and 21.103, Property Code, take effect on the date on which |
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the constitutional amendment proposed by the 80th Legislature, |
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Regular Session, 2007, allowing a governmental entity to sell |
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property acquired through eminent domain back to the previous |
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owners at the price the entity paid to acquire the property takes |
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effect. If that amendment is not approved by the voters, Sections |
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2(a) and 4(a) of this Act have no effect. Sections 2(b) and 4(b) of |
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this Act, amending Sections 21.023 and 21.103, Property Code, take |
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effect only if the proposed constitutional amendment described by |
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this subsection does not take effect, and the effective date of |
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Sections 2(b) and 4(b) is January 1, 2008. |