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A BILL TO BE ENTITLED
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AN ACT
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relating to the assessment of damages and award of costs and fees in |
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the condemnation of property by certain common carriers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 21, Property Code, is |
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amended by adding Section 21.0415 to read as follows: |
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Sec. 21.0415. CONDEMNATION BY CERTAIN ENTITIES: EVIDENCE; |
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ASSESSMENT OF DAMAGES. (a) The legislature determines that, |
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because the negotiation, acquisition, exploration, exploitation, |
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or disposition of petroleum, natural gas, or mineral interests in |
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real property in this state and the intense concentration of |
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drilling or mining in this state are at a level that affects |
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property values in dramatic ways, special evidentiary and damages |
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provisions are necessary in proceedings to condemn property for |
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those purposes to adequately protect property owners and minimize |
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the negative impacts on this state and are a matter of statewide |
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importance. |
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(b) This section applies only to the condemnation of |
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property by a common carrier subject to Chapter 111, Natural |
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Resources Code, and Section B(3)(b), Article 2.01, Texas Business |
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Corporation Act. |
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(c) Section 21.041 does not apply to a condemnation |
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proceeding to which this section applies. |
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(d) As the basis for assessing damages to a property owner |
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from a condemnation of property to which this section applies, the |
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special commissioners shall admit evidence on: |
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(1) the value of the property being condemned; |
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(2) each injury or loss to the property owner that a |
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reasonably prudent person would consider in a privately negotiated |
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transaction for the sale of the property; |
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(3) if the property owner claims that the owner's |
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remaining property will be damaged by the condemnation, each |
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benefit, if any, to the property owner's remaining property that a |
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reasonably prudent person would consider in a privately negotiated |
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transaction for the sale of the property; and |
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(4) if the special commissioners can reasonably infer |
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that revenues will be generated that are directly attributable to |
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the project for which the property is being condemned, the value of |
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the property when used for the purpose for which the property is |
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being condemned. |
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(e) Notwithstanding the other provisions of this |
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subchapter, damages assessed for condemnation of property to which |
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this section applies: |
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(1) must be in an amount that constitutes adequate |
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compensation for the property owner for the condemnation; and |
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(2) may not be less than the sum of: |
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(A) the market value of the property being |
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condemned; and |
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(B) the diminution in the market value of any of |
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the property owner's property that is not condemned but is damaged |
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by the condemnation. |
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SECTION 2. Section 21.047, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) If a condemnor of property to which Section 21.0415 |
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applies is liable for costs under Subsection (a), the condemnor is |
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also liable for any other costs incurred by the property owner in |
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the condemnation proceedings, including attorney's fees and |
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expert's fees. |
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SECTION 3. The change in law made by this Act applies only |
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to a condemnation proceeding in which the condemnation petition is |
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filed on or after the effective date of this Act. A condemnation |
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proceeding pending on the effective date of this Act is governed by |
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the law in effect immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |