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A BILL TO BE ENTITLED
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AN ACT
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relating to a property owner's right to a binding third-party |
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appraisal in connection with the use of eminent domain authority. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 21.0111, Property Code, |
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is amended to read as follows: |
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(a) A governmental entity with eminent domain authority |
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that wants to acquire real property for a public use shall disclose |
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to the property owner at the time an offer to purchase is made any |
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and all existing appraisal reports produced or acquired by the |
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governmental entity relating specifically to the owner's property |
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and used in determining the final valuation offer. The |
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governmental entity shall provide to the property owner at the time |
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an offer to purchase is made a statement of the property owner's |
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rights under this chapter, including instructions for requesting a |
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binding third-party appraisal. |
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SECTION 2. Subsection (a), Section 21.014, Property Code, |
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is amended to 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 appoint |
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three disinterested freeholders who reside in the county as special |
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commissioners to assess the damages of the owner of the property |
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being condemned, unless the property owner requests a binding |
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third-party appraisal under Section 21.0141. The judge appointing |
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the special commissioners shall give preference to persons agreed |
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on by the parties. If a person fails to serve as a commissioner, the |
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judge may appoint a replacement. |
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SECTION 3. Subchapter B, Chapter 21, Property Code, is |
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amended by adding Sections 21.0141, 21.0142, and 21.0143 to read as |
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follows: |
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Sec. 21.0141. BINDING THIRD-PARTY APPRAISAL. (a) As an |
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alternative to a special commissioners court under Section 21.014, |
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a property owner may request a binding third-party appraisal to |
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assess the fair market value of the property being condemned. The |
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property owner must file the request in the form prescribed by |
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Section 21.0142 not later than the 120th day after the date the |
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property owner receives notice of the condemnation. The request |
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must be filed with the court in which the condemnation petition was |
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filed or to which the eminent domain case was assigned. |
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(b) A property owner who requests a special commissioners |
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hearing under Section 21.014 waives the owner's right to request a |
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binding third-party appraisal. The court shall dismiss any pending |
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binding third-party appraisal if the property owner's rights are |
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waived under this subsection. |
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Sec. 21.0142. REQUEST FOR BINDING THIRD-PARTY APPRAISAL. A |
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property owner may request a binding third-party appraisal by |
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completing a request form as prescribed by the comptroller. The |
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form must require the property owner to provide only: |
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(1) a description of the property to be condemned; |
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(2) the name of the owner of the property; |
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(3) the name of the condemnor seeking to condemn the |
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property; and |
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(4) a request for a binding third-party appraisal. |
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Sec. 21.0143. BINDING THIRD-PARTY APPRAISAL PROCEDURE. |
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(a) A property owner requesting a binding third-party appraisal |
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may select an appraiser from a list provided by the comptroller. |
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(b) The comptroller shall keep a list with contact numbers |
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on its website of approved appraisers that may perform a binding |
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third-party appraisal. An appraiser may not have appraised |
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property for the condemnor during the latest 12-month period. |
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(c) The binding third-party appraisal is the final |
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assessment of the fair market value of the property and may not be |
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appealed. The condemnor shall pay the property owner an amount of |
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damages equal to the fair market value determined by the |
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third-party appraiser. If the appraised value is greater than the |
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damages the condemnor initially offered, the condemnor shall pay |
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for the appraisal. If the appraised value is less than the damages |
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the condemnor initially offered, the property owner shall pay for |
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the appraisal. |
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SECTION 4. The change in law made by this Act to Subchapter |
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B, Chapter 21, Property Code, applies to a condemnation proceeding |
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for which notice was received on or after the effective date of this |
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Act. A condemnation proceeding for which notice was received |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date. |
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SECTION 5. This Act takes effect September 1, 2007. |