81R34562 AJA-D

By: Estes, et al. S.B. No. 18

Substitute the following for S.B. No. 18:

By: Hamilton C.S.S.B. No. 18

A BILL TO BE ENTITLED

AN ACT

relating to the acquisition of property by entities with eminent domain authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 2206, Government Code, is amended to read as follows:

CHAPTER 2206. [LIMITATIONS ON USE OF] EMINENT DOMAIN

SUBCHAPTER A. LIMITATIONS ON PURPOSE AND USE OF PROPERTY ACQUIRED

THROUGH EMINENT DOMAIN

Sec. 2206.001. LIMITATION ON EMINENT DOMAIN FOR PRIVATE PARTIES OR ECONOMIC DEVELOPMENT PURPOSES. (a) This section applies to the use of eminent domain under the laws of this state, including a local or special law, by any governmental or private entity, including:

(1) a state agency, including an institution of higher education as defined by Section 61.003, Education Code;

(2) a political subdivision of this state; or

(3) a corporation created by a governmental entity to act on behalf of the entity.

(b) A governmental or private entity may not take private property through the use of eminent domain if the taking:

(1) confers a private benefit on a particular private party through the use of the property;

(2) is for a public use that is merely a pretext to confer a private benefit on a particular private party; [or]

(3) is for economic development purposes, unless the economic development results [is a secondary purpose resulting] from municipal community development or municipal urban renewal activities to eliminate an existing affirmative harm on society from [slum or] blighted areas under:

(A) Chapter 373 or 374, Local Government Code, other than an activity described by Section 373.002(b)(5), Local Government Code; or

(B) Section 311.005(a)(1)(I), Tax Code; or

(4) is not for a public use.

(c) This section does not affect the authority of an entity authorized by law to take private property through the use of eminent domain for:

(1) transportation projects, including, but not limited to, railroads, airports, or public roads or highways;

(2) entities authorized under Section 59, Article XVI, Texas Constitution, including:

(A) port authorities;

(B) navigation districts; and

(C) any other conservation or reclamation districts that act as ports;

(3) water supply, wastewater, flood control, and drainage projects;

(4) public buildings, hospitals, and parks;

(5) the provision of utility services;

(6) a sports and community venue project approved by voters at an election held on or before December 1, 2005, under Chapter 334 or 335, Local Government Code;

(7) the operations of:

(A) a common carrier pipeline [subject to Chapter 111, Natural Resources Code, and Section B(3)(b), Article 2.01, Texas Business Corporation Act]; or

(B) an energy transporter, as that term is defined by Section 186.051, Utilities Code;

(8) a purpose authorized by Chapter 181, Utilities Code;

(9) underground storage operations subject to Chapter 91, Natural Resources Code;

(10) a waste disposal project; or

(11) a library, museum, or related facility and any infrastructure related to the facility.

(d) This section does not affect the authority of a governmental entity to condemn a leasehold estate on property owned by the governmental entity.

(e) The determination by the governmental or private entity proposing to take the property that the taking does not involve an act or circumstance prohibited by Subsection (b) does not create a presumption with respect to whether the taking involves that act or circumstance.

Sec. 2206.002. LIMITATIONS ON EASEMENTS. (a) A property owner whose property is acquired through the use of eminent domain under Chapter 21, Property Code, for the purpose of creating an easement through that owner's property may construct streets or roads, including a gravel, asphalt, or concrete road, at any locations above the easement that the property owner chooses.

(b) The portion of a road constructed under this section that is within the area covered by the easement:

(1) must cross the easement at or near 90 degrees; and

(2) may not:

(A) exceed 40 feet in width;

(B) cause a violation of any applicable pipeline regulation; or

(C) interfere with the operation and maintenance of any pipeline.

(c) At least 30 days before the date on which construction of an asphalt or concrete road or street that will be located wholly or partly in an area covered by an easement used for a pipeline is scheduled to begin, the property owner must submit plans for the proposed construction to the owner of the easement.

(d) This section applies only to an easement acquired by an entity for the purpose of a pipeline to be used for oil or gas exploration or production activities.

SUBCHAPTER B. PROCEDURES REQUIRED TO INITIATE

EMINENT DOMAIN PROCEEDINGS

Sec. 2206.051. SHORT TITLE. This subchapter may be cited as the Truth in Condemnation Procedures Act.

Sec. 2206.052. APPLICABILITY. The procedures in this subchapter apply only to the use of eminent domain under the laws of this state by a governmental entity.

Sec. 2206.053. VOTE ON USE OF EMINENT DOMAIN. (a) Before a governmental entity initiates a condemnation proceeding by filing a petition under Section 21.012, Property Code, the governmental entity must authorize the initiation of the condemnation proceedings at a public meeting by a record vote.

(b) A single ordinance, resolution, or order may be adopted for all units of property to be condemned if:

(1) the motion required by Subsection (e) indicates that the first record vote applies to all units of property to be condemned; and

(2) the minutes of the entity reflect that the first vote applies to all of those units.

(c) If more than one member of the governing body objects to adopting a single ordinance, resolution, or order by a record vote for all units of property for which condemnation proceedings are to be initiated, a separate record vote must be taken for each unit of property.

(d) For the purposes of Subsections (a) and (c), if two or more units of real property are owned by the same person, the governmental entity may treat those units of property as one unit of property.

(e) The motion to adopt an ordinance, resolution, or order authorizing the initiation of condemnation proceedings under Chapter 21, Property Code, must be made in a form substantially similar to the following: "I move that the (name of governmental entity) authorize the use of the power of eminent domain to acquire (describe the property) for (describe the public use)." The description of the property required by this subsection is sufficient if the description of the location of and interest in the property that the governmental entity seeks to acquire is substantially similar to the description that is or could properly be used in a petition to condemn the property under Section 21.012, Property Code.

(f) If a project for a public use described by Section 2206.001(c)(3) will require a governmental entity to acquire multiple tracts or units of property to construct facilities connecting one location to another location, the governing body of the entity may adopt a single ordinance, resolution, or order by a record vote that delegates the authority to initiate condemnation proceedings to the chief administrative official of the governmental entity.

(g) An ordinance, resolution, or order adopted under Subsection (f) is not required to identify specific properties that the governmental entity will acquire. The ordinance, resolution, or order must identify the general area to be covered by the project or the general route that will be used by the governmental entity for the project in a way that provides property owners in and around the area or along the route reasonable notice that the owners' properties may be subject to condemnation proceedings during the planning or construction of the project.

SUBCHAPTER C. EXPIRATION OF CERTAIN EMINENT DOMAIN AUTHORITY

Sec. 2206.101. REPORT OF EMINENT DOMAIN AUTHORITY; EXPIRATION OF AUTHORITY. (a) This section does not apply to an entity that was created or that acquired the power of eminent domain on or after December 31, 2010.

(b) Not later than December 31, 2010, an entity, including a private entity, authorized by the state by a general or special law to exercise the power of eminent domain shall submit to the comptroller a letter stating that the entity is authorized by the state to exercise the power of eminent domain and identifying the provision or provisions of law that grant the entity that authority. The entity must send the letter by certified mail, return receipt requested.

(c) The authority of an entity to exercise the power of eminent domain expires on September 1, 2011, unless the entity submits a letter in accordance with Subsection (b).

(d) Not later than March 1, 2011, the comptroller shall submit to the governor, the lieutenant governor, the speaker of the house of representatives, the appropriate standing committees of the senate and the house of representatives, and the Texas Legislative Council a report that contains:

(1) the name of each entity that submitted a letter in accordance with this section; and

(2) a corresponding list of the provisions granting eminent domain authority as identified by each entity that submitted a letter.

(e) The Texas Legislative Council shall prepare for consideration by the 83rd Legislature, Regular Session, a nonsubstantive revision of the statutes of this state as necessary to reflect the state of the law after the expiration of an entity's eminent domain authority effective under Subsection (c).

SECTION 2. Subsection (b), Section 373.002, Local Government Code, is amended to read as follows:

(b) Activities conducted under this chapter are directed toward the following purposes:

(1) elimination of [slums and] areas affected by blight;

(2) prevention of blighting influences and of the deterioration of property and neighborhood and community facilities important to the welfare of the community;

(3) elimination of conditions detrimental to the public health, safety, and welfare;

(4) expansion and improvement of the quantity and quality of community services essential for the development of viable urban communities;

(5) more rational use of land and other natural resources;

(6) improved arrangement of residential, commercial, industrial, recreational, and other necessary activity centers;

(7) restoration and preservation of properties of special value for historic, architectural, or aesthetic reasons;

(8) reduction of the isolation of income groups in communities and geographical areas, promotion of increased diversity and vitality of neighborhoods through spatial deconcentration of housing opportunities for persons of low and moderate income, and revitalization of deteriorating or deteriorated neighborhoods to attract persons of higher income; and

(9) alleviation of physical and economic distress through the stimulation of private investment and community revitalization in [slum or] blighted areas.

SECTION 3. Section 373.004, Local Government Code, is amended to read as follows:

Sec. 373.004. GOALS OF PROGRAM. Through a community development program, a municipality may conduct work or activities designed to:

(1) improve the living and economic conditions of persons of low and moderate income;

(2) benefit low or moderate income neighborhoods;

(3) aid in the prevention or elimination of [slums and] blighted areas;

(4) aid a federally assisted new community; or

(5) meet other urgent community development needs, including an activity or function specified for a community development program that incorporates a federally assisted new community.

SECTION 4. Section 373.006, Local Government Code, is amended to read as follows:

Sec. 373.006. REQUIRED PROCEDURES BEFORE ADOPTION OF COMMUNITY DEVELOPMENT PROGRAM. Before exercising powers under Section 373.005, the governing body of the municipality must:

(1) identify areas of the municipality in which predominantly low and moderate income persons reside and each unit of real property in the municipality[,] that has the characteristics of blight [are blighted or slum areas] or that is a [are] federally assisted new community in the municipality [communities];

(2) establish community development program areas in which community development activities, building rehabilitation, or the acquisition of privately owned buildings or land is proposed;

(3) adopt, by resolution or ordinance, a plan under which citizens may publicly comment on the proposed community development program;

(4) conduct public hearings on the proposed program before the 15th day before the date of its final adoption by the governing body; and

(5) adopt the community development program by resolution or ordinance.

SECTION 5. Subsections (a) and (b), Section 374.002, Local Government Code, are amended to read as follows:

(a) The legislature finds that [slum and] blighted areas exist in municipalities in this state and that those areas:

(1) are a serious and growing menace that is injurious and inimical to the public health, safety, morals, and welfare of the residents of this state;

(2) contribute substantially and increasingly to the spread of disease and crime, requiring excessive and disproportionate expenditures of public funds for the preservation of the public health and safety, and for crime prevention, correctional facilities, prosecution and punishment, treatment of juvenile delinquency, and the maintenance of adequate police, fire, and accident protection and other public services and facilities; and

(3) constitute an economic and social liability, substantially impair the sound growth of affected municipalities, and retard the provision of housing accommodations.

(b) For these reasons, prevention and elimination of [slum and] blighted areas are matters of state policy and concern that may be best addressed by the combined action of private enterprise, municipal regulation, and other public action through approved urban renewal plans. The legislature further finds that the repair and rehabilitation of buildings and other improvements in affected areas, public acquisition of real property, demolition of buildings and other improvements as necessary to eliminate [slum or] blight conditions or to prevent the spread of those conditions, the disposition of property acquired in affected areas and incidental to the purposes stated by this subsection, and other public assistance to eliminate those conditions are public purposes for which public money may be spent and the power of eminent domain exercised.

SECTION 6. Subdivisions (3), (18), (25), (26), and (28), Section 374.003, Local Government Code, are amended to read as follows:

(3) "Blighted area" means a tract or unit of property [an area] that presents four or more of the following conditions for at least one year after the date on which notice of the conditions is provided to the property owner as required by Section 374.018(a)(1) or (b):

(A) the property contains uninhabitable, unsafe, or abandoned structures;

(B) the property has inadequate provisions for sanitation;

(C) there exists on the property an imminent harm to life or other property caused by fire, flood, hurricane, tornado, earthquake, storm, or other natural catastrophe declared to be a disaster under Section 418.014, Government Code, or certified as a disaster for federal assistance under Section 418.021, Government Code;

(D) the property has been identified by the United States Environmental Protection Agency as a superfund site under the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.) or as environmentally contaminated to an extent that the property requires remedial investigation or a feasibility study;

(E) the property has been the location of substantiated and repeated illegal activity of which the property owner knew or should have known;

(F) the maintenance of the property is below county or municipal standards;

(G) the property is abandoned and contains a structure that is not fit for its intended use because the utilities, sewerage, plumbing, or heating or a similar service or facility of the structure has been disconnected, destroyed, removed, or rendered ineffective; or

(H) the property presents an economic liability to the immediate area because of deteriorating structures or hazardous conditions [is not a slum area, but that, because of deteriorating buildings, structures, or other improvements; defective or inadequate streets, street layout, or accessibility; unsanitary conditions; or other hazardous conditions, adversely affects the public health, safety, morals, or welfare of the municipality and its residents, substantially retards the provision of a sound and healthful housing environment, or results in an economic or social liability to the municipality. The term includes an area certified as a disaster area as provided by Section 374.903].

(18) "Rehabilitation" means the restoration of buildings or other structures to prevent deterioration of an area that is tending to become a blighted area [or a slum area].

(25) "Urban renewal activities" includes [slum clearance,] redevelopment, rehabilitation, and conservation activities to prevent further deterioration of an area that is tending to become a blighted [or slum] area. The term includes:

(A) the acquisition of all or part of a [slum area or] blighted area or the acquisition of land that is predominantly open and that, because of obsolete platting, diversity of ownership, deterioration of structures or site improvements, or for other reasons, substantially impairs or arrests the sound growth of the community;

(B) the demolition and removal of buildings and improvements;

(C) the installation, construction, or reconstruction of streets, utilities, parks, playgrounds, and other improvements necessary to fulfill urban renewal objectives in accordance with an urban renewal plan;

(D) the disposition by the municipality of property acquired in an urban renewal area for use in accordance with an urban renewal plan, including the sale or initial lease of the property at its fair value or the retention of the property;

(E) the implementation of plans for a program of voluntary repair and rehabilitation of buildings or improvements in accordance with an urban renewal plan; and

(F) the acquisition of real property in an urban renewal area as necessary to remove or prevent the spread of blight or deterioration or to provide land for needed public facilities.

(26) "Urban renewal area" means a [slum area,] blighted area[, or a combination of those areas] that the governing body of a municipality designates as appropriate for an urban renewal project.

(28) "Urban renewal project" includes any of the following activities undertaken in accordance with an urban renewal plan:

(A) municipal activities in an urban renewal area that are designed to eliminate or to prevent the development or spread of [slums and] blighted areas;

(B) [slum clearance and redevelopment in an urban renewal area;

[(C)] rehabilitation or conservation in an urban renewal area;

(C) [(D)] development of open land that, because of location or situation, is necessary for sound community growth and that is to be developed, by replatting and planning, for predominantly residential uses; or

(D) [(E)] any combination or part of the activities described by Paragraphs (A)-(C) [(A)-(D)].

SECTION 7. Section 374.011, Local Government Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a) Except as provided by Section 374.012, a municipality may not exercise a power granted under this chapter unless:

(1) the governing body of the municipality adopts a resolution that finds that a [slum area or] blighted area exists in the municipality and that the rehabilitation, the conservation, or the [slum clearance and] redevelopment of the area is necessary for the public health, safety, morals, or welfare of the residents of the municipality; and

(2) a majority of the municipality's voters voting in an election held as provided by Subsection (b) favor adoption of the resolution.

(d) The governing body of the municipality must determine that each unit of real property included in a resolution under Subsection (a) has the characteristics of blight.

SECTION 8. Subsection (c), Section 374.012, Local Government Code, is amended to read as follows:

(c) The resolution ordering the election and the notice of the election must contain:

(1) a complete legal description of each unit of property [the area] included in the proposed project;

(2) a statement of the nature of the proposed project; [and]

(3) a statement of the total amount of local funds to be spent on the proposed project; and

(4) a statement that each unit of property has the characteristics of blight.

SECTION 9. Subsection (a), Section 374.013, Local Government Code, is amended to read as follows:

(a) To further the urban renewal objectives of this chapter, a municipality may formulate a workable program to use appropriate private and public resources, including the resources specified by Subsection (b), to encourage urban rehabilitation, to provide for the redevelopment of [slum and] blighted areas, or to undertake those activities or other feasible municipal activities as may be suitably employed to achieve the objective of the program. The program must specifically include provisions relating to:

(1) prevention, through diligent enforcement of housing and occupancy controls and standards, of the expansion of blight into areas of the municipality that are free from blight; and

(2) rehabilitation or conservation of [slum and] blighted areas as far as practicable to areas that are free from blight through replanning, removing congestion, providing parks, playgrounds, and other public improvements, encouraging voluntary rehabilitation and requiring the repair and rehabilitation of deteriorated or deteriorating structures[, and the clearance and redevelopment of slum areas].

SECTION 10. Subsection (a), Section 374.014, Local Government Code, is amended to read as follows:

(a) A municipality may not prepare an urban renewal plan for an area unless the governing body of the municipality has, by resolution, declared the area to be a [slum area, a] blighted area[, or both,] and has designated the area as appropriate for an urban renewal project. The governing body may not approve an urban renewal plan until a general plan has been prepared for the municipality. A municipality may not acquire real property for an urban renewal project until the governing body has approved the urban renewal plan as provided by Subsection (d).

SECTION 11. Subsections (a) and (d), Section 374.015, Local Government Code, are amended to read as follows:

(a) A municipality may exercise all powers necessary or convenient to carry out the purposes of this chapter, including the power to:

(1) conduct preliminary surveys to determine if undertaking an urban renewal project is feasible;

(2) conduct urban renewal projects within its area of operation;

(3) execute contracts and other instruments necessary or convenient to the exercise of its powers under this chapter;

(4) provide, arrange, or contract for the furnishing or repair by any person of services, privileges, works, streets, roads, public utilities, or other facilities in connection with an urban renewal project, including installation, construction, and reconstruction of streets, utilities, parks, playgrounds, and other public improvements necessary to carry out an urban renewal project;

(5) acquire any real property, including improvements, and any personal property necessary for administrative purposes, that is necessary or incidental to an urban renewal project, hold, improve, clear, or prepare the property for redevelopment, mortgage or otherwise encumber or dispose of the real property, insure or provide for the insurance of real or personal property or municipal operations against any risk or hazard and to pay premiums on that insurance, and enter any necessary contracts;

(6) invest urban renewal project funds held in reserves or sinking funds, or not required for immediate disbursement, in property or securities in which banks may legally invest funds subject to their control, redeem bonds issued under Section 374.026 at the redemption price established in the bond, or purchase those bonds at less than the redemption price, and cancel the bonds redeemed or purchased;

(7) borrow money and apply for and accept advances, loans, grants, contributions, and other forms of financial assistance from the federal, state, or county government, other public body, or other public or private sources for the purposes of this chapter, give any required security, and make and carry out any contracts in connection with the financial assistance;

(8) make plans necessary to carry out this chapter in its area of operation, contract with any person in making and carrying out the plans, and adopt, approve, modify or amend the plans;

(9) develop, test, and report methods and techniques for the prevention of [slums and] urban blight, conduct demonstrations and other activities in connection with those methods and techniques, and apply for, accept, and use federal grants made for those purposes;

(10) prepare plans and provide reasonable assistance for the relocation of persons displaced from an urban renewal project area, including families, business concerns, and others, as necessary to acquire possession and to clear the area in order to conduct the urban renewal project;

(11) appropriate funds and make expenditures as necessary to implement this chapter and, subject to Subsection (c), levy taxes and assessments for that purpose;

(12) close, vacate, plan, or replan streets, roads, sidewalks, ways, or other places, plan, replan, zone, or rezone any part of the municipality and make exceptions from building regulations, and enter agreements with an urban renewal agency vested with urban renewal powers under Subchapter C, which may extend over any period, restricting action to be taken by the municipality under any of the powers granted under this chapter;

(13) organize, coordinate, and direct the administration of this chapter within the area of operation as those provisions apply to the municipality to most effectively promote and achieve the purposes of this chapter and establish new municipal offices or reorganize existing offices as necessary to most effectively implement those purposes; and

(14) issue tax increment bonds.

(d) A [Except as provided by Section 374.016, a] municipality may acquire by condemnation any interest in real property, including a fee simple interest, that the municipality considers necessary for or in connection with an urban renewal project. Property dedicated to a public use may be acquired in that manner, except that property belonging to the state or to a political subdivision of the state may not be acquired without the consent of the state or political subdivision.

SECTION 12. Subsection (d), Section 374.017, Local Government Code, is amended to read as follows:

(d) Real property or an interest in real property subject to this section may only be sold, leased, or otherwise transferred or retained at not less than the fair value of the property for uses in accordance with the urban renewal plan. In determining the fair value, the municipality shall consider:

(1) the uses provided in the urban renewal plan;

(2) any restrictions on and any covenants, conditions, and obligations assumed by the purchaser, lessee, or municipality in retaining the property;

(3) the objectives of the plan for the prevention of the recurrence of [slums or] blighted areas; and

(4) any other matters that the municipality specifies as appropriate.

SECTION 13. Subsection (b), Section 374.021, Local Government Code, is amended to read as follows:

(b) In this section, "urban renewal project powers" includes the rights, powers, functions, and duties of a municipality under this chapter. The term does not include the power to:

(1) determine an area as a [slum area,] blighted area[, or both] and to designate that area as appropriate for an urban renewal project;

(2) approve and amend urban renewal plans and hold public hearings relating to those plans;

(3) establish a general plan for the locality as a whole;

(4) establish a workable program under Section 374.013;

(5) make determinations and findings under Section 374.011(a), 374.013(b), or 374.014(d);

(6) issue general obligation bonds; and

(7) appropriate funds, levy taxes and assessments, and exercise other functions under Subdivisions (11) and (12) of Section 374.015(a).

SECTION 14. Subchapter B, Chapter 374, Local Government Code, is amended by adding Sections 374.018 and 374.019 to read as follows:

Sec. 374.018. LIMITATIONS ON CHARACTERIZATIONS OF BLIGHT. (a) Notwithstanding any other law, an area may not be considered a blighted area on the basis of a condition described by Section 374.003 unless:

(1) the municipality has given notice in writing to the property owner by first class mail regarding the condition to the:

(A) last known address of the property owner; and

(B) physical address of the property; and

(2) the property owner fails to take reasonable measures to remedy the condition.

(b) If a mailing address for the property owner cannot be determined, the municipality shall post notice in writing regarding the condition in a conspicuous place on the property.

(c) An area may not be considered a blighted area solely for an aesthetic reason.

(d) A determination by a municipality that a unit of real property has the characteristics of blight is valid for two years.

(e) After the two-year period prescribed by Subsection (d), a municipality may make a new determination that the unit of real property has the characteristics of blight and redesignate the unit of real property as a blighted area for another two-year period.

(f) A municipality may remove a determination of blight under this chapter if the municipality finds that the property owner has remedied the condition that was the basis for the determination.

Sec. 374.019. COMMON OWNER PROPERTY. For the purposes of this chapter and Chapter 21, Property Code, if a municipality determines that two or more contiguous units of real property that are owned by the same person have the characteristics of blight, the municipality may treat those units of property as one unit of property.

SECTION 15. Section 21.0111, Property Code, is amended to read as follows:

Sec. 21.0111. DISCLOSURE OF CERTAIN INFORMATION REQUIRED; INITIAL OFFER. (a) An [A governmental] entity with eminent domain authority that wants to acquire real property for a public use shall, by certified mail, return receipt requested, disclose to the property owner at the time an offer to purchase or lease the property is made any and all [existing] appraisal reports produced or acquired by the [governmental] entity relating specifically to the owner's property and prepared in the 10 years preceding the [used in determining the final valuation] offer.

(b) A property owner shall disclose to the [acquiring governmental] entity seeking to acquire the property any and all current and existing appraisal reports produced or acquired by the property owner relating specifically to the owner's property and used in determining the owner's opinion of value. Such disclosure shall take place not later than the earlier of:

(1) the 10th day after the date [within 10 days] of receipt of an appraisal report; or

(2) the third business day before the date of a special commissioners hearing if an appraisal report is to be used at the hearing [reports but no later than 10 days prior to the special commissioner's hearing].

(c) An entity seeking to acquire property that the entity is authorized to obtain through the use of eminent domain may not include a confidentiality provision in an offer or agreement to acquire the property. The entity shall inform the owner of the property that the owner has the right to:

(1) discuss any offer or agreement regarding the entity's acquisition of the property with others; or

(2) keep the offer or agreement confidential, unless the offer or agreement is subject to Chapter 552, Government Code.

(d) A subsequent bona fide purchaser for value from the acquiring [governmental] entity may conclusively presume that the requirement of this section has been met. This section does not apply to acquisitions of real property for which an [a governmental] entity does not have eminent domain authority.

SECTION 16. Subchapter B, Chapter 21, Property Code, is amended by adding Section 21.0113 to read as follows:

Sec. 21.0113. BONA FIDE OFFER REQUIRED. (a) An entity with eminent domain authority that wants to acquire real property for a public use must make a bona fide offer to acquire the property from the property owner voluntarily.

(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;

(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 a written appraisal from a certified appraiser of the value of the property being acquired and the damages, if any, to any remaining property;

(5) the final offer is equal to or greater than the amount of the written appraisal 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;

(B) a copy of the deed, easement, or other instrument conveying the property sought to be acquired; and

(C) a landowner's bill of rights statement; 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 time.

SECTION 17. Section 21.012, Property Code, is amended to read as follows:

Sec. 21.012. CONDEMNATION PETITION. (a) If an entity [the United States, this state, a political subdivision of this state, a corporation] with eminent domain authority[, or an irrigation, water improvement, or water power control district created by law] wants to acquire real property for public use but is unable to agree with the owner of the property on the amount of damages, the [condemning] entity may begin a condemnation proceeding by filing a petition in the proper court.

(b) The petition must:

(1) describe the property to be condemned;

(2) state with specificity the public use [purpose] for which the entity intends to acquire [use] the property;

(3) state the name of the owner of the property if the owner is known;

(4) state that the entity and the property owner are unable to agree on the damages; [and]

(5) if applicable, state that the entity provided the property owner with the landowner's bill of rights statement in accordance with Section 21.0112; and

(6) state that the entity made a bona fide offer to acquire the property from the property owner voluntarily.

(c) An entity that files a petition under this section must provide a copy of the petition to the property owner by certified mail, return receipt requested.

SECTION 18. Subsection (a), Section 21.014, Property Code, is amended to read as follows:

(a) The judge of a court in which a condemnation petition is filed or to which an eminent domain case is assigned shall appoint three disinterested real property owners [freeholders] who reside in the county as special commissioners to assess the damages of the owner of the property being condemned. The judge appointing the special commissioners shall give preference to persons agreed on by the parties. The judge shall provide each party a reasonable period to strike one of the three commissioners appointed by the judge. If a person fails to serve as a commissioner or is struck by a party to the suit, the judge shall [may] appoint a replacement.

SECTION 19. Subsection (a), Section 21.015, Property Code, is amended to read as follows:

(a) The special commissioners in an eminent domain proceeding shall promptly schedule a hearing for the parties at the earliest practical time but may not schedule a hearing to assess damages before the 20th day after the date the special commissioners were appointed. The special commissioners shall schedule a hearing for the parties [and] at a place that is as near as practical to the property being condemned or at the county seat of the county in which the proceeding is being held.

SECTION 20. Subsection (b), Section 21.016, Property Code, is amended to read as follows:

(b) Notice of the hearing must be served on a party not later than the 20th [11th] day before the day set for the hearing. A person competent to testify may serve the notice.

SECTION 21. Section 21.023, Property Code, is amended to read as follows:

Sec. 21.023. DISCLOSURE OF INFORMATION REQUIRED AT TIME OF ACQUISITION. An [A governmental] entity with eminent domain authority shall disclose in writing to the property owner, at the time of acquisition of the property through eminent domain, that:

(1) the owner or the owner's heirs, successors, or assigns may be [are] entitled to:

(A) repurchase the property under Subchapter E [if the public use for which the property was acquired through eminent domain is canceled before the 10th anniversary of the date of acquisition]; or

(B) request from the entity certain information relating to the use of the property and any actual progress made toward that use; and

(2) the repurchase price is the lesser of:

(A) the price paid to the owner by the entity at the time the entity acquired the property through eminent domain; or

(B) the fair market value of the property at the time the public use was canceled.

SECTION 22. Subchapter B, Chapter 21, Property Code, is amended by adding Section 21.025 to read as follows:

Sec. 21.025. PRODUCTION OF INFORMATION BY CERTAIN ENTITIES. (a) Notwithstanding any other law, an entity that is not subject to Chapter 552, Government Code, and is authorized by law to acquire private property through the use of eminent domain is required to produce information as provided by this section if the information is:

(1) requested by a person who owns property that is the subject of a proposed or existing eminent domain proceeding; and

(2) related to the taking of the person's private property by the entity through the use of eminent domain.

(b) An entity described by Subsection (a) is required under this section only to produce information relating to the condemnation of the specific property owned by the requestor as described in the request. A request under this section must contain sufficient details to allow the entity to identify the specific tract of land in relation to which the information is sought.

(c) The entity shall respond to a request in accordance with the Texas Rules of Civil Procedure as if the request was made in a matter pending before a state district court.

(d) Exceptions to disclosure provided by this chapter and the Texas Rules of Civil Procedure apply to the disclosure of information under this section.

(e) Jurisdiction to enforce the provisions of this section resides in:

(1) the court in which the condemnation was initiated; or

(2) if the condemnation proceeding has not been initiated:

(A) a court that would have jurisdiction over a proceeding to condemn the requestor's property; or

(B) a court with eminent domain jurisdiction in the county in which the entity has its principal place of business.

(f) If the entity refuses to produce information requested in accordance with this section and the court determines that the refusal violates this section, the court may award the requestor's reasonable attorney's fees incurred to compel the production of the information.

SECTION 23. Section 21.041, Property Code, is amended to read as follows:

Sec. 21.041. EVIDENCE. As the basis for assessing actual damages to a property owner from a condemnation, the special commissioners shall admit evidence on:

(1) the value of the property being condemned;

(2) the injury to the property owner, including, if the condemnation makes relocation of a homestead or farm necessary, the financial damages associated with the cost of relocating from the condemned property to another property that allows the property owner, without the necessity of incurring an amount of debt, debt service, or total projected interest obligation that is higher than the property owner was subject to immediately before the condemnation, to:

(A) have a standard of living comparable to the property owner's standard of living immediately before the condemnation, if the condemned property is a homestead that is habitable; or

(B) operate a comparable farm, if the condemned property is a farm;

(3) the benefit to the property owner's remaining property; and

(4) the use of the property for the purpose of the condemnation.

SECTION 24. Subsection (d), Section 21.042, Property Code, is amended to read as follows:

(d) In estimating injury or benefit under Subsection (c), the special commissioners shall consider an injury or benefit that is peculiar to the property owner, including the property owner's financial damages described by Section 21.041(2), and that relates to the property owner's ownership, use, or enjoyment of the particular parcel of real property, including a material impairment of direct access on or off the remaining property that affects the market value of the remaining property, but they may not consider an injury or benefit that the property owner experiences in common with the general community, including circuity of travel and diversion of traffic. In this subsection, "direct access" means ingress and egress on or off a public road, street, or highway at a location or locations where the remaining property adjoins that road, street, or highway.

SECTION 25. Subsections (a) and (b), Section 21.046, Property Code, are amended to read as follows:

(a) A department, agency, instrumentality, or political subdivision of this state shall [may] provide a relocation advisory service for an individual, a family, a business concern, a farming or ranching operation, or a nonprofit organization that [if the service] is compatible with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 [Advisory Program], 42 U.S.C.A. 4601 [23 U.S.C.A. 501], et seq.

(b) This state or a political subdivision of this state shall [may], as a cost of acquiring real property, pay moving expenses and rental supplements, make relocation payments, provide financial assistance to acquire replacement housing, and compensate for expenses incidental to the transfer of the property if an individual, a family, the personal property of a business, a farming or ranching operation, or a nonprofit organization is displaced in connection with the acquisition.

SECTION 26. The heading to Section 21.047, Property Code, is amended to read as follows:

Sec. 21.047. ASSESSMENT OF COSTS AND FEES.

SECTION 27. Section 21.047, Property Code, is amended by adding Subsection (d) to read as follows:

(d) If a court hearing a suit under this chapter determines that a condemnor did not make a bona fide offer to acquire the property from the property owner voluntarily as required by Section 21.0113, the court shall abate the suit, order the condemnor to make a bona fide offer, and order the condemnor to 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 that are directly related to the violation.

SECTION 28. Subchapter E, Chapter 21, Property Code, is amended to read as follows:

SUBCHAPTER E. REPURCHASE OF REAL PROPERTY FROM CONDEMNING

[GOVERNMENTAL] ENTITY

Sec. 21.101. RIGHT OF REPURCHASE [APPLICABILITY]. (a) A person from whom [Except as provided in Subsection (b), this subchapter applies only to] a real property interest is acquired by an [a governmental] entity through eminent domain for a public use, or that person's heirs, successors, or assigns, is entitled to repurchase the property as provided by this subchapter if:

(1) the public use for which the property was acquired through eminent domain is [that was] canceled before the property is used for that public use;

(2) no actual progress is made toward the public use for which the property was acquired between the date of acquisition and the 10th anniversary of that date; or

(3) the property becomes unnecessary for the public use for which the property was acquired, or a substantially similar public use, before the 10th anniversary of the date of acquisition.

(b) In this section, "actual progress" means the completion of two or more of the following actions:

(1) the performance of a significant amount of labor to develop the property or other property acquired for the same public use project for which the property owner's property was acquired;

(2) the furnishing of a significant amount of materials to develop the property or other property acquired for the same public use project for which the property owner's property was acquired;

(3) the hiring of and performance of a significant amount of work by an architect, engineer, or surveyor to prepare a plan or plat that includes the property or other property acquired for the same public use project for which the property owner's property was acquired;

(4) application for state or federal funds to develop the property or other property acquired for the same public use project for which the property owner's property was acquired;

(5) application for a state or federal permit to develop the property or other property acquired for the same public use project for which the property owner's property was acquired;

(6) the acquisition of a tract or parcel of real property adjacent to the property for the same public use project for which the owner's property was acquired; or

(7) for a governmental entity, the adoption by a majority of the entity's governing body at a public hearing of a development plan for a public use project that indicates that the entity will not complete more than one action described by Subdivisions (1)-(6) within 10 years of acquisition of the property [This subchapter does not apply to a right-of-way under the jurisdiction of:

[(1) a county;

[(2) a municipality; or

[(3) the Texas Department of Transportation].

(c) A district court may determine all issues in any suit regarding the repurchase of a real property interest acquired through eminent domain by the former property owner or the owner's heirs, successors, or assigns.

Sec. 21.102. NOTICE TO PREVIOUS PROPERTY OWNER REQUIRED [AT TIME OF CANCELLATION OF PUBLIC USE]. Not later than the 180th day after the date an entity that acquired a real property interest through eminent domain determines that the former property owner is entitled to repurchase the property under Section 21.101 [of the cancellation of the public use for which real property was acquired through eminent domain from a property owner under Subchapter B], the [governmental] entity shall send by certified mail, return receipt requested, to the property owner or the owner's heirs, successors, or assigns a notice containing:

(1) an identification, which is not required to be a legal description, of the property that was acquired;

(2) an identification of the public use for which the property had been acquired and a statement that:

(A) the public use was [has been] canceled before the property was used for the public use;

(B) no actual progress was made toward the public use; or

(C) the property became unnecessary for the public use, or a substantially similar public use, before the 10th anniversary of the date of acquisition; and

(3) a description of the person's right under this subchapter to repurchase the property.

Sec. 21.1021. REQUESTS FOR INFORMATION REGARDING CONDEMNED PROPERTY. (a) On or after the 10th anniversary of the date on which real property was acquired by an entity through eminent domain, a property owner or the owner's heirs, successors, or assigns may request that the condemning entity make a determination and provide a statement and other relevant information regarding:

(1) whether the public use for which the property was acquired was canceled before the property was used for the public use;

(2) whether any actual progress was made toward the public use between the date of acquisition and the 10th anniversary of that date, including an itemized description of the progress made, if applicable; and

(3) whether the property became unnecessary for the public use, or a substantially similar public use, before the 10th anniversary of the date of acquisition.

(b) A request under this section must contain sufficient detail to allow the entity to identify the specific tract of land in relation to which the information is sought.

(c) Not later than the 90th day following the receipt of the request for information, the entity shall send a written response by certified mail, return receipt requested, to the requestor.

Sec. 21.103. RESALE OF PROPERTY; PRICE. (a) Not later than the 180th day after the date of the postmark on a [the] notice sent under Section 21.102 or a response to a request made under Section 21.1021 that indicates that the property owner or the owner's heirs, successors, or assigns is entitled to repurchase the property interest in accordance with Section 21.101, the property owner or the owner's heirs, successors, or assigns must notify the [governmental] entity of the person's intent to repurchase the property interest under this subchapter.

(b) As soon as practicable after receipt of a notice of intent to repurchase [the notification] under Subsection (a), the [governmental] entity shall offer to sell the property interest to the person for the lesser of the price paid to the owner by the entity at the time the entity acquired the property through eminent domain or the fair market value of the property at the time the public use was canceled. The person's right to repurchase the property expires on the 90th day after the date on which the [governmental] entity makes the offer.

SECTION 29. Section 311.002, Tax Code, is amended by adding Subdivision (5) to read as follows:

(5) "Blighted area" has the meaning assigned by Section 374.003(3), Local Government Code.

SECTION 30. Subsections (b) and (e), Section 311.008, Tax Code, are amended to read as follows:

(b) A municipality or county may exercise any power necessary and convenient to carry out this chapter, including the power to:

(1) cause project plans to be prepared, approve and implement the plans, and otherwise achieve the purposes of the plan;

(2) acquire real property by purchase[, condemnation, or other means] to implement project plans and sell that property on the terms and conditions and in the manner it considers advisable;

(3) enter into agreements, including agreements with bondholders, determined by the governing body of the municipality or county to be necessary or convenient to implement project plans and achieve their purposes, which agreements may include conditions, restrictions, or covenants that run with the land or that by other means regulate or restrict the use of land; and

(4) consistent with the project plan for the zone:

(A) acquire [blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed] real property or other property in a blighted area, in an undeveloped area, or in a federally assisted new community in the zone for the preservation or restoration of historic sites, beautification or conservation, the provision of public works or public facilities, or other public purposes;

(B) acquire, construct, reconstruct, or install public works, facilities, or sites or other public improvements, including utilities, streets, street lights, water and sewer facilities, pedestrian malls and walkways, parks, flood and drainage facilities, or parking facilities, but not including educational facilities; [or]

(C) in a reinvestment zone created on or before September 1, 1999, acquire, construct, or reconstruct educational facilities in the municipality; or

(D) acquire by condemnation any interest, including a fee simple interest, in real property that is a blighted area and necessary for the reinvestment zone.

(e) A municipality or county may acquire by condemnation an interest in real property only if the taking is in accordance with Chapter 2206, Government Code. [The implementation of a project plan to alleviate a condition described by Section 311.005(a)(1), (2), or (3) and to promote development or redevelopment of a reinvestment zone in accordance with this chapter serves a public purpose.]

SECTION 31. Section 202.021, Transportation Code, is amended by adding Subsection (j) to read as follows:

(j) The standard for determination of the fair value of the state's interest in access rights to a highway right-of-way is the same legal standard that is applied by the commission in the:

(1) acquisition of access rights under Subchapter D, Chapter 203; and

(2) payment of damages in the exercise of the authority, under Subchapter C, Chapter 203, for impairment of highway access to or from real property where the real property adjoins the highway.

SECTION 32. Section 54.209, Water Code, is amended to read as follows:

Sec. 54.209. LIMITATION ON USE OF EMINENT DOMAIN. A district may not exercise the power of eminent domain outside the district boundaries to acquire:

(1) a site for a water treatment plant, water storage facility, wastewater treatment plant, or wastewater disposal plant;

(2) a site for a park, swimming pool, or other recreational facility, as defined by Section 49.462 [except a trail];

(3) [a site for a trail on real property designated as a homestead as defined by Section 41.002, Property Code; or

[(4)] an exclusive easement through a county regional park; or

(4) a site or easement for a road project.

SECTION 33. Chapter 178 (S.B. 289), Acts of the 56th Legislature, Regular Session, 1959 (Article 3183b-1, Vernon's Texas Civil Statutes), is amended by adding Section 7 to read as follows:

Sec. 7. (a) In this section:

(1) "Associated low-density multifamily residential housing" means housing that is located in a residential neighborhood or is shown to be an adjunct, section, or other integral part of a residential neighborhood, including townhouses, patio homes, triplexes, quadruplexes, or other low-rise housing of no more than four stories.

(2) "Blockbusting activity" means an avoidable act or omission by a medical center condemning entity or the entity's members that is intended to cause, or foreseeably will cause, a substantial reduction of residential-use property values in a residential area, whether in anticipation of sale to the entity or the entity's members or otherwise, including an act or omission:

(A) having the effect of increasing traffic, noise, or light intrusion;

(B) involving demolition of improvements or property; or

(C) allowing improved property to become blighted.

(3) "Deed-restricted residential subdivision" means a subdivision, including all of its sections, annexes, extensions, or other additional associated parcels or tracts, that is governed by deed restrictions that restrict the property to residential use and consists of lots for single-family dwellings and associated low-density multifamily residential housing within the subdivision.

(4) "Medical center condemning entity" means:

(A) a charitable corporation having the power of eminent domain under Section 1 of this Act; or

(B) an entity that has the authority to purchase, lease, or otherwise use or occupy property acquired by a charitable corporation having the power of eminent domain under Section 1 of this Act.

(5) "Predominately single-family residential subdivision or generally recognized residential area" means an area consisting predominately of single-family dwellings and associated low-density multifamily residential housing, without regard to whether the subdivision or area is governed by deed restrictions.

(6) "Property owners' association" means a property owners' association as defined by Section 202.001, Property Code, or described by Section 204.004, Property Code.

(7) "Residential litigant" means:

(A) a property owners' association representing a residential neighborhood affected by acts or omissions regulated under this section or a residential neighborhood bordering an affected residential neighborhood;

(B) a special district in which more than 50 percent of the landowners reside in single-family dwellings in the district; or

(C) any affected residential landowner.

(8) "Residential neighborhood" means:

(A) a deed-restricted residential subdivision;

(B) a predominately single-family residential subdivision or generally recognized residential area; or

(C) a combination of those subdivisions or areas.

(9) "Single-family dwelling" means:

(A) a lot containing one building designed for and containing not more than two separate units with facilities for living, sleeping, cooking, and eating;

(B) a lot on which is located a freestanding building containing one dwelling unit and a detached secondary dwelling unit of not more than 900 square feet; or

(C) a building that contains one dwelling unit on one lot that is connected by a party wall to another building containing one dwelling unit on an adjacent lot.

(b) A charitable corporation subject to this Act may not:

(1) exercise the power of eminent domain and condemnation to acquire property in any residential neighborhood;

(2) otherwise acquire property in a residential neighborhood, directly or through an agent or trustee, for future use; or

(3) acquire residential property if the value of the property has been materially diminished by blockbusting activity.

(c) Within a reasonable time on or before September 1, 2010, a medical center condemning entity that, on September 1, 2009, holds any property acquired in a residential neighborhood for future use shall sell the property. Property sold under this subsection must be made subject to a deed restriction requiring the property to be restored to the property's former status as a bona fide single-family dwelling or, if applicable, reintegrated into its original deed-restricted residential subdivision.

(d) For the purposes of Subsections (b)(2) and (c), property is acquired for future use if the charitable corporation or a member of the corporation does not have a plan for the specific, immediate use of the property. For property acquired on or after September 1, 2009, if substantial construction of permanent medical facilities designed to deliver health care for the use and benefit of the public, excluding surface parking not related to the medical facilities, has not commenced on the property before the second anniversary of the property's acquisition, the property is considered to be property acquired for future use. For property acquired before September 1, 2009, if substantial construction of permanent medical facilities designed to deliver health care for the use and benefit of the public, excluding surface parking not related to the medical facilities, has not commenced on the property before September 1, 2010, the property is considered to be property acquired for future use.

(e) A medical center condemning entity or the entity's members may not purchase property, by private contract or otherwise, in a residential neighborhood if the property values in the neighborhood have been substantially diminished by blockbusting activity.

(f) A medical center condemning entity shall remediate the effects of parking facilities constructed on property owned by the entity that was acquired in a residential neighborhood after January 1, 2004, and that is located within a residential neighborhood or directly adjacent to a residential neighborhood. Remediation required by this subsection includes:

(1) the installation of louvers, screens, panels, or other permanent fixtures that reduce the level of light emitted from the parking garages to the same level of light emitted from the windows of offices or hospital facilities of the entity or its members that were constructed after January 1, 2004;

(2) landscaping with large evergreen trees and evergreen plants to mitigate, to the maximum practical extent, the adverse property value impact of the parking facilities on the adjoining residential neighborhood; and

(3) sound reduction measures to mitigate, to the maximum practical extent, the noise emitted from the parking facilities, as well as the noise generated by mechanical systems erected in conjunction with the parking facilities, on formerly residential property.

(g) A medical center condemning entity may not challenge the validity of a deed restriction in a condemnation proceeding or in contemplation of condemnation.

(h) This section does not limit any right expressly granted in a residential deed restriction that authorizes an express waiver, amendment, or variance with respect to the restrictions, as determined by the relevant property owners' association.

(i) In an action under this section, a court shall:

(1) award litigation costs, including reasonable attorney's fees, witness fees, court costs, and other reasonable related expenses, to a residential litigant who:

(A) prevails in a suit seeking relief under this section, including money damages or equitable, declaratory, or other relief;

(B) brings an action under this section that causes or contributes to, directly or indirectly, a beneficial result to a residential neighborhood or to the public interest, notwithstanding which party may have prevailed on the merits; or

(C) is required to defend against claims arising out of actions or communications related to the provisions or purposes of this section; and

(2) periodically during the pendency of the litigation, on a showing of hardship, award interim costs of litigation to residential litigants who are claimants in the action.

(j) An award of interim litigation costs under Subsection (i)(2) is final and not subject to repayment.

(k) A court may not award litigation costs against a residential litigant who asserts a claim relating to or arising under this section or engages in actions or communications related to a right created by this section.

(l) Except as provided by Subsection (m), in addition to any other defense or immunity conferred by law, a residential litigant is not liable for money damages or subject to injunctive or declaratory relief based on:

(1) a decision by the residential litigant as an agent or representative of a property owners' association or a special district; or

(2) a communication by the residential litigant to a governmental agency, a public official, or the public information media relating to a matter reasonably of concern to a governmental agency or public official, any other person, or the public.

(m) Subsection (l) does not apply if the claimant establishes by clear and convincing evidence that the decision or communication of the residential litigant was not made in good faith.

(n) This section shall be liberally construed to effect its purposes, which are to:

(1) prevent the abuse of the power of eminent domain by a charitable corporation subject to this Act;

(2) protect single-family residential neighborhoods;

(3) shield advocates of neighborhood integrity from economic coercion; and

(4) correct and remediate the effects of the abuse of condemnation authority used by a charitable corporation under this Act on or after January 1, 2004.

SECTION 34. (a) Section 552.0037, Government Code, is repealed.

(b) Subdivision (19), Section 374.003, and Section 374.016, Local Government Code, are repealed.

(c) Section 21.024, Property Code, is repealed.

(d) Subsection (c), Section 311.008, Tax Code, is repealed.

(e) Section 49.2205, Water Code, is repealed.

SECTION 35. Chapter 2206, Government Code, Chapters 373 and 374, Local Government Code, Chapter 21, Property Code, and Chapter 311, Tax Code, as amended by this Act, apply only to a condemnation proceeding in which the petition is filed on or after the effective date of this Act and to any property condemned through the proceeding. A condemnation proceeding in which the petition is filed before the effective date of this Act and any property condemned through the proceeding are governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

SECTION 36. The change in law made by this Act to Section 202.021, Transportation Code, applies only to a sale or transfer under that section that occurs on or after the effective date of this Act. A sale or transfer before the effective date of this Act is governed by the law applicable to the sale or transfer immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 37. The changes in law made by this Act to Section 54.209, Water Code, apply only to a condemnation proceeding in which the petition is filed on or after the effective date of this Act. A condemnation proceeding in which the petition is filed before the effective date of this Act is governed by the law in effect on the date the petition was filed, and that law is continued in effect for that purpose.

SECTION 38. This Act takes effect September 1, 2009.