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A BILL TO BE ENTITLED
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AN ACT
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relating to the exercise of eminent domain authority by private |
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entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.0111, Property Code, is amended to |
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read as follows: |
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Sec. 21.0111. DISCLOSURE OF INFORMATION REQUIRED. (a) A |
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governmental or private entity with eminent domain authority that |
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wants to acquire real property for a public use shall disclose to |
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the property owner at the time an offer to purchase is made any and |
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all existing appraisal reports produced or acquired by the |
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[governmental] entity relating specifically to the owner's |
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property and used in determining the final valuation offer. |
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(b) A property owner shall disclose to the acquiring |
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governmental or private entity any and all existing appraisal |
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reports produced or acquired by the property owner relating |
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specifically to the owner's property and used in determining the |
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owner's opinion of value. Such disclosure shall take place within |
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10 days of receipt of appraisal reports but no later than 10 days |
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prior to the special commissioner's hearing. A subsequent bona |
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fide purchaser for value from the acquiring [governmental] entity |
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may conclusively presume that the requirement of this section has |
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been met. This section does not apply to acquisitions of real |
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property for which a governmental or private entity does not have |
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eminent domain authority. |
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SECTION 2. Subchapter B, Chapter 21, Property Code, is |
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amended by adding Section 21.0122 to read as follows: |
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Sec. 21.0122. CONDEMNATION BY PRIVATE ENTITY: PROOF OF |
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PUBLIC USE AND NECESSITY; EASEMENTS. (a) In addition to the |
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contents prescribed by Section 21.012(b), a condemnation petition |
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filed by a private entity must state that the facts to be proven are |
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that: |
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(1) the use for which the property is sought is a |
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public use that is not prohibited by Section 2206.001, Government |
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Code; |
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(2) the property sought is necessary to accomplish |
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that public use; and |
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(3) if the entity is seeking an easement, the entity |
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has complied with the requirements of Section 2206.002(a), |
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Government Code. |
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(b) A court shall deny the right to condemn unless the |
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entity makes the proof required by Subsection (a). |
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SECTION 3. Subchapter C, Chapter 21, Property Code, is |
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amended by adding Section 21.0422 to read as follows: |
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Sec. 21.0422. ALTERNATIVE DAMAGES: CONDEMNATION OF |
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EASEMENT BY PRIVATE ENTITY. With the property owner's consent, a |
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private entity that condemns an easement may, as an alternative to |
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paying damages awarded under this subchapter, agree to pay the |
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owner an intangible legal right to receive a percentage of the |
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entity's profits associated with the use of the easement. |
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SECTION 4. Chapter 2206, Government Code, is amended by |
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adding Section 2206.002 to read as follows: |
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Sec. 2206.002. CONDEMNATION BY PRIVATE ENTITY: EASEMENTS. |
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(a) A private entity that seeks an easement through the use of |
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eminent domain must seek a route for the easement that is the least |
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burdensome to the land: |
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(1) generally, regardless of the number of tracts that |
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are burdened by the easement; and |
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(2) with respect to each tract of land on which an |
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easement is sought. |
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(b) Use of an existing easement that is suitable for the |
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purpose for which the easement is sought is presumed to be the least |
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burdensome route for the purposes of this section. |
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SECTION 5. (a) Section 21.0111(a), Property Code, as |
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amended by this Act, applies only to an offer to purchase property |
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made on or after the effective date of this Act. An offer to |
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purchase property made before the effective date of this Act is |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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(b) Except as provided by Subsection (a) of this section, |
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the change in law made by this Act applies only to a condemnation in |
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which a condemnation petition is filed on or after the effective |
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date of this Act. A condemnation in which the condemnation petition |
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is filed before the effective date of this Act is governed by the |
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law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |