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A BILL TO BE ENTITLED
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AN ACT
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relating to the acquisition of property by an entity with eminent |
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domain authority. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 402.031(b), Government Code, is amended |
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to read as follows: |
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(b) The landowner's bill of rights must notify each property |
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owner that the property owner has the right to: |
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(1) receive notice of the proposed acquisition of the |
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owner's property; |
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(2) contact and speak directly with an employee of the |
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entity proposing to acquire the property who is qualified to |
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discuss the acquisition of the property; |
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(3) receive a bona fide offer from, make a |
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counteroffer to, and seek to negotiate terms and conditions with |
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[good faith effort to negotiate by] the entity proposing to acquire |
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the property; |
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(4) consult with a licensed real estate broker or |
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sales agent, an attorney, an appraiser, or any other person |
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regarding the proposed acquisition, offer of compensation, or other |
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related matters at any time; |
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(5) have [(3)] an assessment made of damages to the |
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owner that will result from the taking of the property; |
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(6) be provided [(4)] a hearing under Chapter 21, |
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Property Code, including a hearing on the assessment of damages; |
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[and] |
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(7) [(5) an] appeal [of] a judgment in a condemnation |
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proceeding, including to [an] appeal [of] an assessment of damages; |
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and |
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(8) contact the office of the attorney general for |
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more information regarding a property owner's rights with respect |
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to the condemnation process. |
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SECTION 2. Section 1101.501, Occupations Code, is amended |
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to read as follows: |
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Sec. 1101.501. CERTIFICATE REQUIRED. (a) Except as |
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provided by Subsection (b), a [A] person may not sell, buy, lease, |
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or transfer an easement or right-of-way [for another], for |
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compensation or with the expectation of receiving compensation, on |
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behalf of an entity with eminent domain authority [for use in
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connection with telecommunication, utility, railroad, or pipeline
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service] unless the person: |
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(1) holds a license issued under this chapter; and |
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[or] |
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(2) holds a certificate of registration issued under |
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this subchapter. |
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(b) Subsection (a) does not apply to: |
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(1) an entity with eminent domain authority or the |
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entity's employee; or |
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(2) an attorney licensed in this state. |
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SECTION 3. Section 1101.502(a), Occupations Code, is |
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amended to read as follows: |
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(a) To be eligible to receive a certificate of registration |
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[or a renewal certificate] under this subchapter, a person must: |
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(1) hold a license issued under this chapter [be:
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(1)
at least 18 years of age]; and |
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(2) complete a right-of-way agent responsibility |
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course approved by the commission under Section 1101.5021 [a
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citizen of the United States or a lawfully admitted alien]. |
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SECTION 4. Subchapter K, Chapter 1101, Occupations Code, is |
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amended by adding Sections 1101.5021, 1101.5042, and 1101.5043 to |
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read as follows: |
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Sec. 1101.5021. RIGHT-OF-WAY AGENT RESPONSIBILITY COURSE. |
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(a) The commission by rule shall approve a right-of-way agent |
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responsibility course. |
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(b) A course approved by the commission under this section |
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must include at least 15 hours of classroom instruction related to: |
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(1) the law of eminent domain, including the rights of |
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property owners; |
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(2) appropriate standards of professionalism in |
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contacting and conducting negotiations with property owners; and |
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(3) ethical considerations in the performance of |
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easement and right-of-way acquisition services. |
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Sec. 1101.5042. ELIGIBILITY REQUIREMENTS FOR RENEWAL |
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CERTIFICATE. To be eligible to receive a renewal certificate under |
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this subchapter, a person must: |
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(1) hold a license issued under this chapter; and |
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(2) satisfy the continuing education requirements |
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under Section 1101.5043. |
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Sec. 1101.5043. CONTINUING EDUCATION. (a) The commission |
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by rule shall approve a continuing education course for certificate |
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holders. |
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(b) A continuing education course approved under Subsection |
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(a) by the commission must include at least six hours of classroom |
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instruction related to the acquisition of easements and |
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rights-of-way under eminent domain authority. |
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SECTION 5. Section 21.0111, Property Code, is amended by |
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adding Subsections (a-1) and (a-2) to read as follows: |
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(a-1) After an offer to which Subsection (a) applies is |
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made, the entity or the property owner shall disclose to the other |
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party any new, amended, or updated appraisal report that is |
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produced or acquired by or on behalf of the entity or property owner |
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after the offer is made and that is used in determining the entity's |
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or the property owner's opinion of value. A disclosure required by |
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this subsection must be made not later than the earlier of: |
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(1) the 10th day after the date the entity or property |
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owner receives the appraisal report; or |
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(2) the third business day before the date of a special |
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commissioner's hearing if the appraisal report is to be used at the |
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hearing. |
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(a-2) A new, amended, or updated appraisal report that is |
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not disclosed as required by Subsection (a-1), and any testimony or |
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other evidence based on the report, may not be presented in a |
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hearing under Section 21.015. |
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SECTION 6. Section 21.0113(b), Property Code, is amended to |
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read as follows: |
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(b) An entity with eminent domain authority has made a bona |
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fide offer if: |
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(1) an initial offer is made in writing to a property |
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owner that includes: |
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(A) a monetary offer in an amount: |
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(i) equal to or greater than 150 percent of |
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the market value of the property sought to be acquired, as |
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determined on a per acre or per square foot proportionate valuation |
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of raw land as reflected in the appraisal of the county taxing |
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authority as of the date of the initial offer; or |
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(ii) if an appraisal of the property sought |
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to be acquired and any damages to any remaining property has been |
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completed by a certified appraiser, equal to or greater than the |
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amount provided by the appraisal report; |
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(B) a statement that the entity will not contact |
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the property owner sooner than the fourth business day after the |
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date of the first personal contact made by the entity after the |
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entity sends the initial offer, except to respond to an inquiry from |
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the property owner; |
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(C) the name and telephone number of an employee |
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of the entity that the property owner may contact with questions |
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regarding the initial offer; and |
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(D) a copy of the appraisal report on which the |
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offer is based, if applicable; |
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(2) a final offer is made in writing to the property |
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owner; |
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(3) the final offer is made on or after the 30th day |
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after the date on which the entity makes a written initial offer to |
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the property owner; |
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(4) before making a final offer, the entity obtains an |
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[a written] appraisal report from a certified appraiser of the |
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value of the property being acquired and the damages, if any, to any |
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of the property owner's remaining property; |
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(5) the final offer is equal to or greater than the |
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amount provided by [of] the [written] appraisal report [obtained by
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the entity]; |
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(6) the following items are included with the final |
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offer or have been previously provided to the owner by the entity: |
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(A) a copy of the [written] appraisal report; |
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(B) a copy of the deed, easement, or other |
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instrument conveying the property sought to be acquired; [and] |
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(C) the landowner's bill of rights statement |
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prescribed by Section 21.0112; and |
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(D) a notice, as appropriate, as described by |
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Section 21.0114; and |
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(7) the entity provides the property owner with at |
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least 14 days to respond to the final offer and the property owner |
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does not agree to the terms of the final offer within that period. |
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SECTION 7. Subchapter B, Chapter 21, Property Code, is |
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amended by adding Sections 21.0114 and 21.0115 to read as follows: |
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Sec. 21.0114. NOTICE REGARDING PIPELINE AND ELECTRIC |
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TRANSMISSION RIGHTS-OF-WAY. (a) Unless otherwise addressed by |
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the easement, the condemning entity shall provide a list of items |
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that the landowner may consider when reviewing the offer of the |
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condemning entity. |
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(b) If the property is to be acquired for purposes of a |
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pipeline right-of-way, the notice must include: |
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(1) the approximate number of pipelines that may be |
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installed in the right-of-way; |
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(2) the type or category of each product to be |
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transported through the pipelines to be installed in the |
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right-of-way; |
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(3) the depth of the pipeline and the amount of cover; |
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(4) a reasonable description of any use the entity |
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intends to make of the surface of the right-of-way; |
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(5) a metes and bounds or center line description of |
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the location of the right-of-way; |
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(6) the width of the right-of-way; |
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(7) whether the proposed easement is exclusive, |
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nonexclusive, or otherwise limited and the terms and conditions of |
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any proposed limitation on the property owner's right to use or |
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grant additional easements to other parties; |
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(8) the manner in which the entity will access the |
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right-of-way, other than in case of an emergency; |
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(9) a statement: |
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(A) regarding the property owner's right to |
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recover actual damages arising from the construction, maintenance, |
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repair, replacement, or future removal of a pipeline in the |
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right-of-way, including any actual damages to growing crops or |
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livestock; or |
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(B) if applicable, that the initial offer |
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includes damages described by Paragraph (A); |
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(10) a statement that the entity will agree to |
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coordinate with the property owner regarding the treatment of all |
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gates and fences; and |
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(11) a statement that the entity will agree to: |
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(A) restore to original or better condition any |
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areas outside the right-of-way that are used or damaged by the |
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entity, to the extent reasonably practicable; or |
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(B) pay actual damages for any of those areas the |
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entity does not restore. |
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(c) If the property is to be acquired for purposes of an |
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electric transmission right-of-way, the notice must include: |
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(1) a copy of any Public Utility Commission of Texas |
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order or other regulatory order relevant with respect to initial |
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construction; |
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(2) a reasonable description of any use the entity |
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intends to make of the surface of the right-of-way; |
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(3) a metes and bounds or center line description of |
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the location of the right-of-way; |
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(4) the width of the right-of-way; |
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(5) the type, spacing, and maximum number of poles, |
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towers, or other support apparatus that will be used to carry |
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electrical lines over the easement; |
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(6) whether the proposed easement is exclusive, |
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nonexclusive, or otherwise limited and the terms and conditions of |
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any proposed limitation on the property owner's right to use or |
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grant additional easements to other parties; |
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(7) the manner in which the entity will access the |
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right-of-way, other than in the case of emergency; |
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(8) a statement: |
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(A) regarding the property owner's right to |
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recover actual damages arising from the construction, maintenance, |
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repair, replacement, or future removal of lines and support |
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apparatus in the right-of-way, including any actual damages to |
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growing crops or livestock; or |
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(B) if applicable, that the initial offer |
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includes damages described by Paragraph (A); |
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(9) a statement that the entity will agree to |
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coordinate with the property owner regarding the treatment of all |
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gates and fences; and |
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(10) a statement that the entity will agree to: |
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(A) restore to original or better condition any |
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areas outside the right-of-way that are used or damaged by the |
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entity, to the extent reasonably practicable; or |
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(B) pay actual damages for any of those areas the |
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entity does not restore. |
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(d) A property owner and the entity may agree to terms other |
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than those required to be included in the notice required under this |
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section. |
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(e) If an entity does not have sufficient information to |
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include in a notice required under this section an item listed in |
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Subsection (c) or (d), as applicable, the entity shall: |
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(1) in the notice: |
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(A) indicate the item that is not included; and |
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(B) state that information regarding the item |
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will be provided to the property owner in an amended notice when |
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known; and |
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(2) as soon as practicable after the entity obtains |
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the information, provide the information to the property owner in |
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an amended notice. |
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Sec. 21.0115. LIMITATION OF PROPERTY OWNER LIABILITY. A |
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property owner is not liable to a condemning entity, the entity's |
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agents, employees, or contractors, including the contractor's |
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subcontractors of any tier, or a third party for personal injury, |
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death, or property damage: |
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(1) arising from the use by a person other than the |
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property owner of property, including for a right-of-way, acquired |
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from the property owner by condemnation; and |
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(2) not caused by the property owner's negligence or |
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intentional conduct. |
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SECTION 8. Section 21.041, Property Code, is amended to |
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read as follows: |
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Sec. 21.041. EVIDENCE. (a) As the basis for assessing |
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actual damages to a property owner from a condemnation, the special |
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commissioners shall admit evidence on: |
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(1) the value of the property being condemned; |
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(2) the injury to the property owner; |
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(3) the benefit to the property owner's remaining |
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property; and |
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(4) the use of the property for the purpose of the |
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condemnation. |
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(b) The special commissioners may admit evidence on the |
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price paid for pipeline or electrical line rights-of-way in |
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privately negotiated transactions made in the absence of a |
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potential, actual, or threatened condemnation. |
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SECTION 9. Section 21.063, Property Code, is amended by |
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adding Subsections (c) and (d) to read as follows: |
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(c) As a condition of appealing the final judgment of a |
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trial court in a condemnation proceeding, a nongovernmental |
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condemnor shall: |
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(1) deposit with the trial court the amount of the |
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final judgment, less the amount of any monetary deposit made and any |
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bonds posted by the condemnor under Sections 21.021(a)(2) and (3), |
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subject to the order of the court of appeals; or |
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(2) post a surety bond, issued by a surety company |
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authorized to engage in business in this state and conditioned to |
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secure the payment of the final judgment, in the amount of the final |
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judgment, less the amount of any monetary deposit made and any bonds |
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posted by the condemnor under Sections 21.021(a)(2) and (3). |
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(d) If the property owner moves to enforce Subsection (c) |
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and the nongovernmental condemnor fails to comply with that |
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subsection before the 30th day after the date the trial court grants |
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the motion: |
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(1) the court of appeals shall dismiss the appeal with |
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prejudice and order enforcement of the final judgment; and |
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(2) the property owner is entitled to all reasonable |
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and necessary fees for attorneys hired in relation to the |
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condemnation. |
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SECTION 10. Section 26.11(a), Tax Code, is amended to read |
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as follows: |
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(a) If the federal government, the state, or a political |
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subdivision of the state acquires the right to possession of |
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taxable property under a court order issued in condemnation |
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proceedings, assumes possession of taxable property under a |
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possession and use agreement, or a similar agreement, that is |
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entered into under threat of condemnation, or acquires title to |
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taxable property, the amount of the tax due on the property is |
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calculated by multiplying the amount of taxes imposed on the |
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property for the entire year as determined as provided by Section |
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26.09 of this code by a fraction, the denominator of which is 365 |
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and the numerator of which is the number of days that elapsed prior |
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to the date of the conveyance, the effective date of the agreement, |
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or the date of the order granting the right of possession, as |
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applicable. |
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SECTION 11. The office of the attorney general shall make |
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the landowner's bill of rights statement required by Section |
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402.031, Government Code, as amended by this Act, available on the |
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attorney general's Internet website not later than January 1, 2018. |
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SECTION 12. Not later than January 1, 2018, the Texas Real |
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Estate Commission shall adopt rules to implement Subchapter K, |
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Chapter 1101, Occupations Code, as amended by this Act. |
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SECTION 13. (a) Sections 21.0111 and 21.0113, Property |
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Code, as amended by this Act, and Sections 21.0114 and 21.0115, |
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Property Code, as added by this Act, apply only to the acquisition |
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of real property in connection with an initial offer made under |
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Section 21.0113, Property Code, on or after the effective date of |
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this Act. An acquisition of real property in connection with an |
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initial offer made under Section 21.0113, Property Code, before the |
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effective date of this Act is governed by the law applicable to the |
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acquisition immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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(b) Section 21.041, Property Code, as amended by this Act, |
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applies only to an eminent domain proceeding commenced on or after |
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the effective date of this Act. An eminent domain proceeding |
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commenced before the effective date of this Act is governed by the |
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law applicable to the proceeding immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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(c) Section 21.063, Property Code, as amended by this Act, |
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applies only to an appeal commenced on or after the effective date |
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of this Act. An appeal commenced before the effective date of this |
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Act is governed by the law applicable to the appeal immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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(d) Section 26.11, Tax Code, as amended by this Act, applies |
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only to an agreement entered into on or after the effective date of |
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this Act. An agreement entered into before the effective date of |
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this Act is governed by the law applicable to the agreement |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 14. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2017. |
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(b) Sections 1101.501 and 1101.502, Occupations Code, as |
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amended by this Act, and Section 1101.5042, Occupations Code, as |
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added by this Act, take effect March 1, 2018. |
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* * * * * |