85R4646 BEE-F

By: Kolkhorst S.B. No. 741

A BILL TO BE ENTITLED

AN ACT

relating to compensation to a property owner for property acquired by an entity with eminent domain authority.

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

SECTION 1. Section 21.0113, Property Code, is amended by adding Subsection (c) to read as follows:

(c) For purposes of this section, a bona fide offer may include compensation to the property owner in the form of a royalty or percentage of the net profits generated from the project necessitating the acquisition.

SECTION 2. Section 21.041, Property Code, is amended to read as follows:

Sec. 21.041. EVIDENCE. (a) 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;

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

(4) the use of the property for the purpose of the condemnation; and

(5) the value of any compensation described by Section 21.0113(c) that the condemning entity has offered the property owner in connection with the proposed condemnation.

(b) The special commissioners may admit evidence on the price paid for pipeline or power line rights-of-way in privately negotiated transactions made in the absence of a potential, actual, or threatened condemnation.

SECTION 3. (a) Except as provided by Subsection (b) of this section, Sections 21.0113 and 21.041, Property Code, as amended by this Act, apply only to the acquisition of real property in connection with an initial offer made under Section 21.0113, Property Code, on or after the effective date of this Act. An acquisition of real property in connection with an initial offer made under Section 21.0113, Property Code, before the effective date of this Act is governed by the law applicable to the acquisition immediately before the effective date of this Act, and that law is continued in effect for that purpose.

(b) Section 21.041(b), Property Code, as added by this Act, applies only to an eminent domain proceeding commenced on or after the effective date of this Act. An eminent domain proceeding commenced before the effective date of this Act is governed by the law applicable to the proceeding immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2017.