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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforceability of certain contracts to acquire real |
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property for a high-speed rail project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 112, Transportation Code, |
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is amended by adding Section 112.0535 to read as follows: |
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Sec. 112.0535. CONTRACT TO ACQUIRE REAL PROPERTY UNDER |
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FALSE REPRESENTATION OF EMINENT DOMAIN AUTHORITY. (a) In this |
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section, "high-speed rail" has the meaning assigned by Section |
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112.201. |
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(b) A contract to acquire real property entered into by an |
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entity proposing to build a high-speed rail project is voidable by |
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the property owner if: |
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(1) before the execution of the contract, the entity |
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represented to the property owner that the entity had the authority |
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to acquire the property through eminent domain; and |
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(2) after the execution of the contract, a court |
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enters a final judgment declaring that the entity does not have |
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eminent domain authority. |
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(c) A property owner who voids a contract under this section |
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is entitled to retain any money paid by the entity to the property |
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owner before the contract is voided. |
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(d) Not later than the 90th day after the date of the final |
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judgment described by Subsection (b)(2), the entity that is subject |
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to the final judgment shall provide written notice by certified |
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mail to each property owner with whom the entity entered into a |
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contract described by Subsection (b) informing the property owner |
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of the property owner's right to void the contract. |
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(e) To void a contract under this section, a property owner |
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must, not later than the 120th day after the date the property owner |
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receives the notice required by Subsection (d), provide notice to |
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the entity that the property owner is voiding the contract. |
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(f) An entity subject to a final judgment described by |
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Subsection (b)(2) may not exercise the entity's rights under a |
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contract described by Subsection (b) before the expiration of the |
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120-day period provided by Subsection (e). |
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SECTION 2. This Act takes effect September 1, 2019. |