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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on the exercise of eminent domain and the |
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disposition of certain property acquired for certain rail projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 112.002, Transportation Code, is amended |
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by amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) A railroad company may: |
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(1) sue, be sued, plead, and be impleaded in its |
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corporate name; |
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(2) have and use a seal and alter the seal at will; |
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(3) receive and convey persons and property on its |
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railway by any mechanical power, including the use of steam; |
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(4) regulate the time and manner in which, and the |
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compensation for which, passengers and property are transported, |
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subject to the provisions of law; |
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(5) except as provided by Subsection (c), exercise the |
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power of eminent domain for the purposes prescribed by this |
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subtitle or Subtitle D; |
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(6) purchase, hold, and use all property as necessary |
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for the construction and use of its railway, stations, and other |
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accommodations necessary to accomplish company objectives, and |
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convey that property when no longer required for railway use; and |
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(7) take, hold, and use property granted to the |
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company to aid in the construction and use of its railway, and |
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convey that property in a manner consistent with the terms of the |
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grant when the property is no longer required for railway use. |
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(c) A private entity may not exercise the power of eminent |
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domain for the purpose of developing or operating a high-speed rail |
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project, as defined by Section 112.201. |
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SECTION 2. Subchapter B, Chapter 112, Transportation Code, |
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is amended by adding Section 112.063 to read as follows: |
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Sec. 112.063. DISPOSITION OF REAL PROPERTY ACQUIRED FOR |
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HIGH-SPEED RAIL PROJECT. (a) In this section, "high-speed rail" |
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has the meaning assigned by Section 112.201. |
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(b) Except as provided by Subsection (d), a private entity |
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that acquires real property for a high-speed rail project may not |
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use that property for any purpose other than a high-speed rail |
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project. |
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(c) Except as provided by Subsection (d), a person from whom |
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real property is acquired by a private entity as described by |
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Subsection (b), and the person's heirs, successors, and assigns, |
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are entitled to notice and opportunity to repurchase the property |
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before all other purchasers for the price paid to the owner by the |
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entity at the time the entity acquired the property if: |
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(1) the high-speed rail project for which the property |
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was acquired is canceled before the property is used for that |
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project; |
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(2) the property is not used for the high-speed rail |
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project for which the property was acquired before the 10th |
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anniversary of the date of acquisition; or |
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(3) the property becomes unnecessary for the |
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high-speed rail project for which the property was acquired before |
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the 10th anniversary of the date of acquisition. |
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(d) Subsections (b) and (c) do not apply to real property |
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acquired by a private entity as described by Subsection (b) if, |
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before the acquisition of the property: |
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(1) the entity acquiring the property gives written |
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notice to the person from whom the property is to be acquired that |
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the property may be used for a purpose other than a high-speed rail |
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project; and |
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(2) the person from whom the property is to be acquired |
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signs a statement acknowledging that written notice was given under |
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Subdivision (1). |
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(e) Notice and repurchase as required by Subsection (c) |
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shall follow the timelines and processes for notice and repurchase |
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in Chapter 21, Property Code. |
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SECTION 3. Section 131.012, Transportation Code, is amended |
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to read as follows: |
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Sec. 131.012. EMINENT DOMAIN. (a) Except as provided by |
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Subsection (b), a [A] corporation chartered for the purpose of |
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constructing, acquiring, maintaining, or operating lines of |
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electric railway between municipalities in this state for the |
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transportation of freight, passengers, or both freight and |
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passengers may: |
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(1) exercise the power of eminent domain with all the |
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rights and powers granted by law to a railroad company; and |
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(2) enter, condemn, and appropriate land, |
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right-of-way, easements, or other property of any person or |
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corporation to acquire: |
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(A) right-of-way on which to construct and |
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operate lines of railway for the acquiring corporation; or |
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(B) sites for depots or power plants. |
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(b) An interurban electric railway company may not exercise |
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the power of eminent domain for the purposes described by |
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Subsection (a). |
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SECTION 4. Section 112.063, Transportation Code, as added |
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by this Act, applies to real property acquired on or after September |
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1, 2025. |
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SECTION 5. This Act takes effect September 1, 2025. |