Texas 2009 - 81st Regular

Texas Senate Bill SB18 Latest Draft

Bill / House Committee Report Version Filed 02/01/2025

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                            81R34562 AJA-D
 By: Estes, et al. S.B. No. 18
 Substitute the following for S.B. No. 18:
 By: Hamilton C.S.S.B. No. 18


 A BILL TO BE ENTITLED
 AN ACT
 relating to the acquisition of property by entities with eminent
 domain authority.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Chapter 2206, Government Code, is amended to
 read as follows:
 CHAPTER 2206. [LIMITATIONS ON USE OF] EMINENT DOMAIN
 SUBCHAPTER A. LIMITATIONS ON PURPOSE AND USE OF PROPERTY ACQUIRED
 THROUGH EMINENT DOMAIN
 Sec. 2206.001. LIMITATION ON EMINENT DOMAIN FOR PRIVATE
 PARTIES OR ECONOMIC DEVELOPMENT PURPOSES. (a) This section
 applies to the use of eminent domain under the laws of this state,
 including a local or special law, by any governmental or private
 entity, including:
 (1) a state agency, including an institution of higher
 education as defined by Section 61.003, Education Code;
 (2) a political subdivision of this state; or
 (3) a corporation created by a governmental entity to
 act on behalf of the entity.
 (b) A governmental or private entity may not take private
 property through the use of eminent domain if the taking:
 (1) confers a private benefit on a particular private
 party through the use of the property;
 (2) is for a public use that is merely a pretext to
 confer a private benefit on a particular private party; [or]
 (3) is for economic development purposes, unless the
 economic development results [is a secondary purpose resulting]
 from municipal community development or municipal urban renewal
 activities to eliminate an existing affirmative harm on society
 from [slum or] blighted areas under:
 (A) Chapter 373 or 374, Local Government Code,
 other than an activity described by Section 373.002(b)(5), Local
 Government Code; or
 (B) Section 311.005(a)(1)(I), Tax Code; or
 (4) is not for a public use.
 (c) This section does not affect the authority of an entity
 authorized by law to take private property through the use of
 eminent domain for:
 (1) transportation projects, including, but not
 limited to, railroads, airports, or public roads or highways;
 (2) entities authorized under Section 59, Article XVI,
 Texas Constitution, including:
 (A) port authorities;
 (B) navigation districts; and
 (C) any other conservation or reclamation
 districts that act as ports;
 (3) water supply, wastewater, flood control, and
 drainage projects;
 (4) public buildings, hospitals, and parks;
 (5) the provision of utility services;
 (6) a sports and community venue project approved by
 voters at an election held on or before December 1, 2005, under
 Chapter 334 or 335, Local Government Code;
 (7) the operations of:
 (A) a common carrier pipeline [subject to Chapter
 111, Natural Resources Code, and Section B(3)(b), Article 2.01,
 Texas Business Corporation Act]; or
 (B) an energy transporter, as that term is
 defined by Section 186.051, Utilities Code;
 (8) a purpose authorized by Chapter 181, Utilities
 Code;
 (9) underground storage operations subject to Chapter
 91, Natural Resources Code;
 (10) a waste disposal project; or
 (11) a library, museum, or related facility and any
 infrastructure related to the facility.
 (d) This section does not affect the authority of a
 governmental entity to condemn a leasehold estate on property owned
 by the governmental entity.
 (e) The determination by the governmental or private entity
 proposing to take the property that the taking does not involve an
 act or circumstance prohibited by Subsection (b) does not create a
 presumption with respect to whether the taking involves that act or
 circumstance.
 Sec. 2206.002.  LIMITATIONS ON EASEMENTS. (a)  A property
 owner whose property is acquired through the use of eminent domain
 under Chapter 21, Property Code, for the purpose of creating an
 easement through that owner's property may construct streets or
 roads, including a gravel, asphalt, or concrete road, at any
 locations above the easement that the property owner chooses.
 (b)  The portion of a road constructed under this section
 that is within the area covered by the easement:
 (1) must cross the easement at or near 90 degrees; and
 (2) may not:
 (A) exceed 40 feet in width;
 (B)  cause a violation of any applicable pipeline
 regulation; or
 (C)  interfere with the operation and maintenance
 of any pipeline.
 (c)  At least 30 days before the date on which construction
 of an asphalt or concrete road or street that will be located wholly
 or partly in an area covered by an easement used for a pipeline is
 scheduled to begin, the property owner must submit plans for the
 proposed construction to the owner of the easement.
 (d)  This section applies only to an easement acquired by an
 entity for the purpose of a pipeline to be used for oil or gas
 exploration or production activities.
 SUBCHAPTER B.  PROCEDURES REQUIRED TO INITIATE
 EMINENT DOMAIN PROCEEDINGS
 Sec. 2206.051.  SHORT TITLE. This subchapter may be cited as
 the Truth in Condemnation Procedures Act.
 Sec. 2206.052.  APPLICABILITY. The procedures in this
 subchapter apply only to the use of eminent domain under the laws of
 this state by a governmental entity.
 Sec. 2206.053.  VOTE ON USE OF EMINENT DOMAIN. (a)  Before a
 governmental entity initiates a condemnation proceeding by filing a
 petition under Section 21.012, Property Code, the governmental
 entity must authorize the initiation of the condemnation
 proceedings at a public meeting by a record vote.
 (b)  A single ordinance, resolution, or order may be adopted
 for all units of property to be condemned if:
 (1)  the motion required by Subsection (e) indicates
 that the first record vote applies to all units of property to be
 condemned; and
 (2)  the minutes of the entity reflect that the first
 vote applies to all of those units.
 (c)  If more than one member of the governing body objects to
 adopting a single ordinance, resolution, or order by a record vote
 for all units of property for which condemnation proceedings are to
 be initiated, a separate record vote must be taken for each unit of
 property.
 (d)  For the purposes of Subsections (a) and (c), if two or
 more units of real property are owned by the same person, the
 governmental entity may treat those units of property as one unit of
 property.
 (e)  The motion to adopt an ordinance, resolution, or order
 authorizing the initiation of condemnation proceedings under
 Chapter 21, Property Code, must be made in a form substantially
 similar to the following:  "I move that the (name of governmental
 entity) authorize the use of the power of eminent domain to acquire
 (describe the property) for (describe the public use)."  The
 description of the property required by this subsection is
 sufficient if the description of the location of and interest in the
 property that the governmental entity seeks to acquire is
 substantially similar to the description that is or could properly
 be used in a petition to condemn the property under Section 21.012,
 Property Code.
 (f)  If a project for a public use described by Section
 2206.001(c)(3) will require a governmental entity to acquire
 multiple tracts or units of property to construct facilities
 connecting one location to another location, the governing body of
 the entity may adopt a single ordinance, resolution, or order by a
 record vote that delegates the authority to initiate condemnation
 proceedings to the chief administrative official of the
 governmental entity.
 (g)  An ordinance, resolution, or order adopted under
 Subsection (f) is not required to identify specific properties that
 the governmental entity will acquire. The ordinance, resolution,
 or order must identify the general area to be covered by the project
 or the general route that will be used by the governmental entity
 for the project in a way that provides property owners in and around
 the area or along the route reasonable notice that the owners'
 properties may be subject to condemnation proceedings during the
 planning or construction of the project.
 SUBCHAPTER C.  EXPIRATION OF CERTAIN EMINENT DOMAIN AUTHORITY
 Sec. 2206.101.  REPORT OF EMINENT DOMAIN AUTHORITY;
 EXPIRATION OF AUTHORITY. (a)  This section does not apply to an
 entity that was created or that acquired the power of eminent domain
 on or after December 31, 2010.
 (b)  Not later than December 31, 2010, an entity, including a
 private entity, authorized by the state by a general or special law
 to exercise the power of eminent domain shall submit to the
 comptroller a letter stating that the entity is authorized by the
 state to exercise the power of eminent domain and identifying the
 provision or provisions of law that grant the entity that
 authority. The entity must send the letter by certified mail,
 return receipt requested.
 (c)  The authority of an entity to exercise the power of
 eminent domain expires on September 1, 2011, unless the entity
 submits a letter in accordance with Subsection (b).
 (d)  Not later than March 1, 2011, the comptroller shall
 submit to the governor, the lieutenant governor, the speaker of the
 house of representatives, the appropriate standing committees of
 the senate and the house of representatives, and the Texas
 Legislative Council a report that contains:
 (1)  the name of each entity that submitted a letter in
 accordance with this section; and
 (2)  a corresponding list of the provisions granting
 eminent domain authority as identified by each entity that
 submitted a letter.
 (e)  The Texas Legislative Council shall prepare for
 consideration by the 83rd Legislature, Regular Session, a
 nonsubstantive revision of the statutes of this state as necessary
 to reflect the state of the law after the expiration of an entity's
 eminent domain authority effective under Subsection (c).
 SECTION 2. Subsection (b), Section 373.002, Local
 Government Code, is amended to read as follows:
 (b) Activities conducted under this chapter are directed
 toward the following purposes:
 (1) elimination of [slums and] areas affected by
 blight;
 (2) prevention of blighting influences and of the
 deterioration of property and neighborhood and community
 facilities important to the welfare of the community;
 (3) elimination of conditions detrimental to the
 public health, safety, and welfare;
 (4) expansion and improvement of the quantity and
 quality of community services essential for the development of
 viable urban communities;
 (5) more rational use of land and other natural
 resources;
 (6) improved arrangement of residential, commercial,
 industrial, recreational, and other necessary activity centers;
 (7) restoration and preservation of properties of
 special value for historic, architectural, or aesthetic reasons;
 (8) reduction of the isolation of income groups in
 communities and geographical areas, promotion of increased
 diversity and vitality of neighborhoods through spatial
 deconcentration of housing opportunities for persons of low and
 moderate income, and revitalization of deteriorating or
 deteriorated neighborhoods to attract persons of higher income; and
 (9) alleviation of physical and economic distress
 through the stimulation of private investment and community
 revitalization in [slum or] blighted areas.
 SECTION 3. Section 373.004, Local Government Code, is
 amended to read as follows:
 Sec. 373.004. GOALS OF PROGRAM. Through a community
 development program, a municipality may conduct work or activities
 designed to:
 (1) improve the living and economic conditions of
 persons of low and moderate income;
 (2) benefit low or moderate income neighborhoods;
 (3) aid in the prevention or elimination of [slums
 and] blighted areas;
 (4) aid a federally assisted new community; or
 (5) meet other urgent community development needs,
 including an activity or function specified for a community
 development program that incorporates a federally assisted new
 community.
 SECTION 4. Section 373.006, Local Government Code, is
 amended to read as follows:
 Sec. 373.006. REQUIRED PROCEDURES BEFORE ADOPTION OF
 COMMUNITY DEVELOPMENT PROGRAM. Before exercising powers under
 Section 373.005, the governing body of the municipality must:
 (1) identify areas of the municipality in which
 predominantly low and moderate income persons reside and each unit
 of real property in the municipality[,] that has the
 characteristics of blight [are blighted or slum areas] or that is a
 [are] federally assisted new community in the municipality
 [communities];
 (2) establish community development program areas in
 which community development activities, building rehabilitation,
 or the acquisition of privately owned buildings or land is
 proposed;
 (3) adopt, by resolution or ordinance, a plan under
 which citizens may publicly comment on the proposed community
 development program;
 (4) conduct public hearings on the proposed program
 before the 15th day before the date of its final adoption by the
 governing body; and
 (5) adopt the community development program by
 resolution or ordinance.
 SECTION 5. Subsections (a) and (b), Section 374.002, Local
 Government Code, are amended to read as follows:
 (a) The legislature finds that [slum and] blighted areas
 exist in municipalities in this state and that those areas:
 (1) are a serious and growing menace that is injurious
 and inimical to the public health, safety, morals, and welfare of
 the residents of this state;
 (2) contribute substantially and increasingly to the
 spread of disease and crime, requiring excessive and
 disproportionate expenditures of public funds for the preservation
 of the public health and safety, and for crime prevention,
 correctional facilities, prosecution and punishment, treatment of
 juvenile delinquency, and the maintenance of adequate police, fire,
 and accident protection and other public services and facilities;
 and
 (3) constitute an economic and social liability,
 substantially impair the sound growth of affected municipalities,
 and retard the provision of housing accommodations.
 (b) For these reasons, prevention and elimination of [slum
 and] blighted areas are matters of state policy and concern that may
 be best addressed by the combined action of private enterprise,
 municipal regulation, and other public action through approved
 urban renewal plans. The legislature further finds that the repair
 and rehabilitation of buildings and other improvements in affected
 areas, public acquisition of real property, demolition of buildings
 and other improvements as necessary to eliminate [slum or] blight
 conditions or to prevent the spread of those conditions, the
 disposition of property acquired in affected areas and incidental
 to the purposes stated by this subsection, and other public
 assistance to eliminate those conditions are public purposes for
 which public money may be spent and the power of eminent domain
 exercised.
 SECTION 6. Subdivisions (3), (18), (25), (26), and (28),
 Section 374.003, Local Government Code, are amended to read as
 follows:
 (3) "Blighted area" means a tract or unit of property
 [an area] that presents four or more of the following conditions for
 at least one year after the date on which notice of the conditions
 is provided to the property owner as required by Section
 374.018(a)(1) or (b):
 (A)  the property contains uninhabitable, unsafe,
 or abandoned structures;
 (B)  the property has inadequate provisions for
 sanitation;
 (C)  there exists on the property an imminent harm
 to life or other property caused by fire, flood, hurricane,
 tornado, earthquake, storm, or other natural catastrophe declared
 to be a disaster under Section 418.014, Government Code, or
 certified as a disaster for federal assistance under Section
 418.021, Government Code;
 (D)  the property has been identified by the
 United States Environmental Protection Agency as a superfund site
 under the federal Comprehensive Environmental Response,
 Compensation, and Liability Act of 1980 (42 U.S.C. Section 9601 et
 seq.) or as environmentally contaminated to an extent that the
 property requires remedial investigation or a feasibility study;
 (E)  the property has been the location of
 substantiated and repeated illegal activity of which the property
 owner knew or should have known;
 (F)  the maintenance of the property is below
 county or municipal standards;
 (G)  the property is abandoned and contains a
 structure that is not fit for its intended use because the
 utilities, sewerage, plumbing, or heating or a similar service or
 facility of the structure has been disconnected, destroyed,
 removed, or rendered ineffective; or
 (H)  the property presents an economic liability
 to the immediate area because of deteriorating structures or
 hazardous conditions [is not a slum area, but that, because of
 deteriorating buildings, structures, or other improvements;
 defective or inadequate streets, street layout, or accessibility;
 unsanitary conditions; or other hazardous conditions, adversely
 affects the public health, safety, morals, or welfare of the
 municipality and its residents, substantially retards the
 provision of a sound and healthful housing environment, or results
 in an economic or social liability to the municipality. The term
 includes an area certified as a disaster area as provided by Section
 374.903].
 (18) "Rehabilitation" means the restoration of
 buildings or other structures to prevent deterioration of an area
 that is tending to become a blighted area [or a slum area].
 (25) "Urban renewal activities" includes [slum
 clearance,] redevelopment, rehabilitation, and conservation
 activities to prevent further deterioration of an area that is
 tending to become a blighted [or slum] area. The term includes:
 (A) the acquisition of all or part of a [slum area
 or] blighted area or the acquisition of land that is predominantly
 open and that, because of obsolete platting, diversity of
 ownership, deterioration of structures or site improvements, or for
 other reasons, substantially impairs or arrests the sound growth of
 the community;
 (B) the demolition and removal of buildings and
 improvements;
 (C) the installation, construction, or
 reconstruction of streets, utilities, parks, playgrounds, and
 other improvements necessary to fulfill urban renewal objectives in
 accordance with an urban renewal plan;
 (D) the disposition by the municipality of
 property acquired in an urban renewal area for use in accordance
 with an urban renewal plan, including the sale or initial lease of
 the property at its fair value or the retention of the property;
 (E) the implementation of plans for a program of
 voluntary repair and rehabilitation of buildings or improvements in
 accordance with an urban renewal plan; and
 (F) the acquisition of real property in an urban
 renewal area as necessary to remove or prevent the spread of blight
 or deterioration or to provide land for needed public facilities.
 (26) "Urban renewal area" means a [slum area,]
 blighted area[, or a combination of those areas] that the governing
 body of a municipality designates as appropriate for an urban
 renewal project.
 (28) "Urban renewal project" includes any of the
 following activities undertaken in accordance with an urban renewal
 plan:
 (A) municipal activities in an urban renewal area
 that are designed to eliminate or to prevent the development or
 spread of [slums and] blighted areas;
 (B) [slum clearance and redevelopment in an urban
 renewal area;
 [(C)] rehabilitation or conservation in an urban
 renewal area;
 (C) [(D)] development of open land that, because
 of location or situation, is necessary for sound community growth
 and that is to be developed, by replatting and planning, for
 predominantly residential uses; or
 (D) [(E)] any combination or part of the
 activities described by Paragraphs (A)-(C) [(A)-(D)].
 SECTION 7. Section 374.011, Local Government Code, is
 amended by amending Subsection (a) and adding Subsection (d) to
 read as follows:
 (a) Except as provided by Section 374.012, a municipality
 may not exercise a power granted under this chapter unless:
 (1) the governing body of the municipality adopts a
 resolution that finds that a [slum area or] blighted area exists in
 the municipality and that the rehabilitation, the conservation, or
 the [slum clearance and] redevelopment of the area is necessary for
 the public health, safety, morals, or welfare of the residents of
 the municipality; and
 (2) a majority of the municipality's voters voting in
 an election held as provided by Subsection (b) favor adoption of the
 resolution.
 (d)  The governing body of the municipality must determine
 that each unit of real property included in a resolution under
 Subsection (a) has the characteristics of blight.
 SECTION 8. Subsection (c), Section 374.012, Local
 Government Code, is amended to read as follows:
 (c) The resolution ordering the election and the notice of
 the election must contain:
 (1) a complete legal description of each unit of
 property [the area] included in the proposed project;
 (2) a statement of the nature of the proposed project;
 [and]
 (3) a statement of the total amount of local funds to
 be spent on the proposed project; and
 (4)  a statement that each unit of property has the
 characteristics of blight.
 SECTION 9. Subsection (a), Section 374.013, Local
 Government Code, is amended to read as follows:
 (a) To further the urban renewal objectives of this chapter,
 a municipality may formulate a workable program to use appropriate
 private and public resources, including the resources specified by
 Subsection (b), to encourage urban rehabilitation, to provide for
 the redevelopment of [slum and] blighted areas, or to undertake
 those activities or other feasible municipal activities as may be
 suitably employed to achieve the objective of the program. The
 program must specifically include provisions relating to:
 (1) prevention, through diligent enforcement of
 housing and occupancy controls and standards, of the expansion of
 blight into areas of the municipality that are free from blight; and
 (2) rehabilitation or conservation of [slum and]
 blighted areas as far as practicable to areas that are free from
 blight through replanning, removing congestion, providing parks,
 playgrounds, and other public improvements, encouraging voluntary
 rehabilitation and requiring the repair and rehabilitation of
 deteriorated or deteriorating structures[, and the clearance and
 redevelopment of slum areas].
 SECTION 10. Subsection (a), Section 374.014, Local
 Government Code, is amended to read as follows:
 (a) A municipality may not prepare an urban renewal plan for
 an area unless the governing body of the municipality has, by
 resolution, declared the area to be a [slum area, a] blighted area[,
 or both,] and has designated the area as appropriate for an urban
 renewal project. The governing body may not approve an urban
 renewal plan until a general plan has been prepared for the
 municipality. A municipality may not acquire real property for an
 urban renewal project until the governing body has approved the
 urban renewal plan as provided by Subsection (d).
 SECTION 11. Subsections (a) and (d), Section 374.015, Local
 Government Code, are amended to read as follows:
 (a) A municipality may exercise all powers necessary or
 convenient to carry out the purposes of this chapter, including the
 power to:
 (1) conduct preliminary surveys to determine if
 undertaking an urban renewal project is feasible;
 (2) conduct urban renewal projects within its area of
 operation;
 (3) execute contracts and other instruments necessary
 or convenient to the exercise of its powers under this chapter;
 (4) provide, arrange, or contract for the furnishing
 or repair by any person of services, privileges, works, streets,
 roads, public utilities, or other facilities in connection with an
 urban renewal project, including installation, construction, and
 reconstruction of streets, utilities, parks, playgrounds, and
 other public improvements necessary to carry out an urban renewal
 project;
 (5) acquire any real property, including
 improvements, and any personal property necessary for
 administrative purposes, that is necessary or incidental to an
 urban renewal project, hold, improve, clear, or prepare the
 property for redevelopment, mortgage or otherwise encumber or
 dispose of the real property, insure or provide for the insurance of
 real or personal property or municipal operations against any risk
 or hazard and to pay premiums on that insurance, and enter any
 necessary contracts;
 (6) invest urban renewal project funds held in
 reserves or sinking funds, or not required for immediate
 disbursement, in property or securities in which banks may legally
 invest funds subject to their control, redeem bonds issued under
 Section 374.026 at the redemption price established in the bond, or
 purchase those bonds at less than the redemption price, and cancel
 the bonds redeemed or purchased;
 (7) borrow money and apply for and accept advances,
 loans, grants, contributions, and other forms of financial
 assistance from the federal, state, or county government, other
 public body, or other public or private sources for the purposes of
 this chapter, give any required security, and make and carry out any
 contracts in connection with the financial assistance;
 (8) make plans necessary to carry out this chapter in
 its area of operation, contract with any person in making and
 carrying out the plans, and adopt, approve, modify or amend the
 plans;
 (9) develop, test, and report methods and techniques
 for the prevention of [slums and] urban blight, conduct
 demonstrations and other activities in connection with those
 methods and techniques, and apply for, accept, and use federal
 grants made for those purposes;
 (10) prepare plans and provide reasonable assistance
 for the relocation of persons displaced from an urban renewal
 project area, including families, business concerns, and others, as
 necessary to acquire possession and to clear the area in order to
 conduct the urban renewal project;
 (11) appropriate funds and make expenditures as
 necessary to implement this chapter and, subject to Subsection (c),
 levy taxes and assessments for that purpose;
 (12) close, vacate, plan, or replan streets, roads,
 sidewalks, ways, or other places, plan, replan, zone, or rezone any
 part of the municipality and make exceptions from building
 regulations, and enter agreements with an urban renewal agency
 vested with urban renewal powers under Subchapter C, which may
 extend over any period, restricting action to be taken by the
 municipality under any of the powers granted under this chapter;
 (13) organize, coordinate, and direct the
 administration of this chapter within the area of operation as
 those provisions apply to the municipality to most effectively
 promote and achieve the purposes of this chapter and establish new
 municipal offices or reorganize existing offices as necessary to
 most effectively implement those purposes; and
 (14) issue tax increment bonds.
 (d) A [Except as provided by Section 374.016, a]
 municipality may acquire by condemnation any interest in real
 property, including a fee simple interest, that the municipality
 considers necessary for or in connection with an urban renewal
 project. Property dedicated to a public use may be acquired in that
 manner, except that property belonging to the state or to a
 political subdivision of the state may not be acquired without the
 consent of the state or political subdivision.
 SECTION 12. Subsection (d), Section 374.017, Local
 Government Code, is amended to read as follows:
 (d) Real property or an interest in real property subject to
 this section may only be sold, leased, or otherwise transferred or
 retained at not less than the fair value of the property for uses in
 accordance with the urban renewal plan. In determining the fair
 value, the municipality shall consider:
 (1) the uses provided in the urban renewal plan;
 (2) any restrictions on and any covenants, conditions,
 and obligations assumed by the purchaser, lessee, or municipality
 in retaining the property;
 (3) the objectives of the plan for the prevention of
 the recurrence of [slums or] blighted areas; and
 (4) any other matters that the municipality specifies
 as appropriate.
 SECTION 13. Subsection (b), Section 374.021, Local
 Government Code, is amended to read as follows:
 (b) In this section, "urban renewal project powers"
 includes the rights, powers, functions, and duties of a
 municipality under this chapter. The term does not include the
 power to:
 (1) determine an area as a [slum area,] blighted
 area[, or both] and to designate that area as appropriate for an
 urban renewal project;
 (2) approve and amend urban renewal plans and hold
 public hearings relating to those plans;
 (3) establish a general plan for the locality as a
 whole;
 (4) establish a workable program under Section
 374.013;
 (5) make determinations and findings under Section
 374.011(a), 374.013(b), or 374.014(d);
 (6) issue general obligation bonds; and
 (7) appropriate funds, levy taxes and assessments, and
 exercise other functions under Subdivisions (11) and (12) of
 Section 374.015(a).
 SECTION 14. Subchapter B, Chapter 374, Local Government
 Code, is amended by adding Sections 374.018 and 374.019 to read as
 follows:
 Sec. 374.018.  LIMITATIONS ON CHARACTERIZATIONS OF BLIGHT.
 (a)  Notwithstanding any other law, an area may not be considered a
 blighted area on the basis of a condition described by Section
 374.003 unless:
 (1)  the municipality has given notice in writing to
 the property owner by first class mail regarding the condition to
 the:
 (A) last known address of the property owner; and
 (B) physical address of the property; and
 (2)  the property owner fails to take reasonable
 measures to remedy the condition.
 (b)  If a mailing address for the property owner cannot be
 determined, the municipality shall post notice in writing regarding
 the condition in a conspicuous place on the property.
 (c)  An area may not be considered a blighted area solely for
 an aesthetic reason.
 (d)  A determination by a municipality that a unit of real
 property has the characteristics of blight is valid for two years.
 (e)  After the two-year period prescribed by Subsection (d),
 a municipality may make a new determination that the unit of real
 property has the characteristics of blight and redesignate the unit
 of real property as a blighted area for another two-year period.
 (f)  A municipality may remove a determination of blight
 under this chapter if the municipality finds that the property
 owner has remedied the condition that was the basis for the
 determination.
 Sec. 374.019.  COMMON OWNER PROPERTY. For the purposes of
 this chapter and Chapter 21, Property Code, if a municipality
 determines that two or more contiguous units of real property that
 are owned by the same person have the characteristics of blight, the
 municipality may treat those units of property as one unit of
 property.
 SECTION 15. Section 21.0111, Property Code, is amended to
 read as follows:
 Sec. 21.0111. DISCLOSURE OF CERTAIN INFORMATION REQUIRED;
 INITIAL OFFER. (a) An [A governmental] entity with eminent domain
 authority that wants to acquire real property for a public use
 shall, by certified mail, return receipt requested, disclose to the
 property owner at the time an offer to purchase or lease the
 property is made any and all [existing] appraisal reports produced
 or acquired by the [governmental] entity relating specifically to
 the owner's property and prepared in the 10 years preceding the
 [used in determining the final valuation] offer.
 (b) A property owner shall disclose to the [acquiring
 governmental] entity seeking to acquire the property any and all
 current and existing appraisal reports produced or acquired by the
 property owner relating specifically to the owner's property and
 used in determining the owner's opinion of value. Such disclosure
 shall take place not later than the earlier of:
 (1) the 10th day after the date [within 10 days] of
 receipt of an appraisal report; or
 (2)  the third business day before the date of a special
 commissioners hearing if an appraisal report is to be used at the
 hearing [reports but no later than 10 days prior to the special
 commissioner's hearing].
 (c)  An entity seeking to acquire property that the entity is
 authorized to obtain through the use of eminent domain may not
 include a confidentiality provision in an offer or agreement to
 acquire the property. The entity shall inform the owner of the
 property that the owner has the right to:
 (1)  discuss any offer or agreement regarding the
 entity's acquisition of the property with others; or
 (2)  keep the offer or agreement confidential, unless
 the offer or agreement is subject to Chapter 552, Government Code.
 (d) A subsequent bona fide purchaser for value from the
 acquiring [governmental] entity may conclusively presume that the
 requirement of this section has been met. This section does not
 apply to acquisitions of real property for which an [a
 governmental] entity does not have eminent domain authority.
 SECTION 16. Subchapter B, Chapter 21, Property Code, is
 amended by adding Section 21.0113 to read as follows:
 Sec. 21.0113.  BONA FIDE OFFER REQUIRED.  (a)  An entity
 with eminent domain authority that wants to acquire real property
 for a public use must make a bona fide offer to acquire the property
 from the property owner voluntarily.
 (b)  An entity with eminent domain authority has made a bona
 fide offer if:
 (1)  an initial offer is made in writing to a property
 owner;
 (2)  a final offer is made in writing to the property
 owner;
 (3)  the final offer is made on or after the 30th day
 after the date on which the entity makes a written initial offer to
 the property owner;
 (4)  before making a final offer, the entity obtains a
 written appraisal from a certified appraiser of the value of the
 property being acquired and the damages, if any, to any remaining
 property;
 (5)  the final offer is equal to or greater than the
 amount of the written appraisal obtained by the entity;
 (6)  the following items are included with the final
 offer or have been previously provided to the owner by the entity:
 (A) a copy of the written appraisal;
 (B)  a copy of the deed, easement, or other
 instrument conveying the property sought to be acquired; and
 (C) a landowner's bill of rights statement; and
 (7)  the entity provides the property owner with at
 least 14 days to respond to the final offer and the property owner
 does not agree to the terms of the final offer within that time.
 SECTION 17. Section 21.012, Property Code, is amended to
 read as follows:
 Sec. 21.012. CONDEMNATION PETITION. (a) If an entity [the
 United States, this state, a political subdivision of this state, a
 corporation] with eminent domain authority[, or an irrigation,
 water improvement, or water power control district created by law]
 wants to acquire real property for public use but is unable to agree
 with the owner of the property on the amount of damages, the
 [condemning] entity may begin a condemnation proceeding by filing a
 petition in the proper court.
 (b) The petition must:
 (1) describe the property to be condemned;
 (2) state with specificity the public use [purpose]
 for which the entity intends to acquire [use] the property;
 (3) state the name of the owner of the property if the
 owner is known;
 (4) state that the entity and the property owner are
 unable to agree on the damages; [and]
 (5) if applicable, state that the entity provided the
 property owner with the landowner's bill of rights statement in
 accordance with Section 21.0112; and
 (6)  state that the entity made a bona fide offer to
 acquire the property from the property owner voluntarily.
 (c)  An entity that files a petition under this section must
 provide a copy of the petition to the property owner by certified
 mail, return receipt requested.
 SECTION 18. Subsection (a), Section 21.014, Property Code,
 is amended to read as follows:
 (a) The judge of a court in which a condemnation petition is
 filed or to which an eminent domain case is assigned shall appoint
 three disinterested real property owners [freeholders] who reside
 in the county as special commissioners to assess the damages of the
 owner of the property being condemned. The judge appointing the
 special commissioners shall give preference to persons agreed on by
 the parties. The judge shall provide each party a reasonable period
 to strike one of the three commissioners appointed by the judge. If
 a person fails to serve as a commissioner or is struck by a party to
 the suit, the judge shall [may] appoint a replacement.
 SECTION 19. Subsection (a), Section 21.015, Property Code,
 is amended to read as follows:
 (a) The special commissioners in an eminent domain
 proceeding shall promptly schedule a hearing for the parties at the
 earliest practical time but may not schedule a hearing to assess
 damages before the 20th day after the date the special
 commissioners were appointed.  The special commissioners shall
 schedule a hearing for the parties [and] at a place that is as near
 as practical to the property being condemned or at the county seat
 of the county in which the proceeding is being held.
 SECTION 20. Subsection (b), Section 21.016, Property Code,
 is amended to read as follows:
 (b) Notice of the hearing must be served on a party not later
 than the 20th [11th] day before the day set for the hearing. A
 person competent to testify may serve the notice.
 SECTION 21. Section 21.023, Property Code, is amended to
 read as follows:
 Sec. 21.023. DISCLOSURE OF INFORMATION REQUIRED AT TIME OF
 ACQUISITION. An [A governmental] entity with eminent domain
 authority shall disclose in writing to the property owner, at the
 time of acquisition of the property through eminent domain, that:
 (1) the owner or the owner's heirs, successors, or
 assigns may be [are] entitled to:
 (A) repurchase the property under Subchapter E
 [if the public use for which the property was acquired through
 eminent domain is canceled before the 10th anniversary of the date
 of acquisition]; or
 (B)  request from the entity certain information
 relating to the use of the property and any actual progress made
 toward that use; and
 (2) the repurchase price is the lesser of:
 (A)  the price paid to the owner by the entity at
 the time the entity acquired the property through eminent domain;
 or
 (B) the fair market value of the property at the
 time the public use was canceled.
 SECTION 22. Subchapter B, Chapter 21, Property Code, is
 amended by adding Section 21.025 to read as follows:
 Sec. 21.025.  PRODUCTION OF INFORMATION BY CERTAIN ENTITIES.
 (a)  Notwithstanding any other law, an entity that is not subject
 to Chapter 552, Government Code, and is authorized by law to acquire
 private property through the use of eminent domain is required to
 produce information as provided by this section if the information
 is:
 (1)  requested by a person who owns property that is the
 subject of a proposed or existing eminent domain proceeding; and
 (2)  related to the taking of the person's private
 property by the entity through the use of eminent domain.
 (b)  An entity described by Subsection (a) is required under
 this section only to produce information relating to the
 condemnation of the specific property owned by the requestor as
 described in the request. A request under this section must contain
 sufficient details to allow the entity to identify the specific
 tract of land in relation to which the information is sought.
 (c)  The entity shall respond to a request in accordance with
 the Texas Rules of Civil Procedure as if the request was made in a
 matter pending before a state district court.
 (d)  Exceptions to disclosure provided by this chapter and
 the Texas Rules of Civil Procedure apply to the disclosure of
 information under this section.
 (e)  Jurisdiction to enforce the provisions of this section
 resides in:
 (1)  the court in which the condemnation was initiated;
 or
 (2)  if the condemnation proceeding has not been
 initiated:
 (A)  a court that would have jurisdiction over a
 proceeding to condemn the requestor's property; or
 (B)  a court with eminent domain jurisdiction in
 the county in which the entity has its principal place of business.
 (f)  If the entity refuses to produce information requested
 in accordance with this section and the court determines that the
 refusal violates this section, the court may award the requestor's
 reasonable attorney's fees incurred to compel the production of the
 information.
 SECTION 23. Section 21.041, Property Code, is amended to
 read as follows:
 Sec. 21.041. EVIDENCE. 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, including, if
 the condemnation makes relocation of a homestead or farm necessary,
 the financial damages associated with the cost of relocating from
 the condemned property to another property that allows the property
 owner, without the necessity of incurring an amount of debt, debt
 service, or total projected interest obligation that is higher than
 the property owner was subject to immediately before the
 condemnation, to:
 (A)  have a standard of living comparable to the
 property owner's standard of living immediately before the
 condemnation, if the condemned property is a homestead that is
 habitable; or
 (B)  operate a comparable farm, if the condemned
 property is a farm;
 (3) the benefit to the property owner's remaining
 property; and
 (4) the use of the property for the purpose of the
 condemnation.
 SECTION 24. Subsection (d), Section 21.042, Property Code,
 is amended to read as follows:
 (d) In estimating injury or benefit under Subsection (c),
 the special commissioners shall consider an injury or benefit that
 is peculiar to the property owner, including the property owner's
 financial damages described by Section 21.041(2), and that relates
 to the property owner's ownership, use, or enjoyment of the
 particular parcel of real property, including a material impairment
 of direct access on or off the remaining property that affects the
 market value of the remaining property, but they may not consider an
 injury or benefit that the property owner experiences in common
 with the general community, including circuity of travel and
 diversion of traffic.  In this subsection, "direct access" means
 ingress and egress on or off a public road, street, or highway at a
 location or locations where the remaining property adjoins that
 road, street, or highway.
 SECTION 25. Subsections (a) and (b), Section 21.046,
 Property Code, are amended to read as follows:
 (a) A department, agency, instrumentality, or political
 subdivision of this state shall [may] provide a relocation advisory
 service for an individual, a family, a business concern, a farming
 or ranching operation, or a nonprofit organization that [if the
 service] is compatible with the Federal Uniform Relocation
 Assistance and Real Property Acquisition Policies Act of 1970
 [Advisory Program], 42 U.S.C.A. 4601 [23 U.S.C.A. 501], et seq.
 (b) This state or a political subdivision of this state
 shall [may], as a cost of acquiring real property, pay moving
 expenses and rental supplements, make relocation payments, provide
 financial assistance to acquire replacement housing, and
 compensate for expenses incidental to the transfer of the property
 if an individual, a family, the personal property of a business, a
 farming or ranching operation, or a nonprofit organization is
 displaced in connection with the acquisition.
 SECTION 26. The heading to Section 21.047, Property Code,
 is amended to read as follows:
 Sec. 21.047. ASSESSMENT OF COSTS AND FEES.
 SECTION 27. Section 21.047, Property Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  If a court hearing a suit under this chapter determines
 that a condemnor did not make a bona fide offer to acquire the
 property from the property owner voluntarily as required by Section
 21.0113, the court shall abate the suit, order the condemnor to make
 a bona fide offer, and order the condemnor to pay:
 (1) all costs as provided by Subsection (a); and
 (2)  any reasonable attorney's fees and other
 professional fees incurred by the property owner that are directly
 related to the violation.
 SECTION 28. Subchapter E, Chapter 21, Property Code, is
 amended to read as follows:
 SUBCHAPTER E. REPURCHASE OF REAL PROPERTY FROM CONDEMNING
 [GOVERNMENTAL] ENTITY
 Sec. 21.101. RIGHT OF REPURCHASE [APPLICABILITY]. (a) A
 person from whom [Except as provided in Subsection (b), this
 subchapter applies only to] a real property interest is acquired by
 an [a governmental] entity through eminent domain for a public use,
 or that person's heirs, successors, or assigns, is entitled to
 repurchase the property as provided by this subchapter if:
 (1)  the public use for which the property was acquired
 through eminent domain is [that was] canceled before the property
 is used for that public use;
 (2)  no actual progress is made toward the public use
 for which the property was acquired between the date of acquisition
 and the 10th anniversary of that date; or
 (3)  the property becomes unnecessary for the public
 use for which the property was acquired, or a substantially similar
 public use, before the 10th anniversary of the date of acquisition.
 (b) In this section, "actual progress" means the completion
 of two or more of the following actions:
 (1)  the performance of a significant amount of labor
 to develop the property or other property acquired for the same
 public use project for which the property owner's property was
 acquired;
 (2)  the furnishing of a significant amount of
 materials to develop the property or other property acquired for
 the same public use project for which the property owner's property
 was acquired;
 (3)  the hiring of and performance of a significant
 amount of work by an architect, engineer, or surveyor to prepare a
 plan or plat that includes the property or other property acquired
 for the same public use project for which the property owner's
 property was acquired;
 (4)  application for state or federal funds to develop
 the property or other property acquired for the same public use
 project for which the property owner's property was acquired;
 (5)  application for a state or federal permit to
 develop the property or other property acquired for the same public
 use project for which the property owner's property was acquired;
 (6)  the acquisition of a tract or parcel of real
 property adjacent to the property for the same public use project
 for which the owner's property was acquired; or
 (7)  for a governmental entity, the adoption by a
 majority of the entity's governing body at a public hearing of a
 development plan for a public use project that indicates that the
 entity will not complete more than one action described by
 Subdivisions (1)-(6) within 10 years of acquisition of the property
 [This subchapter does not apply to a right-of-way under the
 jurisdiction of:
 [(1) a county;
 [(2) a municipality; or
 [(3) the Texas Department of Transportation].
 (c)  A district court may determine all issues in any suit
 regarding the repurchase of a real property interest acquired
 through eminent domain by the former property owner or the owner's
 heirs, successors, or assigns.
 Sec. 21.102. NOTICE TO PREVIOUS PROPERTY OWNER REQUIRED [AT
 TIME OF CANCELLATION OF PUBLIC USE]. Not later than the 180th day
 after the date an entity that acquired a real property interest
 through eminent domain determines that the former property owner is
 entitled to repurchase the property under Section 21.101 [of the
 cancellation of the public use for which real property was acquired
 through eminent domain from a property owner under Subchapter B],
 the [governmental] entity shall send by certified mail, return
 receipt requested, to the property owner or the owner's heirs,
 successors, or assigns a notice containing:
 (1) an identification, which is not required to be a
 legal description, of the property that was acquired;
 (2) an identification of the public use for which the
 property had been acquired and a statement that:
 (A) the public use was [has been] canceled before
 the property was used for the public use;
 (B)  no actual progress was made toward the public
 use; or
 (C)  the property became unnecessary for the
 public use, or a substantially similar public use, before the 10th
 anniversary of the date of acquisition; and
 (3) a description of the person's right under this
 subchapter to repurchase the property.
 Sec. 21.1021.  REQUESTS FOR INFORMATION REGARDING CONDEMNED
 PROPERTY.  (a)  On or after the 10th anniversary of the date on
 which real property was acquired by an entity through eminent
 domain, a property owner or the owner's heirs, successors, or
 assigns may request that the condemning entity make a determination
 and provide a statement and other relevant information regarding:
 (1)  whether the public use for which the property was
 acquired was canceled before the property was used for the public
 use;
 (2)  whether any actual progress was made toward the
 public use between the date of acquisition and the 10th anniversary
 of that date, including an itemized description of the progress
 made, if applicable; and
 (3)  whether the property became unnecessary for the
 public use, or a substantially similar public use, before the 10th
 anniversary of the date of acquisition.
 (b)  A request under this section must contain sufficient
 detail to allow the entity to identify the specific tract of land in
 relation to which the information is sought.
 (c)  Not later than the 90th day following the receipt of the
 request for information, the entity shall send a written response
 by certified mail, return receipt requested, to the requestor.
 Sec. 21.103. RESALE OF PROPERTY; PRICE. (a) Not later
 than the 180th day after the date of the postmark on a [the] notice
 sent under Section 21.102 or a response to a request made under
 Section 21.1021 that indicates that the property owner or the
 owner's heirs, successors, or assigns is entitled to repurchase the
 property interest in accordance with Section 21.101, the property
 owner or the owner's heirs, successors, or assigns must notify the
 [governmental] entity of the person's intent to repurchase the
 property interest under this subchapter.
 (b) As soon as practicable after receipt of a notice of
 intent to repurchase [the notification] under Subsection (a), the
 [governmental] entity shall offer to sell the property interest to
 the person for the lesser of the price paid to the owner by the
 entity at the time the entity acquired the property through eminent
 domain or the fair market value of the property at the time the
 public use was canceled. The person's right to repurchase the
 property expires on the 90th day after the date on which the
 [governmental] entity makes the offer.
 SECTION 29. Section 311.002, Tax Code, is amended by adding
 Subdivision (5) to read as follows:
 (5)  "Blighted area" has the meaning assigned by
 Section 374.003(3), Local Government Code.
 SECTION 30. Subsections (b) and (e), Section 311.008, Tax
 Code, are amended to read as follows:
 (b) A municipality or county may exercise any power
 necessary and convenient to carry out this chapter, including the
 power to:
 (1) cause project plans to be prepared, approve and
 implement the plans, and otherwise achieve the purposes of the
 plan;
 (2) acquire real property by purchase[, condemnation,
 or other means] to implement project plans and sell that property on
 the terms and conditions and in the manner it considers advisable;
 (3) enter into agreements, including agreements with
 bondholders, determined by the governing body of the municipality
 or county to be necessary or convenient to implement project plans
 and achieve their purposes, which agreements may include
 conditions, restrictions, or covenants that run with the land or
 that by other means regulate or restrict the use of land; and
 (4) consistent with the project plan for the zone:
 (A) acquire [blighted, deteriorated,
 deteriorating, undeveloped, or inappropriately developed] real
 property or other property in a blighted area, in an undeveloped
 area, or in a federally assisted new community in the zone for the
 preservation or restoration of historic sites, beautification or
 conservation, the provision of public works or public facilities,
 or other public purposes;
 (B) acquire, construct, reconstruct, or install
 public works, facilities, or sites or other public improvements,
 including utilities, streets, street lights, water and sewer
 facilities, pedestrian malls and walkways, parks, flood and
 drainage facilities, or parking facilities, but not including
 educational facilities; [or]
 (C) in a reinvestment zone created on or before
 September 1, 1999, acquire, construct, or reconstruct educational
 facilities in the municipality; or
 (D)  acquire by condemnation any interest,
 including a fee simple interest, in real property that is a blighted
 area and necessary for the reinvestment zone.
 (e) A municipality or county may acquire by condemnation an
 interest in real property only if the taking is in accordance with
 Chapter 2206, Government Code. [The implementation of a project
 plan to alleviate a condition described by Section 311.005(a)(1),
 (2), or (3) and to promote development or redevelopment of a
 reinvestment zone in accordance with this chapter serves a public
 purpose.]
 SECTION 31. Section 202.021, Transportation Code, is
 amended by adding Subsection (j) to read as follows:
 (j)  The standard for determination of the fair value of the
 state's interest in access rights to a highway right-of-way is the
 same legal standard that is applied by the commission in the:
 (1)  acquisition of access rights under Subchapter D,
 Chapter 203; and
 (2)  payment of damages in the exercise of the
 authority, under Subchapter C, Chapter 203, for impairment of
 highway access to or from real property where the real property
 adjoins the highway.
 SECTION 32. Section 54.209, Water Code, is amended to read
 as follows:
 Sec. 54.209. LIMITATION ON USE OF EMINENT DOMAIN. A
 district may not exercise the power of eminent domain outside the
 district boundaries to acquire:
 (1) a site for a water treatment plant, water storage
 facility, wastewater treatment plant, or wastewater disposal
 plant;
 (2) a site for a park, swimming pool, or other
 recreational facility, as defined by Section 49.462 [except a
 trail];
 (3) [a site for a trail on real property designated as
 a homestead as defined by Section 41.002, Property Code; or
 [(4)] an exclusive easement through a county regional
 park; or
 (4) a site or easement for a road project.
 SECTION 33. Chapter 178 (S.B. 289), Acts of the 56th
 Legislature, Regular Session, 1959 (Article 3183b-1, Vernon's
 Texas Civil Statutes), is amended by adding Section 7 to read as
 follows:
 Sec. 7. (a) In this section:
 (1)  "Associated low-density multifamily residential
 housing" means housing that is located in a residential
 neighborhood or is shown to be an adjunct, section, or other
 integral part of a residential neighborhood, including townhouses,
 patio homes, triplexes, quadruplexes, or other low-rise housing of
 no more than four stories.
 (2)  "Blockbusting activity" means an avoidable act or
 omission by a medical center condemning entity or the entity's
 members that is intended to cause, or foreseeably will cause, a
 substantial reduction of residential-use property values in a
 residential area, whether in anticipation of sale to the entity or
 the entity's members or otherwise, including an act or omission:
 (A)  having the effect of increasing traffic,
 noise, or light intrusion;
 (B)  involving demolition of improvements or
 property; or
 (C)  allowing improved property to become
 blighted.
 (3)  "Deed-restricted residential subdivision" means a
 subdivision, including all of its sections, annexes, extensions, or
 other additional associated parcels or tracts, that is governed by
 deed restrictions that restrict the property to residential use and
 consists of lots for single-family dwellings and associated
 low-density multifamily residential housing within the
 subdivision.
 (4) "Medical center condemning entity" means:
 (A)  a charitable corporation having the power of
 eminent domain under Section 1 of this Act; or
 (B)  an entity that has the authority to purchase,
 lease, or otherwise use or occupy property acquired by a charitable
 corporation having the power of eminent domain under Section 1 of
 this Act.
 (5)  "Predominately single-family residential
 subdivision or generally recognized residential area" means an area
 consisting predominately of single-family dwellings and associated
 low-density multifamily residential housing, without regard to
 whether the subdivision or area is governed by deed restrictions.
 (6)  "Property owners' association" means a property
 owners' association as defined by Section 202.001, Property Code,
 or described by Section 204.004, Property Code.
 (7) "Residential litigant" means:
 (A)  a property owners' association representing
 a residential neighborhood affected by acts or omissions regulated
 under this section or a residential neighborhood bordering an
 affected residential neighborhood;
 (B)  a special district in which more than 50
 percent of the landowners reside in single-family dwellings in the
 district; or
 (C) any affected residential landowner.
 (8) "Residential neighborhood" means:
 (A) a deed-restricted residential subdivision;
 (B)  a predominately single-family residential
 subdivision or generally recognized residential area; or
 (C) a combination of those subdivisions or areas.
 (9) "Single-family dwelling" means:
 (A)  a lot containing one building designed for
 and containing not more than two separate units with facilities for
 living, sleeping, cooking, and eating;
 (B)  a lot on which is located a freestanding
 building containing one dwelling unit and a detached secondary
 dwelling unit of not more than 900 square feet; or
 (C)  a building that contains one dwelling unit on
 one lot that is connected by a party wall to another building
 containing one dwelling unit on an adjacent lot.
 (b) A charitable corporation subject to this Act may not:
 (1)  exercise the power of eminent domain and
 condemnation to acquire property in any residential neighborhood;
 (2)  otherwise acquire property in a residential
 neighborhood, directly or through an agent or trustee, for future
 use; or
 (3)  acquire residential property if the value of the
 property has been materially diminished by blockbusting activity.
 (c)  Within a reasonable time on or before September 1, 2010,
 a medical center condemning entity that, on September 1, 2009,
 holds any property acquired in a residential neighborhood for
 future use shall sell the property. Property sold under this
 subsection must be made subject to a deed restriction requiring the
 property to be restored to the property's former status as a bona
 fide single-family dwelling or, if applicable, reintegrated into
 its original deed-restricted residential subdivision.
 (d)  For the purposes of Subsections (b)(2) and (c), property
 is acquired for future use if the charitable corporation or a member
 of the corporation does not have a plan for the specific, immediate
 use of the property. For property acquired on or after September 1,
 2009, if substantial construction of permanent medical facilities
 designed to deliver health care for the use and benefit of the
 public, excluding surface parking not related to the medical
 facilities, has not commenced on the property before the second
 anniversary of the property's acquisition, the property is
 considered to be property acquired for future use. For property
 acquired before September 1, 2009, if substantial construction of
 permanent medical facilities designed to deliver health care for
 the use and benefit of the public, excluding surface parking not
 related to the medical facilities, has not commenced on the
 property before September 1, 2010, the property is considered to be
 property acquired for future use.
 (e)  A medical center condemning entity or the entity's
 members may not purchase property, by private contract or
 otherwise, in a residential neighborhood if the property values in
 the neighborhood have been substantially diminished by
 blockbusting activity.
 (f)  A medical center condemning entity shall remediate the
 effects of parking facilities constructed on property owned by the
 entity that was acquired in a residential neighborhood after
 January 1, 2004, and that is located within a residential
 neighborhood or directly adjacent to a residential neighborhood.
 Remediation required by this subsection includes:
 (1)  the installation of louvers, screens, panels, or
 other permanent fixtures that reduce the level of light emitted
 from the parking garages to the same level of light emitted from the
 windows of offices or hospital facilities of the entity or its
 members that were constructed after January 1, 2004;
 (2)  landscaping with large evergreen trees and
 evergreen plants to mitigate, to the maximum practical extent, the
 adverse property value impact of the parking facilities on the
 adjoining residential neighborhood; and
 (3)  sound reduction measures to mitigate, to the
 maximum practical extent, the noise emitted from the parking
 facilities, as well as the noise generated by mechanical systems
 erected in conjunction with the parking facilities, on formerly
 residential property.
 (g)  A medical center condemning entity may not challenge the
 validity of a deed restriction in a condemnation proceeding or in
 contemplation of condemnation.
 (h)  This section does not limit any right expressly granted
 in a residential deed restriction that authorizes an express
 waiver, amendment, or variance with respect to the restrictions, as
 determined by the relevant property owners' association.
 (i) In an action under this section, a court shall:
 (1)  award litigation costs, including reasonable
 attorney's fees, witness fees, court costs, and other reasonable
 related expenses, to a residential litigant who:
 (A)  prevails in a suit seeking relief under this
 section, including money damages or equitable, declaratory, or
 other relief;
 (B)  brings an action under this section that
 causes or contributes to, directly or indirectly, a beneficial
 result to a residential neighborhood or to the public interest,
 notwithstanding which party may have prevailed on the merits; or
 (C)  is required to defend against claims arising
 out of actions or communications related to the provisions or
 purposes of this section; and
 (2)  periodically during the pendency of the
 litigation, on a showing of hardship, award interim costs of
 litigation to residential litigants who are claimants in the
 action.
 (j)  An award of interim litigation costs under Subsection
 (i)(2) is final and not subject to repayment.
 (k)  A court may not award litigation costs against a
 residential litigant who asserts a claim relating to or arising
 under this section or engages in actions or communications related
 to a right created by this section.
 (l)  Except as provided by Subsection (m), in addition to any
 other defense or immunity conferred by law, a residential litigant
 is not liable for money damages or subject to injunctive or
 declaratory relief based on:
 (1)  a decision by the residential litigant as an agent
 or representative of a property owners' association or a special
 district; or
 (2)  a communication by the residential litigant to a
 governmental agency, a public official, or the public information
 media relating to a matter reasonably of concern to a governmental
 agency or public official, any other person, or the public.
 (m)  Subsection (l) does not apply if the claimant
 establishes by clear and convincing evidence that the decision or
 communication of the residential litigant was not made in good
 faith.
 (n)  This section shall be liberally construed to effect its
 purposes, which are to:
 (1)  prevent the abuse of the power of eminent domain by
 a charitable corporation subject to this Act;
 (2) protect single-family residential neighborhoods;
 (3)  shield advocates of neighborhood integrity from
 economic coercion; and
 (4)  correct and remediate the effects of the abuse of
 condemnation authority used by a charitable corporation under this
 Act on or after January 1, 2004.
 SECTION 34. (a) Section 552.0037, Government Code, is
 repealed.
 (b) Subdivision (19), Section 374.003, and Section 374.016,
 Local Government Code, are repealed.
 (c) Section 21.024, Property Code, is repealed.
 (d) Subsection (c), Section 311.008, Tax Code, is repealed.
 (e) Section 49.2205, Water Code, is repealed.
 SECTION 35. Chapter 2206, Government Code, Chapters 373 and
 374, Local Government Code, Chapter 21, Property Code, and Chapter
 311, Tax Code, as amended by this Act, apply only to a condemnation
 proceeding in which the petition is filed on or after the effective
 date of this Act and to any property condemned through the
 proceeding. A condemnation proceeding in which the petition is
 filed before the effective date of this Act and any property
 condemned through the proceeding are governed by the law in effect
 immediately before that date, and that law is continued in effect
 for that purpose.
 SECTION 36. The change in law made by this Act to Section
 202.021, Transportation Code, applies only to a sale or transfer
 under that section that occurs on or after the effective date of
 this Act. A sale or transfer before the effective date of this Act
 is governed by the law applicable to the sale or transfer
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.
 SECTION 37. The changes in law made by this Act to Section
 54.209, Water Code, apply only to a condemnation proceeding in
 which the petition is filed on or after the effective date of this
 Act. A condemnation proceeding in which the petition is filed
 before the effective date of this Act is governed by the law in
 effect on the date the petition was filed, and that law is continued
 in effect for that purpose.
 SECTION 38. This Act takes effect September 1, 2009.