82R10002 PMO-D
By: Simpson H.B. No. 2356
A BILL TO BE ENTITLED
AN ACT
relating to the exercise of the power of eminent domain by certain
private entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 111.019(b), Natural Resources Code, is
amended to read as follows:
(b) In the exercise of the power of eminent domain granted
under the provisions of Subsection (a) of this section, a common
carrier:
(1) may enter on and condemn the land, rights-of-way,
easements, and property of any person or corporation necessary for
the construction, maintenance, or operation of the common carrier
pipeline and only to transport commodities authorized under this
chapter; and
(2) may not enter on or condemn the land,
rights-of-way, easements, and property of any person or
corporation:
(A) only for business administration or
management purposes;
(B) to explore for, produce, or process
commodities authorized to be transported under this chapter by the
common carrier; or
(C) to transport or dispose of oil and gas waste
as defined by Section 91.1011.
SECTION 2. Section 111.0192(b), Natural Resources Code, is
amended to read as follows:
(b) The right of eminent domain granted under this chapter
to any pipeline transporting coal in whatever form shall not
include the power to take land or any interest in land, by exercise
of the power of eminent domain, for the purpose of drilling for,
mining, or producing any oil, gas, geothermal,
geothermal/geopressured, lignite, coal, sulphur, uranium,
plutonium, or other mineral. Subject to Section 111.019(b), [but]
this provision does not impair the right of any such entity to
acquire title to real property for pipelines, including cooling
ponds and related surface installations and equipment.
SECTION 3. Section 161.121, Utilities Code, is amended to
read as follows:
Sec. 161.121. GENERAL POWERS. An electric cooperative may:
(1) sue and be sued in its corporate name;
(2) adopt and alter a corporate seal and use the seal
or a facsimile of the seal as required by law;
(3) acquire, own, hold, maintain, exchange, or use
property or an interest in property, including plants, buildings,
works, machinery, supplies, equipment, apparatus, and transmission
and distribution lines or systems that are necessary, convenient,
or useful, except as provided by Section 161.125;
(4) dispose of, mortgage, or lease as lessor any of its
property or assets;
(5) borrow money and otherwise contract indebtedness,
issue obligations for its indebtedness, and secure the payment of
indebtedness by mortgage, pledge, or deed of trust on any or all of
its property or revenue;
(6) accept gifts or grants of money, services, or
property;
(7) make any contracts necessary or convenient for the
exercise of the powers granted by this chapter;
(8) conduct its business and have offices inside or
outside this state;
(9) adopt and amend bylaws not inconsistent with the
articles of incorporation for the administration and regulation of
the affairs of the cooperative; and
(10) except as provided by Section 161.125, perform
any other acts for the cooperative or its members or for another
electric cooperative or its members, and exercise any other power,
that may be necessary, convenient, or appropriate to accomplish the
purpose for which the cooperative is organized, including other or
additional purposes that benefit members and nonmembers, either
directly or through affiliates, described in Sections 2.002 and
22.051, Business Organizations Code [Section A, Article 2.01, Texas
Non-Profit Corporation Act (Article 1396-2.01, Vernon's Texas
Civil Statutes)].
SECTION 4. Section 161.125, Utilities Code, is amended to
read as follows:
Sec. 161.125. EMINENT DOMAIN. (a) An electric cooperative
may exercise the power of eminent domain:
(1) to acquire real property only to transmit or
distribute electric energy; and
(2) in the manner provided by state law for acquiring
private property for public use.
(b) An electric cooperative may not exercise the power of
eminent domain to acquire real property to generate or accumulate
electric energy.
(c) The power does not apply to state property or property
of a political subdivision in this state.
SECTION 5. Section 163.013(a), Utilities Code, is amended
to read as follows:
(a) A participating entity may:
(1) use its means and assets to plan, acquire,
construct, own, operate, and maintain its interest in an electric
facility;
(2) issue bonds and other securities to raise money
for a purpose described by Subdivision (1) in the same manner and to
the same extent and subject to the same conditions as would be
applicable if the entity had sole ownership of the electric
facility;
(3) acquire, for the use and benefit of each
participating entity, land, easements, and property for an electric
facility by purchase or by exercising the power of eminent domain,
except as provided by Section 163.014; and
(4) transfer or otherwise convey the acquired land,
property, or property interest or otherwise cause the land,
property, or interest to become vested in other participating
entities to the extent to which and in the manner in which the
participating entities agree.
SECTION 6. Section 163.014, Utilities Code, is amended by
adding Subsection (f) to read as follows:
(f) A participating private entity may not exercise the
power of eminent domain to acquire real property for a purpose other
than to transmit or distribute electric energy.
SECTION 7. Sections 181.004, 181.007, and 181.008,
Utilities Code, are amended to read as follows:
Sec. 181.004. CONDEMNATION OF PROPERTY. A gas or electric
corporation has the right and power to enter on, condemn, and
appropriate the land, right-of-way, easement, or other property of
any person or corporation only to transport, transmit, or
distribute gas, electric current, or power.
Sec. 181.007. AUTHORITY TO HOLD LAND OR OTHER PROPERTY.
Except as provided by Section 181.004, a [A] gas or electric
corporation has the power to own, hold, or use land, a right-of-way,
an easement, a franchise, or a building or other structure as
necessary for the purpose of the corporation.
Sec. 181.008. AUTHORITY RELATING TO TRANSPORT OR SALE. (a)
Except as provided by Section 181.004, a [A] gas or electric
corporation has the power to generate, make, manufacture,
transport, and sell gas, electric current, and power to an
individual, the public, or a municipality for any purpose.
(b) A gas or electric corporation may:
(1) impose reasonable charges for an action taken
under Subsection (a); and
(2) except as provided by Section 181.004, construct,
maintain, and operate power plants and substations and any
machinery, apparatus, pipe, pole, wire, device, or arrangements as
necessary to operate its lines in this state.
SECTION 8. The changes in law made by this Act to Sections
111.019 and 111.0192, Natural Resources Code, and Sections 161.121,
161.125, 163.013, 163.014, 181.004, 181.007, and 181.008,
Utilities Code, 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 is
governed by the law in effect immediately before that date, and that
law is continued in effect for that purpose.
SECTION 9. This Act takes effect September 1, 2011.