1 | 1 | | 85R14355 BEE-F |
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2 | 2 | | By: Ashby H.B. No. 3687 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the acquisition of property by an entity with eminent |
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8 | 8 | | domain authority. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Section 21.0111, Property Code, is amended by |
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11 | 11 | | adding Subsection (a-1) to read as follows: |
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12 | 12 | | (a-1) After making an offer to which Subsection (a) applies, |
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13 | 13 | | the entity shall disclose to the property owner any new, amended, or |
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14 | 14 | | updated appraisal report produced or acquired by or on behalf of the |
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15 | 15 | | entity after making the offer and used in determining the entity's |
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16 | 16 | | opinion of value. A disclosure required by this subsection must be |
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17 | 17 | | made not later than the earlier of: |
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18 | 18 | | (1) the 10th day after the date the entity receives the |
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19 | 19 | | appraisal report; or |
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20 | 20 | | (2) the third business day before the date of a special |
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21 | 21 | | commissioner's hearing if the appraisal report is to be used at the |
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22 | 22 | | hearing. |
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23 | 23 | | SECTION 2. Section 21.0113, Property Code, is amended by |
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24 | 24 | | adding Subsection (c) to read as follows: |
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25 | 25 | | (c) For purposes of this section, the deed, easement, or |
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26 | 26 | | other instrument provided under Subsection (b)(6)(B) must include: |
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27 | 27 | | (1) for a pipeline right-of-way easement: |
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28 | 28 | | (A) the maximum number of pipelines that may be |
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29 | 29 | | installed in the right-of-way; |
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30 | 30 | | (B) the outside diameter of each pipeline to be |
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31 | 31 | | installed in the right-of-way; |
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32 | 32 | | (C) the type or category of each petroleum |
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33 | 33 | | product to be transported through the pipelines to be installed in |
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34 | 34 | | the right-of-way; |
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35 | 35 | | (D) a reasonable description of any use of the |
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36 | 36 | | surface of the right-of-way that the entity intends to acquire; |
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37 | 37 | | (E) a metes and bounds or center line description |
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38 | 38 | | of the location of the easement; |
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39 | 39 | | (F) the width of the easement; |
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40 | 40 | | (G) the depth of the pipeline and amount of |
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41 | 41 | | cover; |
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42 | 42 | | (H) a requirement to use the double-ditch method |
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43 | 43 | | for installation of the pipeline when not bore-drilled; |
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44 | 44 | | (I) a prohibition from transferring the easement |
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45 | 45 | | to any other entity, subsidiary, or company that does not have |
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46 | 46 | | eminent domain authority; |
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47 | 47 | | (J) a reservation of the property owner's right |
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48 | 48 | | to grant additional compatible easements in the easement area to |
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49 | 49 | | other parties; |
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50 | 50 | | (K) a limit on third-party access to the easement |
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51 | 51 | | area; |
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52 | 52 | | (L) a right to damages arising from construction, |
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53 | 53 | | maintenance, repair, replacement, or future removal of the pipeline |
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54 | 54 | | in the easement, including any damages to growing crops or |
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55 | 55 | | livestock; |
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56 | 56 | | (M) a covenant to lock and close all gates and |
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57 | 57 | | fences as necessary to prevent damage to or destruction of |
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58 | 58 | | livestock; |
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59 | 59 | | (N) a covenant to maintain the right-of-way; and |
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60 | 60 | | (O) a covenant to repair and restore areas used |
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61 | 61 | | or damaged outside the easement area to their original condition or |
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62 | 62 | | better; |
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63 | 63 | | (2) for an electrical transmission right-of-way |
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64 | 64 | | easement: |
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65 | 65 | | (A) the maximum number and spacing of the poles, |
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66 | 66 | | towers, or other support apparatus to carry electrical lines over |
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67 | 67 | | the easement; |
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68 | 68 | | (B) the maximum number and electrical carrying |
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69 | 69 | | capacity of the lines to be installed in the easement; |
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70 | 70 | | (C) a reasonable description of any use of the |
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71 | 71 | | surface of the right-of-way that the entity intends to acquire; |
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72 | 72 | | (D) a metes and bounds or center line description |
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73 | 73 | | of the location of the easement; |
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74 | 74 | | (E) the width of the easement; |
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75 | 75 | | (F) a reservation of the property owner's right |
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76 | 76 | | to grant additional compatible easements in the easement area to |
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77 | 77 | | other parties; |
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78 | 78 | | (G) a limit on third-party access to the easement |
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79 | 79 | | area; |
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80 | 80 | | (H) a right to damages arising from construction, |
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81 | 81 | | maintenance, repair, replacement, or future removal of lines and |
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82 | 82 | | support apparatus in the easement, including any damages to growing |
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83 | 83 | | crops or livestock; |
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84 | 84 | | (I) a covenant to lock and close all gates and |
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85 | 85 | | fences as necessary to prevent damage to or destruction of |
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86 | 86 | | livestock; |
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87 | 87 | | (J) a covenant to maintain the right-of-way; and |
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88 | 88 | | (K) a covenant to repair and restore areas used |
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89 | 89 | | or damaged outside the easement area to their original condition or |
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90 | 90 | | better; |
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91 | 91 | | (3) a prohibition against any use of the property |
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92 | 92 | | being conveyed, other than a use stated in the instrument, without |
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93 | 93 | | the express written consent of the property owner; |
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94 | 94 | | (4) a covenant that the entity will indemnify and hold |
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95 | 95 | | the property owner harmless against any claim brought against the |
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96 | 96 | | property owner arising out of or relating to the use of condemned |
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97 | 97 | | property by the entity or the entity's agents or contractors; and |
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98 | 98 | | (5) a covenant that the entity will secure and keep in |
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99 | 99 | | full force and effect at all times while the entity continues to use |
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100 | 100 | | the condemned property a policy or policies of liability insurance: |
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101 | 101 | | (A) issued by an insurer authorized to issue such |
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102 | 102 | | policies in this state; |
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103 | 103 | | (B) insuring the property owner against |
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104 | 104 | | liability for personal injuries and property damage sustained by |
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105 | 105 | | any person that arises from or is related to the use of the property |
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106 | 106 | | by the entity or the entity's agents or contractors; |
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107 | 107 | | (C) naming the property owner or the owner's |
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108 | 108 | | successor in title as an insured; and |
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109 | 109 | | (D) providing limits of liability as specified in |
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110 | 110 | | the instrument. |
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111 | 111 | | SECTION 3. Section 21.063, Property Code, is amended by |
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112 | 112 | | adding Subsections (c) and (d) to read as follows: |
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113 | 113 | | (c) As a condition of appealing the decision of a trial |
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114 | 114 | | court in a condemnation proceeding, a nongovernmental condemnor |
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115 | 115 | | shall: |
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116 | 116 | | (1) pay to the property owner the amount of just |
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117 | 117 | | compensation awarded by the trial court; |
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118 | 118 | | (2) deposit that same amount with the court subject to |
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119 | 119 | | the order of the property owner; or |
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120 | 120 | | (3) post a surety bond in the same amount issued by a |
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121 | 121 | | surety company authorized to engage in business in this state, |
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122 | 122 | | conditioned to secure the payment of the trial court's award of just |
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123 | 123 | | compensation. |
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124 | 124 | | (d) If the property owner moves to enforce Subsection (c) |
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125 | 125 | | and the nongovernmental condemnor fails to comply with that |
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126 | 126 | | subsection before the 30th day after the date the property owner's |
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127 | 127 | | motion is filed: |
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128 | 128 | | (1) the court of appeals shall dismiss the appeal with |
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129 | 129 | | prejudice and order enforcement of the final judgment; |
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130 | 130 | | (2) the nongovernmental condemnor and its assigns |
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131 | 131 | | shall lose the right to remain on the property owner's property, and |
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132 | 132 | | any interest of the nongovernmental condemnor or its assigns in the |
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133 | 133 | | property reverts to the property owner; and |
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134 | 134 | | (3) the property owner is entitled to: |
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135 | 135 | | (A) any damages attributable to the |
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136 | 136 | | nongovernmental condemnor's occupation of the property; |
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137 | 137 | | (B) all reasonable expenses incurred to |
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138 | 138 | | remediate the property; and |
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139 | 139 | | (C) all reasonable and necessary fees for |
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140 | 140 | | attorneys, appraisers, photographers, and other experts hired in |
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141 | 141 | | relation to the condemnation. |
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142 | 142 | | SECTION 4. Section 26.11(a), Tax Code, is amended to read as |
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143 | 143 | | follows: |
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144 | 144 | | (a) If the federal government, the state, or a political |
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145 | 145 | | subdivision of the state acquires the right to possession of |
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146 | 146 | | taxable property under a court order issued in condemnation |
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147 | 147 | | proceedings, assumes possession of taxable property under a |
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148 | 148 | | possession and use agreement, or a similar agreement, that is |
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149 | 149 | | entered into under threat of condemnation, or acquires title to |
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150 | 150 | | taxable property, the amount of the tax due on the property is |
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151 | 151 | | calculated by multiplying the amount of taxes imposed on the |
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152 | 152 | | property for the entire year as determined as provided by Section |
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153 | 153 | | 26.09 of this code by a fraction, the denominator of which is 365 |
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154 | 154 | | and the numerator of which is the number of days that elapsed prior |
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155 | 155 | | to the date of the conveyance, the effective date of the agreement, |
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156 | 156 | | or the date of the order granting the right of possession, as |
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157 | 157 | | applicable. |
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158 | 158 | | SECTION 5. (a) Sections 21.0111 and 21.0113, Property |
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159 | 159 | | Code, as amended by this Act, apply only to the acquisition of real |
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160 | 160 | | property in connection with an initial offer made under Section |
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161 | 161 | | 21.0113, Property Code, on or after the effective date of this Act. |
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162 | 162 | | An acquisition of real property in connection with an initial offer |
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163 | 163 | | made under Section 21.0113, Property Code, before the effective |
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164 | 164 | | date of this Act is governed by the law applicable to the |
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165 | 165 | | acquisition immediately before the effective date of this Act, and |
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166 | 166 | | that law is continued in effect for that purpose. |
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167 | 167 | | (b) Section 21.063, Property Code, as amended by this Act, |
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168 | 168 | | applies only to an appeal commenced on or after the effective date |
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169 | 169 | | of this Act. An appeal commenced before the effective date of this |
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170 | 170 | | Act is governed by the law applicable to the appeal immediately |
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171 | 171 | | before the effective date of this Act, and that law is continued in |
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172 | 172 | | effect for that purpose. |
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173 | 173 | | (c) Section 26.11, Tax Code, as amended by this Act, applies |
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174 | 174 | | only to an agreement entered into on or after the effective date of |
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175 | 175 | | this Act. An agreement entered into before the effective date of |
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176 | 176 | | this Act is governed by the law applicable to the agreement |
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177 | 177 | | immediately before the effective date of this Act, and that law is |
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178 | 178 | | continued in effect for that purpose. |
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179 | 179 | | SECTION 6. This Act takes effect September 1, 2017. |
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