| 1 | 1 | | 85R4646 BEE-F |
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| 2 | 2 | | By: Kolkhorst S.B. No. 741 |
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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 compensation to a property owner for property acquired |
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| 8 | 8 | | by an entity with eminent 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 21.0113, Property Code, is amended by |
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| 11 | 11 | | adding Subsection (c) to read as follows: |
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| 12 | 12 | | (c) For purposes of this section, a bona fide offer may |
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| 13 | 13 | | include compensation to the property owner in the form of a royalty |
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| 14 | 14 | | or percentage of the net profits generated from the project |
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| 15 | 15 | | necessitating the acquisition. |
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| 16 | 16 | | SECTION 2. Section 21.041, Property Code, is amended to |
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| 17 | 17 | | read as follows: |
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| 18 | 18 | | Sec. 21.041. EVIDENCE. (a) As the basis for assessing |
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| 19 | 19 | | actual damages to a property owner from a condemnation, the special |
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| 20 | 20 | | commissioners shall admit evidence on: |
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| 21 | 21 | | (1) the value of the property being condemned; |
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| 22 | 22 | | (2) the injury to the property owner; |
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| 23 | 23 | | (3) the benefit to the property owner's remaining |
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| 24 | 24 | | property; [and] |
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| 25 | 25 | | (4) the use of the property for the purpose of the |
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| 26 | 26 | | condemnation; and |
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| 27 | 27 | | (5) the value of any compensation described by Section |
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| 28 | 28 | | 21.0113(c) that the condemning entity has offered the property |
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| 29 | 29 | | owner in connection with the proposed condemnation. |
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| 30 | 30 | | (b) The special commissioners may admit evidence on the |
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| 31 | 31 | | price paid for pipeline or power line rights-of-way in privately |
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| 32 | 32 | | negotiated transactions made in the absence of a potential, actual, |
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| 33 | 33 | | or threatened condemnation. |
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| 34 | 34 | | SECTION 3. (a) Except as provided by Subsection (b) of this |
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| 35 | 35 | | section, Sections 21.0113 and 21.041, Property Code, as amended by |
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| 36 | 36 | | this Act, apply only to the acquisition of real property in |
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| 37 | 37 | | connection with an initial offer made under Section 21.0113, |
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| 38 | 38 | | Property Code, on or after the effective date of this Act. An |
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| 39 | 39 | | acquisition of real property in connection with an initial offer |
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| 40 | 40 | | made under Section 21.0113, Property Code, before the effective |
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| 41 | 41 | | date of this Act is governed by the law applicable to the |
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| 42 | 42 | | acquisition immediately before the effective date of this Act, and |
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| 43 | 43 | | that law is continued in effect for that purpose. |
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| 44 | 44 | | (b) Section 21.041(b), Property Code, as added by this Act, |
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| 45 | 45 | | applies only to an eminent domain proceeding commenced on or after |
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| 46 | 46 | | the effective date of this Act. An eminent domain proceeding |
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| 47 | 47 | | commenced before the effective date of this Act is governed by the |
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| 48 | 48 | | law applicable to the proceeding immediately before the effective |
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| 49 | 49 | | date of this Act, and that law is continued in effect for that |
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| 50 | 50 | | purpose. |
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| 51 | 51 | | SECTION 4. This Act takes effect September 1, 2017. |
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