| 1 | 1 | | 86R16328 AJA-F |
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| 2 | 2 | | By: Leman H.B. No. 4219 |
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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 enforceability of certain contracts to acquire real |
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| 8 | 8 | | property for a high-speed rail project. |
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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. Subchapter B, Chapter 112, Transportation Code, |
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| 11 | 11 | | is amended by adding Section 112.0535 to read as follows: |
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| 12 | 12 | | Sec. 112.0535. CONTRACT TO ACQUIRE REAL PROPERTY UNDER |
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| 13 | 13 | | FALSE REPRESENTATION OF EMINENT DOMAIN AUTHORITY. (a) In this |
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| 14 | 14 | | section, "high-speed rail" has the meaning assigned by Section |
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| 15 | 15 | | 112.201. |
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| 16 | 16 | | (b) A contract to acquire real property entered into by an |
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| 17 | 17 | | entity proposing to build a high-speed rail project is voidable by |
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| 18 | 18 | | the property owner if: |
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| 19 | 19 | | (1) before the execution of the contract, the entity |
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| 20 | 20 | | represented to the property owner that the entity had the authority |
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| 21 | 21 | | to acquire the property through eminent domain; and |
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| 22 | 22 | | (2) after the execution of the contract, a court |
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| 23 | 23 | | enters a final judgment declaring that the entity does not have |
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| 24 | 24 | | eminent domain authority. |
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| 25 | 25 | | (c) A property owner who voids a contract under this section |
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| 26 | 26 | | is entitled to retain any money paid by the entity to the property |
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| 27 | 27 | | owner before the contract is voided. |
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| 28 | 28 | | (d) Not later than the 90th day after the date of the final |
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| 29 | 29 | | judgment described by Subsection (b)(2), the entity that is subject |
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| 30 | 30 | | to the final judgment shall provide written notice by certified |
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| 31 | 31 | | mail to each property owner with whom the entity entered into a |
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| 32 | 32 | | contract described by Subsection (b) informing the property owner |
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| 33 | 33 | | of the property owner's right to void the contract. |
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| 34 | 34 | | (e) To void a contract under this section, a property owner |
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| 35 | 35 | | must, not later than the 120th day after the date the property owner |
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| 36 | 36 | | receives the notice required by Subsection (d), provide notice to |
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| 37 | 37 | | the entity that the property owner is voiding the contract. |
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| 38 | 38 | | (f) An entity subject to a final judgment described by |
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| 39 | 39 | | Subsection (b)(2) may not exercise the entity's rights under a |
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| 40 | 40 | | contract described by Subsection (b) before the expiration of the |
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| 41 | 41 | | 120-day period provided by Subsection (e). |
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| 42 | 42 | | SECTION 2. This Act takes effect September 1, 2019. |
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