86R16328 AJA-F
By: Leman H.B. No. 4219
A BILL TO BE ENTITLED
AN ACT
relating to the enforceability of certain contracts to acquire real
property for a high-speed rail project.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 112, Transportation Code,
is amended by adding Section 112.0535 to read as follows:
Sec. 112.0535. CONTRACT TO ACQUIRE REAL PROPERTY UNDER
FALSE REPRESENTATION OF EMINENT DOMAIN AUTHORITY. (a) In this
section, "high-speed rail" has the meaning assigned by Section
112.201.
(b) A contract to acquire real property entered into by an
entity proposing to build a high-speed rail project is voidable by
the property owner if:
(1) before the execution of the contract, the entity
represented to the property owner that the entity had the authority
to acquire the property through eminent domain; and
(2) after the execution of the contract, a court
enters a final judgment declaring that the entity does not have
eminent domain authority.
(c) A property owner who voids a contract under this section
is entitled to retain any money paid by the entity to the property
owner before the contract is voided.
(d) Not later than the 90th day after the date of the final
judgment described by Subsection (b)(2), the entity that is subject
to the final judgment shall provide written notice by certified
mail to each property owner with whom the entity entered into a
contract described by Subsection (b) informing the property owner
of the property owner's right to void the contract.
(e) To void a contract under this section, a property owner
must, not later than the 120th day after the date the property owner
receives the notice required by Subsection (d), provide notice to
the entity that the property owner is voiding the contract.
(f) An entity subject to a final judgment described by
Subsection (b)(2) may not exercise the entity's rights under a
contract described by Subsection (b) before the expiration of the
120-day period provided by Subsection (e).
SECTION 2. This Act takes effect September 1, 2019.