Texas 2019 - 86th Regular

Texas Senate Bill SB421 Compare Versions

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11 By: Kolkhorst, et al. S.B. No. 421
2- (Craddick, Burns, Burrows, Phelan, et al.)
3- Substitute the following for S.B. No. 421: No.
42
53
64 A BILL TO BE ENTITLED
75 AN ACT
86 relating to the acquisition of real property by an entity with
97 eminent domain authority.
108 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
119 SECTION 1. Section 21.0113, Property Code, is amended by
12- adding Subsections (c), (d), (e), and (f) to read as follows:
10+ adding Subsections (c), (d), and (e) to read as follows:
1311 (c) Notwithstanding Subsection (b), a private entity, as
1412 defined by Section 21.031, with eminent domain authority that wants
15- to acquire real property for a public use through the exercise of
16- the power of eminent domain has made a bona fide offer only if the
17- entity:
13+ to acquire real property for a pipeline or electric transmission
14+ project has made a bona fide offer only if the entity:
1815 (1) satisfies the requirements of Subsection (b);
19- (2) includes with the initial offer:
20- (A) an offer of compensation in an amount equal
21- to or greater than:
16+ (2) includes in the initial offer:
17+ (A) an offer of just compensation in an amount
18+ equal to or greater than:
2219 (i) the market value of the property rights
23- sought to be acquired, including an estimate of damages to the
24- property owner's remaining property, if any, based on an appraisal
25- of the property prepared by a third party who is a certified general
26- appraiser licensed under Chapter 1103, Occupations Code;
27- (ii) the estimated price or market value of
28- the property rights sought to be acquired based on data for at least
29- three comparable arm's-length sales of a property based on data
30- then available to the appraiser, broker, or private entity, as
31- applicable, and based on:
32- (a) a comparative market analysis
33- prepared by a third party who is a real estate broker licensed under
34- Chapter 1101, Occupations Code, or a certified general appraiser
35- licensed under Chapter 1103, Occupations Code;
36- (b) a broker price opinion prepared by
37- a third party who is a real estate broker licensed under Chapter
38- 1101, Occupations Code; or
39- (c) a market study prepared by a third
40- party who is a real estate broker licensed under Chapter 1101,
41- Occupations Code, or a certified general appraiser licensed under
42- Chapter 1103, Occupations Code; or
43- (iii) 140 percent of the per acre value for
44- each acre or part of an acre sought to be acquired by the private
45- entity from the property owner, based on the total land value and
46- improvements, if any, for the affected property as reflected in the
47- most recent tax rolls of the central appraisal district in which the
48- property is located;
20+ sought to be acquired, including damages to any of the property
21+ owner's remaining property, if any, and other damages, if any,
22+ based on an appraisal of the property prepared by an independent
23+ certified general appraiser licensed under Chapter 1103,
24+ Occupations Code; or
25+ (ii) the estimated sales price of the
26+ property rights sought to be acquired based on data for at least
27+ three comparable arm's-length sales, including damages to any of
28+ the property owner's remaining property, if any, and other damages,
29+ if any, based on:
30+ (a) a comparative market analysis of
31+ the property affected by the rights sought, prepared by an
32+ independent real estate broker licensed under Chapter 1101,
33+ Occupations Code;
34+ (b) a broker price opinion of the
35+ property affected by the rights sought, prepared by an independent
36+ real estate broker licensed under Chapter 1101, Occupations Code;
37+ or
38+ (c) a market study of the property
39+ affected by the rights sought, prepared by an independent real
40+ estate broker licensed under Chapter 1101, Occupations Code;
4941 (B) the complete written report of the appraisal,
50- the comparative market analysis, the broker price opinion, the
51- market study, or a summary of the market study, as prepared by the
52- third party, or, if applicable, a description of the method
53- described by Paragraph (A)(iii) and the related information from
54- the central appraisal district, that forms the basis for the amount
55- of the offer of compensation under Paragraph (A);
56- (C) a deed, easement, agreement, or other
57- instrument of conveyance for the property rights sought that
58- complies with Section 21.0114(a) unless previously provided to the
59- property owner; and
60- (D) the landowner's bill of rights statement
61- prescribed by Section 21.0112, unless previously provided to the
62- property owner; and
63- (3) provides notice of the proposed project to the
64- constitutional county judge of each county that the project is
65- proposed to traverse not later than the time that an initial offer
66- is made to acquire property in the county in connection with the
67- project.
42+ the comparative market analysis, the broker price opinion, or the
43+ market study that forms the basis for the amount of the offer of
44+ compensation under Paragraph (A);
45+ (C) notice of the terms described by Section
46+ 21.0114(b) for which the property owner may negotiate to be
47+ included in a deed, easement, agreement, or other instrument of
48+ conveyance relating to the property;
49+ (D) notice that the property owner may also
50+ receive a final offer accompanied by a written appraisal; and
51+ (E) a copy of the notice of property owner
52+ information meeting required by Section 21.033, if applicable,
53+ unless the entity has previously provided a copy of the notice to
54+ the property owner;
55+ (3) participates in the property owner information
56+ meeting in the manner prescribed by Section 21.037, if applicable;
57+ (4) obtains for purposes of Subsection (b)(4) a
58+ written appraisal report from a certified appraiser; and
59+ (5) includes in the final offer a copy of the written
60+ appraisal report required by Subsection (b)(4) unless the entity
61+ has previously provided a copy of the report to the property owner.
6862 (d) For purposes of Subsection (c)(2)(A)(ii), a real estate
6963 broker licensed under Chapter 1101, Occupations Code, is authorized
70- to prepare an estimated price based on a comparative market
71- analysis, a broker price opinion, a market study, or a summary of
72- the market study.
73- (e) A private entity that provides to a property owner an
74- easement form that is generally consistent with the language or
75- provisions required by Section 21.0114(a) is considered to have
76- complied with Section 21.0114(a) for purposes of Subsection
77- (c)(2)(C), regardless of whether the private entity subsequently
78- provides to the property owner a different deed, easement,
79- agreement, or other instrument of conveyance as authorized under
80- Section 21.0114.
81- (f) Notwithstanding any other law, a private entity, as
82- defined by Section 21.031, with eminent domain authority that wants
83- to acquire real property for a public use may not, directly or
84- indirectly, offer or pay to an agent or employee of the private
85- entity a financial incentive that would tend to encourage the agent
86- or employee to make an initial offer that the agent or employee
87- knows or should know is lower than the lowest initial offer required
88- under Subsection (c)(2)(A).
89- SECTION 2. Subchapter B, Chapter 21, Property Code, is
90- amended by adding Sections 21.0114 and 21.0115 to read as follows:
64+ to prepare an estimated sales price based on a comparative market
65+ analysis, a broker price opinion, or a market study.
66+ (e) An offer of compensation made under Subsection (c) must
67+ include a separate statement of:
68+ (1) the damages, if any, to any of the property owner's
69+ remaining property; and
70+ (2) the other damages, if any.
71+ SECTION 2. Section 21.047(d), Property Code, is transferred
72+ to Section 21.0113, Property Code, redesignated as Section
73+ 21.0113(f), Property Code, and amended to read as follows:
74+ (f) [(d)] If a court hearing a suit under this chapter
75+ determines that a condemnor did not make a bona fide offer to
76+ acquire the property from the property owner voluntarily as
77+ required by this section [Section 21.0113], the court shall abate
78+ the suit, order the condemnor to make a bona fide offer, and order
79+ the condemnor to pay:
80+ (1) all costs as provided by Section 21.047(a)
81+ [Subsection (a)]; and
82+ (2) any reasonable attorney's fees and other
83+ professional fees incurred by the property owner that are directly
84+ related to the violation.
85+ SECTION 3. Subchapter B, Chapter 21, Property Code, is
86+ amended by adding Section 21.0114 to read as follows:
9187 Sec. 21.0114. REQUIRED TERMS FOR INSTRUMENTS OF CONVEYANCE
92- BY CERTAIN PRIVATE ENTITIES. (a) Except as provided by Subsection
93- (b), a deed, easement, agreement, or other instrument of conveyance
94- provided to a property owner by a private entity, as defined by
95- Section 21.031, with eminent domain authority to acquire the
96- property interest to be conveyed for a public use and that seeks to
97- acquire the property interest through the exercise of the power of
98- eminent domain must include the following terms, as applicable:
88+ BY CERTAIN PRIVATE ENTITIES. (a) Except as provided by
89+ Subsections (c) and (d), a deed, easement, agreement, or other
90+ instrument of conveyance provided to a property owner by a private
91+ entity, as defined by Section 21.031, that has the power of eminent
92+ domain to acquire the property interest to be conveyed must include
93+ the following terms, as applicable:
9994 (1) if the instrument conveys a pipeline right-of-way
100- easement, the following terms with respect to the easement rights
101- granted under the instrument:
95+ easement:
10296 (A) the maximum number of pipelines that may be
10397 installed in the easement;
10498 (B) the maximum diameter, excluding any
10599 protective coating or wrapping, of each pipeline to be initially
106100 installed in the easement;
107101 (C) the type or category of substances permitted
108- to be transported through each pipeline to be initially installed
109- in the easement;
110- (D) a general description or illustration of the
111- location of the easement on the property in the form of a plat map,
112- aerial sketch, or other type of description or illustration;
113- (E) the maximum width of the easement; and
114- (F) the minimum depth at which each pipeline to
115- be installed in the easement will initially be installed; and
102+ to be transported through each pipeline to be installed in the
103+ easement;
104+ (D) a general description of any aboveground
105+ equipment or facility the private entity intends to install,
106+ maintain, or operate on the surface of the easement;
107+ (E) any descriptions of the location of the
108+ easement, including metes and bounds or centerline descriptions,
109+ plats, and aerial or other map-based depictions of the location of
110+ the easement on the property, that are in the possession of the
111+ private entity when the private entity provides the instrument of
112+ conveyance to the property owner;
113+ (F) the maximum width of the easement;
114+ (G) the minimum depth at which each pipeline to
115+ be installed in the easement will initially be installed;
116+ (H) a provision identifying whether the private
117+ entity intends to double-ditch areas of the easement that are not
118+ installed by boring or horizontal directional drilling;
119+ (I) a provision limiting the private entity's
120+ right to assign the entity's interest under the deed, easement,
121+ agreement, or other instrument of conveyance without:
122+ (i) written notice to the property owner at
123+ the last known address of the person in whose name the property is
124+ listed on the most recent tax roll of any taxing unit authorized to
125+ levy property taxes against the property; or
126+ (ii) if the assignee, including an assignee
127+ that is an affiliate or subsidiary of or entity otherwise related to
128+ the private entity, will not operate each pipeline installed on the
129+ easement as a common carrier line or gas utility, the express
130+ written consent of the property owner, provided the property owner
131+ does not unreasonably withhold consent;
132+ (J) a provision describing whether the easement
133+ rights are exclusive, nonexclusive, or otherwise limited;
134+ (K) a provision limiting the private entity's
135+ right to grant a third party access to the easement area for a
136+ purpose that is not related to the construction, safety, repair,
137+ maintenance, inspection, replacement, operation, or removal of
138+ each pipeline to be installed in the easement;
139+ (L) a provision regarding the property owner's
140+ right to recover actual monetary damages arising from the
141+ construction and installation of each pipeline to be installed in
142+ the easement, or a statement that the consideration for the
143+ easement includes any monetary damages arising from the
144+ construction and installation of each pipeline to be installed in
145+ the easement;
146+ (M) a provision regarding the property owner's
147+ right after initial construction and installation of each pipeline
148+ to be installed in the easement to actual monetary damages arising
149+ from the repair, maintenance, inspection, replacement, operation,
150+ or removal of each pipeline to be installed in the easement;
151+ (N) a provision:
152+ (i) regarding the removal, cutting, use,
153+ repair, and replacement of gates and fences that cross the easement
154+ or that will be used by the private entity; or
155+ (ii) providing for the payment for any
156+ damage that is not restored;
157+ (O) a provision:
158+ (i) regarding the private entity's
159+ obligation to restore the easement area and the property owner's
160+ remaining property used by the private entity to as near to original
161+ condition as is reasonably practicable and to maintain the
162+ easement, including restoring the easement to the easement's
163+ original contours and grades; or
164+ (ii) providing for the private entity to
165+ reimburse the property owner for actual monetary damages incurred
166+ by the property owner that arise from damage to the easement area
167+ and the property owner's remaining property caused by the private
168+ entity and not restored; and
169+ (P) a provision describing the private entity's
170+ rights of ingress, egress, entry, and access on, to, over, and
171+ across the easement; and
116172 (2) if the instrument conveys an electric transmission
117173 right-of-way easement:
118174 (A) a general description of any use of the
119175 surface of the easement the entity intends to acquire;
120- (B) a general description or illustration of the
121- location of the easement on the property in the form of a plat map,
122- aerial sketch, or other type of description or illustration; and
123- (C) the maximum width of the easement.
124- (b) Except as provided by this subsection, this section does
125- not prohibit a private entity or the property owner from proposing
126- or agreeing to add to, change, or omit any term required by
127- Subsection (a) at any time after the private entity first provides a
128- deed, easement, agreement, or other instrument containing the term
129- to the property owner, whether provided before or at the same time
130- as the entity's initial offer to the property owner. A private
131- entity that adds to, changes, or omits any term required by
132- Subsection (a) must provide a copy of the amended deed, easement,
133- agreement, or other instrument of conveyance to the property owner
134- before the date the private entity files a condemnation petition
135- relating to the property.
136- (c) A private entity that changes a deed, easement,
176+ (B) all descriptions of the location of the
177+ easement, including metes and bounds or centerline descriptions,
178+ plats, and aerial or other map-based depictions of the location of
179+ the easement on the property, that are in the possession of the
180+ private entity when the private entity provides the instrument of
181+ conveyance to the property owner;
182+ (C) the maximum width of the easement;
183+ (D) the manner in which the entity will access
184+ the easement;
185+ (E) a provision limiting access to the easement
186+ area by a third party that has not obtained authorization from the
187+ property owner for a purpose that is not related to the transmission
188+ line's construction, safety, repair, maintenance, inspection,
189+ replacement, operation, or removal;
190+ (F) a provision regarding the property owner's
191+ right to recover actual monetary damages arising from the
192+ construction, repair, maintenance, replacement, or future removal
193+ of lines and support facilities in the easement, or a statement that
194+ the consideration for the easement includes such future damages;
195+ (G) a provision:
196+ (i) regarding the removal, cutting, use,
197+ repair, and replacement of gates and fences that cross the easement
198+ or that will be used by the private entity; or
199+ (ii) providing for the payment for any
200+ damage that is not restored;
201+ (H) a provision regarding the entity's
202+ obligation to restore the easement area and the property owner's
203+ remaining property to the easement area's and the remaining
204+ property's original contours and grades and:
205+ (i) a provision regarding the entity's
206+ obligation to restore the easement area and the property owner's
207+ remaining property following any future damages directly
208+ attributed to the use of the easement by the private entity; or
209+ (ii) a statement that the consideration for
210+ the easement includes future damages to the easement area and the
211+ property owner's remaining property;
212+ (I) a provision describing whether the easement
213+ rights are exclusive, nonexclusive, or otherwise limited; and
214+ (J) a prohibition against the assignment of the
215+ entity's interest in the property to an assignee that will not
216+ operate as a utility subject to the jurisdiction of the Public
217+ Utility Commission of Texas or the Federal Energy Regulatory
218+ Commission without written notice to the property owner at the last
219+ known address of the person in whose name the property is listed on
220+ the most recent tax roll of any taxing unit authorized to levy
221+ property taxes against the property.
222+ (b) The private entity shall notify the property owner that
223+ the property owner may negotiate for the following terms to be
224+ included in a deed, easement, agreement, or other instrument of
225+ conveyance described by Subsection (a):
226+ (1) a provision regarding the property owner's right
227+ to negotiate to recover damages, or a statement that the
228+ consideration for the easement includes damages, for:
229+ (A) damage to vegetation; and
230+ (B) the income loss from disruption of existing
231+ agricultural production or existing leases;
232+ (2) a prohibition against any use of the property
233+ being conveyed, other than a use stated in the deed, easement,
234+ agreement, or other instrument of conveyance, without the express
235+ written consent of the property owner;
236+ (3) a provision:
237+ (A) requiring the private entity to maintain at
238+ all times while the private entity uses the easement, including
239+ during construction and operations on the easement, liability
240+ insurance:
241+ (i) issued by an insurer authorized to
242+ issue liability insurance in this state; and
243+ (ii) insuring the property owner against
244+ liability for personal injuries and property damage sustained by
245+ any person caused by the negligence of the private entity or the
246+ private entity's agents or contractors; or
247+ (B) if the private entity is subject to the
248+ jurisdiction of the Public Utility Commission of Texas or has a net
249+ worth of at least $25 million, requiring the private entity to
250+ indemnify the property owner against liability for personal
251+ injuries and property damage sustained by any person caused by the
252+ negligence of the private entity or the private entity's agents or
253+ contractors; and
254+ (4) a provision that the terms of the deed, easement,
255+ agreement, or other instrument of conveyance will bind the
256+ successors and assigns of the property owner and private entity.
257+ (c) A private entity, as defined by Section 21.031, or the
258+ property owner may:
259+ (1) negotiate for and agree to terms and conditions
260+ not required by Subsection (a) or provided by Subsection (b),
261+ including terms and conditions not included in a subsequent
262+ condemnation petition; and
263+ (2) agree to a deed, easement, agreement, or other
264+ instrument of conveyance that does not include the terms required
265+ by Subsection (a).
266+ (d) Except as provided by this subsection, this section does
267+ not prohibit a private entity or the property owner from agreeing to
268+ amend the terms required by Subsection (a) after the private entity
269+ makes an initial offer or final offer to the property owner as
270+ required by Section 21.0113. A private entity that changes the
271+ terms required by Subsection (a) must provide a copy of the amended
272+ deed, easement, agreement, or other instrument of conveyance to the
273+ property owner not later than the 14th day before the date the
274+ private entity files a condemnation petition relating to the
275+ property.
276+ (e) A private entity that amends a deed, easement,
137277 agreement, or other instrument of conveyance to which this section
138278 applies after the initial offer or final offer is not required to
139279 satisfy again any requirement of Section 21.0113 that the private
140280 entity has previously satisfied.
141- Sec. 21.0115. MUTUAL AGREEMENT. Notwithstanding any other
142- provision of this chapter and regardless of whether an acquisition
143- is for a public use, a property owner and a private entity, as
144- defined by Section 21.031, are not prohibited from agreeing to
145- acquisition by the private entity of an interest in the property
146- owner's property without complying with the provisions of Section
147- 21.0113(c) or 21.0114 at any time after the private entity provides
148- the landowner's bill of rights statement to the property owner in
149- accordance with Section 21.0112.
150- SECTION 3. Section 21.014(a), Property Code, is amended to
151- read as follows:
152- (a) The judge of a court in which a condemnation petition is
153- filed or to which an eminent domain case is assigned shall, not
154- later than the 15th calendar day after the date the petition is
155- filed, appoint three disinterested real property owners who reside
156- in the county as special commissioners to assess the damages of the
157- owner of the property being condemned and two disinterested real
158- property owners who reside in the county as alternate special
159- commissioners. The judge appointing the special commissioners
160- shall give preference to any persons agreed on by the parties before
161- the court appoints the special commissioners. Each party shall
162- have seven calendar days after the date of the appointment of the
163- special commissioners [The judge shall provide each party a
164- reasonable period] to strike one of the three special commissioners
165- [appointed by the judge]. If a person fails to serve as a special
166- commissioner or is struck by a party to the suit in accordance with
167- this subsection, an alternate special commissioner shall serve as a
168- replacement for the special commissioner based on the order that
169- the alternate special commissioners are listed in the initial order
170- of appointment [, the judge shall appoint a replacement].
171- SECTION 4. Section 21.015(a), Property Code, is amended to
172- read as follows:
173- (a) Unless otherwise agreed by the parties, the [The]
174- special commissioners in an eminent domain proceeding shall
175- [promptly] schedule a hearing to occur not earlier than [for the
176- parties at the earliest practical time but may not schedule a
177- hearing to assess damages before] the 20th day or later than the
178- 45th day after the date the special commissioners were appointed.
179- The special commissioners shall schedule a hearing for the parties
180- at a place that is as near as practical to the property being
181- condemned or at the county seat of the county in which the
182- proceeding is being held.
183- SECTION 5. Section 21.016(d), Property Code, is amended to
184- read as follows:
185- (d) Notice may be served[:
186- [(1)] by delivering a copy of the notice to the party
187- or to the party's agent or attorney or in another manner provided by
188- the Texas Rules of Civil Procedure for service of citation[;
189- [(2) if the property being condemned belongs to a
190- deceased's estate or to a minor or other legally disabled person and
191- the person or estate has a legal representative, by delivering a
192- copy of the notice to the legal representative; or
193- [(3) if the property being condemned belongs to a
194- nonresident of this state and there has been no personal service on
195- the owner, if the identity or the residence of the property owner is
196- unknown, or if the property owner avoids service of notice by
197- hiding, by publication in the same manner as service of citation by
198- publication in other civil cases in the district courts or county
199- courts at law].
200- SECTION 6. Subchapter B, Chapter 21, Property Code, is
201- amended by adding Section 21.0161 to read as follows:
202- Sec. 21.0161. FILING OF COMMISSIONERS' FINDINGS. The
203- special commissioners shall file their findings with the court not
204- later than the third calendar day after the date of the special
205- commissioners' hearing.
206- SECTION 7. Chapter 21, Property Code, is amended by adding
281+ (f) A court hearing a suit under this chapter involving
282+ property the acquisition of which is subject to the requirements of
283+ this section:
284+ (1) may determine whether the private entity has
285+ complied with the requirements of this section; and
286+ (2) if the court determines that the private entity
287+ has not provided to a property owner a deed, easement, agreement, or
288+ other instrument of conveyance that complies with the requirements
289+ of this section, shall:
290+ (A) order the private entity to:
291+ (i) provide to the property owner a deed,
292+ easement, agreement, or other instrument of conveyance that
293+ complies with the requirements of this section; and
294+ (ii) pay to the property owner:
295+ (a) all costs related to the private
296+ entity's failure to comply with this section; and
297+ (b) any reasonable attorney's fees and
298+ other professional fees incurred by the property owner that are
299+ directly related to the private entity's failure to comply with
300+ this section; and
301+ (B) abate a pending proceeding until the
302+ instrument is provided.
303+ SECTION 4. Section 21.012, Property Code, is amended by
304+ adding Subsection (b-1) to read as follows:
305+ (b-1) In addition to the contents prescribed by Subsection
306+ (b), a petition filed by a private entity as defined by Section
307+ 21.031 to acquire property for a pipeline or electric transmission
308+ project must state the terms to be included in the instrument of
309+ conveyance under Section 21.0114.
310+ SECTION 5. Chapter 21, Property Code, is amended by adding
207311 Subchapter B-1 to read as follows:
208312 SUBCHAPTER B-1. ACQUISITION OF PROPERTY BY CERTAIN PRIVATE
209313 ENTITIES
210314 Sec. 21.031. DEFINITION. In this subchapter, "private
211315 entity":
212316 (1) means:
213- (A) a for-profit entity, as defined by Section
214- 1.002, Business Organizations Code, however organized, including
215- an affiliate or subsidiary, authorized to exercise the power of
216- eminent domain to acquire private property for public use or a group
217- or combination of two or more such entities; or
218- (B) a corporation organized under Chapter 67,
219- Water Code, that has a for-profit entity, however organized, as the
220- sole or majority member; and
221- (2) does not include:
222- (A) a railroad operating in this state; or
223- (B) an interstate pipeline governed by the
224- Natural Gas Act (15 U.S.C. Section 717 et seq.) that does not seek
225- to acquire property under this chapter.
226- Sec. 21.032. APPLICABILITY OF SUBCHAPTER. (a) This
227- subchapter applies only to a private entity that seeks to acquire
228- for a project for public use 25 or more tracts of real property that
229- are:
230- (1) classified as residential, agricultural, or
231- commercial property by the taxing authority that assesses ad
232- valorem taxes on the tracts; and
233- (2) owned by at least 25 separate and unaffiliated
234- property owners.
235- (b) Except as expressly provided by Section 21.038, this
317+ (A) a for-profit entity, however organized,
318+ authorized to exercise the power of eminent domain to acquire
319+ private property for public use; and
320+ (B) any affiliate or subsidiary of or entity
321+ related to an entity described by Paragraph (A), including a
322+ for-profit corporation organized under Chapter 67, Water Code, if
323+ the affiliate, subsidiary, or other entity was formed for purposes
324+ of a project for which property may be acquired through eminent
325+ domain; and
326+ (2) does not include a railroad operating in this
327+ state on or before September 1, 2019.
328+ Sec. 21.032. APPLICABILITY OF SUBCHAPTER. (a) Except as
329+ expressly provided by Section 21.033(d), this subchapter applies
330+ only to a private entity that seeks to acquire for the same pipeline
331+ or electric transmission project 25 or more tracts of real
332+ property, including easements within those tracts, that are owned
333+ by at least 25 separate and unaffiliated property owners.
334+ (b) Except as expressly provided by Section 21.0392, this
236335 subchapter does not apply to a private entity that:
237336 (1) operates or proposes to construct an electric
238337 transmission line; and
239338 (2) is subject to the jurisdiction of the Public
240339 Utility Commission of Texas under Chapter 37, Utilities Code.
241- Sec. 21.033. NOTICE OF RIGHT TO REQUEST MEETING. (a) Not
242- later than the time that a private entity makes an initial offer to
243- a property owner under Section 21.0113, the private entity shall
244- provide to the property owner a written notice of the property
245- owner's right to request a meeting, subject to Section 21.0331, to
246- discuss the proposed project, including:
247- (1) if the project is a pipeline, the substances,
340+ (c) This subchapter does not apply to the acquisition of a
341+ tract of real property that is an industrial property, including a
342+ tract that contains a refinery, processing facility, underground
343+ storage facility, electric station, industrial facility, power
344+ plant facility, or storage terminal.
345+ Sec. 21.033. NOTICE OF PROPERTY OWNER INFORMATION MEETING.
346+ (a) A private entity shall, before or at the same time that the
347+ entity makes an initial offer as required under Section 21.0113,
348+ provide a written notice advising the property owner of:
349+ (1) the property owner's right to participate in a
350+ meeting to discuss the proposed project, including:
351+ (A) if the project is a pipeline, the substances,
248352 products, materials, installations, and structures the private
249353 entity intends to transport through, use for, or build as part of
250354 the project; and
251- (2) any regulatory filings for the project existing at
252- that time, if any, as to the regulatory classification of the
253- project.
254- (b) The private entity shall send the notice to:
355+ (B) any regulatory filings for the project; and
356+ (2) the date, time, and location of the meeting.
357+ (b) The private entity shall send the meeting notice to:
255358 (1) the property owner listed for the property on the
256359 most recent tax roll for a taxing unit with authority to levy an ad
257- valorem tax on the property at the address for the property owner
258- listed on the tax roll; or
360+ valorem tax on the property; or
259361 (2) the address for the property listed on the tax roll
260362 described by Subdivision (1).
261- Sec. 21.0331. PREREQUISITE FOR PROPERTY OWNER MEETING. (a)
262- A private entity is required to hold a property owner information
263- meeting under Section 21.034 for a segment or section of a proposed
264- project route, as described by Section 21.034(a), only if at least
265- 25 percent of property owners of property in the segment or section
266- who are entitled to notice under Section 21.033 submit a request for
267- the meeting as provided by Subsection (b).
268- (b) A property owner request for a meeting under Section
269- 21.034 must be:
270- (1) in writing; and
271- (2) received by the private entity not later than the
272- 14th day after the date of the notice provided to the property owner
273- under Section 21.033.
274- Sec. 21.0332. NOTICE OF PROPERTY OWNER INFORMATION MEETING.
275- A private entity required under Section 21.0331 to hold a property
276- owner information meeting for a segment or section of a proposed
277- project route, as described by Section 21.034(a), shall send notice
278- to each property owner of property in the segment or section of the
279- date, time, and location of the meeting.
280- Sec. 21.034. PROPERTY OWNER INFORMATION MEETING. (a) If
281- required under Section 21.0331(a), a private entity shall hold:
282- (1) for a proposed project that is equal to or less
283- than 100 miles in length, at least one meeting for each contiguous
284- linear section of the project, as designated by the private entity;
285- and
286- (2) for a proposed project that is more than 100 miles
287- in length, at least one meeting for each segment of the project, as
288- designated by the private entity and not to exceed 100 miles in
289- length.
290- (b) The private entity shall hold a meeting under Subsection
291- (a) in a centrally located public location:
363+ (c) The private entity shall also send the meeting notice
364+ to:
365+ (1) any other address that the private entity has for
366+ the property owner; and
367+ (2) each county judge of a county in which all or part
368+ of the project section or segment for which the meeting is to be
369+ held is located.
370+ (d) If a pipeline involves fewer than 25 separate and
371+ unaffiliated property owners, the private entity shall provide
372+ notice to the property owners in the manner prescribed by this
373+ section that a property owner may request a meeting with the private
374+ entity to receive the information required to be presented by a
375+ private entity under Section 21.037. If a property owner requests a
376+ meeting, the private entity shall hold the meeting not later than
377+ the 30th day after the date the private entity sent the notice to
378+ the property owner.
379+ Sec. 21.034. PROPERTY OWNER INFORMATION MEETING. (a) For
380+ each contiguous linear section of a proposed project route that is
381+ equal to or less than 100 miles in length, the private entity shall
382+ hold a group property owner meeting. For a project that exceeds 100
383+ miles in length, the private entity shall hold at least one separate
384+ meeting for each 100-mile segment.
385+ (b) The private entity shall hold a meeting required under
386+ Subsection (a) in a centrally located public location:
292387 (1) appropriate to the size and nature of the meeting;
293388 and
294- (2) as convenient as practicable to the majority of
295- the tracts of real property affected by the project section or
296- segment for which the meeting is held.
389+ (2) as convenient as possible to the majority of
390+ property owners affected by the project or project segment for
391+ which the meeting is required.
392+ (c) The private entity shall hold the meeting in a location
393+ the travel distance to which is 50 miles or less for the majority of
394+ property owners who reside on property being acquired for the
395+ project section or segment for which the meeting is to be held.
396+ (d) A meeting required under Subsection (a) may not be
397+ scheduled to begin earlier than 5:30 p.m.
398+ (e) A meeting required under Subsection (a) may not be held
399+ before the private entity sends at least 25 percent of the initial
400+ offers required by Section 21.0113.
297401 Sec. 21.035. PERSONS AUTHORIZED TO ATTEND PROPERTY OWNER
298402 INFORMATION MEETING. (a) In addition to the property owner and
299403 the private entity representatives, the following individuals may
300404 attend a meeting held under Section 21.034:
301405 (1) an invited relative of the property owner who is
302406 related to the property owner within the third degree by
303407 consanguinity or affinity, as determined under Chapter 573,
304408 Government Code;
305409 (2) an attorney or licensed appraiser representing the
306410 property owner;
307411 (3) an employee or a lessee of the property owner that
308- has direct knowledge of the property; or
412+ has direct knowledge of the property;
309413 (4) an employee of an entity with whom the property
310- owner has contracted for services to manage the property.
414+ owner has contracted for services to manage the property; or
415+ (5) a county judge of a county in which all or part of
416+ the project section or segment for which the meeting is held is
417+ located.
311418 (b) A private entity may include in the notice required by
312- Section 21.0332 a requirement that the property owner, not later
313- than five days before the date of the meeting:
314- (1) notify the private entity that the property owner
315- intends to attend the meeting; and
316- (2) identify persons described by Subsections
317- (a)(1)-(4) who intend to attend the meeting.
419+ Section 21.033 a requirement that the property owner identify
420+ persons described by Subsections (a)(1)-(4) who intend to attend
421+ the meeting not later than two days before the date of the meeting.
318422 (c) The number of attendees under Subsections (a)(1)-(4)
319423 may not exceed five individuals for each separate tract of
320424 property.
321- (d) The private entity may:
322- (1) require attendees to:
323- (A) provide one form of government-issued photo
324- identification; and
325- (B) complete a registration form that includes
326- contact information; and
327- (2) exclude from the meeting:
328- (A) any person who does not provide at least one
329- form of government-issued photo identification or complete a
330- registration form, if required by the private entity as provided
331- under Subdivision (1); and
332- (B) any person described by Subsections
333- (a)(1)-(4) who is not timely identified to the private entity, if
334- required by the private entity as provided under Subsection (b).
425+ (d) The private entity may require attendees to provide
426+ identification and complete a registration form that includes
427+ contact information.
335428 (e) The private entity may take reasonable steps to maintain
336429 safety and decorum at the meeting, including expelling attendees
337- who do not meet the requirements of this subchapter or who disrupt
338- the meeting.
339- (f) Notwithstanding Subsection (b)(1), the private entity
340- may not deny entry to a property owner who provides proper
341- identification and completes a registration form, if required by
342- the private entity as provided under Subsection (d)(1).
430+ who do not meet the requirements of this subchapter.
431+ (f) The private entity may not deny entry to a property
432+ owner who provides proper identification.
343433 Sec. 21.036. PARTICIPATION BY PRIVATE ENTITY REQUIRED. One
344434 or more representatives designated by the private entity shall:
345- (1) attend each meeting held under Section 21.034; and
346- (2) participate in those meetings as described by
347- Section 21.037.
348- Sec. 21.037. PROPERTY OWNER INFORMATION MEETING AGENDA. At
349- a meeting held under Section 21.034:
350- (1) the private entity shall present an agenda; and
351- (2) attendees of the meeting may ask questions of and
352- make comments to a representative of the private entity regarding:
435+ (1) attend each meeting required by Section 21.034;
436+ and
437+ (2) participate in those meetings in the manner
438+ prescribed by Section 21.037.
439+ Sec. 21.037. PROPERTY OWNER INFORMATION MEETING AGENDA.
440+ (a) At a meeting held under Section 21.034:
441+ (1) the private entity shall present:
442+ (A) the information contained in the landowner's
443+ bill of rights statement required to be provided to a property owner
444+ under Section 21.0112;
445+ (B) a description of the public use for which the
446+ entity wants to acquire the real property;
447+ (C) the terms required under Section 21.0114 to
448+ be included in a deed, easement, agreement, or other instrument of
449+ conveyance provided by the entity to the property owner;
450+ (D) a description of the method and factors used
451+ by the entity to determine the entity's initial offer, including:
452+ (i) how damages to remaining property, if
453+ any, were evaluated; or
454+ (ii) the name of the person who prepared the
455+ appraisal report, comparative market analysis, broker price
456+ opinion, or market study required under Section 21.0113(c);
457+ (E) a description of the private entity's
458+ regulatory filings related to the project;
459+ (F) the basis for the private entity's exercise
460+ of eminent domain authority for the project; and
461+ (G) the name and contact information, as known at
462+ the time of the meeting, of any third-party contractor to be used by
463+ the entity to acquire the land or undertake the project; and
464+ (2) any person who is an authorized attendee of the
465+ meeting must be given an opportunity at the meeting to ask questions
466+ and make comments regarding:
353467 (A) the rights of the property owners;
354468 (B) the proposed public use for which the real
355469 property is to be acquired; and
356470 (C) any terms required under Section 21.0114 to
357471 be included in a deed, easement, agreement, or other instrument of
358472 conveyance provided by the private entity to a property owner.
359- Sec. 21.038. PROCEDURES FOR CERTAIN PRIVATE ENTITIES
473+ (b) On request, a private entity shall provide, in written
474+ or electronic form, the materials presented by the private entity
475+ at the meeting to a property owner who could not attend the meeting.
476+ Sec. 21.038. CONTACT AFTER PROPERTY OWNER INFORMATION
477+ MEETING. A private entity that holds a meeting under Section 21.034
478+ may not contact a property owner for three days following the date
479+ of the meeting. Nothing in this section precludes:
480+ (1) a property owner or an individual allowed to
481+ attend a meeting held under Section 21.034 from contacting the
482+ private entity at any time; or
483+ (2) the private entity from engaging in discussions
484+ with a person described by Subdivision (1) after that person
485+ contacts the entity.
486+ Sec. 21.039. PROCEDURES AFTER PROJECT RE-ROUTE. If any
487+ part of the project is re-routed after any meeting is held under
488+ Section 21.034, the private entity shall, with respect to that
489+ re-route only, comply with the provisions of this subchapter with
490+ respect to tracts along the re-route.
491+ Sec. 21.0391. PRIVATE ENTITY NONCOMPLIANCE. (a) A private
492+ entity subject to this subchapter may not proceed with a special
493+ commissioners' hearing against a property owner unless the private
494+ entity has held a meeting required under this subchapter.
495+ (b) If a court hearing a suit under this chapter determines
496+ that a private entity did not comply with the applicable provisions
497+ of this subchapter, the court shall:
498+ (1) abate any condemnation proceeding filed by the
499+ private entity until the private entity has complied with this
500+ subchapter;
501+ (2) order the private entity to comply with the
502+ applicable provisions of this subchapter; and
503+ (3) order the private entity to pay:
504+ (A) all costs of the proceeding; and
505+ (B) any reasonable attorney's fees and other
506+ professional fees incurred by the property owner that are directly
507+ related to the entity's failure to comply with the applicable
508+ provisions of this subchapter.
509+ (c) A condemnation proceeding that is abated under this
510+ section may proceed after a court finds that the private entity has
511+ complied with the applicable provisions of this subchapter.
512+ Sec. 21.0392. PROCEDURES FOR CERTAIN PRIVATE ENTITIES
360513 SUBJECT TO JURISDICTION OF PUBLIC UTILITY COMMISSION. (a) This
361514 section applies only to a private entity that proposes to exercise
362515 the power of eminent domain to construct an electric transmission
363516 line and is subject to the authority of the Public Utility
364517 Commission of Texas under Chapter 37, Utilities Code.
365- (b) At a meeting required by the Public Utility Commission
366- of Texas to be conducted by a private entity to which this section
367- applies in connection with an electric transmission line project:
368- (1) the private entity shall present an agenda; and
369- (2) attendees of the meeting may ask questions of and
370- make comments to a representative of the private entity regarding:
371- (A) the rights of the property owners;
372- (B) the proposed public use for which the real
373- property is to be acquired; and
374- (C) any terms required under Section 21.0114 to
518+ (b) A private entity to which this section applies and that
519+ is required by the Public Utility Commission of Texas to conduct a
520+ public meeting in connection with the electric transmission line
521+ project shall present at the meeting:
522+ (1) the information contained in the landowner's bill
523+ of rights required to be provided to a property owner under Section
524+ 21.0112;
525+ (2) the terms required under Section 21.0114 to be
526+ included in a deed, easement, agreement, or other instrument of
527+ conveyance provided by the entity to the property owner;
528+ (3) the name and contact information of any
529+ third-party contractor or right-of-way agent that will contact a
530+ property owner or seek access to the property owner's property in
531+ connection with the project, to the extent available;
532+ (4) the name and contact information, including direct
533+ telephone number and e-mail address, for an agent or employee of the
534+ entity with authority to answer questions about the electric
535+ transmission line project;
536+ (5) the method for calculating the value of the
537+ property being acquired by the entity and the damages, if any, to
538+ the property owner's remaining property, as part of the entity's
539+ initial offer to a property owner; and
540+ (6) a detailed summary of procedures for right-of-way
541+ acquisition after the route for the electric transmission line has
542+ been selected.
543+ (c) The private entity must give property owners the
544+ opportunity to ask the entity questions regarding eminent domain
545+ and right-of-way acquisition at the meeting.
546+ (d) After the Public Utility Commission of Texas adopts a
547+ route for the electric transmission line, the entity shall provide
548+ by letter to each property owner on the route:
549+ (1) a copy of the entity's draft easement form
550+ containing a statement of the terms required by Section 21.0114 to
375551 be included in a deed, easement, agreement, or other instrument of
376- conveyance provided by the private entity to a property owner.
377- Sec. 21.039. PRIVATE ENTITY NONCOMPLIANCE. A condemnation
378- proceeding may not be abated, dismissed, or delayed because a
379- private entity does not comply with Section 21.0331, 21.0332,
380- 21.034, 21.035, 21.036, 21.037, or 21.038.
381- SECTION 8. Section 21.047, Property Code, is amended by
382- adding Subsection (e) to read as follows:
383- (e) An abatement under Subsection (d) continues only until
384- the condemnor makes a bona fide offer under Section 21.0113.
385- SECTION 9. Chapter 21, Property Code, is amended by adding
386- Subchapters F and G to read as follows:
387- SUBCHAPTER F. EFFECTS OF CERTAIN CHANGES TO PROPERTY USE
388- Sec. 21.151. CHANGE OF USE. The temporary removal of land
389- from timber, agriculture, or open space usage due to construction
390- in a right of way or easement under threat of eminent domain is not a
391- change of use as that term is used for purposes of property
392- taxation.
393- SUBCHAPTER G. MORATORIUM ON CERTAIN LEGISLATIVE ACTS
394- Sec. 21.201. MORATORIUM. (a) Except as provided by
395- Subsection (b), the legislature will not add a provision to or amend
396- or repeal a provision of this chapter during the period beginning
397- January 1, 2020, and ending December 31, 2030, or enact, amend, or
398- repeal other laws during that period concerning procedures for,
399- prerequisites to, or damages available in connection with the
400- acquisition of property for a public use by an entity with eminent
401- domain authority.
402- (b) Subsection (a) does not apply to:
403- (1) a provision regarding high-speed rail, as defined
404- by Section 112.201, Transportation Code;
405- (2) an amendment stakeholders agree is necessary to
406- give effect to or correct an existing provision;
407- (3) an amendment in response to a final and
408- unappealable judgment or order of a state or federal court; or
409- (4) a nonsubstantive addition to, revision of, or
410- correction in an enacted code or other law.
411- Sec. 21.202. EXPIRATION OF SUBCHAPTER. This subchapter
412- expires December 31, 2030.
413- SECTION 10. If any provision of this Act or its application
414- to any person or circumstance is finally held to be
415- unconstitutional, the entire Act is invalid, and to this end the
416- provisions of this Act are declared to be nonseverable.
417- SECTION 11. (a) Notwithstanding Subsections (b), (c), and
418- (d) of this section, Sections 21.014(a), 21.015(a), and 21.016(d),
419- Property Code, as amended by this Act, and Section 21.0161,
420- Property Code, as added by this Act, apply to a condemnation
421- proceeding commenced on or after the effective date of this Act. A
422- condemnation proceeding commenced before the effective date of this
423- Act is governed by the law applicable to the condemnation
424- proceeding immediately before the effective date of this Act, and
552+ conveyance provided by the entity to the property owner;
553+ (2) an explanation of the initial offer process and
554+ the basis for calculating the value of the property being acquired
555+ by the entity and the damages, if any, to the property owner's
556+ remaining property as part of the initial offer required by Section
557+ 21.0113;
558+ (3) a statement of the property owner's right under
559+ Section 21.0113 to receive a copy of the written appraisal with the
560+ final offer, if a copy of the written appraisal has not previously
561+ been provided to the property owner by the entity;
562+ (4) an explanation of the negotiation process,
563+ including the name and contact information of any right-of-way
564+ agent who will be participating in the process; and
565+ (5) the name and contact information, including the
566+ direct telephone number and e-mail address, for an agent or
567+ employee of the entity with authority to answer questions about the
568+ electric transmission line project.
569+ (e) On request, a private entity shall provide, in written
570+ or electronic form, the materials presented by the private entity
571+ at the meeting to a property owner who could not attend the meeting.
572+ SECTION 6. Section 21.042, Property Code, is amended by
573+ adding Subsection (d-1) to read as follows:
574+ (d-1) In estimating injury or benefit under Subsection (c)
575+ in a condemnation proceeding relating to the acquisition of real
576+ property by a private entity as defined by Section 21.031 for a
577+ pipeline or electric transmission project, the special
578+ commissioners shall consider, in addition to the considerations
579+ required under Subsection (d), an injury or benefit to the
580+ remaining property as a result of:
581+ (1) the characteristics, size, or visibility of any
582+ infrastructure on the condemned property;
583+ (2) any limitation of future expansion of the
584+ remaining property; and
585+ (3) terms of the easement acquired in connection with,
586+ or the alignment of an easement in connection with, the
587+ condemnation.
588+ SECTION 7. (a) Except as provided by Subsection (b) of this
589+ section, the changes in law made by this Act apply only to the
590+ acquisition of real property in connection with an initial offer
591+ made under Chapter 21, Property Code, on or after the effective date
592+ of this Act. An acquisition of real property in connection with an
593+ initial offer made under Chapter 21, Property Code, before the
594+ effective date of this Act is governed by the law applicable to the
595+ acquisition immediately before the effective date of this Act, and
425596 that law is continued in effect for that purpose.
426- (b) Except as provided by Subsections (a) and (c) of this
427- section, with respect to the acquisition of real property under
428- Chapter 21, Property Code, for a pipeline project:
429- (1) the changes in law made by this Act apply to a
430- pipeline for which an application for a permit to operate the
431- pipeline is filed with the Railroad Commission of Texas or a
432- successor agency on or after the effective date of this Act; and
433- (2) a pipeline for which an application for a permit to
434- operate the pipeline is filed with the Railroad Commission of Texas
435- before the effective date of this Act is governed by the law
436- applicable to the acquisition immediately before the effective date
437- of this Act, and that law is continued in effect for that purpose.
438- (c) Notwithstanding Subsection (b) of this section, the
439- changes in law made by this Act apply to a pipeline project for
440- which an application for a permit to operate the pipeline is filed
441- with the Railroad Commission of Texas on or after September 1, 2019,
442- and before the effective date of this Act, unless a written survey
443- request is provided to a property owner on the proposed route of the
444- project not later than the 90th day after the date the application
445- is filed.
446- (d) Except as provided by Subsection (a) of this section,
447- with respect to the acquisition of real property under Chapter 21,
448- Property Code, for an electric transmission project:
449- (1) the changes in law made by this Act apply to an
450- electric transmission project for which an initial offer is made on
451- or after the effective date of this Act; and
452- (2) an electric transmission project for which an
453- initial offer is made before the effective date of this Act is
454- governed by the law applicable to the acquisition immediately
455- before the effective date of this Act, and that law is continued in
456- effect for that purpose.
457- SECTION 12. This Act takes effect January 1, 2020.
597+ (b) Section 21.0392, Property Code, as added by this Act,
598+ applies only to a public meeting required under Chapter 37,
599+ Utilities Code, held on or after the effective date of this Act.
600+ SECTION 8. This Act takes effect September 1, 2019.