Texas 2021 - 87th Regular

Texas Senate Bill SB986 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R8079 BEE-F
2	2	By: Kolkhorst S.B. No. 986
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the acquisition of real property by an entity with
8	8	eminent domain authority.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 402.031, Government Code, is amended by
11	11	adding Subsection (e) to read as follows:
12	12	(e) Before making any changes to the landowner's bill of
13	13	rights statement, the office of the attorney general shall:
14	14	(1) make the proposed statement available on the
15	15	attorney general's Internet website; and
16	16	(2) accept public comment regarding the proposed
17	17	statement for at least 90 days after the date the proposed statement
18	18	is made available under Subdivision (1).
19	19	SECTION 2. Subchapter D, Chapter 1101, Occupations Code, is
20	20	amended by adding Section 1101.162 to read as follows:
21	21	Sec. 1101.162. OMBUDSMAN FOR LANDOWNERS. (a) The
22	22	commission shall establish an ombudsman office within the
23	23	commission for the purpose of providing information to landowners
24	24	whose real property may be acquired by a governmental or private
25	25	entity through the use of the entity's eminent domain authority.
26	26	The commission shall select the ombudsman.
27	27	(b) The ombudsman shall provide information to and answer
28	28	questions from landowners described by Subsection (a), through the
29	29	commission's Internet website and a toll-free telephone number
30	30	established by the ombudsman, regarding:
31	31	(1) the landowner's bill of rights prepared by the
32	32	attorney general under Section 402.031, Government Code; and
33	33	(2) the procedures for acquiring real property through
34	34	the use of eminent domain authority under Chapter 21, Property
35	35	Code, or other law.
36	36	(c) The commission shall:
37	37	(1) provide notice by publication of the landowner's
38	38	bill of rights to all counties in this state; and
39	39	(2) make the landowner's bill of rights available on
40	40	the commission's Internet website.
41	41	SECTION 3. Section 1101.502(a), Occupations Code, is
42	42	amended to read as follows:
43	43	(a) To be eligible to receive a certificate of registration
44	44	or a renewal certificate under this subchapter, a person must:
45	45	(1) be, at the time of application:
46	46	(A) [(1)] at least 18 years of age; and
47	47	(B) [(2)] a citizen of the United States or a
48	48	lawfully admitted alien; and
49	49	(2) successfully complete the required courses of
50	50	study prescribed by this subchapter, including qualifying or
51	51	continuing education requirements.
52	52	SECTION 4. Subchapter K, Chapter 1101, Occupations Code, is
53	53	amended by adding Sections 1101.508 and 1101.509 to read as
54	54	follows:
55	55	Sec. 1101.508. PROBATIONARY CERTIFICATE. (a) The
56	56	commission may issue a probationary certificate of registration
57	57	under this subchapter.
58	58	(b) The commission by rule shall adopt reasonable
59	59	requirements for the issuance of a probationary certificate.
60	60	Sec. 1101.509. QUALIFYING AND CONTINUING EDUCATION
61	61	REQUIREMENTS. (a) The commission by rule shall approve coursework
62	62	that an applicant must successfully complete to be eligible for the
63	63	issuance or renewal of a certificate of registration under this
64	64	subchapter.
65	65	(b) An applicant for the issuance or renewal of a
66	66	certificate of registration shall submit evidence satisfactory to
67	67	the commission that the applicant has, in the two years immediately
68	68	preceding the submission of the application, completed at least 16
69	69	classroom hours of coursework approved by the commission in:
70	70	(1) the law of eminent domain, including the rights of
71	71	property owners;
72	72	(2) appropriate standards of professionalism in
73	73	contacting and conducting negotiations with property owners; and
74	74	(3) ethical considerations in the performance of
75	75	right-of-way acquisition services.
76	76	SECTION 5. Section 1101.653, Occupations Code, is amended
77	77	to read as follows:
78	78	Sec. 1101.653. GROUNDS FOR SUSPENSION OR REVOCATION OF
79	79	CERTIFICATE. The commission may suspend or revoke a certificate of
80	80	registration issued under this chapter if the certificate holder:
81	81	(1) engages in dishonest dealing, fraud, unlawful
82	82	discrimination, or a deceptive act;
83	83	(2) makes a misrepresentation;
84	84	(3) acts in bad faith;
85	85	(4) demonstrates untrustworthiness;
86	86	(5) fails to honor, within a reasonable time, a check
87	87	issued to the commission after the commission has mailed a request
88	88	for payment to the certificate holder's last known address
89	89	according to the commission's records;
90	90	(6) fails to provide to a party to a transaction a
91	91	written notice prescribed by the commission that:
92	92	(A) must be given before the party is obligated
93	93	to sell, buy, lease, or transfer a right-of-way or easement; and
94	94	(B) contains:
95	95	(i) the name of the certificate holder;
96	96	(ii) the certificate number;
97	97	(iii) the name of the person the
98	98	certificate holder represents;
99	99	(iv) a statement advising the party that
100	100	the party may seek representation from a lawyer or broker in the
101	101	transaction; and
102	102	(v) a statement generally advising the
103	103	party that the right-of-way or easement may affect the value of the
104	104	property; [or]
105	105	(7) directly or indirectly accepts a financial
106	106	incentive to make an initial offer that the certificate holder
107	107	knows or should know is lower than the adequate compensation
108	108	required under the Texas Constitution; or
109	109	(8) disregards or violates this chapter or a
110	110	commission rule relating to certificate holders.
111	111	SECTION 6. Section 21.0113, Property Code, is amended by
112	112	adding Subsections (c), (d), and (e) to read as follows:
113	113	(c) Notwithstanding Subsection (b), a private entity, as
114	114	defined by Section 21.031, with eminent domain authority that wants
115	115	to acquire real property for a pipeline or electric transmission
116	116	project has made a bona fide offer only if the entity:
117	117	(1) satisfies the requirements of Subsection (b);
118	118	(2) includes in the initial offer:
119	119	(A) an offer of just compensation in an amount
120	120	equal to or greater than:
121	121	(i) the market value of the property rights
122	122	sought to be acquired, including damages to any of the property
123	123	owner's remaining property, if any, and other damages, if any,
124	124	based on an appraisal of the property prepared by an independent
125	125	certified general appraiser licensed under Chapter 1103,
126	126	Occupations Code; or
127	127	(ii) the estimated sales price of the
128	128	property rights sought to be acquired based on data for at least
129	129	three comparable arm's-length sales, including damages to any of
130	130	the property owner's remaining property, if any, and other damages,
131	131	if any, based on:
132	132	(a) a comparative market analysis of
133	133	the property affected by the rights sought, prepared by an
134	134	independent real estate broker licensed under Chapter 1101,
135	135	Occupations Code;
136	136	(b) a broker price opinion of the
137	137	property affected by the rights sought, prepared by an independent
138	138	real estate broker licensed under Chapter 1101, Occupations Code;
139	139	or
140	140	(c) a market study of the property
141	141	affected by the rights sought, prepared by an independent real
142	142	estate broker licensed under Chapter 1101, Occupations Code;
143	143	(B) the complete written report of the appraisal,
144	144	the comparative market analysis, the broker price opinion, or the
145	145	market study that forms the basis for the amount of the offer of
146	146	compensation under Paragraph (A);
147	147	(C) notice of the terms described by Section
148	148	21.0114(b) for which the property owner may negotiate to be
149	149	included in a deed, easement, agreement, or other instrument of
150	150	conveyance relating to the property;
151	151	(D) notice that the property owner may also
152	152	receive a final offer accompanied by a written appraisal; and
153	153	(E) a copy of the notice of property owner
154	154	information meeting required by Section 21.033, if applicable,
155	155	unless the entity has previously provided a copy of the notice to
156	156	the property owner;
157	157	(3) participates in the property owner information
158	158	meeting in the manner prescribed by Section 21.037, if applicable;
159	159	(4) obtains for purposes of Subsection (b)(4) a
160	160	written appraisal report from a certified appraiser; and
161	161	(5) includes in the final offer a copy of the written
162	162	appraisal report required by Subsection (b)(4) unless the entity
163	163	has previously provided a copy of the report to the property owner.
164	164	(d) For purposes of Subsection (c)(2)(A)(ii), a real estate
165	165	broker licensed under Chapter 1101, Occupations Code, is authorized
166	166	to prepare an estimated sales price based on a comparative market
167	167	analysis, a broker price opinion, or a market study.
168	168	(e) An offer of compensation made under Subsection (c) must
169	169	include a separate statement of:
170	170	(1) the damages, if any, to any of the property owner's
171	171	remaining property; and
172	172	(2) the other damages, if any.
173	173	SECTION 7. Section 21.047(d), Property Code, is transferred
174	174	to Section 21.0113, Property Code, redesignated as Section
175	175	21.0113(f), Property Code, and amended to read as follows:
176	176	(f) [(d)] If a court hearing a suit under this chapter
177	177	determines that a condemnor did not make a bona fide offer to
178	178	acquire the property from the property owner voluntarily as
179	179	required by this section [Section 21.0113], the court shall abate
180	180	the suit, order the condemnor to make a bona fide offer, and order
181	181	the condemnor to pay:
182	182	(1) all costs as provided by Section 21.047(a)
183	183	[Subsection (a)]; and
184	184	(2) any reasonable attorney's fees and other
185	185	professional fees incurred by the property owner that are directly
186	186	related to the violation.
187	187	SECTION 8. Subchapter B, Chapter 21, Property Code, is
188	188	amended by adding Section 21.0114 to read as follows:
189	189	Sec. 21.0114. REQUIRED TERMS FOR INSTRUMENTS OF CONVEYANCE
190	190	BY CERTAIN PRIVATE ENTITIES. (a) Except as provided by Subsections
191	191	(c) and (d), a deed, easement, agreement, or other instrument of
192	192	conveyance provided to a property owner by a private entity, as
193	193	defined by Section 21.031, that has the power of eminent domain to
194	194	acquire the property interest to be conveyed must include the
195	195	following terms, as applicable:
196	196	(1) if the instrument conveys a pipeline right-of-way
197	197	easement:
198	198	(A) the maximum number of pipelines that may be
199	199	installed in the easement;
200	200	(B) the maximum diameter, excluding any
201	201	protective coating or wrapping, of each pipeline to be initially
202	202	installed in the easement;
203	203	(C) the type or category of substances permitted
204	204	to be transported through each pipeline to be installed in the
205	205	easement;
206	206	(D) a general description of any aboveground
207	207	equipment or facility the private entity intends to install,
208	208	maintain, or operate on the surface of the easement;
209	209	(E) any descriptions of the location of the
210	210	easement, including metes and bounds or centerline descriptions,
211	211	plats, and aerial or other map-based depictions of the location of
212	212	the easement on the property, that are in the possession of the
213	213	private entity when the private entity provides the instrument of
214	214	conveyance to the property owner;
215	215	(F) the maximum width of the easement;
216	216	(G) the minimum depth at which each pipeline to
217	217	be installed in the easement will initially be installed;
218	218	(H) a provision identifying whether the private
219	219	entity intends to double-ditch areas of the easement that are not
220	220	installed by boring or horizontal directional drilling;
221	221	(I) a provision limiting the private entity's
222	222	right to assign the entity's interest under the deed, easement,
223	223	agreement, or other instrument of conveyance without:
224	224	(i) written notice to the property owner at
225	225	the last known address of the person in whose name the property is
226	226	listed on the most recent tax roll of any taxing unit authorized to
227	227	levy property taxes against the property; or
228	228	(ii) if the assignee, including an assignee
229	229	that is an affiliate or subsidiary of or entity otherwise related to
230	230	the private entity, will not operate each pipeline installed on the
231	231	easement as a common carrier line or gas utility, the express
232	232	written consent of the property owner, provided the property owner
233	233	does not unreasonably withhold consent;
234	234	(J) a provision describing whether the easement
235	235	rights are exclusive, nonexclusive, or otherwise limited;
236	236	(K) a provision limiting the private entity's
237	237	right to grant a third party access to the easement area for a
238	238	purpose that is not related to the construction, safety, repair,
239	239	maintenance, inspection, replacement, operation, or removal of
240	240	each pipeline to be installed in the easement;
241	241	(L) a provision regarding the property owner's
242	242	right to recover actual monetary damages arising from the
243	243	construction and installation of each pipeline to be installed in
244	244	the easement, or a statement that the consideration for the
245	245	easement includes any monetary damages arising from the
246	246	construction and installation of each pipeline to be installed in
247	247	the easement;
248	248	(M) a provision regarding the property owner's
249	249	right after initial construction and installation of each pipeline
250	250	to be installed in the easement to actual monetary damages arising
251	251	from the repair, maintenance, inspection, replacement, operation,
252	252	or removal of each pipeline to be installed in the easement;
253	253	(N) a provision:
254	254	(i) regarding the removal, cutting, use,
255	255	repair, and replacement of gates and fences that cross the easement
256	256	or that will be used by the private entity; or
257	257	(ii) providing for the payment for any
258	258	damage that is not restored;
259	259	(O) a provision:
260	260	(i) regarding the private entity's
261	261	obligation to restore the easement area and the property owner's
262	262	remaining property used by the private entity to as near to original
263	263	condition as is reasonably practicable and to maintain the
264	264	easement, including restoring the easement to the easement's
265	265	original contours and grades; or
266	266	(ii) providing for the private entity to
267	267	reimburse the property owner for actual monetary damages incurred
268	268	by the property owner that arise from damage to the easement area
269	269	and the property owner's remaining property caused by the private
270	270	entity and not restored; and
271	271	(P) a provision describing the private entity's
272	272	rights of ingress, egress, entry, and access on, to, over, and
273	273	across the easement; and
274	274	(2) if the instrument conveys an electric transmission
275	275	right-of-way easement:
276	276	(A) a general description of any use of the
277	277	surface of the easement the entity intends to acquire;
278	278	(B) all descriptions of the location of the
279	279	easement, including metes and bounds or centerline descriptions,
280	280	plats, and aerial or other map-based depictions of the location of
281	281	the easement on the property, that are in the possession of the
282	282	private entity when the private entity provides the instrument of
283	283	conveyance to the property owner;
284	284	(C) the maximum width of the easement;
285	285	(D) the manner in which the entity will access
286	286	the easement;
287	287	(E) a provision limiting access to the easement
288	288	area by a third party that has not obtained authorization from the
289	289	property owner for a purpose that is not related to the transmission
290	290	line's construction, safety, repair, maintenance, inspection,
291	291	replacement, operation, or removal;
292	292	(F) a provision regarding the property owner's
293	293	right to recover actual monetary damages arising from the
294	294	construction, repair, maintenance, replacement, or future removal
295	295	of lines and support facilities in the easement, or a statement that
296	296	the consideration for the easement includes such future damages;
297	297	(G) a provision:
298	298	(i) regarding the removal, cutting, use,
299	299	repair, and replacement of gates and fences that cross the easement
300	300	or that will be used by the private entity; or
301	301	(ii) providing for the payment for any
302	302	damage that is not restored;
303	303	(H) a provision regarding the entity's
304	304	obligation to restore the easement area and the property owner's
305	305	remaining property to the easement area's and the remaining
306	306	property's original contours and grades and:
307	307	(i) a provision regarding the entity's
308	308	obligation to restore the easement area and the property owner's
309	309	remaining property following any future damages directly
310	310	attributed to the use of the easement by the private entity; or
311	311	(ii) a statement that the consideration for
312	312	the easement includes future damages to the easement area and the
313	313	property owner's remaining property;
314	314	(I) a provision describing whether the easement
315	315	rights are exclusive, nonexclusive, or otherwise limited; and
316	316	(J) a prohibition against the assignment of the
317	317	entity's interest in the property to an assignee that will not
318	318	operate as a utility subject to the jurisdiction of the Public
319	319	Utility Commission of Texas or the Federal Energy Regulatory
320	320	Commission without written notice to the property owner at the last
321	321	known address of the person in whose name the property is listed on
322	322	the most recent tax roll of any taxing unit authorized to levy
323	323	property taxes against the property.
324	324	(b) The private entity shall notify the property owner that
325	325	the property owner may negotiate for the following terms to be
326	326	included in a deed, easement, agreement, or other instrument of
327	327	conveyance described by Subsection (a):
328	328	(1) a provision regarding the property owner's right
329	329	to negotiate to recover damages, or a statement that the
330	330	consideration for the easement includes damages, for:
331	331	(A) damage to vegetation; and
332	332	(B) the income loss from disruption of existing
333	333	agricultural production or existing leases;
334	334	(2) a prohibition against any use of the property
335	335	being conveyed, other than a use stated in the deed, easement,
336	336	agreement, or other instrument of conveyance, without the express
337	337	written consent of the property owner;
338	338	(3) a provision:
339	339	(A) requiring the private entity to maintain at
340	340	all times while the private entity uses the easement, including
341	341	during construction and operations on the easement, liability
342	342	insurance:
343	343	(i) issued by an insurer authorized to
344	344	issue liability insurance in this state; and
345	345	(ii) insuring the property owner against
346	346	liability for personal injuries and property damage sustained by
347	347	any person caused by the negligence of the private entity or the
348	348	private entity's agents or contractors; or
349	349	(B) if the private entity is subject to the
350	350	jurisdiction of the Public Utility Commission of Texas or has a net
351	351	worth of at least $25 million, requiring the private entity to
352	352	indemnify the property owner against liability for personal
353	353	injuries and property damage sustained by any person caused by the
354	354	negligence of the private entity or the private entity's agents or
355	355	contractors; and
356	356	(4) a provision that the terms of the deed, easement,
357	357	agreement, or other instrument of conveyance will bind the
358	358	successors and assigns of the property owner and private entity.
359	359	(c) A private entity, as defined by Section 21.031, or the
360	360	property owner may:
361	361	(1) negotiate for and agree to terms and conditions
362	362	not required by Subsection (a) or provided by Subsection (b),
363	363	including terms and conditions not included in a subsequent
364	364	condemnation petition; and
365	365	(2) agree to a deed, easement, agreement, or other
366	366	instrument of conveyance that does not include the terms required
367	367	by Subsection (a).
368	368	(d) Except as provided by this subsection, this section does
369	369	not prohibit a private entity or the property owner from agreeing to
370	370	amend the terms required by Subsection (a) after the private entity
371	371	makes an initial offer or final offer to the property owner as
372	372	required by Section 21.0113. A private entity that changes the
373	373	terms required by Subsection (a) must provide a copy of the amended
374	374	deed, easement, agreement, or other instrument of conveyance to the
375	375	property owner not later than the 14th day before the date the
376	376	private entity files a condemnation petition relating to the
377	377	property.
378	378	(e) A private entity that amends a deed, easement,
379	379	agreement, or other instrument of conveyance to which this section
380	380	applies after the initial offer or final offer is not required to
381	381	satisfy again any requirement of Section 21.0113 that the private
382	382	entity has previously satisfied.
383	383	(f) A court hearing a suit under this chapter involving
384	384	property the acquisition of which is subject to the requirements of
385	385	this section:
386	386	(1) may determine whether the private entity has
387	387	complied with the requirements of this section; and
388	388	(2) if the court determines that the private entity
389	389	has not provided to a property owner a deed, easement, agreement, or
390	390	other instrument of conveyance that complies with the requirements
391	391	of this section, shall:
392	392	(A) order the private entity to:
393	393	(i) provide to the property owner a deed,
394	394	easement, agreement, or other instrument of conveyance that
395	395	complies with the requirements of this section; and
396	396	(ii) pay to the property owner:
397	397	(a) all costs related to the private
398	398	entity's failure to comply with this section; and
399	399	(b) any reasonable attorney's fees and
400	400	other professional fees incurred by the property owner that are
401	401	directly related to the private entity's failure to comply with
402	402	this section; and
403	403	(B) abate a pending proceeding until the
404	404	instrument is provided.
405	405	SECTION 9. Section 21.014(a), Property Code, is amended to
406	406	read as follows:
407	407	(a) The judge of a court in which a condemnation petition is
408	408	filed or to which an eminent domain case is assigned shall appoint
409	409	three disinterested real property owners who reside in the county
410	410	as special commissioners to assess the damages of the owner of the
411	411	property being condemned and appoint two disinterested real
412	412	property owners who reside in the county as alternate special
413	413	commissioners. The judge appointing the special commissioners
414	414	shall give preference to persons agreed on by the parties. The
415	415	judge shall provide each party a reasonable period to strike one of
416	416	the three commissioners appointed by the judge. If a person fails
417	417	to serve as a commissioner or is struck by a party to the suit in
418	418	accordance with this subsection, an alternate special commissioner
419	419	shall serve as a replacement for the special commissioner based on
420	420	the order that the alternate special commissioners are listed in
421	421	the initial order of appointment [, the judge shall appoint a
422	422	replacement].
423	423	SECTION 10. Section 21.016(d), Property Code, is amended to
424	424	read as follows:
425	425	(d) Notice may be served[:
426	426	[(1)] by delivering a copy of the notice to the party
427	427	or to the party's agent or attorney or in any other manner provided
428	428	by the Texas Rules of Civil Procedure for service of citation[;
429	429	[(2) if the property being condemned belongs to a
430	430	deceased's estate or to a minor or other legally disabled person and
431	431	the person or estate has a legal representative, by delivering a
432	432	copy of the notice to the legal representative; or
433	433	[(3) if the property being condemned belongs to a
434	434	nonresident of this state and there has been no personal service on
435	435	the owner, if the identity or the residence of the property owner is
436	436	unknown, or if the property owner avoids service of notice by
437	437	hiding, by publication in the same manner as service of citation by
438	438	publication in other civil cases in the district courts or county
439	439	courts at law].
440	440	SECTION 11. Chapter 21, Property Code, is amended by adding
441	441	Subchapter B-1 to read as follows:
442	442	SUBCHAPTER B-1. ACQUISITION OF PROPERTY BY CERTAIN PRIVATE
443	443	ENTITIES
444	444	Sec. 21.031. DEFINITION. In this subchapter, "private
445	445	entity":
446	446	(1) means:
447	447	(A) a for-profit entity, however organized,
448	448	authorized to exercise the power of eminent domain to acquire
449	449	private property for public use; and
450	450	(B) any affiliate or subsidiary of or entity
451	451	related to an entity described by Paragraph (A), including a
452	452	for-profit corporation organized under Chapter 67, Water Code, if
453	453	the affiliate, subsidiary, or other entity was formed for purposes
454	454	of a project for which property may be acquired through eminent
455	455	domain; and
456	456	(2) does not include a railroad operating in this
457	457	state on or before September 1, 2019.
458	458	Sec. 21.032. APPLICABILITY OF SUBCHAPTER. (a) Except as
459	459	expressly provided by Section 21.033(d), this subchapter applies
460	460	only to a private entity that seeks to acquire for the same pipeline
461	461	or electric transmission project 25 or more tracts of real
462	462	property, including easements within those tracts, that are owned
463	463	by at least 25 separate and unaffiliated property owners.
464	464	(b) Except as expressly provided by Section 21.0392, this
465	465	subchapter does not apply to a private entity that:
466	466	(1) operates or proposes to construct an electric
467	467	transmission line; and
468	468	(2) is subject to the jurisdiction of the Public
469	469	Utility Commission of Texas under Chapter 37, Utilities Code.
470	470	(c) This subchapter does not apply to the acquisition of a
471	471	tract of real property that is an industrial property, including a
472	472	tract that contains a refinery, processing facility, underground
473	473	storage facility, electric station, industrial facility, power
474	474	plant facility, or storage terminal.
475	475	Sec. 21.033. NOTICE OF PROPERTY OWNER INFORMATION MEETING.
476	476	(a) A private entity shall, before or at the same time that the
477	477	entity makes an initial offer as required under Section 21.0113,
478	478	provide a written notice advising the property owner of:
479	479	(1) the property owner's right to participate in a
480	480	meeting to discuss the proposed project, including:
481	481	(A) if the project is a pipeline, the substances,
482	482	products, materials, installations, and structures the private
483	483	entity intends to transport through, use for, or build as part of
484	484	the project; and
485	485	(B) any regulatory filings for the project; and
486	486	(2) the date, time, and location of the meeting.
487	487	(b) The private entity shall send the meeting notice to:
488	488	(1) the property owner listed for the property on the
489	489	most recent tax roll for a taxing unit with authority to levy an ad
490	490	valorem tax on the property; or
491	491	(2) the address for the property listed on the tax roll
492	492	described by Subdivision (1).
493	493	(c) The private entity shall also send the meeting notice
494	494	to:
495	495	(1) any other address that the private entity has for
496	496	the property owner; and
497	497	(2) each county judge of a county in which all or part
498	498	of the project section or segment for which the meeting is to be
499	499	held is located.
500	500	(d) If a pipeline involves fewer than 25 separate and
501	501	unaffiliated property owners, the private entity shall provide
502	502	notice to the property owners in the manner prescribed by this
503	503	section that a property owner may request a meeting with the private
504	504	entity to receive the information required to be presented by a
505	505	private entity under Section 21.037. If a property owner requests a
506	506	meeting, the private entity shall hold the meeting not later than
507	507	the 30th day after the date the private entity sent the notice to
508	508	the property owner.
509	509	Sec. 21.034. PROPERTY OWNER INFORMATION MEETING. (a) For
510	510	each contiguous linear section of a proposed project route that is
511	511	equal to or less than 100 miles in length, the private entity shall
512	512	hold a group property owner meeting. For a project that exceeds 100
513	513	miles in length, the private entity shall hold at least one separate
514	514	meeting for each 100-mile segment.
515	515	(b) The private entity shall hold a meeting required under
516	516	Subsection (a) in a centrally located public location:
517	517	(1) appropriate to the size and nature of the meeting;
518	518	and
519	519	(2) as convenient as possible to the majority of
520	520	property owners affected by the project or project segment for
521	521	which the meeting is required.
522	522	(c) The private entity shall hold the meeting in a location
523	523	the travel distance to which is 50 miles or less for the majority of
524	524	property owners who reside on property being acquired for the
525	525	project section or segment for which the meeting is to be held.
526	526	(d) A meeting required under Subsection (a) may not be
527	527	scheduled to begin earlier than 5:30 p.m.
528	528	(e) A meeting required under Subsection (a) may not be held
529	529	before the private entity sends at least 25 percent of the initial
530	530	offers required by Section 21.0113.
531	531	Sec. 21.035. PERSONS AUTHORIZED TO ATTEND PROPERTY OWNER
532	532	INFORMATION MEETING. (a) In addition to the property owner and the
533	533	private entity representatives, the following individuals may
534	534	attend a meeting held under Section 21.034:
535	535	(1) an invited relative of the property owner who is
536	536	related to the property owner within the third degree by
537	537	consanguinity or affinity, as determined under Chapter 573,
538	538	Government Code;
539	539	(2) an attorney or licensed appraiser representing the
540	540	property owner;
541	541	(3) an employee or a lessee of the property owner that
542	542	has direct knowledge of the property;
543	543	(4) an employee of an entity with whom the property
544	544	owner has contracted for services to manage the property; or
545	545	(5) a county judge of a county in which all or part of
546	546	the project section or segment for which the meeting is held is
547	547	located.
548	548	(b) A private entity may include in the notice required by
549	549	Section 21.033 a requirement that the property owner identify
550	550	persons described by Subsections (a)(1)-(4) who intend to attend
551	551	the meeting not later than two days before the date of the meeting.
552	552	(c) The number of attendees under Subsections (a)(1)-(4)
553	553	may not exceed five individuals for each separate tract of
554	554	property.
555	555	(d) The private entity may require attendees to provide
556	556	identification and complete a registration form that includes
557	557	contact information.
558	558	(e) The private entity may take reasonable steps to maintain
559	559	safety and decorum at the meeting, including expelling attendees
560	560	who do not meet the requirements of this subchapter.
561	561	(f) The private entity may not deny entry to a property
562	562	owner who provides proper identification.
563	563	Sec. 21.036. PARTICIPATION BY PRIVATE ENTITY REQUIRED. One
564	564	or more representatives designated by the private entity shall:
565	565	(1) attend each meeting required by Section 21.034;
566	566	and
567	567	(2) participate in those meetings in the manner
568	568	prescribed by Section 21.037.
569	569	Sec. 21.037. PROPERTY OWNER INFORMATION MEETING AGENDA.
570	570	(a) At a meeting held under Section 21.034:
571	571	(1) the private entity shall present:
572	572	(A) the information contained in the landowner's
573	573	bill of rights statement required to be provided to a property owner
574	574	under Section 21.0112;
575	575	(B) a description of the public use for which the
576	576	entity wants to acquire the real property;
577	577	(C) the terms required under Section 21.0114 to
578	578	be included in a deed, easement, agreement, or other instrument of
579	579	conveyance provided by the entity to the property owner;
580	580	(D) a description of the method and factors used
581	581	by the entity to determine the entity's initial offer, including:
582	582	(i) how damages to remaining property, if
583	583	any, were evaluated; or
584	584	(ii) the name of the person who prepared the
585	585	appraisal report, comparative market analysis, broker price
586	586	opinion, or market study required under Section 21.0113(c);
587	587	(E) a description of the private entity's
588	588	regulatory filings related to the project;
589	589	(F) the basis for the private entity's exercise
590	590	of eminent domain authority for the project; and
591	591	(G) the name and contact information, as known at
592	592	the time of the meeting, of any third-party contractor to be used by
593	593	the entity to acquire the land or undertake the project; and
594	594	(2) any person who is an authorized attendee of the
595	595	meeting must be given an opportunity at the meeting to ask questions
596	596	and make comments regarding:
597	597	(A) the rights of the property owners;
598	598	(B) the proposed public use for which the real
599	599	property is to be acquired; and
600	600	(C) any terms required under Section 21.0114 to
601	601	be included in a deed, easement, agreement, or other instrument of
602	602	conveyance provided by the private entity to a property owner.
603	603	(b) On request, a private entity shall provide, in written
604	604	or electronic form, the materials presented by the private entity
605	605	at the meeting to a property owner who could not attend the meeting.
606	606	Sec. 21.038. CONTACT AFTER PROPERTY OWNER INFORMATION
607	607	MEETING. A private entity that holds a meeting under Section 21.034
608	608	may not contact a property owner for three days following the date
609	609	of the meeting. Nothing in this section precludes:
610	610	(1) a property owner or an individual allowed to
611	611	attend a meeting held under Section 21.034 from contacting the
612	612	private entity at any time; or
613	613	(2) the private entity from engaging in discussions
614	614	with a person described by Subdivision (1) after that person
615	615	contacts the entity.
616	616	Sec. 21.039. PROCEDURES AFTER PROJECT RE-ROUTE. If any
617	617	part of the project is re-routed after any meeting is held under
618	618	Section 21.034, the private entity shall, with respect to that
619	619	re-route only, comply with the provisions of this subchapter with
620	620	respect to tracts along the re-route.
621	621	Sec. 21.0391. PRIVATE ENTITY NONCOMPLIANCE. (a) A private
622	622	entity subject to this subchapter may not proceed with a special
623	623	commissioners' hearing against a property owner unless the private
624	624	entity has held a meeting required under this subchapter.
625	625	(b) If a court hearing a suit under this chapter determines
626	626	that a private entity did not comply with the applicable provisions
627	627	of this subchapter, the court shall:
628	628	(1) abate any condemnation proceeding filed by the
629	629	private entity until the private entity has complied with this
630	630	subchapter;
631	631	(2) order the private entity to comply with the
632	632	applicable provisions of this subchapter; and
633	633	(3) order the private entity to pay:
634	634	(A) all costs of the proceeding; and
635	635	(B) any reasonable attorney's fees and other
636	636	professional fees incurred by the property owner that are directly
637	637	related to the entity's failure to comply with the applicable
638	638	provisions of this subchapter.
639	639	(c) A condemnation proceeding that is abated under this
640	640	section may proceed after a court finds that the private entity has
641	641	complied with the applicable provisions of this subchapter.
642	642	Sec. 21.0392. PROCEDURES FOR CERTAIN PRIVATE ENTITIES
643	643	SUBJECT TO JURISDICTION OF PUBLIC UTILITY COMMISSION. (a) This
644	644	section applies only to a private entity that proposes to exercise
645	645	the power of eminent domain to construct an electric transmission
646	646	line and is subject to the authority of the Public Utility
647	647	Commission of Texas under Chapter 37, Utilities Code.
648	648	(b) A private entity to which this section applies and that
649	649	is required by the Public Utility Commission of Texas to conduct a
650	650	public meeting in connection with the electric transmission line
651	651	project shall present at the meeting:
652	652	(1) the information contained in the landowner's bill
653	653	of rights required to be provided to a property owner under Section
654	654	21.0112;
655	655	(2) the terms required under Section 21.0114 to be
656	656	included in a deed, easement, agreement, or other instrument of
657	657	conveyance provided by the entity to the property owner;
658	658	(3) the name and contact information of any
659	659	third-party contractor or right-of-way agent that will contact a
660	660	property owner or seek access to the property owner's property in
661	661	connection with the project, to the extent available;
662	662	(4) the name and contact information, including direct
663	663	telephone number and e-mail address, for an agent or employee of the
664	664	entity with authority to answer questions about the electric
665	665	transmission line project;
666	666	(5) the method for calculating the value of the
667	667	property being acquired by the entity and the damages, if any, to
668	668	the property owner's remaining property, as part of the entity's
669	669	initial offer to a property owner; and
670	670	(6) a detailed summary of procedures for right-of-way
671	671	acquisition after the route for the electric transmission line has
672	672	been selected.
673	673	(c) The private entity must give property owners the
674	674	opportunity to ask the entity questions regarding eminent domain
675	675	and right-of-way acquisition at the meeting.
676	676	(d) After the Public Utility Commission of Texas adopts a
677	677	route for the electric transmission line, the entity shall provide
678	678	by letter to each property owner on the route:
679	679	(1) a copy of the entity's draft easement form
680	680	containing a statement of the terms required by Section 21.0114 to
681	681	be included in a deed, easement, agreement, or other instrument of
682	682	conveyance provided by the entity to the property owner;
683	683	(2) an explanation of the initial offer process and
684	684	the basis for calculating the value of the property being acquired
685	685	by the entity and the damages, if any, to the property owner's
686	686	remaining property as part of the initial offer required by Section
687	687	21.0113;
688	688	(3) a statement of the property owner's right under
689	689	Section 21.0113 to receive a copy of the written appraisal with the
690	690	final offer, if a copy of the written appraisal has not previously
691	691	been provided to the property owner by the entity;
692	692	(4) an explanation of the negotiation process,
693	693	including the name and contact information of any right-of-way
694	694	agent who will be participating in the process; and
695	695	(5) the name and contact information, including the
696	696	direct telephone number and e-mail address, for an agent or
697	697	employee of the entity with authority to answer questions about the
698	698	electric transmission line project.
699	699	(e) On request, a private entity shall provide, in written
700	700	or electronic form, the materials presented by the private entity
701	701	at the meeting to a property owner who could not attend the meeting.
702	702	SECTION 12. Section 21.042, Property Code, is amended by
703	703	adding Subsection (d-1) to read as follows:
704	704	(d-1) In estimating injury or benefit under Subsection (c)
705	705	in a condemnation proceeding relating to the acquisition of real
706	706	property by a private entity as defined by Section 21.031 for a
707	707	pipeline or electric transmission project, the special
708	708	commissioners shall consider, in addition to the considerations
709	709	required under Subsection (d), an injury or benefit to the
710	710	remaining property as a result of:
711	711	(1) the characteristics, size, or visibility of any
712	712	infrastructure on the condemned property;
713	713	(2) any limitation of future expansion of the
714	714	remaining property; and
715	715	(3) terms of the easement acquired in connection with,
716	716	or the alignment of an easement in connection with, the
717	717	condemnation.
718	718	SECTION 13. Not later than December 1, 2021, the Texas Real
719	719	Estate Commission shall:
720	720	(1) establish an ombudsman office for landowners as
721	721	required by Section 1101.162, Occupations Code, as added by this
722	722	Act; and
723	723	(2) adopt rules necessary to implement the changes in
724	724	law made by this Act to Chapter 1101, Occupations Code.
725	725	SECTION 14. Notwithstanding Section 1101.502(a),
726	726	Occupations Code, as amended by this Act, and Section 1101.509,
727	727	Occupations Code, as added by this Act, a person who has submitted
728	728	an application for the issuance or renewal of a certificate of
729	729	registration as an easement or right-of-way agent on or before
730	730	January 1, 2022, is not subject to the education requirements of
731	731	those provisions until the first renewal of the certificate after
732	732	January 1, 2024.
733	733	SECTION 15. (a) Except as provided by Subsection (b) of
734	734	this section, the changes in law made by this Act to Chapter 21,
735	735	Property Code, apply only to the acquisition of real property in
736	736	connection with an initial offer made under Chapter 21, Property
737	737	Code, on or after the effective date of this Act. An acquisition of
738	738	real property in connection with an initial offer made under
739	739	Chapter 21, Property Code, before the effective date of this Act is
740	740	governed by the law applicable to the acquisition immediately
741	741	before the effective date of this Act, and that law is continued in
742	742	effect for that purpose.
743	743	(b) Section 21.0392, Property Code, as added by this Act,
744	744	applies only to a public meeting required under Chapter 37,
745	745	Utilities Code, held on or after the effective date of this Act.
746	746	SECTION 16. This Act takes effect September 1, 2021.