1 | 1 | | 89R17627 SCR-F |
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2 | 2 | | By: Lozano H.B. No. 5245 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the acquisition of real property by a private entity |
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10 | 10 | | with eminent domain authority. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Section 21.0113, Property Code, is amended by |
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13 | 13 | | adding Subsections (c), (d), and (e) to read as follows: |
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14 | 14 | | (c) Notwithstanding Subsection (b), a private entity, as |
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15 | 15 | | defined by Section 21.0114, with eminent domain authority that |
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16 | 16 | | wants to acquire real property for a public use has made a bona fide |
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17 | 17 | | offer only if the entity: |
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18 | 18 | | (1) satisfies the requirements of Subsection (b); |
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19 | 19 | | (2) includes with the initial offer: |
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20 | 20 | | (A) an offer of compensation in an amount equal |
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21 | 21 | | to or greater than: |
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22 | 22 | | (i) the market value of the property rights |
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23 | 23 | | sought to be acquired, including an estimate of damages to the |
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24 | 24 | | property owner's remaining property, if any, based on an appraisal |
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25 | 25 | | of the property prepared by a third party who is a certified general |
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26 | 26 | | appraiser licensed under Chapter 1103, Occupations Code; or |
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27 | 27 | | (ii) the estimated price or market value of |
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28 | 28 | | the property rights sought to be acquired based on data for at least |
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29 | 29 | | three comparable arm's-length sales of a fee simple interest in |
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30 | 30 | | property, including an estimate of damages to the property owner's |
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31 | 31 | | remaining property, if any, based on data then available to the |
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32 | 32 | | appraiser, broker, or private entity, as applicable, and based on: |
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33 | 33 | | (a) a comparative market analysis |
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34 | 34 | | prepared by a third party who is a real estate broker licensed under |
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35 | 35 | | Chapter 1101, Occupations Code, or a certified general appraiser |
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36 | 36 | | licensed under Chapter 1103, Occupations Code; |
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37 | 37 | | (b) a broker price opinion prepared by |
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38 | 38 | | a third party who is a real estate broker licensed under Chapter |
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39 | 39 | | 1101, Occupations Code; or |
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40 | 40 | | (c) a market study prepared by a third |
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41 | 41 | | party who is a real estate broker licensed under Chapter 1101, |
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42 | 42 | | Occupations Code, or a certified general appraiser licensed under |
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43 | 43 | | Chapter 1103, Occupations Code; |
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44 | 44 | | (B) the complete written report of the appraisal, |
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45 | 45 | | the comparative market analysis, the broker price opinion, the |
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46 | 46 | | market study, or a summary of the market study, as prepared by the |
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47 | 47 | | third party, that forms the basis for the amount of the offer of |
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48 | 48 | | compensation under Paragraph (A); and |
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49 | 49 | | (C) notice of the terms described by Section |
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50 | 50 | | 21.0114(d) for which the property owner may negotiate to be |
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51 | 51 | | included in a deed, easement, agreement, or other instrument of |
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52 | 52 | | conveyance relating to the property; and |
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53 | 53 | | (3) provides notice of the proposed project to the |
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54 | 54 | | county judge as required by Section 21.0115. |
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55 | 55 | | (d) For purposes of Subsection (c)(2)(A)(ii), a real estate |
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56 | 56 | | broker licensed under Chapter 1101, Occupations Code, is authorized |
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57 | 57 | | to prepare an estimated price based on a comparative market |
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58 | 58 | | analysis, a broker price opinion, a market study, or a summary of |
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59 | 59 | | the market study. |
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60 | 60 | | (e) A private entity that provides to a property owner an |
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61 | 61 | | easement form that is generally consistent with the language or |
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62 | 62 | | provisions required by Section 21.0114(c) and the notice required |
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63 | 63 | | by Section 21.0114(d) is considered to have complied with Section |
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64 | 64 | | 21.0114 for purposes of Subsection (b)(1)(C) of this section, |
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65 | 65 | | regardless of whether the private entity subsequently provides to |
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66 | 66 | | the property owner a different deed, easement, agreement, or other |
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67 | 67 | | instrument of conveyance as authorized under Sections 21.0114(e) |
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68 | 68 | | and (f). |
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69 | 69 | | SECTION 2. Section 21.0114(c), Property Code, is amended to |
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70 | 70 | | read as follows: |
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71 | 71 | | (c) Except as provided by Subsections (d), (e), and (f), a |
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72 | 72 | | deed, agreement, or other instrument of conveyance provided to a |
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73 | 73 | | property owner by a private entity with eminent domain authority to |
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74 | 74 | | acquire the property interest to be conveyed must address the |
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75 | 75 | | following general terms, as applicable: |
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76 | 76 | | (1) if the instrument conveys a pipeline right-of-way |
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77 | 77 | | easement or an easement related to pipeline appurtenances: |
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78 | 78 | | (A) the maximum number of pipelines that may be |
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79 | 79 | | installed under the instrument for a pipeline right-of-way; |
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80 | 80 | | (B) a description of the types of pipeline |
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81 | 81 | | appurtenances that are authorized to be installed under the |
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82 | 82 | | instrument for pipeline-related appurtenances, such as pipes, |
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83 | 83 | | valves, compressors, pumps, meters, pigging stations, dehydration |
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84 | 84 | | facilities, electric facilities, communication facilities, and any |
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85 | 85 | | other appurtenances that may be necessary [or desirable] in |
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86 | 86 | | connection with a pipeline; |
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87 | 87 | | (C) the maximum diameter, excluding any |
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88 | 88 | | protective coating or wrapping, of each pipeline to be [initially] |
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89 | 89 | | installed under the instrument for a pipeline right-of-way; |
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90 | 90 | | (D) the type or category of substances permitted |
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91 | 91 | | to be transported through each pipeline to be installed under the |
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92 | 92 | | instrument; |
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93 | 93 | | (E) a general description of any aboveground |
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94 | 94 | | equipment or facility the private entity intends to install, |
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95 | 95 | | maintain, or operate under the instrument for a pipeline easement |
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96 | 96 | | on the surface of the easement; |
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97 | 97 | | (F) a description or illustration of the location |
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98 | 98 | | of the easement, including a metes and bounds or centerline |
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99 | 99 | | description, plat, or aerial or other map-based depiction of the |
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100 | 100 | | location of the easement on the property; |
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101 | 101 | | (G) the maximum width of the easement under the |
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102 | 102 | | instrument; |
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103 | 103 | | (H) the minimum depth at which each pipeline to |
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104 | 104 | | be installed under the instrument for a pipeline right-of-way will |
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105 | 105 | | [initially] be installed; |
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106 | 106 | | (I) a provision identifying whether the private |
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107 | 107 | | entity intends to double-ditch areas of the pipeline easement that |
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108 | 108 | | are not installed by boring or horizontal directional drilling; |
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109 | 109 | | (J) a provision requiring the private entity to |
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110 | 110 | | provide written notice to the property owner at the last known |
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111 | 111 | | address of the person in whose name the property is listed on the |
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112 | 112 | | most recent tax roll of any taxing unit authorized to levy property |
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113 | 113 | | taxes against the property before assigning [if and when the |
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114 | 114 | | private entity assigns] the interest under the instrument to |
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115 | 115 | | another entity[, provided that the provision does not require |
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116 | 116 | | notice by the private entity for assignment to an affiliate or to a |
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117 | 117 | | successor through merger, consolidation, or other sale or transfer |
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118 | 118 | | of all or substantially all of its assets and businesses]; |
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119 | 119 | | (K) a provision describing whether the easement |
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120 | 120 | | rights are exclusive, [or] nonexclusive, or otherwise limited; |
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121 | 121 | | (L) a provision limiting the private entity's |
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122 | 122 | | right to grant to a third party access to the easement area for a |
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123 | 123 | | purpose that is not related to the construction, safety, repair, |
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124 | 124 | | maintenance, inspection, replacement, operation, or removal of |
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125 | 125 | | each pipeline to be installed under the instrument and of pipeline |
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126 | 126 | | appurtenances to be installed under the instrument; |
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127 | 127 | | (M) a provision regarding the property owner's |
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128 | 128 | | right to recover actual monetary damages arising from the |
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129 | 129 | | construction and installation of each pipeline to be installed |
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130 | 130 | | under the instrument, or a statement that the consideration for the |
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131 | 131 | | instrument includes any monetary damages arising from the |
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132 | 132 | | construction and installation of each pipeline to be installed |
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133 | 133 | | under the instrument; |
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134 | 134 | | (N) a provision regarding the property owner's |
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135 | 135 | | right after [initial] construction and installation of each |
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136 | 136 | | pipeline to be installed under the instrument to actual monetary |
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137 | 137 | | damages arising from the repair, maintenance, inspection, |
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138 | 138 | | replacement, operation, or removal of each pipeline to be installed |
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139 | 139 | | under the instrument, or a statement that consideration for the |
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140 | 140 | | instrument includes any monetary damages arising from the repair, |
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141 | 141 | | maintenance, inspection, replacement, operation, or removal of |
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142 | 142 | | each pipeline to be installed under the instrument; |
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143 | 143 | | (O) a provision: |
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144 | 144 | | (i) regarding the removal, cutting, use, |
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145 | 145 | | repair, and replacement of gates and fences that cross the easement |
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146 | 146 | | or that will be used by the private entity under the instrument; or |
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147 | 147 | | (ii) providing for the payment for any |
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148 | 148 | | damage caused by the private entity to gates and fences described by |
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149 | 149 | | Subparagraph (i), if any, to the extent that the gates or fences are |
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150 | 150 | | not restored or paid for as part of the consideration paid for the |
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151 | 151 | | instrument; |
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152 | 152 | | (P) a provision: |
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153 | 153 | | (i) regarding the private entity's |
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154 | 154 | | obligation to restore the pipeline easement area and the property |
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155 | 155 | | owner's remaining property, if any, used by the private entity to as |
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156 | 156 | | near to original condition as is reasonably practicable and to |
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157 | 157 | | maintain the easement in a manner not inconsistent [consistent] |
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158 | 158 | | with the purposes for which the easement will be used by the private |
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159 | 159 | | entity under the instrument; or |
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160 | 160 | | (ii) providing for the private entity to |
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161 | 161 | | reimburse the property owner for actual monetary damages incurred |
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162 | 162 | | by the property owner that arise from damage to the pipeline |
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163 | 163 | | easement area or the property owner's remaining property, if any, |
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164 | 164 | | to the extent caused by the private entity and not restored or paid |
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165 | 165 | | for as part of the consideration for the instrument; and |
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166 | 166 | | (Q) a provision describing the private entity's |
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167 | 167 | | rights of ingress, egress, entry, and access on, to, over, and |
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168 | 168 | | across the property owner's property under the instrument; |
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169 | 169 | | (2) if the instrument conveys an electric transmission |
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170 | 170 | | line right-of-way easement: |
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171 | 171 | | (A) a general description of the uses of the |
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172 | 172 | | surface of the property to be encumbered by the easement the entity |
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173 | 173 | | intends to acquire; |
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174 | 174 | | (B) a description or illustration of the location |
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175 | 175 | | of the easement, including a metes and bounds or centerline |
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176 | 176 | | description, plat, or aerial or other map-based depiction of the |
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177 | 177 | | location of the easement on the property; |
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178 | 178 | | (C) the maximum width of the easement under the |
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179 | 179 | | instrument; |
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180 | 180 | | (D) the manner in which the entity will access |
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181 | 181 | | the easement under the instrument; |
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182 | 182 | | (E) a provision limiting the private entity's |
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183 | 183 | | right to grant to a third party access to the easement area for a |
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184 | 184 | | purpose that is not related to the construction, safety, repair, |
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185 | 185 | | maintenance, inspection, replacement, operation, or removal of the |
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186 | 186 | | electric and appurtenant facilities installed under the |
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187 | 187 | | instrument; |
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188 | 188 | | (F) a provision regarding the property owner's |
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189 | 189 | | right to recover actual monetary damages arising from the |
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190 | 190 | | construction, operation, repair, maintenance, inspection, |
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191 | 191 | | replacement, and future removal of lines and support facilities |
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192 | 192 | | after initial construction in the easement, if any, or a statement |
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193 | 193 | | that the initial consideration for the easement instrument includes |
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194 | 194 | | such damages; |
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195 | 195 | | (G) a provision: |
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196 | 196 | | (i) regarding the removal, cutting, use, |
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197 | 197 | | repair, and replacement of gates and fences that cross the easement |
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198 | 198 | | or that will be used by the private entity under the instrument; or |
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199 | 199 | | (ii) providing for the payment for any |
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200 | 200 | | damage caused by the private entity to gates and fences described by |
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201 | 201 | | Subparagraph (i), if any, to the extent that the gates or fences are |
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202 | 202 | | not restored or paid for as part of the consideration for the |
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203 | 203 | | instrument; |
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204 | 204 | | (H) a provision regarding the private entity's |
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205 | 205 | | obligation to restore the easement area and the property owner's |
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206 | 206 | | remaining property to the easement area's and the remaining |
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207 | 207 | | property's original contours and grades, to the extent reasonably |
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208 | 208 | | practicable, unless the safety or operational needs of the private |
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209 | 209 | | entity and the electric facilities would be impaired, and: |
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210 | 210 | | (i) a provision regarding the entity's |
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211 | 211 | | obligation to restore the easement area and the property owner's |
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212 | 212 | | remaining property following any future damages directly |
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213 | 213 | | attributed to the use of the easement by the private entity, to the |
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214 | 214 | | extent reasonably practicable[, unless the safety or operational |
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215 | 215 | | needs of the private entity and the electric facilities would be |
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216 | 216 | | impaired]; or |
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217 | 217 | | (ii) a provision that the consideration for |
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218 | 218 | | the easement instrument includes damages as described by |
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219 | 219 | | Subparagraph (i) to the easement area and the property owner's |
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220 | 220 | | remaining property; |
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221 | 221 | | (I) a provision describing whether the easement |
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222 | 222 | | rights are exclusive, nonexclusive, or otherwise limited under the |
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223 | 223 | | terms of the instrument; and |
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224 | 224 | | (J) a prohibition against the assignment of the |
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225 | 225 | | entity's interest in the property to an assignee that will not |
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226 | 226 | | operate as a utility subject to the jurisdiction of the Public |
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227 | 227 | | Utility Commission of Texas or the Federal Energy Regulatory |
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228 | 228 | | Commission without written notice to the property owner at the last |
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229 | 229 | | known address of the person in whose name the property is listed on |
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230 | 230 | | the most recent tax roll of any taxing unit authorized to levy |
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231 | 231 | | property taxes against the property; |
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232 | 232 | | (3) a prohibition against any use by the private |
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233 | 233 | | entity of the property rights being conveyed by the instrument, |
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234 | 234 | | other than a use stated in the instrument, without the express |
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235 | 235 | | written consent of the property owner; [and] |
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236 | 236 | | (4) a provision that the terms of the instrument will |
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237 | 237 | | bind the successors and assigns of the property owner and private |
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238 | 238 | | entity; and |
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239 | 239 | | (5) a provision setting forth the applicable insurance |
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240 | 240 | | or self-insurance to be provided by the private entity. |
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241 | 241 | | SECTION 3. Subchapter B, Chapter 21, Property Code, is |
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242 | 242 | | amended by adding Section 21.0115 to read as follows: |
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243 | 243 | | Sec. 21.0115. NOTICE OF INTENT. (a) A private entity as |
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244 | 244 | | defined by Section 21.0114 must send a written notice of intent to |
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245 | 245 | | the county judge of a county in which the private entity will seek |
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246 | 246 | | to acquire property for a project for public use before the first |
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247 | 247 | | time the private entity makes an initial offer to acquire real |
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248 | 248 | | property for the project in that county. |
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249 | 249 | | (b) A notice sent under Subsection (a) must: |
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250 | 250 | | (1) state the private entity's intent to acquire real |
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251 | 251 | | property for public use; |
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252 | 252 | | (2) specify the public use; and |
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253 | 253 | | (3) identify the proposed route, including the tracts |
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254 | 254 | | of real property, identified by the tract number assigned by the |
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255 | 255 | | county assessor-collector, that the private entity intends to |
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256 | 256 | | acquire. |
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257 | 257 | | SECTION 4. Section 21.012, Property Code, is amended by |
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258 | 258 | | adding Subsection (b-1) to read as follows: |
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259 | 259 | | (b-1) In addition to the contents prescribed by Subsection |
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260 | 260 | | (b), a petition filed by a private entity as defined by Section |
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261 | 261 | | 21.0114 to acquire property for a public use must state the terms to |
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262 | 262 | | be included in the instrument of conveyance under Section |
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263 | 263 | | 21.0114(c). |
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264 | 264 | | SECTION 5. Section 21.014(a), Property Code, is amended to |
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265 | 265 | | read as follows: |
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266 | 266 | | (a) The judge of a court in which a condemnation petition is |
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267 | 267 | | filed or to which an eminent domain case is assigned shall, not |
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268 | 268 | | later than the 30th calendar day after the property owner receives |
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269 | 269 | | notice that the petition is filed, appoint three disinterested real |
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270 | 270 | | property owners who reside in the county as special commissioners |
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271 | 271 | | to assess the damages of the owner of the property being condemned |
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272 | 272 | | and appoint two disinterested real property owners who reside in |
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273 | 273 | | the county as alternate special commissioners. The judge appointing |
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274 | 274 | | the special commissioners shall give preference to persons agreed |
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275 | 275 | | on by the parties, if any, before the court appoints the special |
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276 | 276 | | commissioners. The judge shall provide the names and contact |
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277 | 277 | | information of the special commissioners and alternate special |
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278 | 278 | | commissioners to the parties. Each party shall have until the later |
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279 | 279 | | of 15 [10] calendar days after the date of the order appointing the |
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280 | 280 | | special commissioners or 30 [20] days after the date the petition |
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281 | 281 | | was filed to strike one of the three special commissioners. Any |
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282 | 282 | | strike of a special commissioner must be filed electronically with |
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283 | 283 | | electronic service provided concurrently to any represented party |
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284 | 284 | | and first class mail service provided concurrently to any other |
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285 | 285 | | party. If a person fails to serve as a special commissioner or is |
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286 | 286 | | struck by a party to the suit in accordance with this subsection, an |
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287 | 287 | | alternate special commissioner shall serve as a replacement for the |
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288 | 288 | | special commissioner based on the order that the alternate special |
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289 | 289 | | commissioners are listed in the initial order of appointment. If a |
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290 | 290 | | party exercises a strike, the other party may, by the later of the |
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291 | 291 | | third day after the date of filing of the initial strike or the date |
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292 | 292 | | of the initial strike deadline, strike a special commissioner from |
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293 | 293 | | the resulting panel, provided the other party has not earlier |
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294 | 294 | | exercised a strike. |
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295 | 295 | | SECTION 6. Chapter 21, Property Code, is amended by adding |
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296 | 296 | | Subchapter B-1 to read as follows: |
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297 | 297 | | SUBCHAPTER B-1. ACQUISITION OF PROPERTY BY CERTAIN PRIVATE |
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298 | 298 | | ENTITIES |
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299 | 299 | | Sec. 21.031. DEFINITION. In this subchapter, "private |
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300 | 300 | | entity" has the meaning assigned by Section 21.0114. |
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301 | 301 | | Sec. 21.032. APPLICABILITY OF SUBCHAPTER. (a) Except as |
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302 | 302 | | expressly provided by Section 21.033(d), this subchapter applies |
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303 | 303 | | only to a private entity that seeks to acquire for the same pipeline |
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304 | 304 | | or electric transmission project 25 or more tracts of real |
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305 | 305 | | property, including easements within those tracts, that are owned |
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306 | 306 | | by at least 25 separate and unaffiliated property owners. |
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307 | 307 | | (b) Except as expressly provided by Section 21.0392, this |
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308 | 308 | | subchapter does not apply to a private entity that: |
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309 | 309 | | (1) operates or proposes to construct an electric |
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310 | 310 | | transmission line; and |
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311 | 311 | | (2) is subject to the jurisdiction of the Public |
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312 | 312 | | Utility Commission of Texas under Chapter 37, Utilities Code. |
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313 | 313 | | (c) This subchapter does not apply to the acquisition of a |
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314 | 314 | | tract of real property that is an industrial property, including a |
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315 | 315 | | tract that contains a refinery, processing facility, underground |
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316 | 316 | | storage facility, electric station, industrial facility, power |
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317 | 317 | | plant facility, or storage terminal. |
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318 | 318 | | Sec. 21.033. NOTICE OF PROPERTY OWNER INFORMATION MEETING. |
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319 | 319 | | (a) A private entity shall, before or at the same time that the |
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320 | 320 | | entity makes an initial offer as required under Section 21.0113, |
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321 | 321 | | provide a written notice advising the property owner of: |
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322 | 322 | | (1) the property owner's right to participate in a |
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323 | 323 | | meeting to discuss the proposed project, including: |
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324 | 324 | | (A) if the project is a pipeline, the substances, |
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325 | 325 | | products, materials, installations, and structures the private |
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326 | 326 | | entity intends to transport through, use for, or build as part of |
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327 | 327 | | the project; and |
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328 | 328 | | (B) any regulatory filings for the project; and |
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329 | 329 | | (2) the date, time, and location of the meeting. |
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330 | 330 | | (b) The private entity shall send the meeting notice to: |
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331 | 331 | | (1) the property owner listed for the property on the |
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332 | 332 | | most recent tax roll for a taxing unit with authority to levy an ad |
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333 | 333 | | valorem tax on the property; or |
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334 | 334 | | (2) the address for the property listed on the tax roll |
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335 | 335 | | described by Subdivision (1). |
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336 | 336 | | (c) The private entity shall also send the meeting notice |
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337 | 337 | | to: |
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338 | 338 | | (1) any other address that the private entity has for |
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339 | 339 | | the property owner; and |
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340 | 340 | | (2) each county judge of a county in which all or part |
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341 | 341 | | of the project section or segment for which the meeting is to be |
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342 | 342 | | held is located. |
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343 | 343 | | (d) If a pipeline involves fewer than 25 separate and |
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344 | 344 | | unaffiliated property owners, the private entity shall provide |
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345 | 345 | | notice to the property owners in the manner prescribed by this |
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346 | 346 | | section that a property owner may request a meeting with the private |
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347 | 347 | | entity to receive the information required to be presented by a |
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348 | 348 | | private entity under Section 21.037. If a property owner requests a |
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349 | 349 | | meeting, the private entity shall hold the meeting not later than |
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350 | 350 | | the 30th day after the date the private entity sent the notice to |
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351 | 351 | | the property owner. |
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352 | 352 | | Sec. 21.034. PROPERTY OWNER INFORMATION MEETING. (a) For |
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353 | 353 | | each contiguous linear section of a proposed project route that is |
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354 | 354 | | equal to or less than 100 miles in length, the private entity shall |
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355 | 355 | | hold a group property owner meeting. For a project that exceeds 100 |
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356 | 356 | | miles in length, the private entity shall hold at least one separate |
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357 | 357 | | meeting for each 100-mile segment. |
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358 | 358 | | (b) The private entity shall hold a meeting required under |
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359 | 359 | | Subsection (a) in a centrally located public location: |
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360 | 360 | | (1) appropriate to the size and nature of the meeting; |
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361 | 361 | | and |
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362 | 362 | | (2) as convenient as possible to the majority of |
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363 | 363 | | property owners affected by the project or project segment for |
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364 | 364 | | which the meeting is required. |
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365 | 365 | | (c) The private entity shall hold the meeting in a location |
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366 | 366 | | the travel distance to which is 50 miles or less for the majority of |
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367 | 367 | | property owners who reside on property being acquired for the |
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368 | 368 | | project section or segment for which the meeting is to be held. |
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369 | 369 | | (d) A meeting required under Subsection (a) may not be |
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370 | 370 | | scheduled to begin earlier than 5:30 p.m. |
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371 | 371 | | (e) A meeting required under Subsection (a) may not be held |
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372 | 372 | | before the private entity sends at least 25 percent of the initial |
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373 | 373 | | offers required by Section 21.0113. |
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374 | 374 | | Sec. 21.035. PERSONS AUTHORIZED TO ATTEND PROPERTY OWNER |
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375 | 375 | | INFORMATION MEETING. (a) In addition to the property owner and the |
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376 | 376 | | private entity representatives, the following individuals may |
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377 | 377 | | attend a meeting held under Section 21.034: |
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378 | 378 | | (1) an invited relative of the property owner who is |
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379 | 379 | | related to the property owner within the third degree by |
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380 | 380 | | consanguinity or affinity, as determined under Chapter 573, |
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381 | 381 | | Government Code; |
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382 | 382 | | (2) an attorney or licensed appraiser representing the |
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383 | 383 | | property owner; |
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384 | 384 | | (3) an employee or a lessee of the property owner that |
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385 | 385 | | has direct knowledge of the property; |
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386 | 386 | | (4) an employee of an entity with whom the property |
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387 | 387 | | owner has contracted for services to manage the property; or |
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388 | 388 | | (5) a county judge of a county in which all or part of |
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389 | 389 | | the project section or segment for which the meeting is held is |
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390 | 390 | | located. |
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391 | 391 | | (b) A private entity may include in the notice required by |
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392 | 392 | | Section 21.033 a requirement that the property owner identify |
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393 | 393 | | persons described by Subsections (a)(1)-(4) who intend to attend |
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394 | 394 | | the meeting not later than two days before the date of the meeting. |
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395 | 395 | | (c) The number of attendees under Subsections (a)(1)-(4) |
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396 | 396 | | may not exceed five individuals for each separate tract of |
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397 | 397 | | property. |
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398 | 398 | | (d) The private entity may require attendees to provide |
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399 | 399 | | identification and complete a registration form that includes |
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400 | 400 | | contact information. |
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401 | 401 | | (e) The private entity may take reasonable steps to maintain |
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402 | 402 | | safety and decorum at the meeting, including expelling attendees |
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403 | 403 | | who do not meet the requirements of this subchapter. |
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404 | 404 | | (f) The private entity may not deny entry to a property |
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405 | 405 | | owner who provides proper identification. |
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406 | 406 | | Sec. 21.036. PARTICIPATION BY PRIVATE ENTITY REQUIRED. One |
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407 | 407 | | or more representatives designated by the private entity shall: |
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408 | 408 | | (1) attend each meeting required by Section 21.034; |
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409 | 409 | | and |
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410 | 410 | | (2) participate in those meetings in the manner |
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411 | 411 | | prescribed by Section 21.037. |
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412 | 412 | | Sec. 21.037. PROPERTY OWNER INFORMATION MEETING AGENDA. |
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413 | 413 | | (a) At a meeting held under Section 21.034: |
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414 | 414 | | (1) the private entity shall present: |
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415 | 415 | | (A) the information contained in the landowner's |
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416 | 416 | | bill of rights statement required to be provided to a property owner |
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417 | 417 | | under Section 21.0112; |
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418 | 418 | | (B) a description of the public use for which the |
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419 | 419 | | entity wants to acquire the real property; |
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420 | 420 | | (C) the terms required under Section 21.0114 to |
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421 | 421 | | be included in a deed, easement, agreement, or other instrument of |
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422 | 422 | | conveyance provided by the entity to the property owner; |
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423 | 423 | | (D) a description of the method and factors used |
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424 | 424 | | by the entity to determine the entity's initial offer, including: |
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425 | 425 | | (i) how damages to remaining property, if |
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426 | 426 | | any, were evaluated; or |
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427 | 427 | | (ii) the name of the person who prepared the |
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428 | 428 | | appraisal report, comparative market analysis, broker price |
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429 | 429 | | opinion, or market study required under Section 21.0113(c); |
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430 | 430 | | (E) a description of the private entity's |
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431 | 431 | | regulatory filings related to the project; |
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432 | 432 | | (F) the basis for the private entity's exercise |
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433 | 433 | | of eminent domain authority for the project; and |
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434 | 434 | | (G) the name and contact information, as known at |
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435 | 435 | | the time of the meeting, of any third-party contractor to be used by |
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436 | 436 | | the entity to acquire the land or undertake the project; and |
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437 | 437 | | (2) any person who is an authorized attendee of the |
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438 | 438 | | meeting must be given an opportunity at the meeting to ask questions |
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439 | 439 | | and make comments regarding: |
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440 | 440 | | (A) the rights of the property owners; |
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441 | 441 | | (B) the proposed public use for which the real |
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442 | 442 | | property is to be acquired; and |
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443 | 443 | | (C) any terms required under Section 21.0114 to |
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444 | 444 | | be included in a deed, easement, agreement, or other instrument of |
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445 | 445 | | conveyance provided by the private entity to a property owner. |
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446 | 446 | | (b) On request, a private entity shall provide, in written |
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447 | 447 | | or electronic form, the materials presented by the private entity |
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448 | 448 | | at the meeting to a property owner who could not attend the meeting. |
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449 | 449 | | Sec. 21.038. CONTACT AFTER PROPERTY OWNER INFORMATION |
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450 | 450 | | MEETING. A private entity that holds a meeting under Section 21.034 |
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451 | 451 | | may not contact a property owner for three days following the date |
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452 | 452 | | of the meeting. Nothing in this section precludes: |
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453 | 453 | | (1) a property owner or an individual allowed to |
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454 | 454 | | attend a meeting held under Section 21.034 from contacting the |
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455 | 455 | | private entity at any time; or |
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456 | 456 | | (2) the private entity from engaging in discussions |
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457 | 457 | | with a person described by Subdivision (1) after that person |
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458 | 458 | | contacts the entity. |
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459 | 459 | | Sec. 21.039. PROCEDURES AFTER PROJECT RE-ROUTE. If any |
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460 | 460 | | part of the project is re-routed after any meeting is held under |
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461 | 461 | | Section 21.034, the private entity shall, with respect to that |
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462 | 462 | | re-route only, comply with the provisions of this subchapter with |
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463 | 463 | | respect to tracts along the re-route. |
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464 | 464 | | Sec. 21.0391. PRIVATE ENTITY NONCOMPLIANCE. (a) A private |
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465 | 465 | | entity subject to this subchapter may not proceed with a special |
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466 | 466 | | commissioners' hearing against a property owner unless the private |
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467 | 467 | | entity has held a meeting required under this subchapter. |
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468 | 468 | | (b) If a court hearing a suit under this chapter determines |
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469 | 469 | | that a private entity did not comply with the applicable provisions |
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470 | 470 | | of this subchapter, the court shall: |
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471 | 471 | | (1) abate any condemnation proceeding filed by the |
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472 | 472 | | private entity until the private entity has complied with this |
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473 | 473 | | subchapter; |
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474 | 474 | | (2) order the private entity to comply with the |
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475 | 475 | | applicable provisions of this subchapter; and |
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476 | 476 | | (3) order the private entity to pay: |
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477 | 477 | | (A) all costs of the proceeding; and |
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478 | 478 | | (B) any reasonable attorney's fees and other |
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479 | 479 | | professional fees incurred by the property owner that are directly |
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480 | 480 | | related to the entity's failure to comply with the applicable |
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481 | 481 | | provisions of this subchapter. |
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482 | 482 | | (c) A condemnation proceeding that is abated under this |
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483 | 483 | | section may proceed after a court finds that the private entity has |
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484 | 484 | | complied with the applicable provisions of this subchapter. |
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485 | 485 | | Sec. 21.0392. PROCEDURES FOR CERTAIN PRIVATE ENTITIES |
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486 | 486 | | SUBJECT TO JURISDICTION OF PUBLIC UTILITY COMMISSION. (a) This |
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487 | 487 | | section applies only to a private entity that proposes to exercise |
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488 | 488 | | the power of eminent domain to construct an electric transmission |
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489 | 489 | | line and is subject to the authority of the Public Utility |
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490 | 490 | | Commission of Texas under Chapter 37, Utilities Code. |
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491 | 491 | | (b) A private entity to which this section applies and that |
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492 | 492 | | is required by the Public Utility Commission of Texas to conduct a |
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493 | 493 | | public meeting in connection with the electric transmission line |
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494 | 494 | | project shall present at the meeting: |
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495 | 495 | | (1) the information contained in the landowner's bill |
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496 | 496 | | of rights required to be provided to a property owner under Section |
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497 | 497 | | 21.0112; |
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498 | 498 | | (2) the terms required under Section 21.0114 to be |
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499 | 499 | | included in a deed, easement, agreement, or other instrument of |
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500 | 500 | | conveyance provided by the entity to the property owner; |
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501 | 501 | | (3) the name and contact information of any |
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502 | 502 | | third-party contractor or right-of-way agent that will contact a |
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503 | 503 | | property owner or seek access to the property owner's property in |
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504 | 504 | | connection with the project, to the extent available; |
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505 | 505 | | (4) the name and contact information, including direct |
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506 | 506 | | telephone number and e-mail address, for an agent or employee of the |
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507 | 507 | | entity with authority to answer questions about the electric |
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508 | 508 | | transmission line project; |
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509 | 509 | | (5) the method for calculating the value of the |
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510 | 510 | | property being acquired by the entity and the damages, if any, to |
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511 | 511 | | the property owner's remaining property, as part of the entity's |
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512 | 512 | | initial offer to a property owner; and |
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513 | 513 | | (6) a detailed summary of procedures for right-of-way |
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514 | 514 | | acquisition after the route for the electric transmission line has |
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515 | 515 | | been selected. |
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516 | 516 | | (c) The private entity must give property owners the |
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517 | 517 | | opportunity to ask the entity questions regarding eminent domain |
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518 | 518 | | and right-of-way acquisition at the meeting. |
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519 | 519 | | (d) After the Public Utility Commission of Texas adopts a |
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520 | 520 | | route for the electric transmission line, the entity shall provide |
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521 | 521 | | by letter to each property owner on the route: |
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522 | 522 | | (1) a copy of the entity's draft easement form |
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523 | 523 | | containing a statement of the terms required by Section 21.0114 to |
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524 | 524 | | be included in a deed, easement, agreement, or other instrument of |
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525 | 525 | | conveyance provided by the entity to the property owner; |
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526 | 526 | | (2) an explanation of the initial offer process and |
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527 | 527 | | the basis for calculating the value of the property being acquired |
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528 | 528 | | by the entity and the damages, if any, to the property owner's |
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529 | 529 | | remaining property as part of the initial offer required by Section |
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530 | 530 | | 21.0113; |
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531 | 531 | | (3) a statement of the property owner's right under |
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532 | 532 | | Section 21.0113 to receive a copy of the written appraisal with the |
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533 | 533 | | final offer, if a copy of the written appraisal has not previously |
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534 | 534 | | been provided to the property owner by the entity; |
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535 | 535 | | (4) an explanation of the negotiation process, |
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536 | 536 | | including the name and contact information of any right-of-way |
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537 | 537 | | agent who will be participating in the process; and |
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538 | 538 | | (5) the name and contact information, including the |
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539 | 539 | | direct telephone number and e-mail address, for an agent or |
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540 | 540 | | employee of the entity with authority to answer questions about the |
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541 | 541 | | electric transmission line project. |
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542 | 542 | | (e) On request, a private entity shall provide, in written |
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543 | 543 | | or electronic form, the materials presented by the private entity |
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544 | 544 | | at the meeting to a property owner who could not attend the meeting. |
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545 | 545 | | SECTION 7. Section 21.042, Property Code, is amended by |
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546 | 546 | | adding Subsection (d-1) to read as follows: |
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547 | 547 | | (d-1) In estimating injury or benefit under Subsection (c) |
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548 | 548 | | in a condemnation proceeding relating to the acquisition of real |
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549 | 549 | | property by a private entity as defined by Section 21.0114 for a |
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550 | 550 | | pipeline or electric transmission project, the special |
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551 | 551 | | commissioners shall consider, in addition to the considerations |
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552 | 552 | | required under Subsection (d), an injury or benefit to the |
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553 | 553 | | remaining property as a result of: |
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554 | 554 | | (1) the characteristics, size, or visibility of any |
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555 | 555 | | infrastructure on the condemned property; |
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556 | 556 | | (2) any limitation of future expansion of the |
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557 | 557 | | remaining property; and |
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558 | 558 | | (3) terms of the easement acquired in connection with, |
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559 | 559 | | or the alignment of an easement in connection with, the |
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560 | 560 | | condemnation. |
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561 | 561 | | SECTION 8. (a) Except as provided by Subsection (b) of this |
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562 | 562 | | section, the changes in law made by this Act to Chapter 21, Property |
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563 | 563 | | Code, apply only to the acquisition of real property in connection |
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564 | 564 | | with an initial offer made under Chapter 21, Property Code, on or |
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565 | 565 | | after the effective date of this Act. An acquisition of real |
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566 | 566 | | property in connection with an initial offer made under Chapter 21, |
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567 | 567 | | Property Code, before the effective date of this Act is governed by |
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568 | 568 | | the law applicable to the acquisition immediately before the |
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569 | 569 | | effective date of this Act, and that law is continued in effect for |
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570 | 570 | | that purpose. |
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571 | 571 | | (b) Section 21.0392, Property Code, as added by this Act, |
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572 | 572 | | applies only to a public meeting required under Chapter 37, |
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573 | 573 | | Utilities Code, held on or after the effective date of this Act. |
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574 | 574 | | SECTION 9. This Act takes effect September 1, 2025. |
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