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A BILL TO BE ENTITLED
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AN ACT
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relating to the acquisition of property by an entity with eminent |
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domain authority; waiving certain sovereign and governmental |
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immunity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 21.0111, Property Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) After making an offer to which Subsection (a) applies, |
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the entity shall disclose to the property owner any new, amended, or |
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updated appraisal report produced or acquired by or on behalf of the |
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entity after making the offer and used in determining the entity's |
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opinion of value. A disclosure required by this subsection must be |
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made not later than the earlier of: |
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(1) the 10th day after the date the entity receives the |
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appraisal report; or |
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(2) the third business day before the date of a special |
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commissioner's hearing if the appraisal report is to be used at the |
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hearing. |
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SECTION 2. Section 21.0113, Property Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) For purposes of this section, the deed, easement, or |
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other instrument provided under Subsection (b)(6)(B) must include: |
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(1) for a pipeline right-of-way easement: |
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(A) the maximum number of pipelines that may be |
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installed in the right-of-way; |
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(B) the outside diameter of each pipeline to be |
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installed in the right-of-way; |
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(C) the type or category of each petroleum |
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product to be transported through the pipelines to be installed in |
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the right-of-way; |
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(D) a reasonable description of any use of the |
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surface of the right-of-way that the entity intends to acquire; |
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(E) a metes and bounds or center line description |
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of the location of the easement; |
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(F) the width of the easement; |
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(G) the depth of the pipeline and amount of |
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cover; |
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(H) a requirement to use the double-ditch method |
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for installation of the pipeline when not bore-drilled; |
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(I) a prohibition from transferring the easement |
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to any other entity, subsidiary, or company that does not have |
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eminent domain authority; |
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(J) a reservation of the property owner's right |
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to grant additional compatible easements in the easement area to |
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other parties; |
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(K) a limit on third-party access to the easement |
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area; |
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(L) a right to damages arising from construction, |
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maintenance, repair, replacement, or future removal of the pipeline |
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in the easement, including any damages to growing crops or |
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livestock; |
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(M) a covenant to lock and close all gates and |
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fences as necessary to prevent damage to or destruction of |
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livestock; |
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(N) a covenant to maintain the right-of-way; and |
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(O) a covenant to repair and restore areas used |
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or damaged outside the easement area to their original condition or |
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better; |
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(2) for an electrical transmission right-of-way |
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easement: |
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(A) the maximum number and spacing of the poles, |
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towers, or other support apparatus to carry electrical lines over |
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the easement; |
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(B) the maximum number and electrical carrying |
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capacity of the lines to be installed in the easement; |
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(C) a reasonable description of any use of the |
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surface of the right-of-way that the entity intends to acquire; |
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(D) a metes and bounds or center line description |
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of the location of the easement; |
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(E) the width of the easement; |
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(F) a reservation of the property owner's right |
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to grant additional compatible easements in the easement area to |
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other parties; |
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(G) a limit on third-party access to the easement |
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area; |
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(H) a right to damages arising from construction, |
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maintenance, repair, replacement, or future removal of lines and |
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support apparatus in the easement, including any damages to growing |
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crops or livestock; |
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(I) a covenant to lock and close all gates and |
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fences as necessary to prevent damage to or destruction of |
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livestock; |
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(J) a covenant to maintain the right-of-way; and |
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(K) a covenant to repair and restore areas used |
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or damaged outside the easement area to their original condition or |
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better; |
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(3) a prohibition against any use of the property |
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being conveyed, other than a use stated in the instrument, without |
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the express written consent of the property owner; |
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(4) a covenant that the entity will indemnify and hold |
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the property owner harmless against any claim brought against the |
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property owner arising out of or relating to the use of condemned |
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property by the entity or the entity's agents or contractors; and |
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(5) a covenant that the entity will secure and keep in |
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full force and effect at all times while the entity continues to use |
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the condemned property a policy or policies of liability insurance: |
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(A) issued by an insurer authorized to issue such |
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policies in this state; |
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(B) insuring the property owner against |
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liability for personal injuries and property damage sustained by |
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any person that arises from or is related to the use of the property |
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by the entity or the entity's agents or contractors; |
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(C) naming the property owner or the owner's |
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successor in title as an insured; and |
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(D) providing limits of liability as specified in |
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the instrument. |
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SECTION 3. Section 21.041, Property Code, is amended to |
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read as follows: |
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Sec. 21.041. EVIDENCE. (a) As the basis for assessing |
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actual damages to a property owner from a condemnation, the special |
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commissioners shall admit evidence on: |
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(1) the value of the property being condemned; |
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(2) the injury to the property owner; |
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(3) the benefit to the property owner's remaining |
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property; and |
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(4) the use of the property for the purpose of the |
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condemnation. |
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(b) The special commissioners may admit evidence on the |
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price paid for pipeline or power line rights-of-way in privately |
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negotiated transactions made in the absence of a potential, actual, |
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or threatened condemnation. |
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SECTION 4. Section 21.047, Property Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) If the amount of damages awarded by the special |
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commissioners is at least 20 percent greater than the amount of the |
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condemnor's final offer made in accordance with Section 21.0113 or |
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if the commissioners' award is appealed and a court awards damages |
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in an amount that is at least 20 percent greater than the amount of |
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the condemnor's final offer made in accordance with Section |
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21.0113, the condemnor shall pay: |
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(1) all costs as provided by Subsection (a); and |
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(2) any reasonable attorney's fees and other |
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professional fees incurred by the property owner in connection with |
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the eminent domain proceeding. |
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SECTION 5. Section 21.063, Property Code, is amended by |
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adding Subsections (c) and (d) to read as follows: |
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(c) As a condition of appealing the decision of a trial |
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court in a condemnation proceeding, a nongovernmental condemnor |
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shall: |
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(1) pay to the property owner the amount of just |
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compensation awarded by the trial court; |
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(2) deposit that same amount with the court subject to |
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the order of the property owner; or |
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(3) post a surety bond in the same amount issued by a |
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surety company authorized to engage in business in this state, |
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conditioned to secure the payment of the trial court's award of just |
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compensation. |
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(d) If the property owner moves to enforce Subsection (c) |
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and the nongovernmental condemnor fails to comply with that |
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subsection before the 30th day after the date the property owner's |
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motion is filed: |
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(1) the court of appeals shall dismiss the appeal with |
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prejudice and order enforcement of the final judgment; |
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(2) the nongovernmental condemnor and its assigns |
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shall lose the right to remain on the property owner's property, and |
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any interest of the nongovernmental condemnor or its assigns in the |
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property reverts to the property owner; and |
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(3) the property owner is entitled to: |
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(A) any damages attributable to the |
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nongovernmental condemnor's occupation of the property; |
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(B) all reasonable expenses incurred to |
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remediate the property; and |
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(C) all reasonable and necessary fees for |
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attorneys, appraisers, photographers, and other experts hired in |
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relation to the condemnation. |
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SECTION 6. Chapter 21, Property Code, is amended by adding |
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Subchapter F to read as follows: |
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SUBCHAPTER F. AGREEMENTS MADE IN CONNECTION WITH CONDEMNATION |
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Sec. 21.151. AGREEMENTS ENFORCEABLE; WAIVER OF SOVEREIGN |
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IMMUNITY. A written agreement entered into by a governmental |
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entity with eminent domain authority and a property owner in |
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connection with a proceeding initiated by the entity to condemn the |
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owner's property or under a threat of condemnation by the entity of |
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the owner's property is enforceable by the property owner. Entry |
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into the agreement waives the entity's sovereign or governmental |
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immunity from suit and from liability to the extent necessary to |
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enforce the agreement. |
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SECTION 7. Section 26.11(a), Tax Code, is amended to read as |
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follows: |
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(a) If the federal government, the state, or a political |
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subdivision of the state acquires the right to possession of |
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taxable property under a court order issued in condemnation |
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proceedings, assumes possession of taxable property under a |
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possession and use agreement, or a similar agreement, that is |
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entered into under threat of condemnation, or acquires title to |
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taxable property, the amount of the tax due on the property is |
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calculated by multiplying the amount of taxes imposed on the |
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property for the entire year as determined as provided by Section |
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26.09 of this code by a fraction, the denominator of which is 365 |
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and the numerator of which is the number of days that elapsed prior |
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to the date of the conveyance, the effective date of the agreement, |
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or the date of the order granting the right of possession, as |
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applicable. |
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SECTION 8. (a) Sections 21.0111 and 21.0113, Property |
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Code, as amended by this Act, apply only to the acquisition of real |
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property in connection with an initial offer made under Section |
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21.0113, Property Code, on or after the effective date of this Act. |
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An acquisition of real property in connection with an initial offer |
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made under Section 21.0113, Property Code, before the effective |
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date of this Act is governed by the law applicable to the |
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acquisition immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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(b) Sections 21.041 and 21.047, Property Code, as amended by |
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this Act, apply only to an eminent domain proceeding commenced on or |
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after the effective date of this Act. An eminent domain proceeding |
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commenced before the effective date of this Act is governed by the |
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law applicable to the proceeding immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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(c) Section 21.063, Property Code, as amended by this Act, |
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applies only to an appeal commenced on or after the effective date |
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of this Act. An appeal commenced before the effective date of this |
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Act is governed by the law applicable to the appeal immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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(d) Section 26.11, Tax Code, as amended by this Act, applies |
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only to an agreement entered into on or after the effective date of |
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this Act. An agreement entered into before the effective date of |
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this Act is governed by the law applicable to the agreement |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2017. |