Bill Text: TX SB740 | 2017-2018 | 85th Legislature | Engrossed

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Bill Title: Relating to the acquisition of property by an entity with eminent domain authority.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Engrossed - Dead) 2017-05-09 - Referred to Land & Resource Management [SB740 Detail]

Download: Texas-2017-SB740-Engrossed.html

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By: Kolkhorst, et al. S.B. No. 740

A BILL TO BE ENTITLED
AN ACT
relating to the acquisition of property by an entity with eminent
domain authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 402.031(b), Government Code, is amended
to read as follows:
(b) The landowner's bill of rights must notify each property
owner that the property owner has the right to:
(1) receive notice of the proposed acquisition of the
owner's property;
(2) contact and speak directly with an employee of the
entity proposing to acquire the property who is qualified to
discuss the acquisition of the property;
(3) receive a bona fide offer from, make a
counteroffer to, and seek to negotiate terms and conditions with
[good faith effort to negotiate by] the entity proposing to acquire
the property;
(4) consult with a licensed real estate broker or
sales agent, an attorney, an appraiser, or any other person
regarding the proposed acquisition, offer of compensation, or other
related matters at any time;
(5) have [(3)] an assessment made of damages to the
owner that will result from the taking of the property;
(6) be provided [(4)] a hearing under Chapter 21,
Property Code, including a hearing on the assessment of damages;
[and]
(7) [(5) an] appeal [of] a judgment in a condemnation
proceeding, including to [an] appeal [of] an assessment of damages;
and
(8) contact the office of the attorney general for
more information regarding a property owner's rights with respect
to the condemnation process.
SECTION 2. Section 1101.002, Occupations Code, is amended
by amending Subdivision (4) and adding Subdivisions (4-a), (6-a),
and (6-b) to read as follows:
(4) "License" means a broker license or sales agent
license issued under this chapter. The term does not include a
right-of-way agent license.
(4-a) "License holder" means a broker or sales agent
licensed under this chapter. The term does not include a holder of
a right-of-way agent license.
(6-a) "Right-of-way agent license" means a license
issued under Subchapter K.
(6-b) "Right-of-way agent license holder" means a
person licensed under Subchapter K.
SECTION 3. Section 1101.151(a), Occupations Code, is
amended to read as follows:
(a) The commission shall:
(1) administer this chapter and Chapter 1102;
(2) adopt rules and establish standards relating to
permissible forms of advertising by a license holder acting as a
residential rental locator;
(3) maintain a list of right-of-way agent license
[registry of certificate] holders; and
(4) design and adopt a seal.
SECTION 4. Section 1101.152(a), Occupations Code, is
amended to read as follows:
(a) The commission shall adopt rules to charge and collect
fees in amounts reasonable and necessary to cover the costs of
administering this chapter, including a fee for:
(1) filing an original application for a broker
license;
(2) renewal of a broker license;
(3) filing an original application for a sales agent
license;
(4) renewal of a sales agent license;
(5) filing an original application for a [registration
as an easement or] right-of-way agent license;
(5-a) renewal of a right-of-way agent license;
(6) filing an application for a license examination;
(7) filing a request for a branch office license;
(8) filing a request for a change of place of business,
change of name, return to active status, or change of sponsoring
broker;
(9) filing a request to replace a lost or destroyed
license or right-of-way agent license [or certificate of
registration];
(10) filing an application for approval of an
education program under Subchapter G;
(11) annual operation of an education program under
Subchapter G;
(12) filing an application for approval of an
instructor of qualifying real estate courses;
(13) transcript evaluation;
(14) preparing a license [or registration] history;
(15) filing a request for a moral character
determination; and
(16) conducting a criminal history check for issuing
or renewing a license.
SECTION 5. Section 1101.154(a), Occupations Code, is
amended to read as follows:
(a) The fee for the issuance or renewal of a:
(1) broker license is the amount of the fee set under
Section 1101.152 and an additional $70 fee;
(2) sales agent license is the amount of the fee set
under Section 1101.152 and an additional $20 fee; and
(3) right-of-way agent license [certificate of
registration] is the amount of the fee set under Section 1101.152
and an additional $20 fee.
SECTION 6. Section 1101.205, Occupations Code, is amended
to read as follows:
Sec. 1101.205. COMPLAINT INVESTIGATION OF RIGHT-OF-WAY
AGENT LICENSE [CERTIFICATE] HOLDER. The commission shall
investigate a signed complaint received by the commission that
relates to an act of a right-of-way agent license [certificate]
holder or a person required to hold a right-of-way agent license
[certificate] under Subchapter K. Section 1101.204 applies to an
investigation under this section.
SECTION 7. Subchapter K, Chapter 1101, Occupations Code, is
amended to read as follows:
SUBCHAPTER K. RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]
REQUIREMENTS
Sec. 1101.501. RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]
REQUIRED. (a) A person may not sell, buy, lease, or transfer an
easement or right-of-way [for another,] for compensation or with
the expectation of receiving compensation[,] for an entity with
eminent domain authority or for use in connection with
telecommunication, utility, railroad, or pipeline service unless
the person:
(1) holds a broker license or sales agent license
issued under this chapter; or
(2) holds a right-of-way agent license [certificate of
registration] issued under this subchapter.
(b) Subsection (a) does not apply to:
(1) an entity with eminent domain authority or the
entity's employee; or
(2) an attorney licensed in this state.
Sec. 1101.502. ELIGIBILITY REQUIREMENTS FOR RIGHT-OF-WAY
AGENT LICENSE [CERTIFICATE]. (a) To be eligible to receive or
renew a right-of-way agent license [a certificate of registration
or a renewal certificate under this subchapter], a person must
[be]:
(1) be, at the time of application:
(A) at least 18 years of age; and
(B) [(2)] a citizen of the United States or a
lawfully admitted alien;
(2) satisfy the commission as to the applicant's
honesty, trustworthiness, and integrity; and
(3) complete the required courses of study, including
qualifying education requirements, prescribed by this subchapter.
(b) To be eligible to receive or renew a right-of-way agent
license [a certificate of registration or a renewal certificate
under this subchapter], a business entity must designate as its
agent one of its managing officers who holds a right-of-way agent
license issued [is registered] under this subchapter.
Sec. 1101.503. ISSUANCE OF RIGHT-OF-WAY AGENT LICENSE
[CERTIFICATE]. (a) The commission shall issue a right-of-way
agent license [certificate of registration] to an applicant who
meets the requirements for a right-of-way agent license under this
subchapter [certificate of registration].
(b) The right-of-way agent license [certificate] remains in
effect for the period prescribed by the commission if the
right-of-way agent license [certificate] holder complies with this
chapter, including the requirements of this subchapter, and pays
the appropriate renewal fees.
Sec. 1101.504. RIGHT-OF-WAY AGENT LICENSE DURATION,
[CERTIFICATE] EXPIRATION, AND RENEWAL. The provisions of Section
1101.451 governing the duration, expiration, and renewal of a
broker or sales agent license apply [certificate of registration
are subject to the same provisions as are applicable under Section
1101.451] to the duration, expiration, and renewal of a
right-of-way agent license issued under this subchapter.
Sec. 1101.5041. CRIMINAL HISTORY RECORD INFORMATION
REQUIREMENT FOR RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]. An
applicant for an original [certificate of registration] or renewal
right-of-way agent license [of a certificate of registration] must
comply with the criminal history record check requirements of
Section 1101.3521.
Sec. 1101.505. DENIAL OF RIGHT-OF-WAY AGENT LICENSE
[CERTIFICATE]. The denial of a right-of-way agent license
[certificate of registration] is subject to the same provisions as
are applicable under Section 1101.364 to the denial of a broker or
sales agent license.
Sec. 1101.506. CHANGE OF ADDRESS. Not later than the 10th
day after the date a right-of-way agent license [certificate]
holder moves its place of business from a previously designated
address, the right-of-way agent license holder shall:
(1) notify the commission of the move; and
(2) obtain a new right-of-way agent license
[certificate of registration] that reflects the address of the new
place of business.
Sec. 1101.507. DISPLAY OF RIGHT-OF-WAY AGENT LICENSE
[CERTIFICATE]. A right-of-way agent license [certificate] holder
shall prominently display at all times the holder's right-of-way
agent license [certificate of registration] in the right-of-way
agent license holder's place of business.
Sec. 1101.508. NOTICE TO CONSUMERS. The commission by rule
may:
(1) prescribe the text of consumer notices regarding a
right-of-way agent license holder; and
(2) establish the methods by which a right-of-way
agent license holder provides a consumer notice or the statement
prepared and provided under Section 402.031, Government Code.
Sec 1101.509. QUALIFYING EDUCATION REQUIREMENTS. (a) The
commission by rule shall approve coursework that an applicant must
successfully complete to be eligible for a right-of-way agent
license under this subchapter.
(b) An applicant for a right-of-way agent license shall
submit evidence satisfactory to the commission that the applicant
has completed at least 15 classroom hours of right-of-way agent
coursework approved by the commission in:
(1) the law of eminent domain, including the rights of
property owners;
(2) appropriate standards of professionalism in
contacting and conducting negotiations with property owners; and
(3) ethical considerations in the performance of
right-of-way acquisition services.
Sec. 1101.510. CONTINUING EDUCATION. (a) To be eligible
to renew a right-of-way agent license, the right-of-way agent
license holder must submit evidence satisfactory to the commission
that the right-of-way agent license holder successfully completed
at least six classroom hours of continuing education approved by
the commission.
(b) The commission by rule shall prescribe the title,
content, administration, and duration of continuing education
courses that a right-of-way agent license holder must successfully
complete to renew a right-of-way agent license under this
subchapter.
SECTION 8. Sections 1101.601 and 1101.602, Occupations
Code, are amended to read as follows:
Sec. 1101.601. REAL ESTATE RECOVERY TRUST ACCOUNT.
(a) The commission shall maintain a real estate recovery trust
account to reimburse aggrieved persons who suffer actual damages
caused by an act described by Section 1101.602 committed by:
(1) a license holder;
(2) a right-of-way agent license [certificate]
holder; or
(3) a person who does not hold a license or
right-of-way agent license [certificate] and who is an employee or
agent of a license holder or right-of-way agent license
[certificate] holder.
(b) The license holder or right-of-way agent license
[certificate] holder must have held the license or right-of-way
agent license [certificate] at the time the act was committed.
Sec. 1101.602. ENTITLEMENT TO REIMBURSEMENT. An aggrieved
person is entitled to reimbursement from the trust account if a
person described by Section 1101.601 engages in conduct that
requires a license or right-of-way agent license [certificate of
registration] under this chapter and is described by Section
1101.652(a-1)(1) or (b), if the person is a license holder, or
Section 1101.653(1), (2), (3), or (4), if the person is a
right-of-way agent license [certificate] holder.
SECTION 9. Sections 1101.603(a) and (e), Occupations Code,
are amended to read as follows:
(a) In addition to other fees required by this chapter, the
commission shall collect a fee of $10 to deposit to the credit of
the trust account from an applicant for an original license or
right-of-way agent license [certificate of registration].
(e) On a determination by the commission at any time that
the balance in the trust account is less than $1 million, each
license holder or right-of-way agent license [certificate] holder
at the next renewal must pay, in addition to the renewal fee, an
additional fee of $10. The commission shall deposit the additional
fee to the credit of the trust account.
SECTION 10. Section 1101.605(b), Occupations Code, is
amended to read as follows:
(b) When an aggrieved person brings an action for a judgment
that may result in an agreed judgment and order for payment from the
trust account, the aggrieved person and the license holder or
right-of-way agent license [certificate] holder against whom the
action is brought shall notify the commission in writing before
entry of the agreed judgment and deliver a copy of all petitions and
pleadings and the proposed agreed judgment to the commission. The
commission will notify the parties not later than the 30th day after
the date of receiving the documents if the commission intends to
relitigate material and relevant issues as to the applicability of
the trust account to the agreed judgment as provided by Section
1101.608.
SECTION 11. Section 1101.606(a), Occupations Code, is
amended to read as follows:
(a) Except as provided by Subsections (c) and (c-1), an
aggrieved person who obtains a court judgment against a license
holder or right-of-way agent license [certificate] holder for an
act described by Section 1101.602 may, after final judgment is
entered, execution returned nulla bona, and a judgment lien
perfected, file a verified claim in the court that entered the
judgment.
SECTION 12. Section 1101.607, Occupations Code, is amended
to read as follows:
Sec. 1101.607. ISSUES AT HEARING. At the hearing on the
application for payment from the trust account, the aggrieved
person must show:
(1) that the judgment is based on facts allowing
recovery under this subchapter;
(2) that the person is not:
(A) the spouse of the judgment debtor or the
personal representative of the spouse;
(B) a license holder or right-of-way agent
license [certificate] holder who is seeking to recover
compensation, including a commission, in the real estate
transaction that is the subject of the application for payment; or
(C) related to the judgment debtor within the
first degree by consanguinity;
(3) that, according to the best information available,
the judgment debtor does not have sufficient attachable assets in
this or another state to satisfy the judgment;
(4) the amount that may be realized from the sale of
assets liable to be sold or applied to satisfy the judgment; and
(5) the balance remaining due on the judgment after
application of the amount under Subdivision (4).
SECTION 13. Sections 1101.610(b) and (c), Occupations Code,
are amended to read as follows:
(b) Payments from the trust account for claims based on
judgments against a single license holder or right-of-way agent
license [certificate] holder may not exceed a total of $100,000
until the license holder or right-of-way agent license
[certificate] holder has reimbursed the trust account for all
amounts paid.
(c) If the court finds that the total amount of claims
against a license holder or right-of-way agent license
[certificate] holder exceeds the limitations in this section, the
court shall proportionately reduce the amount payable on each
claim.
SECTION 14. Section 1101.613, Occupations Code, is amended
to read as follows:
Sec. 1101.613. EFFECT ON DISCIPLINARY PROCEEDINGS.
(a) This subchapter does not limit the commission's authority to
take disciplinary action against a license holder or right-of-way
agent license [certificate] holder for a violation of this chapter
or a commission rule.
(b) A license holder's or right-of-way agent license
holder's [certificate holder's] repayment of all amounts owed to
the trust account does not affect another disciplinary proceeding
brought under this chapter.
SECTION 15. Section 1101.615, Occupations Code, is amended
to read as follows:
Sec. 1101.615. NOTICE TO CONSUMERS AND SERVICE RECIPIENTS.
[(a)] The commission by rule shall prescribe a notice regarding
the availability of payment from the trust account for aggrieved
persons and establish methods by which each license holder and
right-of-way agent license [certificate] holder shall provide the
notice to consumers and service recipients.
SECTION 16. Section 1101.653, Occupations Code, is amended
to read as follows:
Sec. 1101.653. GROUNDS FOR SUSPENSION OR REVOCATION OF
RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE]. The commission may
suspend or revoke a right-of-way agent license [certificate of
registration] issued under this chapter if the right-of-way agent
license [certificate] holder:
(1) engages in dishonest dealing, fraud, unlawful
discrimination, or a deceptive act;
(2) makes a misrepresentation;
(3) acts in bad faith;
(4) demonstrates untrustworthiness;
(5) fails to honor, within a reasonable time, a check
issued to the commission after the commission has mailed a request
for payment to the right-of-way agent license [certificate]
holder's last known address according to the commission's records;
(6) fails to provide to a party to a transaction a
written notice prescribed by the commission that:
(A) must be given before the party is obligated
to sell, buy, lease, or transfer a right-of-way or easement; and
(B) contains:
(i) the name of the right-of-way agent
license [certificate] holder;
(ii) the right-of-way agent license
[certificate] number;
(iii) the name of the person the
right-of-way agent license [certificate] holder represents;
(iv) a statement advising the party that
the party may seek representation from a lawyer or broker in the
transaction; and
(v) a statement generally advising the
party that the right-of-way or easement may affect the value of the
property; or
(7) disregards or violates this chapter or a
commission rule relating to right-of-way agent license
[certificate] holders.
SECTION 17. Section 1101.654, Occupations Code, is amended
to read as follows:
Sec. 1101.654. SUSPENSION OR REVOCATION OF LICENSE OR
RIGHT-OF-WAY AGENT LICENSE [CERTIFICATE] FOR UNAUTHORIZED PRACTICE
OF LAW. (a) The commission shall suspend or revoke the license or
right-of-way agent license [certificate of registration] of a
license holder or right-of-way agent license [certificate] holder
who is not a licensed attorney in this state and who, for
consideration, a reward, or a pecuniary benefit, present or
anticipated, direct or indirect, or in connection with the person's
employment, agency, or fiduciary relationship as a license holder
or right-of-way agent license [certificate] holder:
(1) drafts an instrument, other than a form described
by Section 1101.155, that transfers or otherwise affects an
interest in real property; or
(2) advises a person regarding the validity or legal
sufficiency of an instrument or the validity of title to real
property.
(b) Notwithstanding any other law, a license holder or
right-of-way agent license [certificate] holder who completes a
contract form for the sale, exchange, option, or lease of an
interest in real property incidental to acting as a broker is not
engaged in the unauthorized or illegal practice of law in this state
if the form was:
(1) adopted by the commission for the type of
transaction for which the form is used;
(2) prepared by an attorney licensed in this state and
approved by the attorney for the type of transaction for which the
form is used; or
(3) prepared by the property owner or by an attorney
and required by the property owner.
SECTION 18. The heading to Section 1101.655, Occupations
Code, is amended to read as follows:
Sec. 1101.655. REVOCATION OF LICENSE [OR CERTIFICATE] FOR
CLAIM ON ACCOUNT.
SECTION 19. Sections 1101.655(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) The commission shall revoke a license, approval, or
right-of-way agent license [registration] issued under this
chapter or Chapter 1102 if:
(1) the commission makes a payment from the real
estate recovery trust account under Subchapter M on behalf of a
license holder or right-of-way agent license [registration]
holder; and
(2) the license holder or right-of-way agent license
[registration] holder does not repay the real estate recovery trust
account the full amount of a payment made on the license holder's or
right-of-way agent license [registration] holder's behalf before
the 31st day after the date the commission provides notice to the
license holder or right-of-way agent license [registration]
holder.
(b) The commission may probate an order revoking a license,
approval, or right-of-way agent license [registration] under this
section.
(c) A person is not eligible for a license or right-of-way
agent license [certificate] until the person has repaid in full the
amount paid from the account for the person, plus interest at the
legal rate.
SECTION 20. Section 1101.657(a), Occupations Code, is
amended to read as follows:
(a) If the commission proposes to deny, suspend, or revoke a
person's license or right-of-way agent license [certificate of
registration], the person is entitled to a hearing conducted by the
State Office of Administrative Hearings.
SECTION 21. Section 1101.660(b), Occupations Code, is
amended to read as follows:
(b) Rules adopted under this section must:
(1) provide the complainant and the license holder,
right-of-way agent license [certificate] holder, or regulated
entity an opportunity to be heard; and
(2) require the presence of:
(A) a public member of the commission for a case
involving a consumer complaint; and
(B) at least two staff members of the commission
with experience in the regulatory area that is the subject of the
proceeding.
SECTION 22. Section 1101.663, Occupations Code, is amended
to read as follows:
Sec. 1101.663. REAPPLYING AFTER REVOCATION, SURRENDER, OR
DENIAL. A person whose license or right-of-way agent license
[registration] has been revoked, a person who has surrendered a
license or right-of-way agent license [registration] issued by the
commission, or a person whose application for a license or
right-of-way agent license [registration] has been denied after a
hearing under Section 1101.657 may not apply to the commission for a
license or right-of-way agent license [registration] before the
second anniversary of the date of the revocation, surrender, or
denial.
SECTION 23. The heading to Section 1101.753, Occupations
Code, is amended to read as follows:
Sec. 1101.753. CIVIL PENALTY FOR CERTAIN VIOLATIONS BY
BROKER, SALES AGENT, OR RIGHT-OF-WAY AGENT [CERTIFICATE HOLDER].
SECTION 24. Section 1101.753(a), Occupations Code, is
amended to read as follows:
(a) In addition to injunctive relief under Sections
1101.751 and 1101.752, a person who receives a commission or other
consideration as a result of acting as a broker or sales agent
without holding a license or right-of-way agent license
[certificate of registration] under this chapter is liable to the
state for a civil penalty of not less than the amount of money
received or more than three times the amount of money received.
SECTION 25. The heading to Section 1101.754, Occupations
Code, is amended to read as follows:
Sec. 1101.754. PRIVATE CAUSE OF ACTION FOR CERTAIN
VIOLATIONS BY BROKER, SALES AGENT, OR RIGHT-OF-WAY AGENT
[CERTIFICATE HOLDER].
SECTION 26. Section 1101.754(a), Occupations Code, is
amended to read as follows:
(a) A person who receives a commission or other
consideration as a result of acting as a broker or sales agent
without holding a license or right-of-way agent license
[certificate of registration] under this chapter is liable to an
aggrieved person for a penalty of not less than the amount of money
received or more than three times the amount of money received.
SECTION 27. The heading to Section 1101.758, Occupations
Code, is amended to read as follows:
Sec. 1101.758. CRIMINAL PENALTY FOR CERTAIN VIOLATIONS BY
BROKER, SALES AGENT, OR RIGHT-OF-WAY AGENT [CERTIFICATE HOLDER].
SECTION 28. Section 1101.758(a), Occupations Code, is
amended to read as follows:
(a) A person commits an offense if the person acts as a
broker or sales agent without holding a license under this chapter
or engages in an activity for which a right-of-way agent license
[certificate of registration] is required under this chapter
without holding a right-of-way agent license [certificate].
SECTION 29. Section 21.0111, Property Code, is amended by
adding Subsections (a-1) and (a-2) to read as follows:
(a-1) After an offer to which Subsection (a) applies is
made, the entity or the property owner shall disclose to the other
party any new, amended, or updated appraisal report that is
produced or acquired by or on behalf of the entity or property owner
after the offer is made and that is used in determining the entity's
or the property owner's opinion of value. A disclosure required by
this subsection must be made not later than the earlier of:
(1) the 10th day after the date the entity or property
owner receives the appraisal report; or
(2) the third business day before the date of a special
commissioner's hearing if the appraisal report is to be used at the
hearing.
(a-2) A new, amended, or updated appraisal report that is
not disclosed as required by Subsection (a-1), and any testimony or
other evidence based on the report, may not be presented in a
hearing under Section 21.015.
SECTION 30. Section 21.0113(b), Property Code, is amended
to read as follows:
(b) An entity with eminent domain authority has made a bona
fide offer if:
(1) an initial offer is made in writing to a property
owner that includes:
(A) a monetary offer in an amount:
(i) equal to or greater than 150 percent of
the market value of the property sought to be acquired, as
determined on a per acre or per square foot proportionate valuation
of raw land as reflected in the appraisal of the county taxing
authority as of the date of the initial offer; or
(ii) if an appraisal of the property sought
to be acquired and any damages to any remaining property has been
completed by a certified appraiser, equal to or greater than the
amount provided by the appraisal report;
(B) a statement that the entity will not contact
the property owner sooner than the fourth business day after the
date of the first personal contact made by the entity after the
entity sends the initial offer, except to respond to an inquiry from
the property owner;
(C) the name and telephone number of an employee
of the entity that the property owner may contact with questions
regarding the initial offer; and
(D) a copy of the appraisal report on which the
offer is based, if applicable;
(2) a final offer is made in writing to the property
owner;
(3) the final offer is made on or after the 30th day
after the date on which the entity makes a written initial offer to
the property owner;
(4) before making a final offer, the entity obtains an
[a written] appraisal report from a certified appraiser of the
value of the property being acquired and the damages, if any, to any
of the property owner's remaining property;
(5) the final offer is equal to or greater than the
amount provided by [of] the [written] appraisal report [obtained by
the entity];
(6) the following items are included with the final
offer or have been previously provided to the owner by the entity:
(A) a copy of the [written] appraisal report;
(B) a copy of the deed, easement, or other
instrument conveying the property sought to be acquired; and
(C) the landowner's bill of rights statement
prescribed by Section 21.0112; and
(7) the entity provides the property owner with at
least 14 days to respond to the final offer and the property owner
does not agree to the terms of the final offer within that period.
SECTION 31. Subchapter B, Chapter 21, Property Code, is
amended by adding Sections 21.0114 and 21.0115 to read as follows:
Sec. 21.0114. REQUIRED TERMS FOR INSTRUMENTS OF CONVEYANCE.
(a) Except as provided by Subsection (b), the deed, easement, or
other instrument provided to a property owner under Section
21.0113(b)(6)(B) must include the following terms, as applicable:
(1) if the instrument conveys a pipeline right-of-way
easement:
(A) the maximum number of pipelines that may be
installed in the right-of-way;
(B) the maximum diameter, excluding any
protective coating or wrapping, of each pipeline to be installed in
the right-of-way;
(C) the type or category of each substance to be
transported through the pipelines to be installed in the
right-of-way;
(D) a general description of any use of the
surface of the right-of-way the entity intends to acquire;
(E) a metes and bounds or center line description
of the location of the easement, plat, or other legally sufficient
description of the location of the easement;
(F) the maximum width of the easement;
(G) the minimum depth at which the pipeline will
initially be installed;
(H) whether the double-ditch method will be used
for installation of the pipeline in areas that are not
bore-drilled;
(I) whether the easement is assignable in whole
or in part to any other entity, subsidiary, or company that does not
have eminent domain authority;
(J) whether the entity has exclusive,
nonexclusive, or otherwise limited rights to the right-of-way;
(K) a limit on access to the easement area by a
third party for a purpose that is not related to:
(i) the pipeline's construction, safety,
maintenance, or operation activities; or
(ii) other uses authorized by law;
(L) a right to recover actual monetary damages
arising from construction, maintenance, repair, replacement, or
future removal of the pipeline in the right-of-way, including any
actual monetary damages to growing crops or livestock, or a
statement that the offer includes such future damages;
(M) a provision regarding the use and repair of
any gates and fences;
(N) a provision regarding the maintenance of the
right-of-way;
(O) a provision regarding the repair and
restoration of areas used or damaged outside the right-of-way area
to their original condition or better, to the extent reasonably
practicable, or the payment of actual monetary damages for areas
not restored; and
(P) the manner in which the entity will access
the right-of-way, other than in case of emergency, in which case any
reasonable access may be used;
(2) if the instrument conveys an electrical
transmission right-of-way easement:
(A) a general description of any use of the
surface of the right-of-way the entity intends to acquire;
(B) a depiction identifying the approximate
location of the right-of-way on the property;
(C) a metes and bounds or center line description
of the location of the easement, plat, or other legally sufficient
description of the location of the easement;
(D) the maximum width of the right-of-way
easement;
(E) the manner in which the entity will access
the right-of-way, other than in case of an emergency, in which case
any reasonable access may be used;
(F) a limit on access to the easement area by a
third party for a purpose that is not related to:
(i) the transmission line's construction,
safety, maintenance, or operation activities; or
(ii) other uses authorized by law;
(G) a provision regarding the right to recover
actual monetary damages arising from construction, maintenance,
repair, replacement, or future removal of lines and support
facilities in the right-of-way, or a statement that the offer
includes such future damages;
(H) a provision regarding the use and repair of
any gates and fences;
(I) a provision regarding the maintenance of the
right-of-way;
(J) a provision regarding the repair and
restoration of areas used or damaged outside the right-of-way area
to their original condition or better, to the extent reasonably
practicable, or the payment of actual monetary damages for areas
not restored; and
(K) whether the entity has exclusive,
nonexclusive, or otherwise limited rights to the right-of-way;
(3) a prohibition against any use of the property
being conveyed, other than a use stated in the deed, easement, or
other instrument, without the express written consent of the
property owner;
(4) a statement that the landowner is protected from
liability under Section 21.0115, including the full text of that
section;
(5) if the entity is a nongovernmental entity that is
not otherwise self-insured, an agreement that the entity will keep
liability insurance in effect at all times during construction or,
if the entity is a governmental entity, a statement that the entity
is required by law to pay a judgment ordered by a court of competent
jurisdiction if the court determines that the entity is liable to
the property owner for personal injury and property damage
sustained by any person that arises from or is related to the use of
the property by the entity or the entity's agents or contractors;
and
(6) a statement that the terms of the deed, easement,
or other instrument will bind the successors and assigns of the
parties to the instrument.
(b) The entity may present and include terms in addition to
the terms required under Subsection (a). The property owner and the
entity may consider and agree to the additional terms, including
rights and uses that may not be the subject of a later condemnation
proceeding. A property owner may negotiate a deed, easement, or
other instrument that does not include all of the terms required
under Subsection (a).
Sec. 21.0115. LIMITATION OF PROPERTY OWNER LIABILITY. A
property owner is not liable to a condemning entity, the entity's
agents, employees, or contractors, including the contractor's
subcontractors of any tier, or a third party for personal injury,
death, or property damage:
(1) arising from the use by a person other than the
property owner of property, including for a right-of-way, acquired
from the property owner by condemnation; and
(2) not caused by the property owner's negligence or
intentional conduct.
SECTION 32. Section 21.063, Property Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) As a condition of appealing the final judgment of a
trial court in a condemnation proceeding, a nongovernmental
condemnor shall:
(1) deposit with the trial court the amount of the
final judgment, less the amount of any monetary deposit made and any
bonds posted by the condemnor under Sections 21.021(a)(2) and (3),
subject to the order of the court of appeals; or
(2) post a surety bond, issued by a surety company
authorized to engage in business in this state and conditioned to
secure the payment of the final judgment, in the amount of the final
judgment, less the amount of any monetary deposit made and any bonds
posted by the condemnor under Sections 21.021(a)(2) and (3).
(d) If the property owner moves to enforce Subsection (c)
and the nongovernmental condemnor fails to comply with that
subsection before the 30th day after the date the trial court grants
the motion:
(1) the court of appeals shall dismiss the appeal with
prejudice and order enforcement of the final judgment; and
(2) the property owner is entitled to all reasonable
and necessary fees for attorneys hired in relation to the appeal of
the condemnation.
SECTION 33. Section 26.11(a), Tax Code, is amended to read
as follows:
(a) If the federal government, the state, or a political
subdivision of the state acquires the right to possession of
taxable property under a court order issued in condemnation
proceedings, assumes possession of taxable property under a
possession and use agreement, or a similar agreement, that is
entered into under threat of condemnation, or acquires title to
taxable property, the amount of the tax due on the property is
calculated by multiplying the amount of taxes imposed on the
property for the entire year as determined as provided by Section
26.09 of this code by a fraction, the denominator of which is 365
and the numerator of which is the number of days that elapsed prior
to the date of the conveyance, the effective date of the agreement,
or the date of the order granting the right of possession, as
applicable.
SECTION 34. Effective March 1, 2018, Section 1101.002(2),
Occupations Code, is repealed.
SECTION 35. The office of the attorney general shall make
the landowner's bill of rights statement required by Section
402.031, Government Code, as amended by this Act, available on the
attorney general's Internet website not later than January 1, 2018.
SECTION 36. Not later than September 1, 2018, the Texas Real
Estate Commission shall adopt rules to implement Subchapter K,
Chapter 1101, Occupations Code, as amended by this Act.
SECTION 37. (a) Chapter 1101, Occupations Code, as amended
by this Act, applies only to an application for an original or
renewal right-of-way agent license filed on or after March 1, 2018.
An application for an original or renewal certificate of
registration as an easement or right-of-way agent filed before
March 1, 2018, is governed by the law in effect on the date the
application was filed, and the former law is continued in effect for
that purpose.
(b) Sections 21.0111 and 21.0113, Property Code, as amended
by this Act, and Sections 21.0114 and 21.0115, Property Code, as
added by this Act, apply only to the acquisition of real property in
connection with an initial offer made under Section 21.0113,
Property Code, on or after the effective date of this Act. An
acquisition of real property in connection with an initial offer
made under Section 21.0113, Property Code, before the effective
date of this Act is governed by the law applicable to the
acquisition immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
(c) Section 21.041, Property Code, as amended by this Act,
applies only to an eminent domain proceeding commenced on or after
the effective date of this Act. An eminent domain proceeding
commenced before the effective date of this Act is governed by the
law applicable to the proceeding immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
(d) Section 21.063, Property Code, as amended by this Act,
applies only to an appeal commenced on or after the effective date
of this Act. An appeal commenced before the effective date of this
Act is governed by the law applicable to the appeal immediately
before the effective date of this Act, and that law is continued in
effect for that purpose.
(e) Section 26.11, Tax Code, as amended by this Act, applies
only to an agreement entered into on or after the effective date of
this Act. An agreement entered into before the effective date of
this Act is governed by the law applicable to the agreement
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 38. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2017.
(b) Chapter 1101, Occupations Code, as amended by this Act,
takes effect March 1, 2018.