HB2979 - Relating to a prohibition on the exercise of eminent domain and the disposition of certain property acquired for certain rail projects.

  89R11636 JAM-D     By: Harris H.B. No. 2979       A BILL TO BE ENTITLED   AN ACT   relating to a prohibition on the exercise of eminent domain and the   disposition of certain property acquired for certain rail projects.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 112.002, Transportation Code, is amended   by amending Subsection (b) and adding Subsection (c) to read as   follows:          (b)  A railroad company may:                (1)  sue, be sued, plead, and be impleaded in its   corporate name;                (2)  have and use a seal and alter the seal at will;                (3)  receive and convey persons and property on its   railway by any mechanical power, including the use of steam;                (4)  regulate the time and manner in which, and the   compensation for which, passengers and property are transported,   subject to the provisions of law;                (5)   except as provided by Subsection (c), exercise the   power of eminent domain for the purposes prescribed by this   subtitle or Subtitle D;                (6)  purchase, hold, and use all property as necessary   for the construction and use of its railway, stations, and other   accommodations necessary to accomplish company objectives, and   convey that property when no longer required for railway use; and                (7)  take, hold, and use property granted to the   company to aid in the construction and use of its railway, and   convey that property in a manner consistent with the terms of the   grant when the property is no longer required for railway use.           (c)     A private entity may not exercise the power of eminent   domain for the purpose of developing or operating a high-speed rail   project, as defined by Section 112.201.          SECTION 2.  Subchapter B, Chapter 112, Transportation Code,   is amended by adding Section 112.063 to read as follows:           Sec.   112.063.     DISPOSITION OF REAL PROPERTY ACQUIRED FOR   HIGH-SPEED RAIL PROJECT. (a) In this section, "high-speed rail"   has the meaning assigned by Section 112.201.           (b)     Except as provided by Subsection (d), a private entity   that acquires real property for a high-speed rail project may not   use that property for any purpose other than a high-speed rail   project.           (c)     Except as provided by Subsection (d), a person from whom   real property is acquired by a private entity as described by   Subsection (b), and the person's heirs, successors, and assigns,   are entitled to notice and opportunity to repurchase the property   before all other purchasers for the price paid to the owner by the   entity at the time the entity acquired the property if:                 (1)     the high-speed rail project for which the property   was acquired is canceled before the property is used for that   project;                 (2)     the property is not used for the high-speed rail   project for which the property was acquired before the 10th   anniversary of the date of acquisition; or                 (3)     the property becomes unnecessary for the   high-speed rail project for which the property was acquired before   the 10th anniversary of the date of acquisition.           (d)     Subsections (b) and (c) do not apply to real property   acquired by a private entity as described by Subsection (b) if,   before the acquisition of the property:                 (1)     the entity acquiring the property gives written   notice to the person from whom the property is to be acquired that   the property may be used for a purpose other than a high-speed rail   project; and                 (2)     the person from whom the property is to be acquired   signs a statement acknowledging that written notice was given under   Subdivision (1).           (e)     Notice and repurchase as required by Subsection (c)   shall follow the timelines and processes for notice and repurchase   in Chapter 21, Property Code.          SECTION 3.  Section 131.012, Transportation Code, is amended   to read as follows:          Sec. 131.012.  EMINENT DOMAIN. (a) Except as provided by   Subsection (b), a [ A ] corporation chartered for the purpose of   constructing, acquiring, maintaining, or operating lines of   electric railway between municipalities in this state for the   transportation of freight, passengers, or both freight and   passengers may:                (1)  exercise the power of eminent domain with all the   rights and powers granted by law to a railroad company; and                (2)  enter, condemn, and appropriate land,   right-of-way, easements, or other property of any person or   corporation to acquire:                      (A)  right-of-way on which to construct and   operate lines of railway for the acquiring corporation; or                      (B)  sites for depots or power plants.           (b)     An interurban electric railway company may not exercise   the power of eminent domain for the purposes described by   Subsection (a).          SECTION 4.  Section 112.063, Transportation Code, as added   by this Act, applies to real property acquired on or after September   1, 2025.          SECTION 5.  This Act takes effect September 1, 2025.