HB5245 - Relating to the acquisition of real property by a private entity with eminent domain authority.

  89R17627 SCR-F     By: Lozano H.B. No. 5245       A BILL TO BE ENTITLED   AN ACT   relating to the acquisition of real property by a private entity   with eminent domain authority.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 21.0113, Property Code, is amended by   adding Subsections (c), (d), and (e) to read as follows:           (c)     Notwithstanding Subsection (b), a private entity, as   defined by Section 21.0114, with eminent domain authority that   wants to acquire real property for a public use has made a bona fide   offer only if the entity:                 (1)  satisfies the requirements of Subsection (b);                 (2)  includes with the initial offer:                       (A)     an offer of compensation in an amount equal   to or greater than:                             (i)     the market value of the property rights   sought to be acquired, including an estimate of damages to the   property owner's remaining property, if any, based on an appraisal   of the property prepared by a third party who is a certified general   appraiser licensed under Chapter 1103, Occupations Code; or                             (ii)     the estimated price or market value of   the property rights sought to be acquired based on data for at least   three comparable arm's-length sales of a fee simple interest in   property, including an estimate of damages to the property owner's   remaining property, if any, based on data then available to the   appraiser, broker, or private entity, as applicable, and based on:                                   (a)     a comparative market analysis   prepared by a third party who is a real estate broker licensed under   Chapter 1101, Occupations Code, or a certified general appraiser   licensed under Chapter 1103, Occupations Code;                                   (b)     a broker price opinion prepared by   a third party who is a real estate broker licensed under Chapter   1101, Occupations Code; or                                   (c)     a market study prepared by a third   party who is a real estate broker licensed under Chapter 1101,   Occupations Code, or a certified general appraiser licensed under   Chapter 1103, Occupations Code;                       (B)     the complete written report of the appraisal,   the comparative market analysis, the broker price opinion, the   market study, or a summary of the market study, as prepared by the   third party, that forms the basis for the amount of the offer of   compensation under Paragraph (A); and                       (C)     notice of the terms described by Section   21.0114(d) for which the property owner may negotiate to be   included in a deed, easement, agreement, or other instrument of   conveyance relating to the property; and                 (3)     provides notice of the proposed project to the   county judge as required by Section 21.0115.           (d)     For purposes of Subsection (c)(2)(A)(ii), a real estate   broker licensed under Chapter 1101, Occupations Code, is authorized   to prepare an estimated price based on a comparative market   analysis, a broker price opinion, a market study, or a summary of   the market study.           (e)     A private entity that provides to a property owner an   easement form that is generally consistent with the language or   provisions required by Section 21.0114(c) and the notice required   by Section 21.0114(d) is considered to have complied with Section   21.0114 for purposes of Subsection (b)(1)(C) of this section,   regardless of whether the private entity subsequently provides to   the property owner a different deed, easement, agreement, or other   instrument of conveyance as authorized under Sections 21.0114(e)   and (f).          SECTION 2.  Section 21.0114(c), Property Code, is amended to   read as follows:          (c)  Except as provided by Subsections (d), (e), and (f), a   deed, agreement, or other instrument of conveyance provided to a   property owner by a private entity with eminent domain authority to   acquire the property interest to be conveyed must address the   following general terms, as applicable:                (1)  if the instrument conveys a pipeline right-of-way   easement or an easement related to pipeline appurtenances:                      (A)  the maximum number of pipelines that may be   installed under the instrument for a pipeline right-of-way;                      (B)  a description of the types of pipeline   appurtenances that are authorized to be installed under the   instrument for pipeline-related appurtenances, such as pipes,   valves, compressors, pumps, meters, pigging stations, dehydration   facilities, electric facilities, communication facilities, and any   other appurtenances that may be necessary [ or desirable ] in   connection with a pipeline;                      (C)  the maximum diameter, excluding any   protective coating or wrapping, of each pipeline to be [ initially ]   installed under the instrument for a pipeline right-of-way;                      (D)  the type or category of substances permitted   to be transported through each pipeline to be installed under the   instrument;                      (E)  a general description of any aboveground   equipment or facility the private entity intends to install,   maintain, or operate under the instrument for a pipeline easement   on the surface of the easement;                      (F)  a description or illustration of the location   of the easement, including a metes and bounds or centerline   description, plat, or aerial or other map-based depiction of the   location of the easement on the property;                      (G)  the maximum width of the easement under the   instrument;                      (H)  the minimum depth at which each pipeline to   be installed under the instrument for a pipeline right-of-way will   [ initially ] be installed;                      (I)  a provision identifying whether the private   entity intends to double-ditch areas of the pipeline easement that   are not installed by boring or horizontal directional drilling;                      (J)  a provision requiring the private entity to   provide written notice to the property owner at the last known   address of the person in whose name the property is listed on the   most recent tax roll of any taxing unit authorized to levy property   taxes against the property before assigning [ if and when the   private entity assigns ] the interest under the instrument to   another entity[ , provided that the provision does not require   notice by the private entity for assignment to an affiliate or to a   successor through merger, consolidation, or other sale or transfer   of all or substantially all of its assets and businesses ];                      (K)  a provision describing whether the easement   rights are exclusive , [ or ] nonexclusive , or otherwise limited ;                      (L)  a provision limiting the private entity's   right to grant to a third party access to the easement area for a   purpose that is not related to the construction, safety, repair,   maintenance, inspection, replacement, operation, or removal of   each pipeline to be installed under the instrument and of pipeline   appurtenances to be installed under the instrument;                      (M)  a provision regarding the property owner's   right to recover actual monetary damages arising from the   construction and installation of each pipeline to be installed   under the instrument, or a statement that the consideration for the   instrument includes any monetary damages arising from the   construction and installation of each pipeline to be installed   under the instrument;                      (N)  a provision regarding the property owner's   right after [ initial ] construction and installation of each   pipeline to be installed under the instrument to actual monetary   damages arising from the repair, maintenance, inspection,   replacement, operation, or removal of each pipeline to be installed   under the instrument, or a statement that consideration for the   instrument includes any monetary damages arising from the repair,   maintenance, inspection, replacement, operation, or removal of   each pipeline to be installed under the instrument;                      (O)  a provision:                            (i)  regarding the removal, cutting, use,   repair, and replacement of gates and fences that cross the easement   or that will be used by the private entity under the instrument; or                            (ii)  providing for the payment for any   damage caused by the private entity to gates and fences described by   Subparagraph (i), if any, to the extent that the gates or fences are   not restored or paid for as part of the consideration paid for the   instrument;                      (P)  a provision:                            (i)  regarding the private entity's   obligation to restore the pipeline easement area and the property   owner's remaining property, if any, used by the private entity to as   near to original condition as is reasonably practicable and to   maintain the easement in a manner not inconsistent  [ consistent ]   with the purposes for which the easement will be used by the private   entity under the instrument; or                            (ii)  providing for the private entity to   reimburse the property owner for actual monetary damages incurred   by the property owner that arise from damage to the pipeline   easement area or the property owner's remaining property, if any,   to the extent caused by the private entity and not restored or paid   for as part of the consideration for the instrument; and                      (Q)  a provision describing the private entity's   rights of ingress, egress, entry, and access on, to, over, and   across the property owner's property under the instrument;                (2)  if the instrument conveys an electric transmission   line [Text truncated for display. 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