Harris Rail Bill Lets One Signature Erase The Buyback Right

The text as introduced · 767 words

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.