bill rewrites the good-faith offer checklist for eminent domain

The text as introduced · 668 words

89R16766 SCR-F

By: Lozano
H.B. No. 5417

A BILL TO BE ENTITLED

AN ACT

relating to a bona fide offer for the acquisition of real property

through condemnation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. 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 copy of the landowner's bill of rights

statement prescribed by Section 402.031, Government Code,

including the addendum prescribed by Section 402.031(c-1),

Government Code, if applicable;

(B) a statement, in bold print and a larger font

than the other portions of the offer, indicating whether the

compensation being offered includes:

(i) damages to the remainder, if any, of the

property owner's remaining property; or

(ii) an appraisal of the property,

including damages to the remainder, if any, prepared by a certified

appraiser certified to practice as a certified general appraiser

under Chapter 1103, Occupations Code;

(C) an instrument of conveyance, provided that if

the entity is a private entity as defined by Section 21.0114(a), the

instrument must comply with Section 21.0114, as applicable, unless:

(i) the entity has previously provided an

instrument complying with Section 21.0114;

(ii) the property owner desires to use an

instrument different than one complying with Section 21.0114 and

consents in writing to use a different instrument; or

(iii) the property owner provided the

entity with the instrument prior to the issuance of the initial

offer; and

(D) the name and telephone number of a

representative of the entity who is:

(i) an employee of the entity;

(ii) an employee of an affiliate providing

services on behalf of the entity;

(iii) a legal representative of the entity;

or

(iv) if the entity does not have employees,

an individual designated to represent the day-to-day operations of

the entity;

(2) a final offer is made in writing to the property

owner;

(3) the final offer is made on or after :

(A) the 30th day after the date on which the

entity makes a written initial offer to the property owner , if the

final offer is equal to or higher than the initial offer; or

(B) the 60th day after the date on which the

entity makes a written initial offer to the property owner, if the

final offer is lower than the initial offer ;

(4) before making a final offer, the entity obtains a

written appraisal 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 of the written appraisal 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;

(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 2. The change in law made by this Act applies only

to the acquisition of real property in connection with an initial

offer made under Section 21.0113, Property Code, as amended by this

Act, 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, as amended by this Act, 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.

SECTION 3. This Act takes effect September 1, 2025.