Relating to a prohibition on the exercise of eminent domain and the disposition of certain property acquired for certain rail projects.
Summary
HB 2979 would limit the ability of private rail-related entities to use eminent domain for high-speed rail projects in Texas. The bill amends Transportation Code provisions governing railroad and interurban electric railway companies to state that a private entity may not exercise eminent domain for the purpose of developing or operating a high-speed rail project. It also revises the law on interurban electric railways so that such companies may no longer use eminent domain for the purposes described in that section.
The bill further creates a new rule for real property acquired for a high-speed rail project. If a private entity acquires land for such a project, the property generally may be used only for that project. If the project is canceled, the land is not used within 10 years, or the land becomes unnecessary within 10 years, the original owner and that owner’s heirs, successors, or assigns would have a right of first opportunity to repurchase the property at the original purchase price before it is sold to anyone else. These restrictions do not apply if the seller was given written notice before the sale that the property could be used for another purpose and acknowledged that notice in writing.
Impact
The bill would amend Chapters 112 and 131 of the Transportation Code and add a new Section 112.063 governing disposition of property acquired for high-speed rail projects. It would narrow eminent domain authority for private entities involved in high-speed rail and impose resale and repurchase requirements on land acquired for those projects beginning with property acquired on or after September 1, 2025. The bill would also incorporate Chapter 21 Property Code procedures for notice and repurchase, affecting private rail developers, landowners, and successors in interest.
Sentiment
The available record shows the bill was referred to the House Land & Resource Management Committee and no votes or committee testimony are included, so there is no documented floor or committee sentiment in the provided materials. Based on the bill’s subject matter, it appears aimed at protecting landowners from private high-speed rail acquisition practices and limiting speculative use of condemned or purchased property.
Contention
The central point of contention is likely the restriction on eminent domain for private high-speed rail projects, which would reduce a development tool often used by infrastructure projects. Another likely dispute is the repurchase right at the original sale price, which could be viewed by landowners as a protection against speculative acquisition but by developers as a constraint on project flexibility and financing. The bill also creates an exception where the seller is warned the property may be used for another purpose, suggesting concern over how broadly the new protections should apply.
Eminent domain; prohibiting use of eminent domain for certain facilities; requiring authorization by Corporation Commission for exercise of eminent domain by certain entities for specified purpose. Emergency.
Eminent domain; prohibiting use of eminent domain for certain facilities; requiring authorization by Corporation Commission for exercise of eminent domain by certain entities for specified purpose. Emergency.