1-1 By: Bivins, Armbrister S.B. No. 1226 1-2 (In the Senate - Filed March 12, 1993; March 16, 1993, read 1-3 first time and referred to Committee on State Affairs; May 6, 1993, 1-4 reported adversely, with favorable Committee Substitute by the 1-5 following vote: Yeas 7, Nays 0; May 6, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Harris of Dallas x 1-9 Rosson x 1-10 Carriker x 1-11 Henderson x 1-12 Leedom x 1-13 Lucio x 1-14 Luna x 1-15 Nelson x 1-16 Patterson x 1-17 Shelley x 1-18 Sibley x 1-19 West x 1-20 Whitmire x 1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 1226 By: Sibley 1-22 A BILL TO BE ENTITLED 1-23 AN ACT 1-24 relating to the impact of governmental acts on the value of 1-25 property. 1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-27 SECTION 1. Title 4, Property Code, is amended by adding 1-28 Chapter 28 to read as follows: 1-29 CHAPTER 28. LIABILITY OF GOVERNMENTAL 1-30 ENTITY FOR DIMINUTION IN VALUE 1-31 Sec. 28.001. DEFINITIONS. In this chapter: 1-32 (1) "Diminution in value" means a reduction in the 1-33 fair market value of property. 1-34 (2) "Governmental entity" means: 1-35 (A) the legislature or a board, authority, 1-36 commission, council, committee, department, office, or agency in 1-37 the executive branch of state government; 1-38 (B) a political subdivision of the state; and 1-39 (C) a special purpose district. 1-40 (3) "Owner" means the owner of private property at the 1-41 time an applicable statute, ordinance, regulation, rule, 1-42 guideline, or policy was passed or the owner at the time a permit, 1-43 license, authorization, or governmental permission was denied 1-44 without reasonable cause. 1-45 (4) "Private property" means real or personal property 1-46 that is not owned by the state or by a governmental entity as 1-47 defined by this section. 1-48 Sec. 28.002. LEGISLATIVE INTENT. It is the intent of this 1-49 legislation that a governmental entity: 1-50 (1) avoid imposing an undue burden on the resources of 1-51 that entity or another governmental entity caused by actions that 1-52 require compensation of private property owners under the United 1-53 States Constitution or the Texas Constitution; 1-54 (2) limit or restrict the use of private property only 1-55 to the extent necessary to accomplish a legitimate governmental 1-56 goal that benefits persons served by the entity; and 1-57 (3) expedite a decision by the entity in cases in 1-58 which a delay of the decision may interfere with the use or value 1-59 of private property. 1-60 Sec. 28.003. ATTORNEY GENERAL TO ISSUE GUIDELINES. (a) Not 1-61 later than January 1, 1994, the attorney general shall issue 1-62 guidelines to governmental entities to assist them in identifying 1-63 governmental actions that affect private property to the extent 1-64 that compensation may be required under the United States 1-65 Constitution or the Texas Constitution. 1-66 (b) The attorney general shall update the guidelines 1-67 required by this section periodically. 1-68 Sec. 28.004. ASSESSMENT OF GOVERNMENTAL ACTION. (a) A 2-1 governmental entity shall, in a manner consistent with guidelines 2-2 established by Section 28.003, assess a proposed governmental 2-3 action under this chapter. An assessment under this subsection 2-4 must include an analysis of: 2-5 (1) the effect of the proposed action on the use or 2-6 value of private property, including an evaluation of whether the 2-7 action requires compensation of private property owners under the 2-8 law; 2-9 (2) alternatives to the proposed action that would 2-10 lessen the effect on private property; and 2-11 (3) an estimate of the cost to the governmental entity 2-12 if the entity is required to compensate a private property owner. 2-13 Sec. 28.005. ACTIONS SUBJECT TO CHAPTER. (a) The following 2-14 actions of a governmental entity are subject to this chapter to the 2-15 extent that they limit or restrict the use of private property: 2-16 (1) a rule or emergency rule; 2-17 (2) a statute; 2-18 (3) an ordinance; 2-19 (4) a dedication; or 2-20 (5) the denial of a permit, license, authorization, or 2-21 other governmental permission if such denial is without cause. 2-22 (b) The following actions are not subject to this chapter: 2-23 (1) a formal exercise of the power of eminent domain; 2-24 (2) the repeal or amendment of a statute, rule, 2-25 ordinance, requirement, or other action if the repeal or amendment 2-26 lessens or reverses a limitation or restriction on the use of 2-27 private property; 2-28 (3) a governmental action mandated by a higher 2-29 governmental authority or pursuant to Chapter 61, Natural Resources 2-30 Code; 2-31 (4) law enforcement activity involving the seizure or 2-32 forfeiture of private property for a violation of law or as 2-33 evidence in a criminal proceeding; 2-34 (5) an order issued as the result of a violation of 2-35 law; or 2-36 (6) zoning ordinances. 2-37 Sec. 28.006. CONSTITUTIONAL OR STATUTORY RIGHTS NOT 2-38 RESTRICTED. Nothing in this chapter shall restrict any remedy or 2-39 right that any person or class of persons may have under any 2-40 provision of the United States Constitution or the Texas 2-41 Constitution or the statutes or laws of this state or of the United 2-42 States. 2-43 SECTION 2. (a) The change in law made by this Act applies 2-44 only to an action taken by a governmental entity on or after the 2-45 effective date of this Act. For purposes of this section, an 2-46 action is taken before the effective date of this Act if any 2-47 element of the action occurs before that date. 2-48 (b) An action taken before the effective date of this Act is 2-49 covered by the law in effect when the action was taken, and the 2-50 former law is continued in effect for that purpose. 2-51 SECTION 3. The importance of this legislation and the 2-52 crowded condition of the calendars in both houses create an 2-53 emergency and an imperative public necessity that the 2-54 constitutional rule requiring bills to be read on three several 2-55 days in each house be suspended, and this rule is hereby suspended, 2-56 and that this Act take effect and be in force from and after its 2-57 passage, and it is so enacted. 2-58 * * * * * 2-59 Austin, 2-60 Texas 2-61 May 6, 1993 2-62 Hon. Bob Bullock 2-63 President of the Senate 2-64 Sir: 2-65 We, your Committee on State Affairs to which was referred S.B. No. 2-66 1226, have had the same under consideration, and I am instructed to 2-67 report it back to the Senate with the recommendation that it do not 2-68 pass, but that the Committee Substitute adopted in lieu thereof do 2-69 pass and be printed. 2-70 Harris of 3-1 Dallas, Chairman 3-2 * * * * * 3-3 WITNESSES 3-4 FOR AGAINST ON 3-5 ___________________________________________________________________ 3-6 Name: James Johnson x 3-7 Representing: City of Austin 3-8 City: Austin 3-9 ------------------------------------------------------------------- 3-10 Name: David Langford x 3-11 Representing: TX Wildlife Assn 3-12 City: San Antonio 3-13 ------------------------------------------------------------------- 3-14 Name: David Langford x 3-15 Representing: Trans Texas Heritage Assn 3-16 City: Alpine 3-17 ------------------------------------------------------------------- 3-18 Name: Harry Savio x 3-19 Representing: TX Capitol Area Builders 3-20 City: Austin 3-21 ------------------------------------------------------------------- 3-22 Name: Maury Hood x 3-23 Representing: TX Capitol Area Builders 3-24 City: Austin 3-25 ------------------------------------------------------------------- 3-26 Name: Kathryn Heidmann x 3-27 Representing: Hill Country Landowners Assn 3-28 City: Georgetown 3-29 ------------------------------------------------------------------- 3-30 Name: Dan Byfield x 3-31 Representing: TX Farm Bureau 3-32 City: Austin 3-33 ------------------------------------------------------------------- 3-34 Name: Ed Small x 3-35 Representing: TX & Southwest Cattleraisers 3-36 City: Austin 3-37 ------------------------------------------------------------------- 3-38 Name: Ross Wilson x 3-39 Representing: TX Cattle Feeders Assn 3-40 City: Amarillo 3-41 ------------------------------------------------------------------- 3-42 Name: Steve Hudson x 3-43 Representing: TX Assn of Builders 3-44 City: Austin 3-45 ------------------------------------------------------------------- 3-46 Name: Kenneth Horton x 3-47 Representing: TX Park Producers Assn 3-48 City: Austin 3-49 -------------------------------------------------------------------