HBA-LJP S.B. 1398 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1398 By: Fraser Land & Resource Management 5/1/2001 Engrossed BACKGROUND AND PURPOSE Currently, the governing body of a municipality has the power to enact zoning regulations in accordance with its comprehensive plan. When the governing body of municipality changes the zoning regulations from the comprehensive plan, these changes may adversely affect property value. Senate Bill 1398 prohibits the governing body of a municipality from changing the zoning classification of a property that results in a diminution of more than 25 percent of the property's value and provides for proceedings related to such a diminution. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1398 amends the Local Government Code to prohibit the governing body of a municipality from changing the zoning classification of a property that results in a diminution of more than 25 percent of the property's value unless: _the owner of the property waives any right to objection or fails to file a written objection before the 90th day after the date the governing body notifies the property owner of the proposed change; or _the governing body compensates the property owner for the diminution of value from the zoning reclassification by an agreement or a proceeding relating to eminent domain. The bill amends the Property Code to set forth that a proceeding filed under provisions related to eminent domain for the purpose of determining the diminution of a property's value, is a condemnation or eminent domain proceeding for the sole purpose of satisfying the requirements of a proceeding filed under eminent domain provisions. The bill also provides that in such proceedings, the condemnor or acquiring entity is the municipality, the condemned property is the property for which the zoning is to be reclassified, and the condemnation is the change in the zoning classification of the property. The bill also includes the zoning reclassification of a property in provisions related to the disclosure of required information at the time an entity with the authority of eminent domain offers to purchase real property, condemnation petitions, and the possession of condemned property pending the results of further litigation after a condemnation proceeding. EFFECTIVE DATE September 1, 2001.