HBA-LJP C.S.S.B. 1398 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1398 By: Fraser Land & Resource Management 5/17/2001 Committee Report (Substituted) 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. C.S.S.B. 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 C.S.S.B. 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 object to the proposed change or fails to file a written objection or a copy of an appraisal report stating the appraiser's opinion of the value of the property before and after the proposed change in zoning classification before the 90th day after the date the governing body notifies the property owner of the date the governing body will vote on the proposed change; or _the governing body compensates the property owner for the diminution in value resulting from the zoning reclassification by an agreement or a proceeding relating to eminent domain. The bill provides that a municipality's designation and regulation of an area that overlays a property's zoning classification is not considered a change in a zoning classification if the overlay designation is made for certain purposes. The bill provides that the prohibition on a change in zoning classification does not apply to property if the zoning classification for the property was not changed by the governing body of a municipality over the owner's objections at any time during the 20 years immediately preceding the date the governing body notifies the property owner of a proposed change in the zoning classification of the property. The bill provides that a property owner who fails to timely file an objection to a proposed change in the property's zoning classification waives any right to compensation for the diminution of the property's value. The bill amends the Property Code to establish that an eminent domain proceeding filed 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 filing requirements of an eminent domain proceeding. The bill also provides that, in such a proceeding, 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 provides that the special commissioners or district court is authorized to determine all issues relating to such a proceeding. The bill requires each party in the proceeding to provide to the other parties in the proceeding a copy of each appraisal report supporting that party's opinion of the diminution of the value of the property within a specified time period. The bill authorizes a municipality to change the zoning classification of a property at any time pending the results of the special commissioners' award or further litigation. The bill authorizes the United States, this state, a political subdivision of this state, a corporation with eminent domain authority, or an irrigation, water improvement, or water power control district that wants to change a property's zoning classification but is unable to agree with the owner of the property on the amount of damages to begin a condemnation proceeding by filing a petition in the proper court. The bill specifies what the petition must include. The provisions of the bill expire on September 1, 2003. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 1398 differs from the original by providing that a property owner's objection to a proposed change in the zoning classification of a property must include a copy of an appraisal report stating the appraiser's opinion of the value of the property before and after the proposed change in zoning classification. The substitute provides that a municipality's designation and regulation of an area that overlays a property's zoning classification is not considered a change in a zoning classification if the overlay designation is made for certain purposes. The substitute provides that the prohibition on a change in zoning classification does not apply to property if the zoning classification for the property was not changed by the governing body of a municipality over the owner's objections at any time during the 20 years immediately preceding the date the governing body notifies the property owner of a proposed change in the zoning classification of the property. The substitute provides that a property owner who fails to timely file an objection to a proposed change in the property's zoning classification waives any right to compensation for the diminution of the property's value. C.S.S.B. 1398 authorizes the United States, this state, a political subdivision of this state, a corporation with eminent domain authority, or an irrigation, water improvement, or water power control district that wants to change a property's zoning classification but is unable to agree with the owner of the property on the amount of damages to begin a condemnation proceeding by filing a petition in the proper court. The substitute provides that the special commissioners or district court is authorized to determine all issues relating to a proceeding regarding the change of zoning classification of a property. The substitute requires each party in the proceeding to provide to the other parties in the proceeding a copy of each appraisal report supporting that party's opinion of the diminution of the value of the property. The substitute authorizes a municipality to change the zoning classification of a property at any time pending the results of the special commissioners' award or further litigation. The substitute establishes that the provisions of the bill expire September 1, 2003.