SRC-JEC C.S.S.B. 1398 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1398
By: Fraser
Intergovernmental Relations
4/18/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, the governing body of a municipality has the power to enact
zoning regulations in accordance with its comprehensive plan, and
occasionally has reason to change zoning regulations.  Some changes may
adversely affect property value.  C.S.S.B. 1398 prohibits the governing
body from changing the zoning classification of a property that results in
the diminution of the property of more than 10 percent of the property
value unless the property owner gives consent for the change or is
compensated for the reduction in value, and makes provisions regarding a
zoning classification change. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 211.003, Local Government Code, to prohibit the
governing body of a municipality, notwithstanding any other provision of
this subchapter, from changing the zoning classification of a property that
results in a diminution of more than 10 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 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 in value resulting from the change as determined by an
agreement with the property owner or a proceeding governed by Chapter 21
(Eminent Domain), Property Code. 

SECTION 2.  Amends Chapter 21A, Property Code, by amending Section 21.003
and adding Section 21.004, as follows: 

Sec. 21.003.  Authorizes the district court to determine all issues in any
suit filed under this chapter and any suit filed in which certain
conditions exist. 

Sec. 21.004.  PROCEEDINGS REGARDING CHANGE OF ZONING CLASSIFICATION.
Provides that a proceeding filed under this chapter for the purpose of
determining the diminution of a property's value under Section 211.003(d),
Local Government Code, is a condemnation or eminent domain proceeding under
this chapter for the sole purpose of satisfying the procedures required by
this chapter.  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 property's zoning classification. 

SECTION 3.  Amends Section 21.0111(a), Property Code, to require a
governmental entity with eminent domain authority that wants to change a
property's zoning classification to disclose to the property owner at the
time an offer to purchase or otherwise compensate is made any and all
existing appraisal reports produced or acquired by the governmental entity
relating specifically to the owner's property and used in determining the
final valuation offer. 
 
SECTION 4.  Amends Section 21.012, Property Code, to require a petition to
the court by a condemning entity to describe the property to be
reclassified under a different zoning classification and state the purpose
for which the property's zoning is to be changed. 

SECTION 5.  Amends Section 21.021(a), Property Code, to make a conforming
change. 

SECTION 6.  Effective date: September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Differs from the original as follows:

_Clarifies the proposed language regarding a change in zoning
classification and specifies that the prohibition applies when the
classification results in a diminution of more than 10 percent . 

_Adds the provisions in SECTIONS 2-5 and redesignates SECTION 2 as SECTION
6.