77R16558 PAM-F                          
         By Fraser                                             S.B. No. 1398
         Substitute the following for S.B. No. 1398:
         By Turner of Coleman                              C.S.S.B. No. 1398
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of the governing body of a municipality
 1-3     to change previously adopted zoning regulations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 211.003, Local Government Code, is
 1-6     amended by adding Subsections (d)-(h) to read as follows:
 1-7           (d)  Notwithstanding any other provision of this subchapter,
 1-8     the governing body of a municipality may not change the zoning
 1-9     classification of a property that results in a diminution of more
1-10     than 25 percent of the property's value unless:
1-11                 (1)  the owner of the property:
1-12                       (A)  waives any right to object to the proposed
1-13     change; or
1-14                       (B)  fails to file with the governing body before
1-15     the 90th day after the date the governing body notifies the
1-16     property owner of the date the governing body will vote on the
1-17     proposed change under Section 211.006:
1-18                             (i)  a written statement objecting to the
1-19     proposed change under this section; and
1-20                             (ii)  a copy of an appraisal report by a
1-21     state certified or licensed appraiser that states the appraiser's
1-22     opinion of the value of the property before and after the proposed
1-23     change in the zoning classification; or
1-24                 (2)  the governing body compensates the property owner
 2-1     for the diminution in value resulting from the change as determined
 2-2     by:
 2-3                       (A)  an agreement with the property owner; or
 2-4                       (B)  a proceeding governed by Chapter 21,
 2-5     Property Code.
 2-6           (e)  For the purposes of this section, a municipality's
 2-7     designation and regulation of an area that overlays a property's
 2-8     zoning classification is not considered a change in a zoning
 2-9     classification if the overlay designation is made for a purpose
2-10     described by Subsection (b) or for the purpose of regulating roads,
2-11     landscaping, trees, signs, parking, flood control, or geologically
2-12     unstable areas.
2-13           (f)  Subsection (d) does not apply to property if the zoning
2-14     classification for the property was not changed by the governing
2-15     body of a municipality over the owner's objections at any time
2-16     during the 20 years immediately preceding the date the governing
2-17     body notifies the property owner of a proposed change in the
2-18     property's zoning classification under Subsection (d).
2-19           (g)  A property owner who fails to timely file an objection
2-20     to a proposed change in the property's zoning classification waives
2-21     any right to compensation under this section.
2-22           (h)  Subsections (d)-(g) and this subsection expire September
2-23     1, 2003.
2-24           SECTION 2.  Subchapter A, Chapter 21, Property Code, is
2-25     amended by amending Section 21.003 and adding Section 21.004 to
2-26     read as follows:
2-27           Sec. 21.003.  DISTRICT COURT AUTHORITY.  A district court may
 3-1     determine all issues, including the authority to condemn property
 3-2     and the assessment of damages, in any suit filed under this chapter
 3-3     and any suit filed:
 3-4                 (1)  in which this state, a political subdivision of
 3-5     this state, a person, an association of persons, or a corporation
 3-6     is a party; and
 3-7                 (2)  that involves a claim for property or for damages
 3-8     to property occupied by the party under the party's eminent domain
 3-9     authority or for an injunction to prevent the party from entering
3-10     or using the property under the party's eminent domain authority.
3-11           Sec. 21.004.  PROCEEDINGS REGARDING CHANGE OF ZONING
3-12     CLASSIFICATION. (a)  A proceeding filed under this chapter for the
3-13     purpose of determining the diminution of a property's value under
3-14     Section 211.003(d), Local Government Code, is a condemnation or
3-15     eminent domain proceeding under this chapter for the sole purpose
3-16     of satisfying the procedures required by this chapter.
3-17           (b)  In a proceeding described by Subsection (a), the
3-18     condemnor or acquiring entity is the municipality, the condemned
3-19     property is the property for which the zoning is to be
3-20     reclassified, and the condemnation is the change in the property's
3-21     zoning classification.
3-22           (c)  The special commissioners or district court, as
3-23     appropriate, may determine all issues related to a proceeding under
3-24     this section.
3-25           (d)  Not later than the 10th day before the date the
3-26     condemnation proceeding begins, each party shall provide to the
3-27     other parties a copy of each appraisal report supporting that
 4-1     party's opinion of any diminution of value.
 4-2           (e)  The municipality may change the property's zoning
 4-3     classification at any time pending the results of the special
 4-4     commissioners' award or further litigation.
 4-5           (f)  This section expires September 1, 2003.
 4-6           SECTION 3.  Subchapter B, Chapter 21, Property Code, is
 4-7     amended by adding Section 21.0121 to read as follows:
 4-8           Sec. 21.0121.  CONDEMNATION PETITION RELATING TO ZONING
 4-9     CLASSIFICATION.  (a)  If the United States, this state, a political
4-10     subdivision of this state, a corporation with eminent domain
4-11     authority, or an irrigation, water improvement, or water power
4-12     control district created by law wants to change a property's zoning
4-13     classification but is unable to agree with the owner of the
4-14     property on the amount of damages, the condemning entity may begin
4-15     a condemnation proceeding by filing a petition in the proper court.
4-16           (b)  The petition must:
4-17                 (1)  describe the property to be reclassified under a
4-18     different zoning classification;
4-19                 (2)  state the purpose for which the property's zoning
4-20     is to be changed;
4-21                 (3)  state the name of the owner of the property if the
4-22     owner is known; and
4-23                 (4)  state that the entity and the property owner are
4-24     unable to agree on the damages.
4-25           (c)  This section expires September 1, 2003.
4-26           SECTION 4.  This Act takes effect September 1, 2001.