1-1     By:  Fraser                                           S.B. No. 1398
 1-2           (In the Senate - Filed March 8, 2001; March 13, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 19, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     April 19, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1398                 By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the authority of the governing body of a municipality
1-11     to change previously adopted zoning regulations.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 211.003, Local Government Code, is
1-14     amended by adding Subsection (d) to read as follows:
1-15           (d)  Notwithstanding any other provision of this subchapter,
1-16     the governing body of a municipality may not change the zoning
1-17     classification of a property that results in a diminution of more
1-18     than 10 percent of the property's value unless:
1-19                 (1)  the owner of the property:
1-20                       (A)  waives any right to object to the proposed
1-21     change; or
1-22                       (B)  fails to file a written objection with the
1-23     governing body before the 90th day after the date the governing
1-24     body notifies the property owner of the proposed change; or
1-25                 (2)  the governing body compensates the property owner
1-26     for the diminution in value resulting from the change as determined
1-27     by:
1-28                       (A)  an agreement with the property owner; or
1-29                       (B)  a proceeding governed by Chapter 21,
1-30     Property Code.
1-31           SECTION 2.  Subchapter A, Chapter 21, Property Code, is
1-32     amended by amending Section 21.003 and adding Section 21.004 to
1-33     read as follows:
1-34           Sec. 21.003.  DISTRICT COURT AUTHORITY.  A district court may
1-35     determine all issues, including the authority to condemn property
1-36     and the assessment of damages, in any suit filed under this chapter
1-37     and any suit filed:
1-38                 (1)  in which this state, a political subdivision of
1-39     this state, a person, an association of persons, or a corporation
1-40     is a party; and
1-41                 (2)  that involves a claim for property or for damages
1-42     to property occupied by the party under the party's eminent domain
1-43     authority or for an injunction to prevent the party from entering
1-44     or using the property under the party's eminent domain authority.
1-45           Sec. 21.004.  PROCEEDINGS REGARDING CHANGE OF ZONING
1-46     CLASSIFICATION.  A proceeding filed under this chapter for the
1-47     purpose of determining the diminution of a property's value under
1-48     Section 211.003(d), Local Government Code, is a condemnation or
1-49     eminent domain proceeding under this chapter for the sole purpose
1-50     of satisfying the procedures required by this chapter.  In such
1-51     proceedings, the condemnor or acquiring entity is the municipality,
1-52     the condemned property is the property for which the zoning is to
1-53     be reclassified, and the condemnation is the change in the
1-54     property's zoning classification.
1-55           SECTION 3.  Subsection (a), Section 21.0111, Property Code,
1-56     is amended to read as follows:
1-57           (a)  A governmental entity with eminent domain authority that
1-58     wants to acquire real property for a public use or change a
1-59     property's zoning classification shall disclose to the property
1-60     owner at the time an offer to purchase or otherwise compensate is
1-61     made any and all existing appraisal reports produced or acquired by
1-62     the governmental entity relating specifically to the owner's
1-63     property and used in determining the final valuation offer.
1-64           SECTION 4.  Section 21.012, Property Code, is amended to read
 2-1     as follows:
 2-2           Sec. 21.012.  CONDEMNATION PETITION.  (a)  If the United
 2-3     States, this state, a political subdivision of this state, a
 2-4     corporation with eminent domain authority, or an irrigation, water
 2-5     improvement, or water power control district created by law wants
 2-6     to acquire real property for public use or change a property's
 2-7     zoning classification but is unable to agree with the owner of the
 2-8     property on the amount of damages, the condemning entity may begin
 2-9     a condemnation proceeding by filing a petition in the proper court.
2-10           (b)  The petition must:
2-11                 (1)  describe the property to be condemned or to be
2-12     reclassified under a different zoning classification;
2-13                 (2)  state the purpose for which the entity intends to
2-14     use the property or for which the property's zoning is to be
2-15     changed;
2-16                 (3)  state the name of the owner of the property if the
2-17     owner is known; and
2-18                 (4)  state that the entity and the property owner are
2-19     unable to agree on the damages.
2-20           SECTION 5.  Subsection (a), Section 21.021, Property Code, is
2-21     amended to read as follows:
2-22           (a)  After the special commissioners have made an award in a
2-23     condemnation proceeding, except as provided by Subsection (c) of
2-24     this section, the condemnor may take possession of the condemned
2-25     property or change the zoning classification of the property
2-26     pending the results of further litigation if the condemnor:
2-27                 (1)  pays to the property owner the amount of damages
2-28     and costs awarded by the special commissioners or deposits that
2-29     amount of money with the court subject to the order of the property
2-30     owner;
2-31                 (2)  deposits with the court either the amount of money
2-32     awarded by the special commissioners as damages or a surety bond in
2-33     the same amount issued by a surety company qualified to do business
2-34     in this state, conditioned to secure the payment of an award of
2-35     damages by the court in excess of the award of the special
2-36     commissioners; and
2-37                 (3)  executes a bond that has two or more good and
2-38     solvent sureties approved by the judge of the court in which the
2-39     proceeding is pending and conditioned to secure the payment of
2-40     additional costs that may be awarded to the property owner by the
2-41     trial court or on appeal.
2-42           SECTION 6.  This Act takes effect September 1, 2001.
2-43                                  * * * * *