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 * * * * *