LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 16, 2001 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: SB1398 by Fraser (Relating to the authority of the governing body of a municipality to change previously adopted zoning regulations.), Committee Report 2nd House, Substituted ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would prohibit a municipality from changing a previously enacted zoning regulation affecting a property unless the property owner waives any right to object or fails to file a written objection within 90 days after receiving notice of the proposed change, or if the governing body compensates the property owner. Provisions of the bill would also identify that overlays of a property's zoning classification are not considered a change in zoning if the overlay is for the purpose of regulating roads, landscaping, trees, signs, parking, flood control, or geologically unstable areas, or to regulate the construction, reconstruction, alteration, or razing of buildings and other structures for historical, cultural, or architectural importance and significance. Another exception to zoning changes as proposed in the bill would allow zoning reclassification if the property had not been changed by the governing body of a municipality over the owner's objections at any time during the immediately preceding 20 years. Additionally, a property owner would waive their right to any compensation if they did not file an objection to a proposed property zoning change in a timely manner. The bill would set forth that proceedings regarding a change of zoning classification for the purpose of determining the diminution of a property's value would be a condemnation or eminent domain proceeding. Not later than the tenth day before the date the proceeding begins, each party would be required to provide to the other parties a copy of each appraisal report supporting that party's opinion of any diminution of value. If an agreement cannot be met between the entity and the property owner on the amount of damages resulting from a zoning change, the entity may file a condemnation petition. The act would take effect September 1, 2001 and the provisions affecting fiscal impact as described above would expire on September 1, 2003. Based on responses from a sampling of cities, if the property owner waives the right to object or does not submit a written objection to the rezoning proposal in the allotted timeframe, the fiscal impact to municipalities would be insignificant. If a condemnation or eminent domain proceeding is conducted, there would be a minimal cost involved. If the municipality has to compensate the property owner for the diminution in value resulting from the change in zoning, the fiscal impact could have the potential of costing the municipality a significant amount of money. Source Agencies: LBB Staff: JK, CL, DB