LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 18, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        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 1st
               House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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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.  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.

Based on responses from a sampling of cities, if the property owner
waives the right to object or does not submit a written objection 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, DB