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 ************************************************************************** * 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. 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