H.B. 2178 78(R)    BILL ANALYSIS


H.B. 2178
By: Mowery
Land & Resource Management
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the governing body of a municipality has the power to enact
zoning regulations in accordance with its comprehensive plan.  When the
governing body of municipality changes the zoning regulations from the
comprehensive plan, these changes may adversely affect property value.  

H.B. 2178 prohibits the governing body of a municipality from changing the
zoning classification of a property that results in a diminution of more
than 10 percent of the property's value and provides for proceedings
related to such a diminution. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.Amends Section 211.003, Local Government Code, by adding a new
Subsection (d) as follows: 

Prohibits the governing body of a municipality from changing the zoning
classification of a property that results in a diminution of more than 10
percent of the property's value unless: 

The owner of the property waives any right to object to the proposed
change or fails to file a written objection and a copy of an appraisal
report stating the appraiser's opinion of the value of the property before
and after the proposed change in zoning classification before the 90th day
after the date the governing body notifies the property owner of the date
the governing body will vote on the proposed change; or 

The governing body compensates the property owner for the diminution in
value resulting from the zoning reclassification by an agreement or a
proceeding relating to eminent domain. 

SECTION 2.Amends Subchapter A, Chapter 21, Property Code, by amending
Section 21.003 and adding Section 21.004 as follows: 

   Authorizes district courts to hear cases under the provisions of this
bill. 

Establishes that a proceeding filed for the purpose of determining the
diminution of a property's value is a condemnation or eminent domain
proceeding for the sole purpose of satisfying the filing requirements of
an eminent domain proceeding.   

Provides that in a proceeding authorized by this bill the condemnor or
acquiring entity is the municipality, the condemned property is the
property for which the zoning is to be reclassified, and the condemnation
is the change  in the zoning classification.   

Provides that the special commissioners or district court is authorized to
determine all issues relating to such a proceeding.   

Requires each party to provide to the other parties a copy of each
appraisal report supporting that party's opinion within 10 days before the
proceeding begins.   

Authorizes a municipality to change the zoning classification at any time
after the special commissioners' have made an award. 

SECTION 3.Amends Subchapter B, Chapter 21, Property Code, by adding
Section 21.0121, as follows: 

Authorizes the governing body of a municipality or other political
subdivision to begin condemnation proceedings in court if it wants to
change the zoning classification and can not agree with the owner on
damages. Specifies what the petition must include. 

SECTION 4.Amends the heading of Section 21.021, Property Code, as follows:

   POSSESSION PENDING LITIGATION; ZONING RECLASSIFICATION

SECTION 5.Amends Section 21.021(a), Property Code, to make conforming
changes. 

SECTION 6.Amends Section 21.047, Property Code, as follows:

   Requires special commissioners to allocate costs as follows:
 
If the award is greater than the amount offered, the condemnor must pay
costs and reasonable and necessary attorney's fees. 

If the award is less than or equal to the amount offered the property
owner may have to pay costs. 
    
SECTION 7.Amends Subchapter C, Chapter 21, Property Code, by adding
Section 21.0485 as follows: 

If the property owner prevails in a suit, the condemnor must pay the award
within 2 years of the final judgement.  

SECTION 8.Amends Subchapter D, Chapter 21, Property Code, by adding
Section 21.066, as follows: 

A property owner who prevails in a suit under this chapter may develop the
property under the zoning rules applicable before the proposed change in
lieu of receiving the award. 

If a property owner chooses to develop the property, the municipality must
authorize it and waive any fees. 

SECTION 9.Effective date.

EFFECTIVE DATE

September 1, 2003.