SRC-VRA S.B. 1249 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1249
By: Armbrister
Intergovernmental Relations
4/7/2003
As Filed


DIGEST AND PURPOSE 

Governmental entities and owners of outdoor advertising currently do not
possess procedures for compensating owners of outdoor advertising signs
that are subject to condemnation.  As proposed, S.B. 1249 establishes a
more efficient process for resolving disputes between governmental
entities and owners of outdoor advertising signs by creating the
opportunity for voluntary agreements and nonbinding arbitration. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 4, Property Code, by adding Chapter 30, as
follows: 

CHAPTER 30.  CONDEMNATION OF OUTDOOR ACTIVITIES

Sec.  30.001.  POLICY; PURPOSE.  (a)  Provides that it is the policy of
this state to encourage governmental entities to enter into relocation and
reconstruction agreements with owners of outdoor advertising to allow the
governmental entities to undertake public projects and accomplish public
goals and to allow the continued maintenance of private investment in
outdoor advertising as a medium of commercial and noncommercial
communication. 

(b)  Provides that the purpose of this chapter is to establish an
efficient, economical, and fair system of resolving disputes between
governmental entities and owners of outdoor advertising as an alternative
to eminent domain court proceedings. 

Sec.  30.002.  DEFINITIONS.  Defines "governmental entity," "sign," and
"relocation and reconstruction agreement."  

Sec.  30.003.  RELOCATION AND RECONSTRUCTION AGREEMENT.  Authorizes a
governmental entity and a sign owner to enter into a relocation and
reconstruction agreement on whatever terms are agreeable to the parties
and to provide for the relocation and reconstruction of a sign by
agreement, ordinance, or resolution. 
 
Sec. 30.004.  PAYMENT OF JUST COMPENSATION FOR REMOVAL OR ALTERATION.
Prohibits a governmental entity from removing or causing to be removed, or
causing in any way the alteration of, a lawfully erected sign located
along any portion of an interstate highway, state highway, farm-to-market
road, federal-aid primary highway, or other highway system, or along any
road or street, without first paying just compensation to the owner of the
sign for the removal or alteration according to an agreement between the
parties or through eminent domain proceedings under Chapter 21.  
 
Sec. 30.005.  NOTIFICATION TO OWNER OF SIGN.  (a)  Requires a governmental
entity, if a governmental entity undertakes a public project or public
goal requiring the removal or alteration of a lawfully erected sign, to
notify the owner of the affected sign in writing of the public project or
goal and of the intention of the governmental entity to seek the removal
or alteration of the sign. 
 
(b)  Requires the parties, not later than 30 days after the owner of the
sign receives notice under Subsection (a), to attempt to meet for the
purposes of negotiating and executing a relocation and reconstruction
agreement as provided under Section 30.003. 
 
Sec. 30.006.  NONBINDING ARBITRATION.  (a)  Authorizes either party, if
the sign owner and the governmental entity fail to enter into a relocation
and reconstruction agreement within 120 days after the initial
notification by the governmental entity under Section 30.005, to request
mandatory nonbinding arbitration to resolve the disagreements between the
parties. 
 
(b)  Requires each party, if a request for arbitration is made under
Subsection (a), to select an arbitrator, and requires the individuals
selected to choose a third arbitrator.  Requires the three arbitrators to
constitute the panel that will arbitrate the dispute between the parties.
Requires the arbitration panel, at the conclusion of the proceedings, to
present to the parties a proposed relocation and reconstruction agreement
that the panel believes equitably balances the rights, interests,
obligations, and reasonable expectations of the parties. 
 
(c)  Requires each party, if the governmental entity and the sign owner
accept the proposed relocation and reconstruction agreement, to pay its
respective costs of the arbitration and each shall pay one-half of the
costs of the arbitration panel unless the parties agree to some other
fractional sharing of the costs. 
 
Sec. 30.007.  RIGHT TO PROCEED AFTER PAYMENT OF COMPENSATION. Authorizes
the governmental entity, if the parties do not enter into a relocation and
reconstruction agreement, to proceed with the public project or purpose
and the removal or alteration of the sign, but only after the governmental
entity pays just compensation to the sign owner, as determined by
agreement between the parties or through eminent domain proceedings under
Chapter 21. 
 
Sec. 30.008.  NO EFFECT ON POWER OF EMINENT DOMAIN OR AUTHORITY TO
REGULATE SIGNS.  (a)  Provides that this chapter does not limit the
authority of a governmental entity to acquire a lawfully erected sign
through eminent domain or to regulate the placement, size, height, or
other aspects of a new sign within the governmental entity's jurisdiction,
including the prohibition of new signs, unless otherwise provided by this
chapter. 
 
(b)  Provides that this chapter does not impair any ordinance, or a
provision of any ordinance, that is not inconsistent with this chapter,
including a provision that creates a ban or partial ban on new signs. 
 
Sec. 30.009.  ACQUISITION OF PROPERTY THROUGH VOLUNTARY TRANSACTION.
Prohibits a governmental entity that acquires property in a voluntary
transaction from requiring that a lawfully erected sign be altered or
removed from the premises on which it is located without the payment of
just compensation. 
 
Sec. 30.010.  APPLICATION OF CHAPTER.  (a)  Provides that this chapter
applies only to a lawfully erected sign the subject matter of which
relates to certain conditions. 
  
(b)  Provides that this chapter does not apply to an action to require the
relocation, reconstruction, or removal of a sign under Chapter 216A, Local
Government Code, or to the acquisition of a sign under Section 391.033,
Transportation Code, if the owner of the sign agrees in writing to use the
provisions of either of those  laws. 
 
(c)  Provides that this chapter does not apply to an ordinance the
validity, constitutionality, or enforceability of which the owner has, by
written agreement, waived all right to challenge. 

SECTION 2.  Amends Section 216.001, Local Government Code, by amending
Subsection (a) and adding Subsection (d), as follows: 

 (a)  Makes a nonsubstantive change.

(d)  Provides that this subchapter is intended as an alternative to
Chapter 30, Property Code, and authorizes it to be used only if the owner
of a sign agrees in writing to waive the owner's right to use the
procedures provided under that chapter.  Makes a nonsubstantive change.   

SECTION 3.  Amends Section 216.003(a), Local Government Code, to make a
conforming change. 

SECTION 4.  Amends Section 216.004(a), Local Government Code, to make a
conforming change. 

SECTION 5.  Amends Section 216.005(a), Local Government Code, to make a
conforming change.  

SECTION 6.  Amends Section 216.006, Local Government Code, to make a
conforming change. 

SECTION 7.  Amends Section 391.033, Transportation Code, by amending
Subsection (b) and adding Subsection (c), as follows: 

 (b)  Makes a conforming change.

(c)  Provides that the compensation provided under Subsection (b) is
intended as an alternative to Chapter 30, Property Code, and authorizes it
to be used only if the owner of an outdoor advertising sign agrees in
writing to waive the owner's right to use the procedures provided under
that chapter. 

SECTION 8.Effective date:  September 1, 2003.
                      Makes application of this Act prospective.