78R8290 AKH-D
By: Mowery, Zedler H.B. No. 2178
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the governing body of a municipality to
change previously adopted zoning regulations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 211.003, Local Government Code, is
amended by adding Subsection (d) to read as follows:
(d) Notwithstanding any other provision of this subchapter,
the governing body of a municipality may not change the zoning
classification of a property that results in a diminution of more
than 10 percent of the property's value unless:
(1) the owner of the property:
(A) waives any right to object to the proposed
change; or
(B) fails to file with the governing body 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 under Section 211.006:
(i) a written statement objecting to the
proposed change under this section; and
(ii) a copy of an appraisal report by a
state certified or licensed appraiser that states the appraiser's
opinion of the value of the property before and after the proposed
change in the zoning classification; or
(2) the governing body compensates the property owner
for the diminution in value resulting from the change as determined
by:
(A) an agreement with the property owner; or
(B) a proceeding governed by Chapter 21, Property
Code.
SECTION 2. Subchapter A, Chapter 21, Property Code, is
amended by amending Section 21.003 and adding Section 21.004 to
read as follows:
Sec. 21.003. DISTRICT COURT AUTHORITY. A district court
may determine all issues, including the authority to condemn
property and the assessment of damages, in any suit filed under this
chapter and any suit filed:
(1) in which this state, a political subdivision of
this state, a person, an association of persons, or a corporation is
a party; and
(2) that involves a claim for property or for damages
to property occupied by the party under the party's eminent domain
authority or for an injunction to prevent the party from entering or
using the property under the party's eminent domain authority.
Sec. 21.004. PROCEEDINGS REGARDING CHANGE OF ZONING
CLASSIFICATION. (a) A proceeding filed under this chapter for the
purpose of determining the diminution of a property's value under
Section 211.003(d), Local Government Code, is a condemnation or
eminent domain proceeding under this chapter for the sole purpose
of satisfying the procedures required by this chapter.
(b) In a proceeding described by Subsection (a), 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 property's zoning
classification.
(c) The special commissioners or district court, as
appropriate, may determine all issues related to a proceeding under
this section.
(d) Not later than the 10th day before the date the
condemnation proceeding begins, each party shall provide to the
other parties a copy of each appraisal report supporting that
party's opinion of any diminution of value.
(e) The municipality may change the property's zoning
classification after the special commissioners have made an award
as prescribed by Section 21.021.
SECTION 3. Subchapter B, Chapter 21, Property Code, is
amended by adding Section 21.0121 to read as follows:
Sec. 21.0121. CONDEMNATION PETITION RELATING TO ZONING
CLASSIFICATION. (a) If the governing body of a municipality or a
political subdivision of this state wants to change a property's
zoning classification but is unable to agree with the owner of the
property on the amount of damages, the condemning entity may begin a
condemnation proceeding by filing a petition in the proper court.
(b) The petition must:
(1) describe the property to be reclassified under a
different zoning classification;
(2) state the purpose for which the property's zoning
is to be changed;
(3) state the name of the owner of the property if the
owner is known; and
(4) state that the entity and the property owner are
unable to agree on the damages.
SECTION 4. The heading of Section 21.021, Property Code, is
amended to read as follows:
Sec. 21.021. POSSESSION PENDING LITIGATION; ZONING
RECLASSIFICATION.
SECTION 5. Section 21.021(a), Property Code, is amended to
read as follows:
(a) After the special commissioners have made an award in a
condemnation proceeding, except as provided by Subsection (c) of
this section, the condemnor may take possession of the condemned
property or change the zoning classification of the property
pending the results of further litigation if the condemnor:
(1) pays to the property owner the amount of damages
and costs awarded by the special commissioners or deposits that
amount of money with the court subject to the order of the property
owner;
(2) deposits with the court either the amount of money
awarded by the special commissioners as damages or a surety bond in
the same amount issued by a surety company qualified to do business
in this state, conditioned to secure the payment of an award of
damages by the court in excess of the award of the special
commissioners; and
(3) executes a bond that has two or more good and
solvent sureties approved by the judge of the court in which the
proceeding is pending and conditioned to secure the payment of
additional costs that may be awarded to the property owner by the
trial court or on appeal.
SECTION 6. Section 21.047, Property Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Special commissioners shall [may] adjudge the costs of
an eminent domain proceeding as follows: [against any party.]
(1) if [If] the commissioners award greater damages
than the condemnor offered to pay before the proceedings began or if
the decision of the commissioners is appealed and a court awards
greater damages than the commissioners awarded, the condemnor shall
pay [all] costs and reasonable and necessary attorney's fees; or[.]
(2) if [If] the commissioners' award or the court's
determination of the damages is less than or equal to the amount the
condemnor offered before proceedings began, the court may require
the property owner to [shall] pay the costs.
(d) This section governs a proceeding filed under this
chapter, including a proceeding filed for the purpose of
determining the diminution of a property's value under Section
211.003(d), Local Government Code.
SECTION 7. Subchapter C, Chapter 21, Property Code, is
amended by adding Section 21.0485 to read as follows:
Sec. 21.0485. PAYMENT OF DAMAGES BY CONDEMNOR. (a) This
section applies to a property owner who prevails in a suit filed
under this chapter, including a proceeding filed under this chapter
for the purpose of determining the diminution of a property's value
under Section 211.003(d), Local Government Code.
(b) The condemnor shall pay the full amount of the court or
commissioners' award not later than the second anniversary of the
date the judgment is final or all appeals have been exhausted,
whichever is later.
SECTION 8. Subchapter D, Chapter 21, Property Code, is
amended by adding Section 21.066 to read as follows:
Sec. 21.066. PREVAILING PROPERTY OWNER; DEVELOPMENT OF
CERTAIN PROPERTY. Instead of enforcing a judgment under this
chapter, a property owner who prevails in a proceeding filed under
this chapter for the purpose of determining the diminution of a
property's value under Section 211.003(d), Local Government Code,
may develop the property under the zoning rules that applied to the
property before the change in the property's zoning classification.
The municipality shall authorize the development according to
regulations prescribed by that zoning classification and waive any
fee associated with the development of the property, including
application and impact fees, and any pro rata changes.
SECTION 9. (a) Sections 21.0485 and 21.066, Property Code,
as added by this Act, apply to a suit or proceeding filed under
Chapter 21, Property Code, that is pending in a trial or appellate
court on September 1, 2003.
(b) This Act takes effect September 1, 2003.