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  S.B. No. 929
 
 
 
 
AN ACT
  relating to the notice and compensation a municipality must provide
  before revoking the right to use property for a use that was allowed
  before the adoption of or change to a zoning regulation or boundary.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 211.006, Local Government Code, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  In addition to any notice required by this section or
  Section 211.007, the governing body of a municipality or a zoning
  commission, as applicable, shall provide written notice of each
  public hearing regarding any proposed adoption of or change to a
  zoning regulation or boundary under which a current conforming use
  of a property is a nonconforming use if the regulation or boundary
  is adopted or changed.  The notice must:
               (1) be mailed by United States mail to each owner of
  real or business personal property where the proposed nonconforming
  use is located as indicated by the most recently approved municipal
  tax roll and each occupant of the property not later than the 10th
  day before the hearing date;
               (2) contain the time and place of the hearing; and
               (3) include the following text in bold 14-point type or
  larger:
         "THE [MUNICIPALITY NAME] IS HOLDING A HEARING THAT
  WILL DETERMINE WHETHER YOU MAY LOSE THE RIGHT TO
  CONTINUE USING YOUR PROPERTY FOR ITS CURRENT USE.  
  PLEASE READ THIS NOTICE CAREFULLY."
         SECTION 2.  Subchapter A, Chapter 211, Local Government
  Code, is amended by adding Section 211.019 to read as follows:
         Sec. 211.019.  NONCONFORMING LAND USE. (a)  In this section,
  "market value" means the price the sale of the property would bring
  in an arms-length transaction when offered for sale by one who
  wishes, but is not obliged, to sell and when bought by one who is
  under no necessity of buying it. 
         (b)  A person using a property in a manner considered to be a
  nonconforming use as a result of the adoption of or change to a
  zoning regulation or boundary may continue to use the property in
  the same manner unless required by a municipality to stop the
  nonconforming use of the property.
         (c)  A requirement imposed by a municipality to stop a
  nonconforming use of a property under this section includes:
               (1)  an official action by the governing body of the
  municipality or a board, commission,  department, or official of
  the municipality; or
               (2)  a determination by the municipality that a
  nonconforming use has an adverse effect or other necessary
  determination that a municipality must make before imposing a
  requirement to stop a nonconforming use under applicable law.
         (d)  If a municipality requires a property owner or lessee to
  stop the nonconforming use of a property as described by Subsection
  (b), the owner or lessee of the property is entitled to:
               (1)  payment from the municipality in an amount equal
  to the sum of:
                     (A)  the costs incurred by the owner or lessee of
  the property that are directly attributable to ceasing the
  nonconforming use of the property, including expenses related to
  demolition, relocation, termination of a lease, or discharge of a
  mortgage; and
                     (B)  an amount equal to the greater of, as
  determined by the municipality, the diminution in the market value
  of the property, computed by subtracting the current market value
  of the property after the imposition of a requirement to stop the
  nonconforming use of the property from:
                           (i)  the market value of the property on the
  day before the date the notice was given under Section
  211.006(a-1); or
                           (ii)  the market value of the property on the
  day before a person submits an application or request to the
  municipality to require or the municipality otherwise requires a
  person to stop using the property in a manner that is a
  nonconforming use as described by Subsection (b); or
               (2)  continued nonconforming use of the property until
  the owner or lessee recovers the amount determined under
  Subdivision (1) through the owner or lessee's continued business
  activities according to generally accepted accounting principles.
         (e)  Not later than the 10th day after the date a
  municipality imposes a requirement to stop a nonconforming use of a
  property under this section, the municipality shall give written
  notice to each owner or lessee of the property, as indicated by the
  most recently approved municipal tax roll, who is required to stop a
  nonconforming use of the property of the requirement and of the
  remedies which an owner or lessee of the property is entitled to
  under Subsection (d).
         (f)  The owner or lessee of a property that is subject to a
  requirement to stop a nonconforming use of the property under this
  section shall not later than the 30th day after the date the
  municipality gives the notice required by Subsection (e) respond in
  writing to the municipality indicating the remedy under Subsection
  (d) chosen by the owner or lessee. In the event of a conflict in the
  choice of remedy by the owner and a lessee of the property, the
  owner's choice of remedy shall control. In the event of a conflict
  in the choice of remedy by the owners of a property that has more
  than one owner, the choice of remedy made by an owner or owners
  holding the greater ownership interest in the property shall
  control. If the municipality does not receive timely notice from an
  owner or lessee, the municipality may choose the remedy provided
  under this section.
         (g)  A person receiving a payment under Subsection (d)(1)
  must stop the nonconforming use not later than the 10th day after
  the date of the payment. 
         (h)  A person who continues the nonconforming use under
  Subsection (d)(2) must stop the nonconforming use immediately on
  the recovery of the amount determined under Subsection (d)(1). 
         (i)  If more than one person seeks a payment from the
  municipality under Subsection (d)(1), the municipality shall
  apportion the payment between each person based on the market value
  of the person's interest in the property.  A person may appeal the
  apportionment in the manner provided by this section. 
         (j)  A person entitled to a remedy under this section may
  appeal a determination under Subsection (d)(1) or (2) to the board
  of adjustment of the municipality not later than the 20th day after
  the date the determination is made. At the hearing before the board
  of adjustment, the municipality has the burden of proof to
  establish the correctness of its determination.
         (k)  A municipality or a person aggrieved by the final
  decision of the board of adjustment under Subsection (j) may seek
  judicial review of the decision by filing suit as provided by
  Section 211.011 not later than the 20th day after the date the final
  decision is made.  The court shall review the decision in the manner
  provided by Section 211.011 except that:
               (1) the municipality has the burden of proving by clear
  and convincing evidence that its determination was correct; and
               (2) the court: 
                     (A) in reviewing the municipality's decision may
  not use a deferential standard in the municipality's favor; and 
                     (B) is not limited to determining whether a
  decision of the board meets the requirements of this chapter or
  other applicable law. 
         (l)  A person seeking to continue a nonconforming use under
  Subsection (d)(2) who appeals the decision of the municipality or
  board of adjustment may continue to use the property in the same
  manner pending the appeal unless an official of the body that made
  the decision shows cause to stay the nonconforming use by
  certifying in writing to the board of adjustment or court with
  jurisdiction over the appeal facts supporting the official's
  opinion that continued nonconforming use of the property would
  cause imminent peril to life or property. On a showing of cause the
  board of adjustment or court with jurisdiction over the appeal may,
  after notice to the official, grant a restraining order to stay
  continued nonconforming use of the property. 
         (m)  If the board of adjustment or court with jurisdiction
  over an appeal determines that an owner or lessee is entitled to:
               (1)  a payment under this section in an amount
  different than the amount determined by the municipality under
  Subsection (d)(1), the board of adjustment or court shall order, as
  applicable:
                     (A)  additional payment to the owner or lessee; or
                     (B)  the owner or lessee to reimburse the
  municipality; or
               (2)  an amount of time to operate the nonconforming use
  that is different than the amount of time initially received under
  Subsection (d)(2), the board of adjustment or court shall order the
  municipality to allow an owner or lessee to continue the
  nonconforming use for additional or less time.
         (n)  An owner or lessee may waive the rights and remedies
  provided by this section by providing to the municipality a written
  waiver. 
         (o)  This section does not apply to a nonconforming use that
  has been intentionally abandoned for at least six months. 
         (p)  A municipality's immunity from suit and governmental
  immunity from liability are waived for purposes of an action
  brought by a property owner or lessee to enforce the rights and
  remedies under this section. 
         SECTION 3.  (a)  Section 211.006, Local Government Code, as
  amended by this Act, and Section 211.019, Local Government Code, as
  added by this Act, apply to a property for which:
               (1)  on or after June 1, 2023, the governing body or
  zoning commission of a municipality considers a proposed adoption
  of or change to a zoning regulation or boundary under which a
  current conforming use of the property is a nonconforming use; or
               (2)  on or after February 1, 2023, the governing body or
  a board, commission, department, or official of a municipality
  requires, by ordinance or otherwise, or receives an application or
  request to require a person to stop nonconforming use of the
  property due to its nonconformity with the property's current
  zoning.
         (b)  Subsection (a)(2) of this section applies to a property
  regardless of whether the governing body or a board, commission,
  department, or official of the municipality is required by
  applicable law to make a determination that the nonconforming use
  has an adverse effect or other determination before the
  nonconforming use is required to stop.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 929 passed the Senate on
  April 20, 2023, by the following vote:  Yeas 30, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 929 passed the House on
  May 4, 2023, by the following vote:  Yeas 136, Nays 8,
  one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor