HBA-LJP S.B. 1398 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1398
By: Fraser
Land & Resource Management
5/1/2001
Engrossed



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.
Senate Bill 1398 prohibits the governing body of a municipality from
changing the zoning classification of a property that results in a
diminution of more than 25 percent of the property's value and provides for
proceedings related to such a diminution. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1398 amends the Local Government Code to prohibit the governing
body of a municipality from changing the zoning classification of a
property that results in a diminution of more than 25 percent of the
property's value unless: 

_the owner of the property waives any right to objection or fails to file a
written objection before the 90th day after the date the governing body
notifies the property owner of the proposed change; or 

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

The bill amends the Property Code to set forth that a proceeding filed
under provisions related to eminent domain 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 requirements of a
proceeding filed under eminent domain provisions.  The bill also provides
that in such proceedings, 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 of the property. 

The bill also includes the zoning reclassification of a property in
provisions related to the disclosure of required information at the time an
entity with the authority of eminent domain offers to purchase real
property, condemnation petitions, and the possession of condemned property
pending the results of further litigation after a condemnation proceeding. 

EFFECTIVE DATE

September 1, 2001.