Texas 2023 - 88th Regular

Texas Senate Bill SB929 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 929
2	2
3	3
4	4	AN ACT
5	5	relating to the notice and compensation a municipality must provide
6	6	before revoking the right to use property for a use that was allowed
7	7	before the adoption of or change to a zoning regulation or boundary.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 211.006, Local Government Code, is
10	10	amended by adding Subsection (a-1) to read as follows:
11	11	(a-1) In addition to any notice required by this section or
12	12	Section 211.007, the governing body of a municipality or a zoning
13	13	commission, as applicable, shall provide written notice of each
14	14	public hearing regarding any proposed adoption of or change to a
15	15	zoning regulation or boundary under which a current conforming use
16	16	of a property is a nonconforming use if the regulation or boundary
17	17	is adopted or changed. The notice must:
18	18	(1) be mailed by United States mail to each owner of
19	19	real or business personal property where the proposed nonconforming
20	20	use is located as indicated by the most recently approved municipal
21	21	tax roll and each occupant of the property not later than the 10th
22	22	day before the hearing date;
23	23	(2) contain the time and place of the hearing; and
24	24	(3) include the following text in bold 14-point type or
25	25	larger:
26	26	"THE [MUNICIPALITY NAME] IS HOLDING A HEARING THAT
27	27	WILL DETERMINE WHETHER YOU MAY LOSE THE RIGHT TO
28	28	CONTINUE USING YOUR PROPERTY FOR ITS CURRENT USE.
29	29	PLEASE READ THIS NOTICE CAREFULLY."
30	30	SECTION 2. Subchapter A, Chapter 211, Local Government
31	31	Code, is amended by adding Section 211.019 to read as follows:
32	32	Sec. 211.019. NONCONFORMING LAND USE. (a) In this section,
33	33	"market value" means the price the sale of the property would bring
34	34	in an arms-length transaction when offered for sale by one who
35	35	wishes, but is not obliged, to sell and when bought by one who is
36	36	under no necessity of buying it.
37	37	(b) A person using a property in a manner considered to be a
38	38	nonconforming use as a result of the adoption of or change to a
39	39	zoning regulation or boundary may continue to use the property in
40	40	the same manner unless required by a municipality to stop the
41	41	nonconforming use of the property.
42	42	(c) A requirement imposed by a municipality to stop a
43	43	nonconforming use of a property under this section includes:
44	44	(1) an official action by the governing body of the
45	45	municipality or a board, commission, department, or official of
46	46	the municipality; or
47	47	(2) a determination by the municipality that a
48	48	nonconforming use has an adverse effect or other necessary
49	49	determination that a municipality must make before imposing a
50	50	requirement to stop a nonconforming use under applicable law.
51	51	(d) If a municipality requires a property owner or lessee to
52	52	stop the nonconforming use of a property as described by Subsection
53	53	(b), the owner or lessee of the property is entitled to:
54	54	(1) payment from the municipality in an amount equal
55	55	to the sum of:
56	56	(A) the costs incurred by the owner or lessee of
57	57	the property that are directly attributable to ceasing the
58	58	nonconforming use of the property, including expenses related to
59	59	demolition, relocation, termination of a lease, or discharge of a
60	60	mortgage; and
61	61	(B) an amount equal to the greater of, as
62	62	determined by the municipality, the diminution in the market value
63	63	of the property, computed by subtracting the current market value
64	64	of the property after the imposition of a requirement to stop the
65	65	nonconforming use of the property from:
66	66	(i) the market value of the property on the
67	67	day before the date the notice was given under Section
68	68	211.006(a-1); or
69	69	(ii) the market value of the property on the
70	70	day before a person submits an application or request to the
71	71	municipality to require or the municipality otherwise requires a
72	72	person to stop using the property in a manner that is a
73	73	nonconforming use as described by Subsection (b); or
74	74	(2) continued nonconforming use of the property until
75	75	the owner or lessee recovers the amount determined under
76	76	Subdivision (1) through the owner or lessee's continued business
77	77	activities according to generally accepted accounting principles.
78	78	(e) Not later than the 10th day after the date a
79	79	municipality imposes a requirement to stop a nonconforming use of a
80	80	property under this section, the municipality shall give written
81	81	notice to each owner or lessee of the property, as indicated by the
82	82	most recently approved municipal tax roll, who is required to stop a
83	83	nonconforming use of the property of the requirement and of the
84	84	remedies which an owner or lessee of the property is entitled to
85	85	under Subsection (d).
86	86	(f) The owner or lessee of a property that is subject to a
87	87	requirement to stop a nonconforming use of the property under this
88	88	section shall not later than the 30th day after the date the
89	89	municipality gives the notice required by Subsection (e) respond in
90	90	writing to the municipality indicating the remedy under Subsection
91	91	(d) chosen by the owner or lessee. In the event of a conflict in the
92	92	choice of remedy by the owner and a lessee of the property, the
93	93	owner's choice of remedy shall control. In the event of a conflict
94	94	in the choice of remedy by the owners of a property that has more
95	95	than one owner, the choice of remedy made by an owner or owners
96	96	holding the greater ownership interest in the property shall
97	97	control. If the municipality does not receive timely notice from an
98	98	owner or lessee, the municipality may choose the remedy provided
99	99	under this section.
100	100	(g) A person receiving a payment under Subsection (d)(1)
101	101	must stop the nonconforming use not later than the 10th day after
102	102	the date of the payment.
103	103	(h) A person who continues the nonconforming use under
104	104	Subsection (d)(2) must stop the nonconforming use immediately on
105	105	the recovery of the amount determined under Subsection (d)(1).
106	106	(i) If more than one person seeks a payment from the
107	107	municipality under Subsection (d)(1), the municipality shall
108	108	apportion the payment between each person based on the market value
109	109	of the person's interest in the property. A person may appeal the
110	110	apportionment in the manner provided by this section.
111	111	(j) A person entitled to a remedy under this section may
112	112	appeal a determination under Subsection (d)(1) or (2) to the board
113	113	of adjustment of the municipality not later than the 20th day after
114	114	the date the determination is made. At the hearing before the board
115	115	of adjustment, the municipality has the burden of proof to
116	116	establish the correctness of its determination.
117	117	(k) A municipality or a person aggrieved by the final
118	118	decision of the board of adjustment under Subsection (j) may seek
119	119	judicial review of the decision by filing suit as provided by
120	120	Section 211.011 not later than the 20th day after the date the final
121	121	decision is made. The court shall review the decision in the manner
122	122	provided by Section 211.011 except that:
123	123	(1) the municipality has the burden of proving by clear
124	124	and convincing evidence that its determination was correct; and
125	125	(2) the court:
126	126	(A) in reviewing the municipality's decision may
127	127	not use a deferential standard in the municipality's favor; and
128	128	(B) is not limited to determining whether a
129	129	decision of the board meets the requirements of this chapter or
130	130	other applicable law.
131	131	(l) A person seeking to continue a nonconforming use under
132	132	Subsection (d)(2) who appeals the decision of the municipality or
133	133	board of adjustment may continue to use the property in the same
134	134	manner pending the appeal unless an official of the body that made
135	135	the decision shows cause to stay the nonconforming use by
136	136	certifying in writing to the board of adjustment or court with
137	137	jurisdiction over the appeal facts supporting the official's
138	138	opinion that continued nonconforming use of the property would
139	139	cause imminent peril to life or property. On a showing of cause the
140	140	board of adjustment or court with jurisdiction over the appeal may,
141	141	after notice to the official, grant a restraining order to stay
142	142	continued nonconforming use of the property.
143	143	(m) If the board of adjustment or court with jurisdiction
144	144	over an appeal determines that an owner or lessee is entitled to:
145	145	(1) a payment under this section in an amount
146	146	different than the amount determined by the municipality under
147	147	Subsection (d)(1), the board of adjustment or court shall order, as
148	148	applicable:
149	149	(A) additional payment to the owner or lessee; or
150	150	(B) the owner or lessee to reimburse the
151	151	municipality; or
152	152	(2) an amount of time to operate the nonconforming use
153	153	that is different than the amount of time initially received under
154	154	Subsection (d)(2), the board of adjustment or court shall order the
155	155	municipality to allow an owner or lessee to continue the
156	156	nonconforming use for additional or less time.
157	157	(n) An owner or lessee may waive the rights and remedies
158	158	provided by this section by providing to the municipality a written
159	159	waiver.
160	160	(o) This section does not apply to a nonconforming use that
161	161	has been intentionally abandoned for at least six months.
162	162	(p) A municipality's immunity from suit and governmental
163	163	immunity from liability are waived for purposes of an action
164	164	brought by a property owner or lessee to enforce the rights and
165	165	remedies under this section.
166	166	SECTION 3. (a) Section 211.006, Local Government Code, as
167	167	amended by this Act, and Section 211.019, Local Government Code, as
168	168	added by this Act, apply to a property for which:
169	169	(1) on or after June 1, 2023, the governing body or
170	170	zoning commission of a municipality considers a proposed adoption
171	171	of or change to a zoning regulation or boundary under which a
172	172	current conforming use of the property is a nonconforming use; or
173	173	(2) on or after February 1, 2023, the governing body or
174	174	a board, commission, department, or official of a municipality
175	175	requires, by ordinance or otherwise, or receives an application or
176	176	request to require a person to stop nonconforming use of the
177	177	property due to its nonconformity with the property's current
178	178	zoning.
179	179	(b) Subsection (a)(2) of this section applies to a property
180	180	regardless of whether the governing body or a board, commission,
181	181	department, or official of the municipality is required by
182	182	applicable law to make a determination that the nonconforming use
183	183	has an adverse effect or other determination before the
184	184	nonconforming use is required to stop.
185	185	SECTION 4. This Act takes effect immediately if it receives
186	186	a vote of two-thirds of all the members elected to each house, as
187	187	provided by Section 39, Article III, Texas Constitution. If this
188	188	Act does not receive the vote necessary for immediate effect, this
189	189	Act takes effect September 1, 2023.
190	190	______________________________ ______________________________
191	191	President of the Senate Speaker of the House
192	192	I hereby certify that S.B. No. 929 passed the Senate on
193	193	April 20, 2023, by the following vote: Yeas 30, Nays 1.
194	194	______________________________
195	195	Secretary of the Senate
196	196	I hereby certify that S.B. No. 929 passed the House on
197	197	May 4, 2023, by the following vote: Yeas 136, Nays 8,
198	198	one present not voting.
199	199	______________________________
200	200	Chief Clerk of the House
201	201	Approved:
202	202	______________________________
203	203	Date
204	204	______________________________
205	205	Governor