1 | 1 | | 89R10393 DRS-D |
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2 | 2 | | By: Parker S.B. No. 2489 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to property owner claims for compensation from certain |
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10 | 10 | | municipalities that fail to enforce certain laws. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Subchapter Z, Chapter 229, Local Government |
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13 | 13 | | Code, is amended by adding Section 229.902 to read as follows: |
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14 | 14 | | Sec. 229.902. COMPENSATION FOR FAILURE OF MUNICIPALITY TO |
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15 | 15 | | ENFORCE CERTAIN LAWS OR ABATE PUBLIC NUISANCE. (a) In this section: |
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16 | 16 | | (1) "Fair market value" means the price real property |
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17 | 17 | | will bring when offered for sale by one who desires to sell, but is |
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18 | 18 | | not obliged to sell, and is bought by one who desires to buy, but is |
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19 | 19 | | under no necessity of buying. |
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20 | 20 | | (2) "Nuisance violation" means a violation of a state |
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21 | 21 | | law or a municipal ordinance or regulation prohibiting public |
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22 | 22 | | camping, obstructing a public thoroughfare, loitering, |
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23 | 23 | | panhandling, public urination or defecation, public consumption of |
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24 | 24 | | an alcoholic beverage, possession or use of a controlled substance, |
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25 | 25 | | or retail theft. |
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26 | 26 | | (3) "Property owner" means a person: |
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27 | 27 | | (A) holding fee simple title in real property; or |
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28 | 28 | | (B) leasing real property for which the person is |
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29 | 29 | | required under the terms of the lease to pay all or part of the |
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30 | 30 | | property taxes on the property or the cost of maintenance or |
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31 | 31 | | insurance for the property. |
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32 | 32 | | (b) This section applies only to a municipality with a |
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33 | 33 | | population of 900,000 or more. |
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34 | 34 | | (c) Notwithstanding any other law and except as provided by |
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35 | 35 | | Subsection (d), a property owner may submit a claim to a |
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36 | 36 | | municipality for compensation from the municipality with respect to |
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37 | 37 | | property located in the municipality if the municipality: |
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38 | 38 | | (1) adopts and follows a policy, pattern, or practice |
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39 | 39 | | of refusing to enforce a state law or a municipal ordinance or |
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40 | 40 | | regulation prohibiting a nuisance violation; or |
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41 | 41 | | (2) maintains a public nuisance. |
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42 | 42 | | (d) This section does not apply to: |
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43 | 43 | | (1) a decision by a municipality to exercise |
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44 | 44 | | prosecutorial discretion not to prosecute a nuisance violation if: |
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45 | 45 | | (A) the exercise of discretion is based on the |
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46 | 46 | | circumstances of an individual case; and |
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47 | 47 | | (B) the municipality publishes a public notice of |
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48 | 48 | | the justification for the exercise of prosecutorial discretion |
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49 | 49 | | described by Paragraph (A); or |
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50 | 50 | | (2) a municipal action required by state or federal |
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51 | 51 | | law. |
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52 | 52 | | (e) Except as provided by Subsection (f), a property owner |
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53 | 53 | | shall elect the amount of compensation paid to the property owner |
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54 | 54 | | under this section as determined by: |
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55 | 55 | | (1) the reasonably necessary documented expenses |
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56 | 56 | | incurred by the property owner to mitigate the effect of the |
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57 | 57 | | nuisance violation on the property that is the subject of the claim; |
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58 | 58 | | or |
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59 | 59 | | (2) the diminution in the fair market value of the |
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60 | 60 | | property owner's real property that is the subject of the claim. |
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61 | 61 | | (f) The amount of compensation paid to a property owner |
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62 | 62 | | under this section may not exceed the amount of property taxes |
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63 | 63 | | assessed by the municipality on the property that is the subject of |
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64 | 64 | | the claim and paid by the property owner for the tax year in which |
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65 | 65 | | the property owner submits the claim for compensation. |
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66 | 66 | | (g) Not later than the 30th day after the date a |
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67 | 67 | | municipality receives a written claim for compensation under this |
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68 | 68 | | section, the municipality shall accept or reject the claim and |
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69 | 69 | | notify the property owner. |
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70 | 70 | | (h) If a municipality accepts a claim for compensation under |
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71 | 71 | | this section, the municipality shall pay the claim in the amount |
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72 | 72 | | determined under Subsection (e). |
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73 | 73 | | (i) If a municipality rejects a claim for compensation under |
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74 | 74 | | this section or does not respond to a claim within the time period |
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75 | 75 | | prescribed by Subsection (g), the property owner who submitted the |
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76 | 76 | | claim may file an action in a court of competent jurisdiction in the |
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77 | 77 | | county in which the property that is the subject of the claim is |
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78 | 78 | | located. |
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79 | 79 | | (j) In an action filed under Subsection (i): |
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80 | 80 | | (1) the court shall determine whether: |
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81 | 81 | | (A) the property owner is entitled to the |
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82 | 82 | | compensation claimed; and |
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83 | 83 | | (B) the amount of compensation claimed is |
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84 | 84 | | reasonable; and |
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85 | 85 | | (2) the municipality has the burden of establishing |
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86 | 86 | | that: |
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87 | 87 | | (A) the municipal response to the nuisance |
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88 | 88 | | violation that is the basis for the claim for compensation is |
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89 | 89 | | lawful; or |
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90 | 90 | | (B) the amount of compensation claimed is |
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91 | 91 | | unreasonable. |
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92 | 92 | | (k) In an action filed under Subsection (i): |
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93 | 93 | | (1) a municipality may not recover attorney's fees or |
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94 | 94 | | court costs; and |
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95 | 95 | | (2) a successful claimant may recover reasonable |
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96 | 96 | | attorney's fees and court costs from the municipality. |
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97 | 97 | | (l) A property owner may not submit more than one claim for |
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98 | 98 | | compensation in the same tax year under this section relating to a |
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99 | 99 | | property affected by a nuisance violation. A property owner may |
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100 | 100 | | submit another claim pertaining to that property in the following |
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101 | 101 | | tax year if: |
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102 | 102 | | (1) the municipality has not: |
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103 | 103 | | (A) stopped the policy, pattern, or practice or |
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104 | 104 | | abated the public nuisance that is the basis for the claim; or |
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105 | 105 | | (B) entered into an agreement with the property |
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106 | 106 | | owner to settle the claim; or |
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107 | 107 | | (2) the property owner submitted a claim for |
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108 | 108 | | compensation under this section in the preceding tax year in an |
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109 | 109 | | amount that exceeded the amount described by Subsection (f) for |
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110 | 110 | | that tax year. |
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111 | 111 | | (m) A property owner is not required to exhaust any other |
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112 | 112 | | remedies that may be available under other law before submitting a |
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113 | 113 | | claim for compensation under this section. |
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114 | 114 | | (n) A claim for compensation under this section is not |
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115 | 115 | | exclusive and does not preclude a property owner from seeking any |
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116 | 116 | | other remedy that may be available under other law. |
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117 | 117 | | SECTION 2. Section 229.902, Local Government Code, as added |
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118 | 118 | | by this Act, applies only to a claim for compensation from a |
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119 | 119 | | municipality based on expenses incurred by a property owner on or |
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120 | 120 | | after the effective date of this Act. |
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121 | 121 | | SECTION 3. This Act takes effect September 1, 2025. |
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