West Bill Cuts Payouts For Polluting Heavy Industry Under Zoning Changes

The text as introduced · 989 words

90R2138 DRS-D

By: West
S.B. No. 206

A BILL TO BE ENTITLED

AN ACT

relating to payments made by municipalities in connection with

nonconforming land uses after 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 211.019, Local Government Code, is

amended by amending Subsections (d), (f), (g), (i), (j), and (m) and

adding Subsection (d-1) to read as follows:

(d) Except as provided by Subsection (d-1), [ If a

municipality requires ] a property owner or lessee who is required

by a municipality 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.

(d-1) A property owner or lessee of a property to which this

subsection applies who is required by a municipality to stop the

nonconforming use of the property as described by Subsection (b) is

only entitled to a payment from the municipality in an amount equal

to the market value of the property as determined by the

municipality on the day before the municipality requires the person

to stop using the property in a manner that is a nonconforming use.

This subsection applies only to a property used by a property owner

or lessee:

(1) for a heavy industrial use; and

(2) in a manner that:

(A) is a nonconforming use as a result of the

adoption of or change to a municipal zoning regulation;

(B) generates pollution, as determined by the

municipality; and

(C) either:

(i) creates a health or safety hazard to

nearby residents, as determined by the municipality; or

(ii) has resulted in the property owner or

lessee being cited for a violation of a public safety or

environmental law or regulation.

(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 and who is entitled to a remedy under Subsection (d) 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) or

(d-1) must stop the nonconforming use not later than the 10th day

after the date of the payment.

(i) If more than one person seeks a payment from the

municipality under Subsection (d)(1) or (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) or (d-1) [ (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.

(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) or (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.

SECTION 2. 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, 2027.