Amends TCA Title 29.

This bill creates a process whereby private property owners may seek judicial relief when a governmental entity has taken action through regulation that results in the diminution in value of the subject property. <br /> <br /> Under this bill, if a public entity enacts or enforces a new land use regulation that restricts the existing uses of private real property or an interest therein and has the effect of reducing the fair market value of the property by a minimum of 10 percent or $50,000, whichever amount is greater, then the owner of the property must be paid just compensation. This provision will not apply to a land use regulation:<br /> <br /> (1) That restricts or prohibits activities commonly and historically recognized as public nuisances under common law. This bill states that this item (1) must be construed narrowly in favor of a finding of compensation under this bill;<br /> <br /> (2) That restricts or prohibits activities for the protection of public health and safety, such as fire and building codes, health and sanitation regulations, solid or hazardous waste regulations, and pollution control regulations;<br /> <br /> (3) To the extent the land use regulation is required to comply with federal law;<br /> <br /> (4) That restricts or prohibits the use of a property for the purpose of selling pornography or performing nude dancing. This bill states that this item (4) does not affect or alter rights provided by the United States constitution or Tennessee constitution with respect to such activities; or<br /> <br /> (5) That was enacted prior to the date of acquisition of the property by the owner or a family member of the owner who owned the subject property prior to acquisition or inheritance by the owner, whichever occurred first.<br /> <br /> An owner may request just compensation under this bill by making a written request to the public entity enacting or enforcing the land use regulation. Written demand for compensation must be made within three years of the enactment of the land use regulation or the date the owner of the property submits a land use application in which the enacted land use regulation is an approval criteria, whichever is earlier. Within 180 days of receiving a written demand, the public entity must:<br /> <br /> (1) Provide just compensation to the owner;<br /> <br /> (2) Modify, remove, or choose not to apply the land use regulation to allow the owner to use the property for a use permitted at the time the owner acquired the property; or<br /> <br /> (3) Deny that compensation is due under this bill.<br /> <br /> If a public entity denies that compensation is due or continues to enforce a land use regulation 180 days after a written demand for just compensation is received, then the owner has a cause of action against the public entity for compensation in the circuit court for the county in which the real property is located, and the owner is entitled to reasonable attorney fees, expenses, costs, and other disbursements reasonably incurred to collect the just compensation. The failure of an owner of property to file an application for a land use permit with the public entity will not be grounds for dismissal, abatement, or delay of a compensation claim under this provision.<br />