Bill Text: TX HB71 | 2021 | 87th Legislature 1st Special Session | Introduced
Bill Title: Relating to compensation for damages caused by governmental actions that close or effectively close businesses.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-07-07 - Filed [HB71 Detail]
Download: Texas-2021-HB71-Introduced.html
| 87S10208 DRS-D | ||
| By: Schofield | H.B. No. 71 | |
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| relating to compensation for damages caused by governmental actions | ||
| that close or effectively close businesses. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle A, Title 10, Government Code, is | ||
| amended by adding Chapter 2010 to read as follows: | ||
| CHAPTER 2010. GOVERNMENTAL ACTIONS THAT CLOSE BUSINESSES | ||
| Sec. 2010.001. DEFINITION. In this chapter: | ||
| (1) "Governmental action" means an order, ordinance, | ||
| or other regulation by a governmental entity, including an | ||
| executive or local order issued under Chapter 418 during a declared | ||
| state of disaster. | ||
| (2) "Governmental entity" means the state or a | ||
| political subdivision of the state. | ||
| Sec. 2010.002. COMPENSATION FOR GOVERNMENTAL ACTION. (a) | ||
| Except as provided by Subsection (b), a business owner is entitled | ||
| to compensation from a governmental entity for losses caused to the | ||
| owner's business by a governmental action taken by the governmental | ||
| entity that: | ||
| (1) closes a business permanently or temporarily; or | ||
| (2) effectively closes a business by: | ||
| (A) limiting the business's operations to the | ||
| extent that the business owner cannot effectively maintain the | ||
| business; or | ||
| (B) ordering customers not to patronize the | ||
| business. | ||
| (b) A business owner is not entitled to compensation under | ||
| Subsection (a) if the governmental entity can demonstrate that the | ||
| primary reason for the governmental action was: | ||
| (1) a judicial finding that the business: | ||
| (A) was a nuisance under Chapter 125, Civil | ||
| Practice and Remedies Code, Chapter 341 or 343, Health and Safety | ||
| Code, or common law; or | ||
| (B) violated other law; or | ||
| (2) a finding that the business or owner failed to: | ||
| (A) acquire or maintain a license required by the | ||
| governmental entity for the business; | ||
| (B) file or maintain records required by the | ||
| secretary of state; or | ||
| (C) pay taxes. | ||
| Sec. 2010.003. ACTION AGAINST GOVERNMENTAL ENTITY. (a) A | ||
| business owner may bring an action against a governmental entity | ||
| for compensation for damages caused to the business by a | ||
| governmental action described by Section 2010.002. | ||
| (b) An action under this chapter may be brought in a | ||
| district court in any county in which the business is located. | ||
| Sec. 2010.004. WAIVER OF GOVERNMENTAL IMMUNITY; PERMISSION | ||
| TO SUE. (a) Sovereign and governmental immunity to suit and from | ||
| liability is waived and abolished to the extent of liability | ||
| created by this chapter. | ||
| (b) This section does not authorize a person to execute a | ||
| judgment against property of the governmental entity. | ||
| SECTION 2. The changes in law made by this Act apply only to | ||
| a governmental action taken on or after the effective date of this | ||
| Act. | ||
| SECTION 3. This Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
