Texas House Bill HB3241

Texas 2021 - 87th Regular

Caption

Relating to compensation for damages caused by governmental actions that close or effectively close businesses.

Impact

The implementation of HB 3241 could significantly affect the relationship between governmental entities and business owners in Texas. By establishing a clear entitlement to damages for business owners impacted by governmental actions, it could hold the state accountable for decisions that lead to economic hardship on a personal level. This might encourage more thoughtful decision-making from governmental bodies when imposing restrictions or mandates that affect local businesses.

Summary

House Bill 3241 aims to address the compensation issues faced by business owners due to governmental actions that lead to the temporary or permanent closure of their businesses. The bill introduces a framework whereby a business owner is entitled to compensation for losses incurred as a result of government actions, such as regulations or orders issued during a state of disaster. The provisions include a definition of 'governmental action' and outline the conditions under which compensation may be granted.

Contention

While supporters of HB 3241 argue that it provides much-needed protections for businesses against overreach by governmental entities, some may raise concerns about its implications on governmental immunity. There is potential for debate regarding how this bill could lead to increased litigation against the state, possibly resulting in a chilling effect on necessary government actions during emergencies, as officials may hesitate to impose regulations that could subject them to lawsuits.