Texas House Bill HB32

Texas 2021 - 87th 2nd C.S.

Caption

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

Impact

The implications of HB32 extend into the realm of state law by allowing business owners to sue governmental entities for losses they experience due to such actions. This shifts some of the financial burden from affected businesses onto the government, potentially leading to increased accountability for governmental decisions that impact economic activity. Furthermore, the bill includes provisions that waive governmental immunity for claims brought forth under this act, thereby opening the pathway for legal recourse against state actions that may harm business interests.

Summary

House Bill 32 addresses the issue of compensation for damages incurred by businesses as a result of governmental actions that lead to their closure, whether permanent or temporary. The bill defines 'governmental actions' broadly, including orders and regulations issued by governmental entities during declared disasters. Its main purpose is to ensure that business owners can seek compensation when their operations are hindered or effectively shut down by governmental measures.

Contention

Notable points of contention surrounding HB32 involve the balance between public health and safety regulations and the rights of businesses. Critics may argue that allowing businesses to claim compensation could deter governments from taking necessary actions during emergencies, such as health crises, where closures might be essential for the greater good. Additionally, exemptions exist within the bill that prevent compensation if a court finds that the business was acting unlawfully or without the necessary permits, which could lead to disputes over the qualifications for claiming damages.