Texas House Bill HB2361

Texas 2019 - 86th Regular

Caption

Relating to the prosecution of limited liability companies and other business entities under the Penal Code.

Impact

If passed, HB2361 would amend various sections of the Penal Code to establish that corporations, associations, limited liability companies, and other business entities can be charged with criminal offenses based on the actions of their agents during their official capacity. Importantly, the bill sets guidelines on the extent of criminal liability, indicating that such entities could face fines that may double the profits gained from committing a crime. This change is intended to discourage wrongdoing by businesses and hold them to a higher standard of conduct.

Summary

House Bill 2361 addresses the prosecution of limited liability companies and other business entities under the Texas Penal Code. The bill aims to define and clarify the criminal responsibilities of these business entities, allowing for a more significant legal framework regarding their accountability for offenses committed in their name. By including provisions that hold companies accountable for the actions of their agents, the bill seeks to ensure that corporations and other entities cannot evade responsibility for criminal conduct.

Contention

While proponents argue that the bill strengthens corporate accountability and ensures justice for offenses committed in a corporate context, there are concerns about potential burdens on businesses. Critics may worry about the implications of stringent penalties, especially regarding smaller entities that might struggle to comply with enhanced legal scrutiny and obligations. The balance between encouraging corporate responsibility and protecting business interests is likely to be a focal point of debate during discussions surrounding the bill.