Relating to compensation for damages caused by governmental actions that close or effectively close businesses.
The implications of HB71 could be significant, as it establishes a framework for business owners to seek damages when governmental actions, such as closures mandated for public health or safety reasons, adversely affect their operations. By allowing lawsuits against governmental entities, the bill challenges the existing immune protections often enjoyed by these entities, potentially resulting in increased financial liability for the state. Businesses that might have previously absorbed losses resulting from governmental decisions may now have recourse through legal channels, fundamentally altering the economic landscape in which Texas operates.
House Bill 71 addresses compensation for businesses affected by governmental actions that result in either the closing of these businesses or their effective closure. This bill specifically outlines the circumstances under which a business owner may claim compensation from a governmental entity for their losses. It emphasizes the definition of 'governmental actions' as including orders or regulations issued by governmental bodies during declared states of disaster, thereby broadening the scope of accountability for governmental entities in Texas.
One notable area of contention surrounding HB71 relates to the balance between public safety and business interests. Critics may argue that while the bill seeks to compensate businesses, it could lead to bureaucratic challenges where the government's ability to act decisively during emergencies may be hindered. Furthermore, the potential for increased litigation could strain state resources, complicating how governmental responses to crises are structured. Proponents, however, contend that the bill ensures that businesses are treated fairly and that agencies are held accountable for their decisions affecting livelihoods.
If enacted, HB71 will amend the existing Government Code by adding Chapter 2010, which sets forth provisions related to compensation and actions against governmental entities. This addition delineates specific instances in which businesses may be entitled to compensation, including mandatory closures or restrictions imposed by the government. The bill introduces a process for affected businesses to bring actions against state entities, effectively restructuring the legal landscape surrounding business rights and governmental accountability in Texas.