87S10208 DRS-D
By: Schofield H.B. No. 71
A BILL TO BE ENTITLED
AN ACT
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.