| 1 | 1 | | 87S10208 DRS-D |
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| 2 | 2 | | By: Schofield H.B. No. 71 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to compensation for damages caused by governmental actions |
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| 8 | 8 | | that close or effectively close businesses. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle A, Title 10, Government Code, is |
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| 11 | 11 | | amended by adding Chapter 2010 to read as follows: |
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| 12 | 12 | | CHAPTER 2010. GOVERNMENTAL ACTIONS THAT CLOSE BUSINESSES |
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| 13 | 13 | | Sec. 2010.001. DEFINITION. In this chapter: |
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| 14 | 14 | | (1) "Governmental action" means an order, ordinance, |
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| 15 | 15 | | or other regulation by a governmental entity, including an |
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| 16 | 16 | | executive or local order issued under Chapter 418 during a declared |
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| 17 | 17 | | state of disaster. |
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| 18 | 18 | | (2) "Governmental entity" means the state or a |
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| 19 | 19 | | political subdivision of the state. |
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| 20 | 20 | | Sec. 2010.002. COMPENSATION FOR GOVERNMENTAL ACTION. (a) |
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| 21 | 21 | | Except as provided by Subsection (b), a business owner is entitled |
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| 22 | 22 | | to compensation from a governmental entity for losses caused to the |
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| 23 | 23 | | owner's business by a governmental action taken by the governmental |
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| 24 | 24 | | entity that: |
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| 25 | 25 | | (1) closes a business permanently or temporarily; or |
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| 26 | 26 | | (2) effectively closes a business by: |
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| 27 | 27 | | (A) limiting the business's operations to the |
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| 28 | 28 | | extent that the business owner cannot effectively maintain the |
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| 29 | 29 | | business; or |
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| 30 | 30 | | (B) ordering customers not to patronize the |
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| 31 | 31 | | business. |
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| 32 | 32 | | (b) A business owner is not entitled to compensation under |
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| 33 | 33 | | Subsection (a) if the governmental entity can demonstrate that the |
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| 34 | 34 | | primary reason for the governmental action was: |
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| 35 | 35 | | (1) a judicial finding that the business: |
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| 36 | 36 | | (A) was a nuisance under Chapter 125, Civil |
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| 37 | 37 | | Practice and Remedies Code, Chapter 341 or 343, Health and Safety |
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| 38 | 38 | | Code, or common law; or |
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| 39 | 39 | | (B) violated other law; or |
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| 40 | 40 | | (2) a finding that the business or owner failed to: |
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| 41 | 41 | | (A) acquire or maintain a license required by the |
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| 42 | 42 | | governmental entity for the business; |
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| 43 | 43 | | (B) file or maintain records required by the |
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| 44 | 44 | | secretary of state; or |
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| 45 | 45 | | (C) pay taxes. |
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| 46 | 46 | | Sec. 2010.003. ACTION AGAINST GOVERNMENTAL ENTITY. (a) A |
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| 47 | 47 | | business owner may bring an action against a governmental entity |
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| 48 | 48 | | for compensation for damages caused to the business by a |
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| 49 | 49 | | governmental action described by Section 2010.002. |
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| 50 | 50 | | (b) An action under this chapter may be brought in a |
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| 51 | 51 | | district court in any county in which the business is located. |
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| 52 | 52 | | Sec. 2010.004. WAIVER OF GOVERNMENTAL IMMUNITY; PERMISSION |
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| 53 | 53 | | TO SUE. (a) Sovereign and governmental immunity to suit and from |
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| 54 | 54 | | liability is waived and abolished to the extent of liability |
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| 55 | 55 | | created by this chapter. |
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| 56 | 56 | | (b) This section does not authorize a person to execute a |
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| 57 | 57 | | judgment against property of the governmental entity. |
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| 58 | 58 | | SECTION 2. The changes in law made by this Act apply only to |
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| 59 | 59 | | a governmental action taken on or after the effective date of this |
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| 60 | 60 | | Act. |
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| 61 | 61 | | SECTION 3. This Act takes effect on the 91st day after the |
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| 62 | 62 | | last day of the legislative session. |
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