Bill Text: TX HB448 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to compensation for damages caused by governmental actions that close or effectively close businesses.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-02-23 - Referred to State Affairs [HB448 Detail]
Download: Texas-2023-HB448-Introduced.html
88R2175 DRS-D | ||
By: Schofield | H.B. No. 448 |
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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. DEFINITIONS. 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 September 1, 2023. |