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A BILL TO BE ENTITLED
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AN ACT
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relating to compensation for damages caused by governmental actions |
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that close or effectively close businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 10, Government Code, is |
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amended by adding Chapter 2010 to read as follows: |
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CHAPTER 2010. GOVERNMENTAL ACTIONS THAT CLOSE BUSINESSES |
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Sec. 2010.001. DEFINITION. In this chapter: |
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(1) "Governmental action" means an order, ordinance, |
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or other regulation by a governmental entity, including an |
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executive or local order issued under Chapter 418 during a declared |
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state of disaster. |
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(2) "Governmental entity" means the state or a |
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political subdivision of the state. |
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Sec. 2010.002. COMPENSATION FOR GOVERNMENTAL ACTION. (a) |
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Except as provided by Subsection (b), a business owner is entitled |
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to compensation from a governmental entity for losses caused to the |
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owner's business by a governmental action taken by the governmental |
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entity that: |
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(1) closes a business permanently or temporarily; or |
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(2) effectively closes a business by: |
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(A) limiting the business's operations to the |
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extent that the business owner cannot effectively maintain the |
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business; or |
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(B) ordering customers not to patronize the |
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business. |
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(b) A business owner is not entitled to compensation under |
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Subsection (a) if the governmental entity can demonstrate that the |
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primary reason for the governmental action was: |
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(1) a judicial finding that the business: |
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(A) was a nuisance under Chapter 125, Civil |
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Practice and Remedies Code, Chapter 341 or 343, Health and Safety |
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Code, or common law; or |
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(B) violated other law; or |
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(2) a finding that the business or owner failed to: |
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(A) acquire or maintain a license required by the |
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governmental entity for the business; |
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(B) file or maintain records required by the |
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secretary of state; or |
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(C) pay taxes. |
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Sec. 2010.003. ACTION AGAINST GOVERNMENTAL ENTITY. (a) A |
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business owner may bring an action against a governmental entity |
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for compensation for damages caused to the business by a |
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governmental action described by Section 2010.002. |
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(b) An action under this chapter may be brought in a |
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district court in any county in which the business is located. |
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Sec. 2010.004. WAIVER OF GOVERNMENTAL IMMUNITY; PERMISSION |
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TO SUE. (a) Sovereign and governmental immunity to suit and from |
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liability is waived and abolished to the extent of liability |
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created by this chapter. |
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(b) This section does not authorize a person to execute a |
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judgment against property of the governmental entity. |
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SECTION 2. The changes in law made by this Act apply only to |
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a governmental action taken on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect September 1, 2021. |