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.