BILL ANALYSIS Senate Research Center S.B. 1600 84R15525 T By: Kolkhorst State Affairs 4/16/2015 As Filed BILL ANALYSIS Senate Research Center S.B. 1600 84R15525 T By: Kolkhorst State Affairs 4/16/2015 As Filed Senate Research Center S.B. 1600 84R15525 T By: Kolkhorst State Affairs 4/16/2015 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In Texas, a state agency is regularly required to defend itself against an action brought by a plaintiff. It is also common for an action against a state agency to include a claim under the Uniform Declaratory Judgments Act (UDJA). The UDJA allows a court to award reasonable and necessary attorneys fees as are equitable and just. Often in such cases, a state agency will prevail, but may still be required to pay attorneys fees to the losing plaintiff. The awarding of attorneys fees is left to the discretion of the court, and there is no requirement that a party must prevail in order to be awarded attorneys fees. Currently, there is no cap on the total amount of attorneys fees that a court may award. S.B. 1600 limits the amount of attorneys fees that may be awarded under the Uniform Declaratory Judgments Act to $250,000. Such a cap would limit a trial courts discretion to award fees, but still leave the court a considerable amount of leeway to grant fees that are reasonable, necessary, equitable, and just. As proposed, S.B. 1600 amends current law relating to a limit on the award of attorney's fees in certain actions brought against a governmental entity. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 37.009, Civil Practice and Remedies Code, as follows: Sec. 37.009. COSTS. (a) Authorizes the court, except as provided by Subsection (b), in a proceeding under this chapter, to award costs and reasonable attorney's fees as are equitable and just. (b) Authorizes the court, in a proceeding under this chapter where declaratory relief is sought against a governmental entity, to award attorney's fees in an amount not to exceed $250,000. (c) Defines "governmental entity" for purposes of this section. SECTION 2. Effective date: upon passage or September 1, 2015. AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In Texas, a state agency is regularly required to defend itself against an action brought by a plaintiff. It is also common for an action against a state agency to include a claim under the Uniform Declaratory Judgments Act (UDJA). The UDJA allows a court to award reasonable and necessary attorneys fees as are equitable and just. Often in such cases, a state agency will prevail, but may still be required to pay attorneys fees to the losing plaintiff. The awarding of attorneys fees is left to the discretion of the court, and there is no requirement that a party must prevail in order to be awarded attorneys fees. Currently, there is no cap on the total amount of attorneys fees that a court may award. S.B. 1600 limits the amount of attorneys fees that may be awarded under the Uniform Declaratory Judgments Act to $250,000. Such a cap would limit a trial courts discretion to award fees, but still leave the court a considerable amount of leeway to grant fees that are reasonable, necessary, equitable, and just. As proposed, S.B. 1600 amends current law relating to a limit on the award of attorney's fees in certain actions brought against a governmental entity. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 37.009, Civil Practice and Remedies Code, as follows: Sec. 37.009. COSTS. (a) Authorizes the court, except as provided by Subsection (b), in a proceeding under this chapter, to award costs and reasonable attorney's fees as are equitable and just. (b) Authorizes the court, in a proceeding under this chapter where declaratory relief is sought against a governmental entity, to award attorney's fees in an amount not to exceed $250,000. (c) Defines "governmental entity" for purposes of this section. SECTION 2. Effective date: upon passage or September 1, 2015.