| 1 | 1 | | 85R2608 SCL-D |
|---|
| 2 | 2 | | By: Meyer H.B. No. 2516 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to recovery of damages, attorney's fees, and costs related |
|---|
| 8 | 8 | | to frivolous regulatory actions by state agencies. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. The heading to Chapter 105, Civil Practice and |
|---|
| 11 | 11 | | Remedies Code, is amended to read as follows: |
|---|
| 12 | 12 | | CHAPTER 105. FRIVOLOUS CLAIM OR REGULATORY ACTION BY STATE AGENCY |
|---|
| 13 | 13 | | SECTION 2. The heading to Section 105.002, Civil Practice |
|---|
| 14 | 14 | | and Remedies Code, is amended to read as follows: |
|---|
| 15 | 15 | | Sec. 105.002. RECOVERY OF FEES, EXPENSES, AND ATTORNEY'S |
|---|
| 16 | 16 | | FEES FOR FRIVOLOUS CLAIM. |
|---|
| 17 | 17 | | SECTION 3. Chapter 105, Civil Practice and Remedies Code, |
|---|
| 18 | 18 | | is amended by adding Sections 105.005 and 105.006 to read as |
|---|
| 19 | 19 | | follows: |
|---|
| 20 | 20 | | Sec. 105.005. CAUSE OF ACTION FOR FRIVOLOUS REGULATORY |
|---|
| 21 | 21 | | ACTION. (a) A claimant may bring an action against a state agency |
|---|
| 22 | 22 | | if the state agency takes a regulatory action against the claimant |
|---|
| 23 | 23 | | that is frivolous, unreasonable, or without foundation. |
|---|
| 24 | 24 | | (b) In an action brought under this section, a claimant may |
|---|
| 25 | 25 | | recover, in addition to all other costs allowed by law or rule, the |
|---|
| 26 | 26 | | damages caused by the state agency's frivolous regulatory action, |
|---|
| 27 | 27 | | reasonable attorney's fees, and court costs. |
|---|
| 28 | 28 | | Sec. 105.006. RECOVERY OF ATTORNEY'S FEES AND COSTS IN |
|---|
| 29 | 29 | | FRIVOLOUS REGULATORY ACTION. A person may recover, in addition to |
|---|
| 30 | 30 | | all other costs allowed by law or rule, reasonable attorney's fees |
|---|
| 31 | 31 | | and costs incurred in defending against a frivolous regulatory |
|---|
| 32 | 32 | | action during an administrative proceeding and judicial review of |
|---|
| 33 | 33 | | that proceeding if: |
|---|
| 34 | 34 | | (1) the person prevails in the judicial review of an |
|---|
| 35 | 35 | | administrative proceeding; and |
|---|
| 36 | 36 | | (2) the state agency is unable to demonstrate that the |
|---|
| 37 | 37 | | agency has good cause for the regulatory action. |
|---|
| 38 | 38 | | SECTION 4. The change in law made by this Act applies only |
|---|
| 39 | 39 | | to a regulatory action taken on or after the effective date of this |
|---|
| 40 | 40 | | Act. A regulatory action taken before the effective date of this |
|---|
| 41 | 41 | | Act is governed by the law applicable to the regulatory action |
|---|
| 42 | 42 | | immediately before the effective date of this Act, and that law is |
|---|
| 43 | 43 | | continued in effect for that purpose. |
|---|
| 44 | 44 | | SECTION 5. This Act takes effect September 1, 2017. |
|---|