By: Hughes, et al. S.B. No. 813
(In the Senate - Filed February 9, 2017; February 27, 2017,
read first time and referred to Committee on State Affairs;
April 3, 2017, reported favorably by the following vote: Yeas 8,
Nays 1; April 3, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to recovery of damages, attorney's fees, and costs related
to frivolous regulatory actions by state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 105, Civil Practice and
Remedies Code, is amended to read as follows:
CHAPTER 105. FRIVOLOUS CLAIM OR REGULATORY ACTION BY STATE AGENCY
SECTION 2. The heading to Section 105.002, Civil Practice
and Remedies Code, is amended to read as follows:
Sec. 105.002. RECOVERY OF FEES, EXPENSES, AND ATTORNEY'S
FEES FOR FRIVOLOUS CLAIM.
SECTION 3. Chapter 105, Civil Practice and Remedies Code,
is amended by adding Sections 105.005 and 105.006 to read as
follows:
Sec. 105.005. CAUSE OF ACTION FOR FRIVOLOUS REGULATORY
ACTION. (a) A claimant may bring an action against a state agency
if the state agency takes a regulatory action against the claimant
that is frivolous, unreasonable, or without foundation.
(b) In an action brought under this section, a claimant may
recover, in addition to all other costs allowed by law or rule, the
damages caused by the state agency's frivolous regulatory action,
reasonable attorney's fees, and court costs.
Sec. 105.006. RECOVERY OF ATTORNEY'S FEES AND COSTS IN
FRIVOLOUS REGULATORY ACTION. A person may recover, in addition to
all other costs allowed by law or rule, reasonable attorney's fees
and costs incurred in defending against a frivolous regulatory
action during an administrative proceeding and judicial review of
that proceeding if:
(1) the person prevails in the judicial review of an
administrative proceeding; and
(2) the state agency is unable to demonstrate that the
agency has good cause for the regulatory action.
SECTION 4. The change in law made by this Act applies only
to a regulatory action taken on or after the effective date of this
Act. A regulatory action taken before the effective date of this
Act is governed by the law applicable to the regulatory action
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2017.
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