86R6728 SCL-F
By: Hughes S.B. No. 27
A BILL TO BE ENTITLED
AN ACT
relating to recovery of damages, attorney's fees, and costs related
to frivolous claims and regulatory actions by state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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. A party to a civil suit in a court of this state brought by or
against a state agency in which the agency asserts a cause of action
against the party, either originally or as a counterclaim or cross
claim, is entitled to recover, in addition to all other costs
allowed by law or rule, a total amount not to exceed $1 million for
fees, expenses, and reasonable attorney's fees incurred by the
party in defending the agency's action if:
(1) the court finds that the action is frivolous[,
unreasonable, or without foundation]; and
(2) the action is dismissed or judgment is awarded to
the party.
SECTION 2. Section 105.003(a), Civil Practice and Remedies
Code, is amended to read as follows:
(a) To recover under Section 105.002 [this chapter], the
party must file a written motion alleging that the agency's claim is
frivolous[, unreasonable, or without foundation]. The motion may
be filed at any time after the filing of the pleadings in which the
agency's cause of action is alleged.
SECTION 3. Subchapter Z, Chapter 2001, Government Code, is
amended by adding Section 2001.903 to read as follows:
Sec. 2001.903. RECOVERY OF ATTORNEY'S FEES AND COSTS IN
CONTESTED CASES INVOLVING FRIVOLOUS REGULATORY ACTION. The
administrative law judge or court reviewing a contested case may
award a person, in addition to all other costs allowed by law, an
amount not to exceed $1 million for reasonable attorney's fees and
costs incurred in defending against a frivolous regulatory action
during the case and judicial review of that case if:
(1) the person prevails in the case; and
(2) the administrative law judge or court, as
applicable, finds that the regulatory action is frivolous.
SECTION 4. The change in law made by this Act applies only
to a claim filed or regulatory action taken on or after the
effective date of this Act. A claim filed or regulatory action
taken before the effective date of this Act is governed by the law
applicable to the claim or 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, 2019.