Texas 2019 - 86th Regular

Texas Senate Bill SB27 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 27
	1	+	86R21676 SCL-F
	2	+	By: Hughes, et al. S.B. No. 27
	3	+	(Hefner)
	4	+	Substitute the following for S.B. No. 27: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to recovery of damages, attorney's fees, and costs related
6	10		to frivolous claims and regulatory actions by state agencies.
7	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	12		SECTION 1. The heading to Chapter 105, Civil Practice and
9	13		Remedies Code, is amended to read as follows:
10	14		CHAPTER 105. FRIVOLOUS CLAIM OR REGULATORY ACTION BY STATE AGENCY
11	15		SECTION 2. Section 105.002, Civil Practice and Remedies
12	16		Code, is amended to read as follows:
13	17		Sec. 105.002. RECOVERY OF FEES, EXPENSES, AND ATTORNEY'S
14	18		FEES FOR FRIVOLOUS CLAIM. A party to a civil suit in a court of this
15	19		state brought by or against a state agency in which the agency
16	20		asserts a cause of action against the party, either originally or as
17	21		a counterclaim or cross claim, is entitled to recover, in addition
18	22		to all other costs allowed by law or rule, a total amount not to
19	23		exceed $1 million for fees, expenses, and reasonable attorney's
20	24		fees incurred by the party in defending the agency's action if:
21	25		(1) the court finds that the action is frivolous[,
22	26		unreasonable, or without foundation]; and
23	27		(2) the action is dismissed or judgment is awarded to
24	28		the party.
25	29		SECTION 3. Section 105.003(a), Civil Practice and Remedies
26	30		Code, is amended to read as follows:
27	31		(a) To recover under Section 105.002 [this chapter], the
28	32		party must file a written motion alleging that the agency's claim is
29	33		frivolous[, unreasonable, or without foundation]. The motion may
30	34		be filed at any time after the filing of the pleadings in which the
31	35		agency's cause of action is alleged.
32	36		SECTION 4. Chapter 105, Civil Practice and Remedies Code,
33	37		is amended by adding Section 105.005 to read as follows:
34	38		Sec. 105.005. RECOVERY OF ATTORNEY'S FEES AND COSTS IN
35	39		FRIVOLOUS REGULATORY ACTION. The court reviewing a decision in a
36	40		contested case under Chapter 2001, Government Code, may award a
37	41		person, in addition to all other costs allowed by law or rule, an
38	42		amount not to exceed $1 million for reasonable attorney's fees and
39	43		costs incurred in defending against a frivolous regulatory action
40	44		during the contested case and judicial review of the decision in the
41	45		contested case if:
42	46		(1) the person prevails on review; and
43	47		(2) there is a final determination that the regulatory
44	48		action is frivolous.
45	49		SECTION 5. Section 2001.058, Government Code, is amended by
46	50		adding Subsection (e-1) to read as follows:
47	51		(e-1) Notwithstanding Subsection (e), a state agency may
48	52		not vacate or modify an order of an administrative law judge that
49	53		awards attorney's fees and costs under Section 2001.903.
50	54		SECTION 6. Subchapter Z, Chapter 2001, Government Code, is
51	55		amended by adding Section 2001.903 to read as follows:
52	56		Sec. 2001.903. RECOVERY OF ATTORNEY'S FEES AND COSTS IN
53	57		CONTESTED CASES INVOLVING FRIVOLOUS REGULATORY ACTION. The
54	58		administrative law judge in a contested case may award a person, in
55	59		addition to all other costs allowed by law or rule, an amount not to
56	60		exceed $1 million for reasonable attorney's fees and costs incurred
57	61		in defending against a frivolous regulatory action during the case
58	62		if there is no judicial review of the decision in the case and:
59	63		(1) the person prevails in the case; and
60	64		(2) there is a final determination that the regulatory
61	65		action is frivolous.
62	66		SECTION 7. The change in law made by this Act applies only
63	67		to a claim filed or regulatory action taken on or after the
64	68		effective date of this Act. A claim filed or regulatory action
65	69		taken before the effective date of this Act is governed by the law
66	70		applicable to the claim or regulatory action immediately before the
67	71		effective date of this Act, and that law is continued in effect for
68	72		that purpose.
69	73		SECTION 8. This Act takes effect September 1, 2019.
70		-	______________________________ ______________________________
71		-	President of the Senate Speaker of the House
72		-	I hereby certify that S.B. No. 27 passed the Senate on
73		-	April 8, 2019, by the following vote: Yeas 29, Nays 1; and that
74		-	the Senate concurred in House amendment on May 21, 2019, by the
75		-	following vote: Yeas 31, Nays 0.
76		-	______________________________
77		-	Secretary of the Senate
78		-	I hereby certify that S.B. No. 27 passed the House, with
79		-	amendment, on May 14, 2019, by the following vote: Yeas 136,
80		-	Nays 3, three present not voting.
81		-	______________________________
82		-	Chief Clerk of the House
83		-	Approved:
84		-	______________________________
85		-	Date
86		-	______________________________
87		-	Governor