S.B. No. 27
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. 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. 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. 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 3. 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 4. Chapter 105, Civil Practice and Remedies Code,
is amended by adding Section 105.005 to read as follows:
Sec. 105.005. RECOVERY OF ATTORNEY'S FEES AND COSTS IN
FRIVOLOUS REGULATORY ACTION. The court reviewing a decision in a
contested case under Chapter 2001, Government Code, may award a
person, in addition to all other costs allowed by law or rule, an
amount not to exceed $1 million for reasonable attorney's fees and
costs incurred in defending against a frivolous regulatory action
during the contested case and judicial review of the decision in the
contested case if:
(1) the person prevails on review; and
(2) there is a final determination that the regulatory
action is frivolous.
SECTION 5. Section 2001.058, Government Code, is amended by
adding Subsection (e-1) to read as follows:
(e-1) Notwithstanding Subsection (e), a state agency may
not vacate or modify an order of an administrative law judge that
awards attorney's fees and costs under Section 2001.903.
SECTION 6. 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 in a contested case may award a person, in
addition to all other costs allowed by law or rule, 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
if there is no judicial review of the decision in the case and:
(1) the person prevails in the case; and
(2) there is a final determination that the regulatory
action is frivolous.
SECTION 7. 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 8. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 27 passed the Senate on
April 8, 2019, by the following vote: Yeas 29, Nays 1; and that
the Senate concurred in House amendment on May 21, 2019, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 27 passed the House, with
amendment, on May 14, 2019, by the following vote: Yeas 136,
Nays 3, three present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor