By:  Duncan                                                       S.B. No. 1207

Substitute the following for S.B. No. 1207:                                   

By:  Woolley                                                  C.S.S.B. No. 1207



A BILL TO BE ENTITLED

AN ACT

relating to state liability for costs and attorney's fees in 
certain actions seeking declaratory judgment.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 37.009, Civil Practice and Remedies 
Code, is amended to read as follows:
	Sec. 37.009.  COSTS.  (a)  Except as provided by Subsection 
(b), in [In] any proceeding under this chapter, the court may award 
costs and reasonable and necessary attorney's fees as are equitable 
and just.
	(b)  The court may not award costs and attorney's fees 
against the state, a state agency, or a state official in an action 
under this chapter if:
		(1)  the action seeks a declaratory judgment regarding 
construction of a statute under which an agency exercises powers or 
duties; and
		(2)  the party seeking relief is participating in a 
proceeding before the agency pursuant to Chapter 2001, Government 
Code, or another statute, or participated in a proceeding that 
resulted in a final order, rule, or other decision by the agency,  
and the proceeding involves or involved the construction of a 
statute on which a declaration is being sought.
	(c)  Subsection (b) does not limit the authority of a court 
to award attorney's fees under Chapter 105 or 106 or any other 
statute that expressly authorizes the award of attorney's fees 
against the state, a state agency, or a state official.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to an action filed on or after the effective date of 
this Act.  An action filed before the effective date of this Act is 
governed by the law in effect immediately before the effective date 
of this Act, and that law is continued in effect for that purpose.