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A BILL TO BE ENTITLED
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AN ACT
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relating to recovery of damages, attorney's fees, and costs related |
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to frivolous regulatory actions by state agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 105, Civil Practice and |
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Remedies Code, is amended to read as follows: |
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CHAPTER 105. FRIVOLOUS CLAIM OR REGULATORY ACTION BY STATE AGENCY |
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SECTION 2. The heading to Section 105.002, Civil Practice |
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and Remedies Code, is amended to read as follows: |
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Sec. 105.002. RECOVERY OF FEES, EXPENSES, AND ATTORNEY'S |
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FEES FOR FRIVOLOUS CLAIM. |
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SECTION 3. Chapter 105, Civil Practice and Remedies Code, |
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is amended by adding Sections 105.005 and 105.006 to read as |
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follows: |
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Sec. 105.005. CAUSE OF ACTION FOR FRIVOLOUS REGULATORY |
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ACTION. (a) A claimant may bring an action against a state agency |
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if the state agency takes a regulatory action against the claimant |
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that is frivolous, unreasonable, or without foundation. |
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(b) In an action brought under this section, a claimant may |
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recover, in addition to all other costs allowed by law or rule, the |
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damages caused by the state agency's frivolous regulatory action, |
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reasonable attorney's fees, and court costs. |
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Sec. 105.006. RECOVERY OF ATTORNEY'S FEES AND COSTS IN |
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FRIVOLOUS REGULATORY ACTION. A person may recover, in addition to |
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all other costs allowed by law or rule, reasonable attorney's fees |
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and costs incurred in defending against a frivolous regulatory |
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action during an administrative proceeding and judicial review of |
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that proceeding if: |
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(1) the person prevails in the judicial review of an |
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administrative proceeding; and |
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(2) the state agency is unable to demonstrate that the |
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agency has good cause for the regulatory action. |
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SECTION 4. The change in law made by this Act applies only |
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to a regulatory action taken on or after the effective date of this |
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Act. A regulatory action taken before the effective date of this |
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Act is governed by the law applicable to the regulatory action |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2017. |