| |
| |
| |
|
|
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 |