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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 claims and 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. Section 105.002, Civil Practice and Remedies |
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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. A party to a civil suit in a court of this state brought by or |
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against a state agency in which the agency asserts a cause of action |
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against the party, either originally or as a counterclaim or cross |
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claim, is entitled to recover, in addition to all other costs |
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allowed by law or rule, a total amount not to exceed $1 million for |
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fees, expenses, and reasonable attorney's fees incurred by the |
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party in defending the agency's action if: |
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(1) the court finds that the action is frivolous[,
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unreasonable, or without foundation]; and |
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(2) the action is dismissed or judgment is awarded to |
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the party. |
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SECTION 2. Section 105.003(a), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(a) To recover under Section 105.002 [this chapter], the |
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party must file a written motion alleging that the agency's claim is |
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frivolous[, unreasonable, or without foundation]. The motion may |
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be filed at any time after the filing of the pleadings in which the |
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agency's cause of action is alleged. |
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SECTION 3. Subchapter Z, Chapter 2001, Government Code, is |
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amended by adding Section 2001.903 to read as follows: |
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Sec. 2001.903. RECOVERY OF ATTORNEY'S FEES AND COSTS IN |
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CONTESTED CASES INVOLVING FRIVOLOUS REGULATORY ACTION. The |
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administrative law judge or court reviewing a contested case may |
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award a person, in addition to all other costs allowed by law, an |
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amount not to exceed $1 million for reasonable attorney's fees and |
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costs incurred in defending against a frivolous regulatory action |
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during the case and judicial review of that case if: |
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(1) the person prevails in the case; and |
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(2) the administrative law judge or court, as |
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applicable, finds that the regulatory action is frivolous. |
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SECTION 4. The change in law made by this Act applies only |
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to a claim filed or regulatory action taken on or after the |
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effective date of this Act. A claim filed or regulatory action |
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taken before the effective date of this Act is governed by the law |
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applicable to the claim or regulatory action immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect September 1, 2019. |