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A BILL TO BE ENTITLED
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AN ACT
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relating to the award of reasonable attorney's fees and costs in |
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connection with certain contested cases. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 2001, Government Code, is |
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amended by adding Section 2001.1765 to read as follows: |
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Sec. 2001.1765. STATE AGENCY PAYMENT OF ATTORNEY'S FEES AND |
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COSTS IN CONTESTED CASES UNDER JUDICIAL REVIEW. (a) Except as |
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provided by Subsection (b), a court reviewing a decision in a |
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contested case shall award a nongovernmental party to the case |
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under review, in addition to all other costs allowed by law or |
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rule, reasonable attorney's fees and costs incurred in defending |
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the case if the nongovernmental party prevails under judicial |
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review. |
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(b) A reviewing court may not order a state agency to pay the |
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reasonable attorney's fees and costs of a prevailing |
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nongovernmental party in a contested case if: |
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(1) the agency's only involvement in the case is to |
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serve as an arbiter of the legal rights, duties, or privileges of |
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two or more parties; or |
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(2) the agency's position as a party to the case is no |
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longer authorized as a result of an intervening amendment to |
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applicable law. |
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SECTION 2. Section 2001.903, Government Code, is amended to |
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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 in a contested case shall [may] award a |
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person, in addition to all other costs allowed by law or rule, 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 if there is no judicial review of the decision in |
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the case and: |
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(1) the person prevails in the case; and |
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(2) there is a final determination that: |
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(A) the regulatory action is frivolous or |
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groundless; |
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(B) the state agency pursued the regulatory |
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action in bad faith; |
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(C) the regulatory action is not authorized by a |
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state or federal statute or rule; or |
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(D) the agency failed to demonstrate the action |
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is within the authority granted to the agency under state or |
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federal law. |
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SECTION 3. The change in law made by this Act applies only |
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to an action commenced on or after the effective date of this Act. |
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An action commenced before the effective date of this Act is |
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governed by the law in effect on the date the action was commenced, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |