Bill Text: TX SB27 | 2019-2020 | 86th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to recovery of damages, attorney's fees, and costs related to frivolous claims and regulatory actions by state agencies.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2019-06-07 - Effective on 9/1/19 [SB27 Detail]
Download: Texas-2019-SB27-Engrossed.html
Bill Title: Relating to recovery of damages, attorney's fees, and costs related to frivolous claims and regulatory actions by state agencies.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2019-06-07 - Effective on 9/1/19 [SB27 Detail]
Download: Texas-2019-SB27-Engrossed.html
By: Hughes, Bettencourt | S.B. No. 27 | |
Creighton |
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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[ |
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(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 [ |
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party must file a written motion alleging that the agency's claim is | ||
frivolous[ |
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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. Chapter 105, Civil Practice and Remedies Code, | ||
is amended by adding Section 105.006 to read as follows: | ||
Sec. 105.006. COURT FACTORS FOR FRIVOLOUS CLAIM OR ACTION. | ||
In determining whether a claim or regulatory action is frivolous | ||
under this chapter, the court may consider whether: | ||
(1) the claim's or action's realistic chance of | ||
ultimate success is slight; | ||
(2) the claim or action has no arguable basis in law or | ||
fact; | ||
(3) it is clear that the state agency cannot prove | ||
facts in support of the claim or action; or | ||
(4) the totality of the tendered evidence fails to | ||
demonstrate any arguable basis for the claim or action. | ||
SECTION 6. 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 7. 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. (a) 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. | ||
(b) In determining whether a regulatory action is frivolous | ||
under Subsection (a), the administrative law judge may consider | ||
whether: | ||
(1) the action's realistic chance of ultimate success | ||
is slight; | ||
(2) the action has no arguable basis in law or fact; | ||
(3) it is clear that the state agency cannot prove | ||
facts in support of the action; or | ||
(4) the totality of the tendered evidence fails to | ||
demonstrate any arguable basis for the action. | ||
SECTION 8. 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 9. This Act takes effect September 1, 2019. |