HB5050 - Relating to the award of reasonable attorney's fees and costs in connection with certain contested cases.

      By: Harrison H.B. No. 5050       A BILL TO BE ENTITLED   AN ACT   relating to the award of reasonable attorney's fees and costs in   connection with certain contested cases.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter G, Chapter 2001, Government Code, is   amended by adding Section 2001.1765 to read as follows:           Sec.   2001.1765.     STATE AGENCY PAYMENT OF ATTORNEY'S FEES AND   COSTS IN CONTESTED CASES UNDER JUDICIAL REVIEW.   (a)   Except as   provided by Subsection (b), a court reviewing a decision in a   contested case shall award a nongovernmental party to the case   under review, in addition to all other costs allowed by law or   rule, reasonable attorney's fees and costs incurred in defending   the case if the nongovernmental party prevails under judicial   review.           (b)     A reviewing court may not order a state agency to pay the   reasonable attorney's fees and costs of a prevailing   nongovernmental party in a contested case if:                 (1)     the agency's only involvement in the case is to   serve as an arbiter of the legal rights, duties, or privileges of   two or more parties; or                 (2)     the agency's position as a party to the case is no   longer authorized as a result of an intervening amendment to   applicable law.          SECTION 2.  Section 2001.903, Government Code, is amended 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 shall [ 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 :                       (A)   the regulatory action is frivolous or   groundless;                       (B)     the state agency pursued the regulatory   action in bad faith;                       (C)     the regulatory action is not authorized by a   state or federal statute or rule; or                       (D)     the agency failed to demonstrate the action   is within the authority granted to the agency under state or   federal law .          SECTION 3.  The change in law made by this Act applies only   to an action commenced on or after the effective date of this Act.     An action commenced before the effective date of this Act is   governed by the law in effect on the date the action was commenced,   and the former law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.