Bill > HB5050

This bill modifies Texas state law regarding attorney's fees and costs in contested cases involving state agencies, creating two key changes. First, it establishes that when a non-governmental party prevails in a judicial review of a contested case, the reviewing court must award reasonable attorney's fees and costs, with two specific exceptions: when the state agency is merely acting as an arbiter between parties or when the agency's position is no longer authorized due to a legal amendment. Second, the bill expands the circumstances under which an administrative law judge can award attorney's fees and costs (up to $1 million) in regulatory actions, broadening the existing language from only "frivolous" actions to include actions that are groundless, pursued in bad faith, not authorized by statute or rule, or beyond the agency's legal authority. The bill will apply only to actions commenced on or after September 1, 2025, meaning previous actions will be governed by the law in effect at their start. The overall intent appears to be providing greater protection and potential financial recourse for parties challenging state agency actions they believe are unjustified or improper.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5050