HB 5050

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
(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
(2)  the agency's position as a party to the case is no
longer authorized as a result of an intervening amendment to
SECTION 2.  Section 2001.903, Government Code, is amended to
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
(1)  the person prevails in the case; and
(2)  there is a final determination that:
(A)  the regulatory action is frivolous or
(B)  the state agency pursued the regulatory
(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
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.