2005 Texas Government Code CHAPTER 2006. AGENCY ACTIONS AFFECTING SMALL BUSINESSES

GOVERNMENT CODE

CHAPTER 2006. AGENCY ACTIONS AFFECTING SMALL BUSINESSES

SUBCHAPTER A. ADOPTION OF RULES


	§ 2006.001. DEFINITIONS.  In this subchapter:                               
		(1)  "Micro-business" means a legal entity, including a 
corporation, partnership, or sole proprietorship, that:
			(A)  is formed for the purpose of making a profit;                           
			(B)  is independently owned and operated;  and                               
			(C)  has not more than 20 employees.                                         
		(2)  "Small business" means a legal entity, including a 
corporation, partnership, or sole proprietorship, that:
			(A)  is formed for the purpose of making a profit;                           
			(B)  is independently owned and operated;  and                               
			(C)  has fewer than 100 employees or less than $1 
million in annual gross receipts.
		(3)  "State agency" means a department, board, bureau, 
commission, division, office, council, or other agency of the 
state.

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.  
Amended by Acts 1999, 76th Leg., ch. 558, § 5, eff. Sept. 1, 
1999.


	§ 2006.002. ADOPTION OF RULES WITH ADVERSE ECONOMIC 
EFFECT.  (a) A state agency considering adoption of a rule that 
would have an adverse economic effect on small businesses or 
micro-businesses shall reduce that effect if doing so is legal and 
feasible considering the purpose of the statute under which the 
rule is to be adopted.
	(b)  To reduce an adverse effect on small businesses, an 
agency may:         
		(1)  establish separate compliance or reporting 
requirements for small businesses;
		(2)  use performance standards in place of design 
standards for small businesses;  or
		(3)  exempt small businesses from all or part of the 
rule.                  
	(c)  Before adopting a rule that would have an adverse 
economic effect on small businesses, a state agency shall prepare a 
statement of the effect of the rule on small businesses.  The 
statement must include:
		(1)  an analysis of the cost of compliance with the rule 
for small businesses;  and
		(2)  a comparison of the cost of compliance for small 
businesses with the cost of compliance for the largest businesses 
affected by the rule, using at least one of the following standards:
			(A)  cost for each employee;                                                 
			(B)  cost for each hour of labor;  or                                        
			(C)  cost for each $100 of sales.                                            
	(d)  The agency shall include the statement of effect as part 
of the notice of the proposed rule that the agency files with the 
secretary of state for publication in the Texas Register.
	(e)  This section does not apply to a rule adopted under 
Title 2, Tax Code.  
	(f)  To reduce an adverse effect of rules on 
micro-businesses, a state agency shall adopt provisions concerning 
micro-businesses that are uniform with those outlined in 
Subsections (b)-(d) for small businesses.

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.  
Amended by Acts 1997, 75th Leg., ch. 1041, § 50, eff. Sept. 1, 
1997;  Acts 1999, 76th Leg., ch. 558, § 6, eff. Sept. 1, 1999.

SUBCHAPTER B. RECOVERY OF COURT COSTS AND ATTORNEY FEES


	§ 2006.011. DEFINITIONS.  In this subchapter:                               
		(1)  "Groundless" means having no basis in law or fact.                       
		(2)  "Small business" means a legal entity, including a 
corporation, partnership, or sole proprietorship that:
			(A)  is formed for the purpose of making a profit;                           
			(B)  is independently owned and operated;                                    
			(C)  is not a publicly held corporation;  and                                
			(D)  has fewer than 100 employees or less than $1 
million in annual gross receipts at the end of the fiscal year 
preceding the year of the filing of an administrative adjudicatory 
proceeding or civil action in which the entity is seeking recovery 
under this subchapter.
		(3)  "State agency" means a board, commission, 
department, or office that:  
			(A)  is in the executive branch of state 
government;                       
			(B)  was created by the constitution or a statute 
of this state;  and      
			(C)  has statewide jurisdiction.                                             

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.           


	§ 2006.012. EXCEPTIONS.  This subchapter does not apply 
to a proceeding or action that is:
		(1)  filed before September 1, 1987;  or                                      
		(2)  brought under:                                                           
			(A)  Subchapter E, Chapter 17, Business & Commerce 
Code (Deceptive Trade Practices-Consumer Protection Act);  or
			(B)  Chapter 21, Insurance Code.                                             

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.           


	§ 2006.013. REQUIREMENTS FOR RECOVERY.  (a) In an 
administrative adjudicatory proceeding or a civil action resulting 
from a complaint issued by a state agency against a small business 
under the agency's administrative or regulatory functions, the 
small business may be awarded reasonable attorney fees and court 
costs if:
		(1)  it is a small business at the time it becomes a 
party to the proceeding or action;
		(2)  it prevails in the proceeding or action;  and                            
		(3)  the proceeding or action was groundless and 
brought:                   
			(A)  in bad faith;  or                                                       
			(B)  for purposes of harassment.                                             
	(b)  For purposes of this section, a small business prevails 
in a proceeding or action if there is not:
		(1)  an adjudication, stipulation, or acceptance of 
liability;  or          
		(2)  a determination of noncompliance, violation, 
infringement, deficiency, or breach on the part of the small 
business.
	(c)  A small business may not recover under this subchapter 
if the parties have executed a settlement agreement that, while not 
stipulating liability or violation, requires the small business to 
take corrective action or pay a monetary sum.

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.           


	§ 2006.014. MOTION FOR RECOVERY.  (a) To recover under 
this subchapter, a small business, not later than the 30th day after 
the date of the filing of the administrative adjudicatory 
proceeding or civil action, must file a written motion that:
		(1)  alleges that the proceeding or action was 
groundless and brought:      
			(A)  in bad faith;  or                                                       
			(B)  for purposes of harassment;                                             
		(2)  states the facts that justify the small business's 
claim;  and         
		(3)  states that if the claim is dismissed or judgment 
is awarded to the small business, the small business will seek 
recovery of attorney fees and court costs.
	(b)  A small business may not recover attorney fees and court 
costs under this subchapter if, not later than the 30th day after 
the date the small business gives notice that it has filed a motion 
under Subsection (a), the state agency:
		(1)  amends the pleadings so that the small business 
that has filed the motion is no longer a party to the proceeding or 
action;  or
		(2)  dismisses the proceeding or action.                                      

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.           


	§ 2006.015. DETERMINATION OF CLAIM.  (a) The hearings 
officer in an administrative adjudicatory proceeding or the court 
in a civil action shall determine whether the proceeding or action 
is groundless and brought:
		(1)  in bad faith;  or                                                        
		(2)  for purposes of harassment.                                              
	(b)  In making the determination, the hearings officer or 
court shall consider:
		(1)  the multiplicity of parties;                                             
		(2)  the complexity of the claims and defenses;                               
		(3)  the length of time available to the agency to 
investigate and conduct discovery;  and
		(4)  affidavits, depositions, and any other relevant 
matters.               
	(c)  In making a determination, a hearings officer or a court 
may not consider the amount of damages, civil penalties, fines, 
taxes, or other monetary recovery sought by the state agency.

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.           


	§ 2006.016. EFFECT OF DETERMINATION OR ORDER.  A 
determination made or order issued under this subchapter is not 
grounds for any liability, sanction, or grievance except as 
provided by this subchapter.

Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993.