[§661-12]  Awards of attorney's fees against
agencies.  (a)  Any law to the contrary notwithstanding, in any civil
proceeding initiated by a small business against any agency in a state court,
the court shall allow the small business reasonable attorney's fees, if the
court finds that the agency lacked a reasonable basis for its action.



(b)  Any agency against which a civil
proceeding is initiated in any state court may request and shall be awarded
reasonable attorney's fees, if the court finds that the small business' action
was frivolous and wholly without merit.



(c)  Whenever any court awards attorney's fees
pursuant to this section, the award shall not exceed $7,500.  The award shall
be limited to the attorney's normal hourly rate, but in no event more than $75
an hour multiplied by the number of hours reasonably spent in litigating claims
and issues upon which the claimant clearly and substantially prevails.  If a
small business is represented by counsel from a publicly funded legal service
organization, attorney's fees shall not be awarded.



(d)  The small business or agency shall provide
the court with evidence to establish the attorney's normal hourly rate and the
number of hours spent representing the claimant on each issue or claim which
the claimant asserts.  Each request for attorney's fees shall be accompanied by
itemized records detailing the nature of the services provided or performed and
the amount of time spent coincidental to the time when the legal services were
actually provided or performed.  A claimant that fails to comply with this
section shall not be awarded attorney's fees.



(e)  All attorney's fees awarded against an
agency pursuant to this section shall be payable only after a budget request
for the amount is submitted to and approved by the legislature.  The amount of
attorney's fees awarded against an agency shall be identified by the agency and
included in the agency's budget request submitted to the legislature for the
fiscal year immediately following the year the award was made against the
agency.  If the budget request is approved by the legislature, that amount
shall be included in the program appropriation for the agency in the
appropriation bill for that fiscal year.



(f)  As used in this section:



"Agency" means any state or county
board, commission, department, or officer authorized by law to make rules or to
adjudicate contested cases except those in the legislative or judicial
branches.



"Civil proceeding" means any
proceeding other than a criminal proceeding or a proceeding before a family
court.



"Small business" means an
independently owned business with less than fifty employees. [L 1986, c 336,
§1]



 



Cross References



 



  Vexatious litigants, see chapter 634J.