SF 1298

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/26/2012 09:32am

A bill for an act
relating to civil actions; awarding fees and expenses to prevailing parties in
certain actions involving state agencies; amending Minnesota Statutes 2010,
sections 15.471, subdivision 6, by adding a subdivision; 15.472.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 15.471, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Demand. new text end

new text begin "Demand" means the express demand of the agency that led to
the civil action or contested case proceeding.
new text end

Sec. 2.

Minnesota Statutes 2010, section 15.471, subdivision 6, is amended to read:

Subd. 6.

Party.

(a) Except as modified by paragraph (b), "party" means a person
named or admitted as a party, or seeking and entitled to be admitted as a party, in a court
action or contested case proceeding, or a person admitted by an administrative law judge
for limited purposes, and who is:

(1) an unincorporated business, partnership, corporation, association, or
organization, having not more than 500 employees at the time the civil action was filed or
the contested case proceeding was initiated; and

(2) an unincorporated business, partnership, corporation, association, or organization
whose annual revenues did not exceed deleted text begin $7,000,000 deleted text end new text begin $30,000,000 new text end at the time the civil action
was filed or the contested case proceeding was initiated.

(b) "Party" also includes a partner, officer, shareholder, member, or owner of an
entity described in paragraph (a), clauses (1) and (2).

(c) "Party" does not include a person providing services pursuant to licensure or
reimbursement on a cost basis by the Department of Health or the Department of Human
Services, when that person is named or admitted or seeking to be admitted as a party in a
matter which involves the licensing or reimbursement rates, procedures, or methodology
applicable to those services.

Sec. 3.

Minnesota Statutes 2010, section 15.472, is amended to read:

15.472 FEES AND EXPENSES; CIVIL ACTION OR CONTESTED CASE
PROCEEDING INVOLVING STATE.

(a) If a prevailing party other than the state, in a civil action or contested case
proceeding other than a tort action, brought by or against the state, shows that the position
of the state was not substantially justified, the court or administrative law judge shall award
fees and other expenses to the party unless special circumstances make an award unjust.

new text begin (b) If, in a civil action or contested case proceeding arising from a state agency action
to enforce a party's compliance with a statutory or regulatory requirement, the demand by
the agency is substantially in excess of the final decision in the contested case or judicial
proceeding and is unreasonable when compared with that decision under the facts and
circumstances of the case, the party shall be awarded the fees and other expenses related
to defending against the excessive demand, unless the party has committed a willful
violation of law or engaged in conduct that unduly and unreasonably protracted the final
resolution of the matter in controversy or special circumstances make an award unjust.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A party seeking an award of fees and other expenses shall, within 30 days of
final judgment in the action, submit to the court or administrative law judge an application
of fees and other expenses which shows that the party is a prevailing party and is eligible
to receive an award, and the amount sought, including an itemized statement from any
attorney or expert witness representing or appearing on behalf of the party stating the
actual time expended and the rate at which fees and other expenses were computed. The
party shall also allege that the position of the state was not substantially justified.

deleted text begin (c) deleted text end new text begin (d) new text end The court or administrative law judge may reduce the amount to be awarded
under this section, or deny an award, to the extent that the prevailing party during
the proceedings engaged in conduct that unduly and unreasonably protracted the final
resolution of the matter in controversy. The decision of an administrative law judge under
this section must be made a part of the record containing the final decision of the agency
and must include written findings and conclusions.

deleted text begin (d) deleted text end new text begin (e) new text end This section does not preclude a party from recovering costs, disbursements,
fees, and expenses under other applicable law.

Sec. 4. new text begin CITATION.
new text end

new text begin This act may be cited as the "Small Business Bill of Rights - Regulatory Fairness
Act."
new text end

Sec. 5. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin This act is effective August 1, 2012, and applies to administrative proceedings or
civil actions commenced on or after that date.
new text end