Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 439-H.F.No. 3497 
                  An act relating to state government; regulating the 
                  recovery of costs and attorney fees from the state of 
                  Minnesota; establishing specific procedures for 
                  application of fees; amending Minnesota Statutes 1998, 
                  sections 15.471, subdivisions 4, 5, and 6; and 15.472. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 15.471, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXPENSES.] "Expenses" means the costs incurred 
        by the party in the litigation, including: 
           (1) filing fees; 
           (2) subpoena fees and mileage; 
           (3) transcript costs and court reporter fees; 
           (4) expert witness fees; 
           (5) the reasonable cost of any study, analysis, engineering 
        report, test, or project; 
           (6) photocopying and printing costs; 
           (6) (7) postage and delivery costs; and 
           (7) (8) service of process fees. 
           Sec. 2.  Minnesota Statutes 1998, section 15.471, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEES.] "Fees" means the reasonable attorney fees 
        or reasonable fees charged by a person not an attorney who is 
        authorized by law or rule to represent the party and may include 
        reasonable charges by the party, the party's employee, or 
        agent.  The amount of fees must be based upon prevailing market 
        rates for the kind and quality of the services furnished, 
        subject to the following limitations: 
           (a) In a court action, an expert witness may not be 
        compensated at a rate in excess of the highest rate of 
        compensation for expert witnesses paid by the United States 
        state. 
           (b) In a contested case proceeding, an expert witness may 
        not be compensated at a rate in excess of the highest rate of 
        compensation for expert witnesses paid by the state agency 
        involved. 
           (c) Attorney or agent fees may not be awarded in excess of 
        $100 $125 per hour unless the court or administrative law judge 
        determines that an increase in the cost of living or a special 
        factor, such as the limited availability of qualified attorneys 
        or agents for the proceedings involved, justifies a higher fee.  
           Sec. 3.  Minnesota Statutes 1998, 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 50 500 
        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 $4,000,000 $7,000,000 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. 4.  Minnesota Statutes 1998, 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. 
           (b) 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 unless special 
        circumstances make an award unjust. 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.  
           (b) (c) 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. 
           (c) (d) This section does not preclude a party from 
        recovering costs, disbursements, fees, and expenses under other 
        applicable law. 
           Sec. 5.  [EFFECTIVE DATE; APPLICATION.] 
           This act is effective August 1, 2000, and applies to any 
        civil action or contested case proceeding which is commenced on 
        or after that date. 
           Presented to the governor April 20, 2000 
           Signed by the governor April 24, 2000, 1:47 p.m.