An Act To Require the State To Pay Costs and Fees in Actions against Certain State Agencies
Sec. 1. 14 MRSA §1523 is enacted to read:
§ 1523. Costs to prevailing party in certain administrative or court proceedings
(1) The position taken by the State in a judicial proceeding to which subsection 2 applies; and
(2) The position taken by the State in an administrative proceeding to which subsection 2 applies.
(1) That has substantially prevailed with respect to the amount in controversy; or
(2) That has substantially prevailed with respect to the most significant issue or set of issues presented.
A party may not be treated as the prevailing party in a proceeding to which subsection 2 applies if the State establishes that the position of the State was substantially justified.
(1) Reasonable court costs; and
(2) Based upon prevailing market rates for the kind or quality of services furnished:
(a) The reasonable expenses of expert witnesses in connection with a court proceeding, except that no expert witness may be compensated at a rate in excess of the highest rate of compensation for expert witnesses paid by the State;
(b) The reasonable cost of any study, analysis, engineering report, test or project that is found by the court to be necessary for the preparation of the party's case; and
(c) The reasonable fees paid or incurred for the services of attorneys in connection with the court proceeding.
summary
This bill authorizes the award of administrative costs or litigation costs to the prevailing party in an administrative action or a court action involving the Department of Administrative and Financial Services, Maine Revenue Services or the Department of Environmental Protection if the State is not the prevailing party.
A judgment for reasonable litigation costs may not be awarded in any court proceeding unless the court determines that the prevailing party has exhausted the administrative remedies available to such party within Maine Revenue Services or the Department of Environmental Protection, as applicable. An award for reasonable litigation and administrative costs may not be made with respect to any portion of the administrative or court proceeding during which the prevailing party has unreasonably protracted such proceeding.
An application for costs must be filed within 90 days after the final decision is made. The award of costs may be appealed.
A party may not be treated as the prevailing party in a proceeding if the State establishes that the position of the State in the proceeding was substantially justified.