2016 -- H 7336

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- EQUAL ACCESS TO JUSTICE

FOR SMALL BUSINESSES AND INDIVIDUALS

     Introduced By: Representatives Blazejewski, Keable, Shekarchi, Craven, and Naughton

     Date Introduced: January 27, 2016

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-92-2 of the General Laws in Chapter 42-92 entitled "Equal

Access to Justice for Small Businesses and Individuals" is hereby amended to read as follows:

     42-92-2. Definitions. -- As used in this chapter:

      (1) "Adjudicative officer" means the deciding official, without regard to whether the

official is designated as an administrative law judge, a hearing officer or examiner, or otherwise,

who presided at the adversary adjudication.

      (2) "Adjudicatory proceedings" means any proceeding conducted by or on behalf of the

state administratively or quasi-judicially which may result in the loss of benefits, the imposition

of a fine, the adjustment of a tax assessment, the denial, suspension, or revocation of a license or

permit, or which may result in the compulsion or restriction of the activities of a party. Any

agency charged by statute with investigating complaints shall be deemed to have substantial

justification for the investigation and for the proceedings subsequent to the investigation.

      (3) "Agency" means any state and/or municipal board, commission, council, department,

or officer, other than the legislature or the courts, authorized by law to make rules or to determine

contested cases, to bring any action at law or in equity, including, but not limited to, injunctive

and other relief, or to initiate criminal proceedings. This shall include contract boards of appeal,

tax proceedings, and employment security administrative proceedings.

      (4) "Municipality" means the individual cities and towns in the state of Rhode Island and

including, but not limited to, any city or town housing authority, fire, water, sewer district, local

or regional school district, public building authority or other municipal financed agency or

department.

      (5) "Party" means any individual whose net worth is less than five hundred thousand

dollars ($500,000) at the time the adversary adjudication was initiated; and, any individual,

partnership, corporation, association, or private organization doing business and located in the

state, which is independently owned and operated, not dominant in its field, and which employs

one hundred (100) or fewer persons at the time the adversary adjudication was initiated.

      (6) "Reasonable litigation expenses" means those expenses which were reasonably

incurred by a party in adjudicatory proceedings, including, but not limited to, attorney's fees,

witness fees of all necessary witnesses, and other costs and expenses as were reasonably incurred,

except that:

     (i) Unless the court determines that special factors justify a higher fee, the The award of

attorney's fees may not exceed one hundred and twenty-five dollars ($125) one hundred fifty

dollars ($150) per hour, unless the court determines that special factors justify a higher feel;

provided, however, that this amount shall be adjusted annually on December 31 of each calendar

year by the percentage increase of the United States Department of Labor's Bureau of Labor

Statistics Consumer Price Index. If there are no percentage increases in this index for any

calendar year, there shall be no increase in the hourly amount for that year;

      (ii) No expert witness may be compensated at a rate in excess of the highest rate of

compensation for experts paid by this state.

      (7) "Substantial justification" means that the initial position of the agency, as well as the

agency's position in the proceedings, has a reasonable basis in law and fact.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- EQUAL ACCESS TO JUSTICE

FOR SMALL BUSINESSES AND INDIVIDUALS

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     This act would increase awardable attorneys' fees in adjudicatory proceedings from one

hundred twenty-five dollars ($125) to one hundred fifty dollars ($150) per hour with an annual

increase thereafter based on the United States Department of Labor's Consumer Price Index.

     This act would take effect upon passage.

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