Section 4-5-325 - Payment of costs to respondent

(a)(1) When a state agency issues a notice to a person, local governmental entity, board, or commission for the violation of a rule or statute and the notice results in a contested case hearing, at the conclusion of the contested case hearing, the hearing officer or administrative judge may order the state agency to pay to the respondent the reasonable expenses incurred because of the notice, including a reasonable attorney's fee, if the hearing officer or administrative judge determines that: (A)(i) The claims contained in the notice are not warranted by existing law nor by a nonfrivolous argument for the extension or modification of existing law; and(ii) The claims contained in the notice do not have evidentiary support; or(B) The state agency issued the notice to harass, cause unnecessary delay, or cause needless expense to the party issued the notice.(2) Subdivision (a)(1) is not satisfied simply by a state agency failing to prevail against the respondent.(3) If the hearing officer or administrative judge orders the state agency to pay the respondent the reasonable expenses incurred, then the hearing officer or administrative judge shall set forth in a written order the

officer or administrative judge orders the state agency to pay the respondent the reasonable expenses incurred, then the hearing officer or administrative judge shall set forth in a written order the findings of facts and conclusions of law upon which the determinations are based.(b) If a final decision in a contested case hearing results in a respondent seeking judicial review under § 4-5-322, then the judge conducting the review may, at the conclusion of the hearing, make the same findings and enter the same order as authorized by the hearing officer or administrative judge pursuant to subsection (a).(c) For purposes of this section: (1) 'Notice' means a document required by § 4-5-307(b); and(2) 'Respondent' means a party to whom a state agency issues a notice.Amended by 2022 Tenn. Acts, ch. 833, s 12, eff. 7/1/2022.Amended by 2021 Tenn. Acts, ch. 403, s 1, eff. 5/12/2021.Acts 1994, ch. 869, § 1.