HOUSE BILL REPORT

                 2SSB 5084

             As Reported By House Committee On:

                Government Reform & Land Use

Title:  An act relating to attorneys' fees, costs, and expenses awarded against the state.

Brief Description:  Modifying the definition of a qualified party and the amount of attorneys' fees they may recover in an action appealing a state agency directive.

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Roach, Schow, Benton, Swecker, Zarelli, Morton, Hochstatter, Johnson, McCaslin, Winsley, Stevens and Oke).

Brief History:

  Committee Activity:

Government Reform & Land Use:  3/31/97 [DP].

HOUSE COMMITTEE ON GOVERNMENT REFORM & LAND USE

Majority Report:  Do pass.  Signed by 11 members:  Representatives Reams, Chairman; Cairnes, Vice Chairman; Sherstad, Vice Chairman; Romero, Ranking Minority Member; Lantz, Assistant Ranking Minority Member; Bush; Fisher; Gardner; Mielke; Mulliken and Thompson.

Staff:  Joan Elgee (786-7135).

Background:  As part of 1995 regulatory reform legislation (ESHB 1010), the Legislature enacted the Equal Access to Justice Act.  The act generally requires an award of attorneys= fees and expenses, not exceeding $25,000, to qualified parties that successfully challenge an agency action.

Qualified parties include:  a) individuals whose net worth does not exceed $1 million, and b) a sole owner of an unincorporated business, or a partnership, corporation, association, or organization whose net worth does not exceed $5 million.

Summary of Bill:  The $25,000 cap on attorneys= fees and other expenses awarded to a prevailing party in a successful challenge of an agency action is raised to $50,000.

The net worth limits for a party to be qualified to receive an award of fees and costs are raised.  Qualified parties include:  a) individuals whose net worth does not exceed $2 million, and b) a sole owner of an unincorporated business, or a partnership, corporation, association, or organization whose net worth does not exceed $7 million.

The Office of Financial Management must report annually to the Legislature on the amount of fees and other expenses awarded.

Appropriation:  None.

Fiscal Note:  Requested on March 24, 1997.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Raising the caps makes the amounts more realistic.  Small businesses incur costs in addition to attorneys= fees and costs.  The current law has not been abused.  The report to the Legislature will identify where there are problems.

Testimony Against:  The Governor=s office has concerns about doubling amounts based on the limited experience under the current law.

Testified:  Amber Balch, Association of Washington Business (pro); Carolyn Logue, National Federation of Independent Business (pro); Tony Meinhardt, Independent Business Association (pro); and Fred Hellberg, Governor=s office (concerns).