A BILL TO BE ENTITLED
AN ACT to allow attorney's fees when the state is the prevailing party in certain civil actions and clarify and standardize the requirements to award ATTORNEY'S fees in actions involving the state.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 6‑19.1 reads as rewritten:
"§ 6‑19.1.  Attorney's fees in certain actions involving the State.
(a)	Prevailing Party Is Not the State. – In any civil action, other than an adjudication for the purpose of establishing or fixing a rate, or a disciplinary action by a licensing board, brought by the State or brought by a party who is contesting State action pursuant to G.S. 150B‑43 or any other appropriate provisions of law, unless the prevailing party is the State, the court may, in its discretion, allow the prevailing party to recover reasonable attorney's fees, including attorney's fees applicable to the administrative review portion of the case, in contested cases arising under Article 3 of Chapter 150B, to be taxed as court costs against the appropriate agency of the State if:
(1)	The court finds that the agency acted without substantial justification in pressing its claim against the party; and
(2)	The court finds that there are no special circumstances that would make the award of attorney's fees unjust.
Nothing in this subsection shall be deemed to authorize the assessment of attorney's fees for the administrative review portion of the case in contested cases arising under Article 9 of Chapter 131E of the General Statutes.

Any attorney's fees assessed against an agency of the State under this subsection shall be charged against the operating expenses of the agency and shall not be reimbursed from any other source.
…
(c)	Prevailing Party Is the State. – In any civil action or other proceeding, the court must allow the State to recover reasonable attorney's fees and costs if the State is the prevailing party and the claim or issue involves one or both of the following:
(1)	Contesting the State's ability to construct transportation improvements.
(2)	Seeking relief based on environmental impact.
Reasonable attorney's fees include attorney's fees applicable to any administrative portion of the case. The attorney's fees must be taxed as court costs against any law firm seeking relief against the State. Contracts between the law firm and named parties in the action to reimburse the law firm for attorney's fees are valid and enforceable. Law firms may avoid liability under this subsection if the named parties post a bond for the payment of attorney's fees and costs in an amount determined by the presiding judge. Upon motion of either party, the presiding judge may adjust the amount of the required bond at reasonable times.
(d)	Petition and Award. – The prevailing party must petition for the attorney's fees within 30 days following final disposition of the case. The petition must be supported by an affidavit setting forth the basis for the request. When the presiding judge determines that an award of attorney's fees is to be made under this section, the judge must issue a written order including the factual basis and amount of attorney's fees to be awarded.
(e)	No Grant of Jurisdiction. – Nothing in this section grants permission to bring an action against the State when otherwise immune from suit or gives a right to bring an action to a party who otherwise lacks standing to bring the action.
(f)	Definitions. – The following definitions apply in this section:
(1)	Law firm. – Any entity or individual providing legal services in the action against the State.
(2)	State. – The State and its agencies as defined in G.S. 150B‑2(1a)."
SECTION 2.  This section becomes effective September 1, 2017, and applies to all actions or other proceedings filed on or after that date.