992                                            LAWS OF MARYLAND                                      Ch. 256

(c)  Subject to the limitations in this section, an agency
or court may award to a business OR NONPROFIT ORGANIZATION
reimbursement for expenses that the business OR NONPROFIT
ORGANIZATION reasonably incurs in connection with a contested
case or civil action that:

(1)  is initiated against the business OR NONPROFIT
ORGANIZATION by an agency as part of an administrative or
regulatory function;

(2)  is initiated without substantial justification or
in bad faith; and

(3)  does not result in:

(i) an adjudication, stipulation, or acceptance
of liability of the business OR NONPROFIT ORGANIZATION;

(ii) a determination of noncompliance,
violation, infringement, deficiency, or breach on the part of the
business OR NONPROFIT ORGANIZATION; or

(iii) a settlement agreement under which the
business OR NONPROFIT ORGANIZATION agrees to take corrective
action or to pay a monetary sum.

(d)  (1) To qualify for an award under this section when the
agency has initiated a contested case, the business OR NONPROFIT
ORGANIZATION must make a claim to the agency before taking any
appeal.

(2) The agency shall act on the claim.

(e)  (1) An award under this section may include:

(i) the expenses incurred in the contested
case;

$10,000.

(ii) court costs;
(iii) counsel fees; and
(iv) the fees of necessary witnesses.
(2) An award under this section may not exceed

(3) The court may reduce or deny an award to the
extent that the conduct of the business OR NONPROFIT ORGANIZATION
during the proceedings unreasonably delayed the resolution of the
matter in controversy.

(f) An award under this section shall be paid as provided
in the State budget.