The Honorable Dennis DeConcini Subcommittee on Improvements - 3 June 7, 1979 In conclusion, the AMA is sympathetic and supportive of the intent of this legislation. We agree that steps must be taken to restore a balance between government and citizens, to increase the public accountability of the bureaucracy and to deter inappropriate agency adjudications. However, we do not believe, for the reasons already ennunciated, that S 265 is the proper vehicle to achieve these goals. We believe that our draft proposal is a better means of attaining these desirable results and we urge its enactment by the Congress. Sincerely, Janith fam James H. Sammons, M.D. JHS: RBF/dap January, 1979 REIMBURSEMENT OF LITIGATION COSTS FOR PARTIES WHO PREVAIL IN ACTIONS BEFORE ADMINISTRATIVE AGENCIES The cost of defending administrative actions before federal regulatory agencies often can be staggering. In fact, parties have been known to capitulate to agency demands and enter into consent decrees, even when they have had a reasonable chance of success, rather than suffer the enormous costs of seeking vindication. With the growth of more federal agency authority, it can be expected that there will be more complex, expensive and protracted litigation. The draft bill would ameliorate the hardships by requiring administrative agencies to reimburse victorious defendants in actions initiated by the agency for reasonable attorney's fees and other costs directly related to the defense of the action. When a party prevails on only part of the charges made by the agency, the party would be reimbursed only for the cost directly related to defending the claims that were successfully defended. Agencies would be required to establish a reserve fund to insure payment of costs to prevailing parties. American Medical Association, Legislative Department, Public Affairs Division 1 2 3 4 5 96th Congress 6 7 8 9 10 DRAFT To amend the Administrative Procedure Act (Chapter 5 of Title 5, U.S. Code) to Be it enacted by the Senate and House of Representatives of the United SECTION 1. Subchapter 2 of Chapter 5 of Title 5 of the U.S. Code is amended agency, or by a person before an agency, that are subject to (b) (1) In cases where an agency has initiated, on its own initiative, an adjudicatory action wherein a person is named as party (2) defendant (or such other similar identification, where applicable) and such party-defendant prevails on all charges, allegations and claims raised against him in such action, the agency shall reimburse such party-defendant for all In cases where an agency has initiated, on its own initiative, At the time an agency initiates an adjudicatory action subject Agencies subject to the requirements of this section may request |