280 R.I. Code R. 280-RICR-20-00-1.5 - Definitions

A. "Adjudicative officer" means the deciding official, without regard to whether the official is designated as an administrative law judge, a hearing officer or examiner, or otherwise, who presided at the adversary adjudication.

B. "Adjudicatory proceedings" means any proceeding conducted by, or on behalf of, the State of Rhode Island administratively or quasi-judicially which may result in the loss of benefits; the imposition of a fine, the adjustment of a tax assessment; the denial, the suspension or revocation of a license or permit; or which may result in the compulsion or restriction of the activities of a party. Any agency charged by statute with investigating complaints shall be deemed to have substantial justification for said investigation and for the proceedings subsequent to said investigation.

C. "Agency" means Rhode Island Division of Taxation ("Division of Taxation").

D. "Party" means any individual whose net worth is less than five hundred thousand dollars ($500,000) at the time the adversary adjudication was initiated; and, any individual, partnership, corporation, association, or private organization doing business and located in the state, which is independently owned and operated, not dominant in its field, and which employs one hundred (100) or fewer persons at the time the adversary adjudication was initiated.

E. "Reasonable litigation expenses" means those expenses which were reasonably incurred by a party in adjudicatory proceedings, including, but not limited to, attorney's fees, witness fees of all necessary witnesses, and other such costs and expenses as were reasonably incurred, except that:

1. The award of attorney's fees may not exceed one hundred and fifty dollars ($150) per hour; unless the court determines that special factors justify a higher fee;

2. No expert witness may be compensated at a rate in excess of the highest rate of compensation for experts paid by this state.

3. Legal, professional, and all other reasonable expenses incurred prior to the commencement of the adjudicatory proceedings are not subject to claim or award under R.I. Gen. Laws Chapter 42-92.

4. Adjudicatory proceedings are commenced when a taxpayer requests a hearing to the Tax Administrator within the time prescribed by statute.

F. "Substantial justification" means that the initial position of the Division of Taxation, as well as the Division of Taxation's position in the proceedings, has a reasonable basis in law and fact.

Notes

280 R.I. Code R. 280-RICR-20-00-1.5