(a)

(1) Unless otherwise provided by law, the court having jurisdiction over the civil action brought by a state agency or over an action for judicial review brought pursuant to § 4-5-322, may award reasonable and actual fees and other expenses not to exceed ten thousand dollars ($10,000) to the prevailing party unless the prevailing party is a state agency.

(2)

(A) Unless otherwise provided by law, the court having jurisdiction over the civil action brought by a local government or over an action for judicial review may award reasonable and actual fees and other expenses not to exceed ten thousand dollars ($10,000) to the prevailing party unless the prevailing party is a local government.

(B) A small business that makes a claim against a local government for fees and expenses under this chapter that is not supported by substantial evidence or that is arbitrary or capricious or that is brought in bad faith for the purpose of harassment shall be subject to the procedures and sanctions of Tennessee Rules of Civil Procedure, Rule 11.

(b)

(1) The court may make an award pursuant to the terms of this chapter only if the small business has demonstrated by a preponderance of the evidence that the actions of the state agency were not supported by substantial evidence or were arbitrary and capricious or were brought in bad faith for the purpose of harassment. The court may, in its discretion, decline to make an award if it finds that special circumstances exist that would make an award unjust.

(2) The court may make an award pursuant to the terms of this chapter only if the small business has demonstrated by a preponderance of the evidence that the actions of the local government were arbitrary and capricious or were brought in bad faith for the purpose of harassment. The court may, in its discretion, decline to make an award if it finds that special circumstances exist that would make an award unjust.

(c)

(1) In a civil action commenced by a state agency or local government, a small business, in order to be eligible to make a claim for fees and other expenses under this chapter, must file a claim with the court within thirty (30) days after a final judgment has been rendered.

(2) In an action for judicial review brought in accordance with § 4-5-322 or an action for judicial review in a case in which a local government is a party, a small business must specifically state in the petition for review that it seeks fees and other expenses under this chapter. Failure to state shall bar the small business from making any claim under this chapter unless such a claim is filed subsequently with the court, in which event the small business shall be entitled to receive payment for fees or services actually rendered or expenses actually incurred after the notice of intent to make a claim is filed.

(3) All claims for fees and other expenses shall include, where applicable, an itemized statement for those fees including the actual time expended in representing a party and the rate at which the fees were computed, as well as invoices or statements showing the actual amount of other expenses incurred.

(d)

(1) Awards provided for in this chapter against a state agency shall, upon order of the court, be paid by the department of finance and administration from the general fund, except in the case of awards in cases involving the department of transportation, in which case the payment shall be made from the general highway fund.

(2) Awards provided for in this chapter against a local government shall, upon order of the court, be paid by the local government.

(e)