MI SB0245

Removes net worth and employee thresholds that previously excluded wealthy individuals and large businesses from the definition of "party" eligible to recover costs and fees from the state.

Changes the standard for awarding costs and fees against the state from requiring the state's position be "substantially justifiable" to a lower threshold where the state must demonstrate its position was "substantially justifiable," with specific exceptions requiring a "frivolous" standard for certain actions (illegal gambling, child abuse registry, child support, and license suspension cases).

Allows a prevailing party to move the court for an award of costs and fees without requiring prior party agreement, shifting the burden to the moving party to establish eligibility and the frivolous nature of the state's position where applicable.

Replaces the $75 per hour attorney fee cap with a requirement that courts award reasonable attorney fees based on applicable Supreme Court precedent and prevailing market rates.

Takes effect 90 days after enactment and is contingent on Senate Bill No. 246 being enacted into law.