State and local administration.

Provides that, in an adjudicative administrative proceeding concerning an agency action, the administrative law judge shall order the agency to pay the reasonable attorney's fees incurred, if the party challenging the agency action proves, by a preponderance of the evidence, that: (1) the agency's action was frivolous or groundless; or (2) the agency pursued the action in bad faith. Make a conforming change to the determination of adjusted gross income for purposes of the state income tax deduction for unemployment compensation. Exempts certain hospitals from the nonprofit hospital public forum requirement. Specifies that an advance health care directive must be signed in the presence (but not the "direct physical presence") of two witnesses. Provides that local floodplain administrators in counties having a population of more than 140,000 but less than 150,000 may issue a variance approving a structure located in a floodway without a permit issued by the director of the department if: (1) the structure is not used as an abode or residence; (2) the structure is constructed after January 1, 2018, but not later than July 1, 2020; and (3) the lowest floor of the structure is not more than 0.15 of a foot below two feet above the 100 year flood elevation. Resolves conflicts.