Sec. 27.5. In a proceeding under this chapter concerning an agency action, the administrative law judge shall order the agency to pay the reasonable attorney's fees incurred in the proceeding by the prevailing party challenging the agency action if:
(1) the party challenging the agency action proves, by a preponderance of the evidence, that: (A) the agency's action was frivolous or groundless; or (B) the agency pursued the action in bad faith; (2) the agency action was based on an invalid rule, as provided in IC 4-22-2-44; or (3) the agency has failed to demonstrate that the agency acted within its legal authority. As added by P.L.199-2021, SEC.1. Amended by P.L.249-2023, SEC.6.