Text: HF02322 Text: HF02324 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 13.7, Code 1999, is amended to read as 1 2 follows: 1 3 13.7 SPECIAL COUNSEL. 1 4 1. Compensation shall not be allowed to any person for 1 5 services as an attorney or counselor to an executive 1 6 department of the state government, or the head thereof, or to 1 7 a state board or commission. However, the executive council 1 8 may employ legal assistance, at a reasonable compensation, in 1 9 a pending action or proceeding to protect the interests of the 1 10 state, but only upon a sufficient showing, in writing, made by 1 11 the attorney general, that the department of justice cannot 1 12 for reasons stated by the attorney general perform the 1 13 service, which reasons and action of the council shall be 1 14 entered upon its records. When the attorney general 1 15 determines that the department of justice cannot perform legal 1 16 service in an action or proceeding, the executive council 1 17 shall request the department involved in the action or 1 18 proceeding to recommend legal counsel to represent the 1 19 department. If the attorney general concurs with the 1 20 department that the person recommended is qualified and 1 21 suitable to represent the department, the person recommended 1 22 shall be employed. If the attorney general does not concur in 1 23 the recommendation, the department shall submit a new 1 24 recommendation. Thissectionsubsection does not affect the 1 25 general counsel for the utilities board of the department of 1 26 commerce, or the legal counsel of the department of workforce 1 27 development. 1 28 2. The attorney general shall also comply with the 1 29 provisions of chapter 23B in accordance with retention of 1 30 counsel under this section, as appropriate. 1 31 Sec. 2. NEW SECTION. 23B.1 DEFINITIONS. 1 32 For the purposes of this chapter: 1 33 1. "Contract for legal services in excess of one million 1 34 dollars" means an agreement under which the fee paid to one or 1 35 more attorneys, law firms, or other entities legally 2 1 authorized to practice law in the relevant jurisdiction, for 2 2 services to be rendered in connection with a single civil or 2 3 criminal case, civil transaction or other legal matter, or 2 4 series of connected cases, transactions, or other legal 2 5 matters, exceeds or can be reasonably expected to exceed one 2 6 million dollars. This definition applies whether the 2 7 agreement provides for the fee to be calculated in the form of 2 8 a flat, hourly, or contingent fee, and the fee includes 2 9 expenses associated with the handling of the legal matter. 2 10 2. "Open and competitive bidding process" means the 2 11 process which includes advertisement for, solicitation of, and 2 12 the procurement of bids; the manner and condition in which 2 13 bids are received; and the procedure by which bids are opened, 2 14 accessed, accepted, rejected, or awarded. 2 15 3. "State" includes any agency, executive board, 2 16 commission, bureau, division, office, department, or 2 17 authorized agent of the state of Iowa. 2 18 Sec. 3. NEW SECTION. 23B.2 COMPETITIVE BIDDING 2 19 PREFERENCES. 2 20 1. The state shall not seek to retain any attorney, law 2 21 firm, or other entity legally authorized to practice law in 2 22 the relevant jurisdiction, to perform legal services on behalf 2 23 of this state until an open and competitive bidding process 2 24 has been undertaken pursuant to the provisions of this 2 25 chapter. 2 26 2. The attorney general shall solicit bids for the 2 27 proposed contract by publishing an advertisement in a print 2 28 format. The advertisement shall appear in at least one 2 29 newspaper with a circulation relevant to the jurisdiction in 2 30 which the services are to be performed, and at least one 2 31 publication circulated primarily to attorneys licensed to 2 32 practice within the state of Iowa. The first advertisement 2 33 for bids shall be not less than thirty days prior to the date 2 34 set for receiving bids. The attorney general may publish an 2 35 advertisement in an electronic format or via direct facsimile 3 1 or mail to qualified individuals or entities as an additional 3 2 method of soliciting bids under this subsection. 3 3 3. The state shall give preference to purchasing Iowa 3 4 services from Iowa-based attorneys, law firms, and other 3 5 entities legally authorized to practice law in the relevant 3 6 jurisdiction, if the bids submitted are comparable in price 3 7 and quality to those submitted by other bidders, and meet the 3 8 required specifications. 3 9 4. The bidding process required by this section may 3 10 include a transaction accomplished in an electronic format. 3 11 5. Contracts shall be awarded on the basis of bidder 3 12 competence, qualifications, and reasonable price, subject to 3 13 the legislative oversight provisions of this chapter. 3 14 6. The attorney general may refuse all bids on any 3 15 contract and institute a new bidding procedure. 3 16 7. The attorney general shall adopt rules according to 3 17 chapter 17A related to procedures for the open and competitive 3 18 bidding process in this chapter, including the amount of 3 19 security, if any, to accompany a bid or as a condition 3 20 precedent to the awarding of any contract and the 3 21 circumstances under which a security will be returned to the 3 22 bidder or forfeited to the state. 3 23 Sec. 4. NEW SECTION. 23B.3 LEGISLATIVE OVERSIGHT 3 24 PUBLIC HEARING. 3 25 1. a. The attorney general shall file any proposed 3 26 contract for legal services in excess of one million dollars 3 27 with the secretary of the senate and the chief clerk of the 3 28 house of representatives, who, with the approval of the 3 29 president of the senate and the speaker of the house of 3 30 representatives, shall transmit such contract to the 3 31 appropriate committees. 3 32 b. If the general assembly is not in session and the 3 33 attorney general wishes to execute a contract for legal 3 34 services in excess of one million dollars, the governor, the 3 35 president of the senate, or the speaker of the house of 4 1 representatives may send the matter to the fiscal committee of 4 2 the legislative council to execute the oversight duties as set 4 3 forth in this section. The same deadlines and reporting 4 4 responsibilities shall apply to the attorney general and the 4 5 fiscal committee that apply to a standing committee of the 4 6 general assembly executing its powers and obligations under 4 7 this section. 4 8 2. If the committee does not recommend any changes to the 4 9 proposed contract within sixty days of the initial filing of 4 10 the proposed contract with the secretary of the senate and the 4 11 chief clerk of the house of representatives, the attorney 4 12 general may enter into the contract. 4 13 3. The attorney general shall review the report of the 4 14 committee and draft a revised proposed contract according to 4 15 any recommended changes contained in the report and shall file 4 16 the proposed contract with the secretary of the senate and the 4 17 chief clerk of the house of representatives. 4 18 4. a. If the proposed contract contains all changes 4 19 recommended by the committee, the attorney general shall file 4 20 the proposed contract with the secretary of the senate and the 4 21 chief clerk of the house of representatives, accompanied by a 4 22 letter stating that the recommended changes have been 4 23 accepted. The secretary of the senate and the chief clerk of 4 24 the house of representatives shall transmit the letter and 4 25 proposed contract to the appropriate committees. 4 26 b. The attorney general may enter into the contract no 4 27 earlier than thirty days following submission of the contract 4 28 and letter to the general assembly, unless the committee 4 29 determines during the thirty-day period that the proposed 4 30 contract does not substantially comply with the recommended 4 31 changes of the committee. In the event the committee makes 4 32 such a determination, the procedures in subsection 6 shall 4 33 apply. 4 34 5. If the proposed contract does not contain the changes 4 35 recommended by the committee, the attorney general shall send 5 1 a letter to the secretary of the senate and the chief clerk of 5 2 the house of representatives accompanying the proposed 5 3 contract stating the reasons why such proposed changes were 5 4 not adopted. 5 5 6. The committee shall have forty-five days to take action 5 6 on the proposed contract. If the committee does not act 5 7 within forty-five days, then the proposed contract shall be 5 8 final. 5 9 Sec. 5. NEW SECTION. 23B.4 LIMITATION ON CONTINGENT 5 10 FEES. 5 11 1. At the conclusion of any legal proceeding for which the 5 12 contract provides for recovery of a contingent fee or fees, 5 13 the state shall receive from counsel a statement of the hours 5 14 worked on the case, expenses incurred, the aggregate fee 5 15 amount, and a breakdown as to the hourly rate, based on hours 5 16 worked divided into the contingent fee to be recovered, less 5 17 expenses. 5 18 2. In cases where the disclosure submitted in accordance 5 19 with subsection 1 indicates an hourly rate in excess of thirty 5 20 percent of the total amount recovered by verdict or 5 21 settlement, or one thousand dollars per hour worked, the 5 22 following shall apply: 5 23 a. The state shall not pay any contingent fee pursuant to 5 24 any contract executed in accordance with this chapter that 5 25 would result in a payment in excess of thirty percent of the 5 26 total amount recovered by verdict or settlement, or of one 5 27 thousand dollars per hour worked, whichever amount is less. 5 28 b. The fee amount for such contract shall be reduced to an 5 29 amount equivalent to thirty percent of the total amount 5 30 recovered by verdict or settlement, or one thousand dollars 5 31 per hour worked, whichever amount is less. 5 32 3. Notwithstanding subsection 2, the fee limitations 5 33 imposed by this section may be waived by a majority vote of 5 34 the executive council upon a determination that the fee 5 35 limitations would make it impossible to retain counsel in a 6 1 manner that would ensure successful litigation. 6 2 4. Disputes regarding appropriate fees and expenses shall 6 3 be resolved through mediation. If the dispute cannot be 6 4 resolved by mediation, the dispute shall be resolved by the 6 5 courts. 6 6 5. All contracts executed pursuant to this chapter shall 6 7 expressly contain the limitation imposed by this section as 6 8 part of the terms of the contract, and shall also otherwise 6 9 contain fee provisions and disclosures in accordance with the 6 10 Iowa code of professional responsibility for lawyers, 6 11 including payment of expenses by the client. 6 12 Sec. 6. NEW SECTION. 23B.5 OTHER EXISTING LAW. 6 13 The attorney general shall also comply with the provisions 6 14 of section 13.7 in the retention of legal services. However, 6 15 the provisions of this chapter shall prevail, to the extent 6 16 that there are any conflicts between the requirements of this 6 17 chapter and other law. 6 18 Sec. 7. NEW SECTION. 23B.6 NO EXPANSION OF AUTHORITY TO 6 19 CONTRACT. 6 20 This chapter shall not be construed to expand the authority 6 21 of the state to enter into contracts where no other authority 6 22 exists. 6 23 Sec. 8. NEW SECTION. 23B.7 CHAPTER INAPPLICABLE. 6 24 This chapter shall not apply to legal services contracts 6 25 under chapter 13B. 6 26 EXPLANATION 6 27 This bill creates new Code chapter 23B, to address the 6 28 procedure for retention of private counsel by the state, which 6 29 according to the definitional section of the bill includes any 6 30 agency, executive board, commission, bureau, division, office, 6 31 department, or authorized agent of the state. 6 32 The bill establishes in new Code section 23B.2 a 6 33 competitive bidding process for the retention of private 6 34 counsel, supervised by the attorney general, and requiring 6 35 advertisement and establishing a standard for the award of 7 1 contracts. The attorney general is authorized to adopt rules 7 2 related to the procedures for competitive bidding. 7 3 The bill establishes in new Code section 23B.3 legislative 7 4 oversight of the contract award process when the contract for 7 5 legal services exceeds $1 million. Such contracts must be 7 6 filed by the attorney general with the general assembly. The 7 7 procedure authorizes transmittal of the filed contract to a 7 8 legislative committee for further action. 7 9 If the committee recommends no changes, the attorney 7 10 general may enter into the contract after 60 days after the 7 11 initial filing of the proposed contract. If the committee 7 12 recommends changes, the attorney general must revise the 7 13 proposed contract and resubmit it to the general assembly. If 7 14 the revised proposed contract substantially contains all 7 15 recommended changes, the attorney general can enter into the 7 16 contract after 30 days, unless there is determination by the 7 17 committee that the contract does not substantially contain all 7 18 recommended changes. In that event, or in the event the 7 19 attorney general files a revised proposed contract along with 7 20 a letter explaining why recommended changes have not been 7 21 adopted, the committee shall have 45 days to take action on 7 22 the proposed contract. If the committee does not act during 7 23 the 45-day period, the contract becomes final. 7 24 New Code section 23B.4 contains a special limitation on 7 25 contingent fee agreements. Counsel which are party to such 7 26 agreements are required to submit a disclosure to the state at 7 27 the conclusion of such proceedings which analyzes the hourly 7 28 rate for the work performed. Disclosures which reveal an 7 29 hourly rate in excess of the lesser of 30 percent of the 7 30 amount of the verdict or settlement, or $1,000 per hour, shall 7 31 be reduced to the lesser of 30 percent of the amount of the 7 32 verdict or settlement, or $1,000 per hour, a limitation which 7 33 shall be included in the terms of any contract based on a 7 34 contingent fee. Disputes regarding such fees are to be 7 35 resolved by mediation, or if mediation fails, then by the 8 1 courts. The fee limitation can be waived by a majority vote 8 2 of the executive council if it determines the fee limitations 8 3 would make it impossible to retain counsel in a manner that 8 4 would ensure successful litigation. 8 5 The bill also provides that the new Code chapter does not 8 6 apply to legal services contracts under Code chapter 13B 8 7 relating to public defenders. 8 8 The bill also amends Code section 13.7, the current Code 8 9 section pertaining to the retention of private counsel by the 8 10 attorney general, to specify that the procedures of new Code 8 11 chapter 23B apply. 8 12 LSB 5179HV 78 8 13 jj/cf/24
Text: HF02322 Text: HF02324 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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