Text: HSB00561 Text: HSB00563 Text: HSB00500 - HSB00599 Text: HSB 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 fifteen 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. The state shall not enter into a contract for legal 3 26 services exceeding one million dollars without the opportunity 3 27 for at least one public hearing, scheduled by the general 3 28 assembly in accordance with this section, on the terms of the 3 29 contract for legal services. 3 30 2. a. The attorney general shall file any proposed 3 31 contract for legal services in excess of one million dollars 3 32 with the secretary of the senate and the chief clerk of the 3 33 house of representatives, who, with the approval of the 3 34 president of the senate and the speaker of the house of 3 35 representatives, shall transmit such contract to the 4 1 appropriate committees. 4 2 b. If the general assembly is not in session and the 4 3 attorney general wishes to execute a contract for legal 4 4 services in excess of one million dollars, the governor, with 4 5 the unanimous consent of the president of the senate and 4 6 speaker of the house of representatives may, establish a five- 4 7 member interim committee consisting of five state legislators, 4 8 one each to be appointed by the governor, the president of the 4 9 senate, the speaker of the house of representatives, and the 4 10 minority leader in each house of the general assembly, to 4 11 execute the oversight duties as set forth in this section. 4 12 The same deadlines and reporting responsibilities shall apply 4 13 to the attorney general and this interim committee that apply 4 14 to a standing committee of the general assembly executing its 4 15 powers and obligations under this section. 4 16 3. a. Within thirty days after transmittal, the 4 17 legislative committee may hold a public hearing on the 4 18 proposed contract and shall issue a report to the attorney 4 19 general. The report shall include any proposed changes to the 4 20 proposed contract recommended by vote of the committee. 4 21 b. If the committee does not recommend any changes to the 4 22 proposed contract within sixty days of the initial filing of 4 23 the proposed contract with the secretary of the senate and the 4 24 chief clerk of the house of representatives, the attorney 4 25 general may enter into the contract. 4 26 4. The attorney general shall review the report of the 4 27 committee and draft a revised proposed contract according to 4 28 any recommended changes contained in the report and shall file 4 29 the proposed contract with the secretary of the senate and the 4 30 chief clerk of the house of representatives. 4 31 5. a. If the proposed contract contains all changes 4 32 recommended by the committee, the attorney general shall file 4 33 the proposed contract with the secretary of the senate and the 4 34 chief clerk of the house of representatives, accompanied by a 4 35 letter stating that the recommended changes have been 5 1 accepted. The secretary of the senate and the chief clerk of 5 2 the house of representatives shall transmit the letter and 5 3 proposed contract to the appropriate committees. 5 4 b. The attorney general may enter into the contract no 5 5 earlier than thirty days following submission of the contract 5 6 and letter to the general assembly, unless the committee 5 7 determines during the thirty-day period that the proposed 5 8 contract does not substantially comply with the recommended 5 9 changes of the committee. In the event the committee makes 5 10 such a determination, the procedures in subsection 7 shall 5 11 apply. 5 12 6. If the proposed contract does not contain the changes 5 13 recommended by the committee, the attorney general shall send 5 14 a letter to the secretary of the senate and the chief clerk of 5 15 the house of representatives accompanying the proposed 5 16 contract stating the reasons why such proposed changes were 5 17 not adopted. 5 18 7. a. The committee shall have forty-five days to take 5 19 action on the proposed contract. 5 20 b. If the committee and the attorney general cannot reach 5 21 agreement on the terms of the contract during the forty-five- 5 22 day period described in this subsection, the committee may 5 23 renew the forty-five-day period by a majority vote of the 5 24 committee. There is no limit on the number of forty-five-day 5 25 period renewals that may be imposed by the committee. 5 26 c. The attorney general shall not enter into a final 5 27 contract during any forty-five-day period allowed under 5 28 paragraph "a" or "b", without a written release signed by a 5 29 majority of the committee waiving the imposition of the last 5 30 forty-five-day period. 5 31 Sec. 5. NEW SECTION. 23B.4 LIMITATION ON CONTINGENT 5 32 FEES. 5 33 1. At the conclusion of any legal proceeding for which the 5 34 contract provides for recovery of a contingent fee or fees, 5 35 the state shall receive from counsel a statement of the hours 6 1 worked on the case, expenses incurred, the aggregate fee 6 2 amount, and a breakdown as to the hourly rate, based on hours 6 3 worked divided into the contingent fee to be recovered, less 6 4 expenses. 6 5 2. In cases where the disclosure submitted in accordance 6 6 with subsection 1 indicates an hourly rate in excess of thirty 6 7 percent of the total amount recovered by verdict or 6 8 settlement, or one thousand dollars per hour worked, the 6 9 following shall apply: 6 10 a. The state shall not pay any contingent fee pursuant to 6 11 any contract executed in accordance with this chapter that 6 12 would result in a payment in excess of thirty percent of the 6 13 total amount recovered by verdict or settlement, or of one 6 14 thousand dollars per hour worked, whichever amount is less. 6 15 b. The fee amount for such contract shall be reduced to an 6 16 amount equivalent to thirty percent of the total amount 6 17 recovered by verdict or settlement, or one thousand dollars 6 18 per hour worked, whichever amount is less. 6 19 3. Disputes regarding appropriate fees and expenses shall 6 20 be resolved through mediation. 6 21 4. All contracts executed pursuant to this chapter shall 6 22 expressly contain the limitation imposed by this section as 6 23 part of the terms of the contract, and shall also otherwise 6 24 contain fee provisions and disclosures in accordance with the 6 25 Iowa code of professional responsibility for lawyers, 6 26 including payment of expenses by the client. 6 27 Sec. 6. NEW SECTION. 23B.5 OTHER EXISTING LAW. 6 28 The attorney general shall also comply with the provisions 6 29 of section 13.7 in the retention of legal services. However, 6 30 the provisions of this chapter shall prevail, to the extent 6 31 that there are any conflicts between the requirements of this 6 32 chapter and other law. 6 33 Sec. 7. NEW SECTION. 23B.6 NO EXPANSION OF AUTHORITY TO 6 34 CONTRACT. 6 35 This chapter shall not be construed to expand the authority 7 1 of the state to enter into contracts where no other authority 7 2 exists. 7 3 EXPLANATION 7 4 This bill creates new Code chapter 23B, to address the 7 5 procedure for retention of private counsel by the state, which 7 6 according to the definitional section of the bill includes any 7 7 agency, executive board, commission, bureau, division, office, 7 8 department, or authorized agent of the state. 7 9 The bill establishes in new Code section 23B.2 a 7 10 competitive bidding process for the retention of private 7 11 counsel, supervised by the attorney general, and requiring 7 12 advertisement and establishing a standard for the award of 7 13 contracts. The attorney general is authorized to adopt rules 7 14 related to the procedures for competitive bidding. 7 15 The bill establishes in new Code section 23B.3 legislative 7 16 oversight of the contract award process when the contract for 7 17 legal services exceeds $1 million. Such contracts must be 7 18 filed by the attorney general with the general assembly. The 7 19 procedure authorizes transmittal of the filed contract to a 7 20 legislative committee for further action, including the option 7 21 for at least one public hearing on the terms of the contract 7 22 within 30 days. 7 23 If the committee recommends no changes, the attorney 7 24 general may enter into the contract after 60 days after the 7 25 initial filing of the proposed contract. If the committee 7 26 recommends changes, the attorney general must revise the 7 27 proposed contract and resubmit it to the general assembly. If 7 28 the revised proposed contract substantially contains all 7 29 recommended changes, the attorney general can enter into the 7 30 contract after 30 days, unless there is determination by the 7 31 committee that the contract does not substantially contain all 7 32 recommended changes. In that event, or in the event the 7 33 attorney general files a revised proposed contract along with 7 34 a letter explaining why recommended changes have not been 7 35 adopted, the committee shall have 45 days to take action on 8 1 the proposed contract. If the committee and the attorney 8 2 general cannot agree on the terms of the contract during the 8 3 45-day period, the committee may extend the consideration for 8 4 an additional 45 days. There is no limit on the number of 8 5 extensions that may be approved by the committee. The 8 6 attorney general is prohibited from entering into a final 8 7 contract during any such 45-day period, unless a waiver is 8 8 signed by a majority of the committee. 8 9 New Code section 23B.4 contains a special limitation on 8 10 contingent fee agreements. Counsel which are party to such 8 11 agreements are required to submit a disclosure to the state at 8 12 the conclusion of such proceedings which analyzes the hourly 8 13 rate for the work performed. Disclosures which reveal an 8 14 hourly rate in excess of the lesser of 30 percent of the 8 15 amount of the verdict or settlement, or $1,000 per hour, shall 8 16 be reduced to the lesser of 30 percent of the amount of the 8 17 verdict or settlement, or $1,000 per hour, a limitation which 8 18 shall be included in the terms of any contract based on a 8 19 contingent fee. Disputes regarding such fees are to be 8 20 resolved by mediation. 8 21 The bill also amends Code section 13.7, the current Code 8 22 section pertaining to the retention of private counsel by the 8 23 attorney general, to specify that the procedures of new Code 8 24 chapter 23B apply. 8 25 LSB 5179YC 78 8 26 jj/cf/24.1
Text: HSB00561 Text: HSB00563 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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