Text: SSB01219 Text: SSB01221 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 13.7, Code 2001, 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 when retaining counsel under this 1 30 section, as appropriate. 1 31 Sec. 2. NEW SECTION. 23B.1 CITATION. 1 32 This chapter shall be known and may be cited as the 1 33 "Private Attorney Retention Sunshine Act". 1 34 Sec. 3. NEW SECTION. 23B.2 DEFINITIONS. 1 35 For the purposes of this chapter: 2 1 1. "Contract for legal services in excess of one million 2 2 dollars" means an agreement under which the fee paid to one or 2 3 more attorneys, law firms, or other entities legally 2 4 authorized to practice law in the relevant jurisdiction, for 2 5 services to be rendered in connection with a single civil 2 6 case, civil transaction or other legal matter, or series of 2 7 connected cases, transactions, or other legal matters, exceeds 2 8 or can be reasonably expected to exceed one million dollars. 2 9 This definition applies whether the agreement provides for the 2 10 fee to be calculated in the form of a flat, hourly, or 2 11 contingent fee, and the fee includes expenses associated with 2 12 the handling of the legal matter. 2 13 2. "State agency" includes any agency, executive board, 2 14 commission, bureau, division, office, department, or 2 15 authorized agent of the state of Iowa. 2 16 Sec. 4. NEW SECTION. 23B.3 CONTRACTS FOR LEGAL SERVICES. 2 17 1. The state agency shall not seek to contract for legal 2 18 services unless the procedures outlined in this chapter have 2 19 been complied with. 2 20 2. At the conclusion of any legal proceeding for which the 2 21 contract provides for recovery of a contingent fee or fees, 2 22 the state agency shall receive from counsel a statement of the 2 23 hours worked on the case, expenses incurred, the aggregate fee 2 24 amount, and a breakdown as to the hourly rate, based on hours 2 25 worked divided into the contingent fee to be recovered, less 2 26 expenses. 2 27 3. A state agency shall not pay any hourly fee pursuant to 2 28 any contingent fee contract executed in accordance with this 2 29 chapter that would result in a payment in excess of one 2 30 thousand dollars per hour. The fee amount for such contract 2 31 shall be reduced to an amount equivalent to one thousand 2 32 dollars per hour worked. 2 33 Sec. 5. NEW SECTION. 23B.4 LEGISLATIVE OVERSIGHT – 2 34 PUBLIC HEARING. 2 35 1. A state agency which seeks to enter into a contract for 3 1 legal services in excess of one million dollars shall file the 3 2 proposed contract with the secretary of the senate and the 3 3 chief clerk of the house of representatives. If the general 3 4 assembly is in session, the secretary of the senate and the 3 5 chief clerk of the house of representatives shall, with the 3 6 approval of the president of the senate and the speaker of the 3 7 house of representatives, transmit the contract to the 3 8 appropriate committees. 3 9 2. If the committee does not recommend any changes to the 3 10 proposed contract within sixty days of the initial filing of 3 11 the proposed contract with the secretary of the senate and the 3 12 chief clerk of the house of representatives, the state agency 3 13 may enter into the contract. 3 14 3. The state agency shall review the report of the 3 15 committee and draft a revised proposed contract according to 3 16 any recommended changes contained in the report and shall file 3 17 the proposed contract with the secretary of the senate and the 3 18 chief clerk of the house of representatives. 3 19 4. a. If the proposed contract contains all changes 3 20 recommended by the committee, the state agency shall file the 3 21 proposed contract with the secretary of the senate and the 3 22 chief clerk of the house of representatives, accompanied by a 3 23 letter stating that the recommended changes have been 3 24 accepted. The secretary of the senate and the chief clerk of 3 25 the house of representatives shall transmit the letter and 3 26 proposed contract to the appropriate committees. 3 27 b. The state agency may enter into the contract no earlier 3 28 than thirty days following submission of the contract and 3 29 letter to the general assembly, unless the committee 3 30 determines during the thirty-day period that the proposed 3 31 contract does not substantially comply with the recommended 3 32 changes of the committee. In the event the committee makes 3 33 such a determination, the procedures in subsection 6 shall 3 34 apply. 3 35 5. If the proposed contract does not contain the changes 4 1 recommended by the committee, the state agency shall send a 4 2 letter to the secretary of the senate and the chief clerk of 4 3 the house of representatives accompanying the proposed 4 4 contract stating the reasons why such proposed changes were 4 5 not adopted. 4 6 6. The committee shall have forty-five days to take action 4 7 on the proposed contract. If the committee does not act 4 8 within forty-five days, then the proposed contract shall be 4 9 final. 4 10 7. If the general assembly is not in session and the state 4 11 agency wishes to execute a contract for legal services in 4 12 excess of one million dollars, the governor, the president of 4 13 the senate, or the speaker of the house of representatives may 4 14 establish a five-member interim committee consisting of five 4 15 legislators, to be appointed by the governor, the speaker of 4 16 the house, the president of the senate, and the minority 4 17 leader in each house to execute the oversight duties as set 4 18 forth in this section. The same deadlines and reporting 4 19 responsibilities shall apply to the state agency and the 4 20 fiscal committee that apply to a standing committee of the 4 21 general assembly executing its powers and obligations under 4 22 this section. 4 23 Sec. 6. NEW SECTION. 23B.6 OTHER EXISTING LAW. 4 24 If the state agency is the office of attorney general or 4 25 the department of justice, the state agency shall also comply 4 26 with the provisions of section 13.7 in the retention of legal 4 27 services. However, the provisions of this chapter shall 4 28 prevail, to the extent that there are any conflicts between 4 29 the requirements of this chapter and other law. 4 30 Sec. 7. NEW SECTION. 23B.7 NO EXPANSION OF AUTHORITY TO 4 31 CONTRACT. 4 32 This chapter shall not be construed to expand the authority 4 33 of a state agency to enter into contracts where no other 4 34 authority exists. 4 35 Sec. 8. NEW SECTION. 23B.8 CHAPTER INAPPLICABLE. 5 1 This chapter shall not apply to legal services contracts 5 2 under chapter 13B. 5 3 EXPLANATION 5 4 This bill creates new Code chapter 23B, to address the 5 5 procedure for retention of private counsel by any state 5 6 agency, which according to the definition section of the bill 5 7 includes any agency, executive board, commission, bureau, 5 8 division, office, department, or authorized agent of the 5 9 state. 5 10 New Code section 23B.3 contains a special limitation on 5 11 contracts for legal services. The bill provides that at the 5 12 conclusion of any legal proceeding for which the contract 5 13 provides for recovery of a contingent fee, the state agency 5 14 shall receive from counsel a statement of the hours worked on 5 15 the case, expenses incurred, the aggregate fee amount, and a 5 16 breakdown as to the hourly rate, based on hours worked divided 5 17 into the contingent fee to be recovered, less expenses. The 5 18 bill further provides that the state shall not pay any hourly 5 19 fee under any contingent fee contract that would result in 5 20 payment in excess of one thousand dollars per hour. 5 21 The bill establishes in new Code section 23B.4 legislative 5 22 oversight of the contract award process when the contract for 5 23 legal services exceeds $1 million. Such contracts must be 5 24 filed by the state agency with the general assembly. The 5 25 procedure authorizes transmittal of the filed contract to a 5 26 legislative committee for further action. 5 27 If the committee fails to recommend any changes within 60 5 28 days of the initial filing of the proposed contract, the state 5 29 agency may enter into the contract. If the committee 5 30 recommends changes, the state agency must revise the proposed 5 31 contract and resubmit it to the general assembly. If the 5 32 revised proposed contract substantially contains all 5 33 recommended changes, the state agency can enter into the 5 34 contract after 30 days, unless there is determination by the 5 35 committee that the contract does not substantially contain all 6 1 recommended changes. In that event, or in the event the state 6 2 agency files a revised proposed contract along with a letter 6 3 explaining why recommended changes have not been adopted, the 6 4 committee shall have 45 days to take action on the proposed 6 5 contract. If the committee does not act during the 45-day 6 6 period, the contract becomes final. 6 7 The bill also provides that the new Code chapter does not 6 8 apply to legal services contracts under Code chapter 13B 6 9 relating to public defenders. 6 10 The bill also amends Code section 13.7, the current Code 6 11 section pertaining to the retention of private counsel by the 6 12 attorney general, to specify that the procedures of new Code 6 13 chapter 23B apply. 6 14 LSB 3189XC 79 6 15 rh/cf/24
Text: SSB01219 Text: SSB01221 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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