Bill Text: IA HF166 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act creating the transparency in private attorney contracts Act. (See Cmte. Bill HF 563)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF166 Detail]
Download: Iowa-2011-HF166-Introduced.html
House
File
166
-
Introduced
HOUSE
FILE
166
BY
HAGENOW
(COMPANION
TO
LSB
2089SS
BY
WARD)
A
BILL
FOR
An
Act
creating
the
transparency
in
private
attorney
contracts
1
Act.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2089YH
(3)
84
rh/nh
H.F.
166
Section
1.
Section
13.7,
Code
2011,
is
amended
to
read
as
1
follows:
2
13.7
Special
counsel.
3
Compensation
shall
not
be
allowed
to
any
person
for
services
4
as
an
attorney
or
counselor
to
an
executive
department
of
the
5
state
government,
or
the
head
thereof,
or
to
a
state
board
6
or
commission.
However,
the
executive
council
may
employ
7
legal
assistance
,
at
a
reasonable
compensation,
in
a
pending
8
action
or
proceeding
to
protect
the
interests
of
the
state
,
9
but
only
upon
a
sufficient
showing,
in
writing,
made
by
the
10
attorney
general,
that
the
department
of
justice
cannot
for
11
reasons
stated
by
the
attorney
general
perform
the
service,
12
which
reasons
and
action
of
the
council
shall
be
entered
13
upon
its
records.
When
the
attorney
general
determines
that
14
the
department
of
justice
cannot
perform
legal
service
in
an
15
action
or
proceeding,
the
executive
council
shall
request
the
16
department
involved
in
the
action
or
proceeding
to
recommend
17
legal
counsel
to
represent
the
department.
If
the
attorney
18
general
concurs
with
the
department
that
the
person
recommended
19
is
qualified
and
suitable
to
represent
the
department,
the
20
person
recommended
shall
be
employed.
If
the
attorney
general
21
does
not
concur
in
the
recommendation,
the
department
shall
22
submit
a
new
recommendation
pursuant
to
chapter
23B
.
This
23
section
does
not
affect
the
general
counsel
for
the
utilities
24
board
of
the
department
of
commerce,
the
legal
counsel
of
the
25
department
of
workforce
development,
or
the
general
counsel
for
26
the
property
assessment
appeal
board.
27
Sec.
2.
NEW
SECTION
.
23B.1
Citation.
28
This
chapter
may
be
known
and
cited
as
the
“Transparency
in
29
Private
Attorney
Contracts
Act”
.
30
Sec.
3.
NEW
SECTION
.
23B.2
Definitions.
31
For
the
purposes
of
this
chapter:
32
1.
“Government
attorney”
means
an
attorney
employed
by
the
33
state
as
a
staff
attorney
in
the
attorney
general’s
office.
34
2.
“Private
attorney”
means
any
private
attorney
or
law
35
-1-
LSB
2089YH
(3)
84
rh/nh
1/
6
H.F.
166
firm.
1
3.
“State”
means
the
state
of
Iowa
and
includes
state
2
officers,
departments,
boards,
commissions,
divisions,
bureaus,
3
councils,
and
units
of
organization,
however
designated,
of
the
4
executive
branch
of
state
government,
and
any
of
its
agents.
5
Sec.
4.
NEW
SECTION
.
23B.3
Contracts
for
legal
services.
6
1.
The
state
shall
not
enter
into
a
contingency
fee
contract
7
with
a
private
attorney
unless
the
attorney
general
makes
a
8
written
determination
prior
to
entering
into
such
a
contract
9
that
contingency
fee
representation
is
both
cost-effective
10
and
in
the
public
interest.
Any
written
determination
shall
11
include
specific
findings
for
each
of
the
following
factors:
12
a.
Whether
sufficient
and
appropriate
legal
and
financial
13
resources
exist
within
the
attorney
general’s
office
to
handle
14
the
matter.
15
b.
The
time
and
labor
required,
the
novelty,
complexity,
and
16
difficulty
of
the
questions
involved,
and
the
skill
required
to
17
perform
the
attorney
services
properly.
18
c.
The
geographic
area
where
the
attorney
services
are
to
19
be
provided.
20
d.
The
amount
of
experience
desired
for
the
particular
21
kind
of
attorney
services
to
be
provided
and
the
nature
of
the
22
private
attorney’s
experience
with
similar
issues
or
cases.
23
2.
If
the
attorney
general
makes
the
determination
24
described
in
subsection
1,
the
attorney
general
shall
issue
a
25
request
for
proposals
from
private
attorneys
to
represent
the
26
department
of
justice
on
a
contingency
fee
basis,
unless
the
27
attorney
general
determines
that
requesting
proposals
is
not
28
feasible
under
the
circumstances
and
sets
forth
the
basis
for
29
this
determination
in
writing.
30
3.
a.
The
state
shall
not
enter
into
a
contingency
fee
31
contract
that
provides
for
a
private
attorney
to
receive
32
an
aggregate
contingency
fee
in
excess
of
the
sum
of
the
33
following:
34
(1)
Twenty-five
percent
of
any
recovery
up
to
and
including
35
-2-
LSB
2089YH
(3)
84
rh/nh
2/
6
H.F.
166
ten
million
dollars.
1
(2)
Twenty
percent
of
any
portion
of
any
recovery
that
2
exceeds
ten
million
dollars
up
to
and
including
fifteen
million
3
dollars.
4
(3)
Fifteen
percent
of
any
portion
of
any
recovery
that
5
exceeds
fifteen
million
dollars
up
to
and
including
twenty
6
million
dollars.
7
(4)
Ten
percent
of
any
portion
of
any
recovery
that
exceeds
8
twenty
million
dollars
up
to
and
including
twenty-five
million
9
dollars.
10
(5)
Five
percent
of
any
portion
of
any
recovery
that
exceeds
11
twenty-five
million
dollars.
12
b.
The
aggregate
contingency
fee
of
any
recovery
shall
not
13
exceed
fifty
million
dollars,
exclusive
of
reasonable
costs
and
14
expenses,
and
regardless
of
the
number
of
lawsuits
filed
or
the
15
number
of
private
attorneys
retained
to
achieve
the
recovery.
16
4.
The
attorney
general
shall
develop
a
standard
addendum
to
17
every
contract
for
contingent
fee
attorney
services
that
shall
18
be
used
in
all
cases,
describing
in
detail
what
is
expected
of
19
both
the
contracted
private
attorney
and
the
state,
including,
20
without
limitation,
all
of
the
following
requirements:
21
a.
A
government
attorney
shall
retain
complete
control
over
22
the
course
and
conduct
of
the
case.
23
b.
A
government
attorney
with
supervisory
authority
shall
be
24
personally
involved
in
overseeing
the
litigation.
25
c.
A
government
attorney
shall
retain
veto
power
over
any
26
decisions
made
by
the
contracted
private
attorney.
27
d.
A
defendant
that
is
the
subject
of
such
litigation
may
28
contact
the
lead
government
attorney
directly,
without
having
29
to
confer
with
the
contracted
private
attorney.
30
e.
Decisions
regarding
settlement
of
the
case
shall
be
31
reserved
exclusively
to
the
discretion
of
the
government
32
attorney
and
the
state.
33
5.
Copies
of
any
executed
contingency
fee
contract
as
34
well
as
the
attorney
general’s
written
determination
to
35
-3-
LSB
2089YH
(3)
84
rh/nh
3/
6
H.F.
166
enter
into
a
contingency
fee
contract
with
a
private
attorney
1
shall
be
posted
on
the
attorney
general’s
website
for
public
2
inspection
within
five
business
days
after
the
date
the
3
contract
is
executed
and
shall
remain
posted
on
the
website
for
4
the
duration
of
the
contingency
fee
contract,
including
any
5
extensions
or
amendments
thereto.
Any
payment
of
contingency
6
fees
shall
be
posted
on
the
attorney
general’s
website
within
7
fifteen
days
after
the
payment
of
such
contingency
fees
to
the
8
private
attorney
and
shall
remain
posted
on
the
website
for
at
9
least
one
year
thereafter.
10
6.
Any
private
attorney
under
contract
to
provide
services
11
to
the
state
on
a
contingency
fee
basis
shall,
from
the
12
inception
of
the
contract
until
at
least
four
years
after
13
the
contract
expires
or
is
terminated,
maintain
detailed
14
current
records,
including
documentation
of
all
expenses,
15
disbursements,
charges,
credits,
underlying
receipts
and
16
invoices,
and
other
financial
transactions
that
concern
the
17
provision
of
such
attorney
services.
The
private
attorney
18
shall
make
all
such
records
available
for
inspection
and
19
copying
upon
request
in
accordance
with
chapter
22.
In
20
addition,
the
private
attorney
shall
maintain
detailed
21
contemporaneous
time
records
for
the
attorneys
and
paralegals
22
working
on
the
matter
in
increments
of
no
greater
than
23
one-tenth
of
an
hour
and
shall
promptly
provide
these
records
24
to
the
attorney
general,
upon
request.
25
7.
The
attorney
general
shall
submit
a
report
to
the
26
secretary
of
the
senate
and
the
chief
clerk
of
the
house
of
27
representatives
describing
the
use
of
contingency
fee
contracts
28
with
private
attorneys
in
the
preceding
calendar
year
by
29
February
1
of
each
year.
At
a
minimum,
the
report
shall
30
include
all
of
the
following
information:
31
a.
Identify
all
new
contingency
fee
contracts
entered
into
32
during
the
year
and
all
previously
executed
contingency
fee
33
contracts
that
remain
current
during
any
part
of
the
year,
and
34
for
each
contract
describe:
35
-4-
LSB
2089YH
(3)
84
rh/nh
4/
6
H.F.
166
(1)
The
name
of
the
private
attorney
with
whom
the
state
has
1
contracted,
including
the
name
of
the
attorney’s
law
firm.
2
(2)
The
nature
and
status
of
the
legal
matter.
3
(3)
The
name
of
the
parties
to
the
legal
matter.
4
(4)
The
amount
of
any
recovery.
5
(5)
The
amount
of
any
contingency
fee
paid.
6
b.
Copies
of
any
written
determinations
made
under
7
subsection
1
or
2
during
the
year.
8
Sec.
5.
NEW
SECTION
.
23B.4
No
expansion
of
authority
to
9
contract.
10
This
chapter
shall
not
be
construed
to
expand
the
authority
11
of
a
state
agency
or
state
agent
to
enter
into
contracts
where
12
no
such
authority
previously
existed.
13
Sec.
6.
NEW
SECTION
.
23B.5
Chapter
inapplicable.
14
This
chapter
shall
not
apply
to
legal
services
contracts
15
under
chapter
13B.
16
EXPLANATION
17
This
bill
creates
the
transparency
in
private
attorney
18
contracts
Act
in
new
Code
chapter
23B
to
address
the
procedure
19
for
retention
of
a
private
attorney
by
this
state
defined
to
20
include
state
officers,
departments,
boards,
commissions,
21
divisions,
bureaus,
councils,
and
units
of
organization,
22
however
designated,
of
the
executive
branch
of
state
23
government,
and
any
of
its
agents.
24
The
bill
specifies
a
procedure
for
the
state’s
retention
of
a
25
private
attorney
on
a
contingency
fee
basis.
The
bill
requires
26
the
attorney
general
to
analyze
certain
factors
and
make
a
27
written
determination
that
the
contingency
fee
representation
28
will
be
both
cost-effective
and
in
the
public
interest
prior
29
to
entering
into
a
contract
and
prior
to
issuing
a
request
30
for
proposals
from
private
attorneys
or
making
a
written
31
determination
that
such
a
request
is
not
feasible
under
the
32
circumstances.
33
All
contingency
fees
in
the
bill
are
subject
to
tiered
34
limits
and
an
aggregate
cap
of
$50
million,
exclusive
of
35
-5-
LSB
2089YH
(3)
84
rh/nh
5/
6
H.F.
166
reasonable
costs
and
expenses
(25
percent
of
any
recovery
up
1
to
and
including
$10
million;
plus
20
percent
of
the
next
2
$5
million
in
recoveries;
plus
15
percent
of
the
next
$5
3
million
in
recoveries;
plus
10
percent
of
the
next
$5
million
4
in
recoveries;
plus
5
percent
of
any
portion
of
the
recovery
5
that
exceeds
$25
million).
All
contingency
fee
contracts
6
must
include
certain
standard
provisions
to
help
assure
7
that
government
attorneys
retain
absolute
control
over
the
8
litigation.
The
bill
requires
the
contingency
fee
contract,
9
payments
made
under
the
contract,
and
the
attorney
general’s
10
written
determination
about
the
need
for
contingency
fee
11
representation
to
be
posted
on
the
attorney
general’s
website.
12
Other
records
relating
to
the
contract
are
subject
to
Code
13
chapter
22
(Iowa’s
open
records
law).
The
contracted
private
14
attorneys
and
paralegals
are
required
to
maintain
detailed
15
contemporaneous
time
records
for
presentation
to
the
attorney
16
general
upon
request.
The
attorney
general
is
required
to
17
submit
an
annual
report
to
the
secretary
of
the
senate
and
the
18
chief
clerk
of
the
house
of
representatives
that
describes
the
19
state’s
retention
of
private
attorneys
on
a
contingency
fee
20
basis
in
the
preceding
calendar
year.
21
The
bill
does
not
expand
the
state’s
authority
to
enter
into
22
contracts
where
no
such
authority
previously
existed.
23
The
bill
provides
that
this
new
Code
chapter
does
not
apply
24
to
legal
services
contracts
under
Code
chapter
13B
relating
to
25
public
defenders.
26
The
bill
amends
Code
section
13.7,
the
current
Code
section
27
relating
to
the
retention
of
private
counsel
by
executive
28
branch
departments
and
by
the
attorney
general,
to
specify
that
29
the
procedures
in
new
Code
chapter
23B
apply.
30
-6-
LSB
2089YH
(3)
84
rh/nh
6/
6
