Bill Text: IA HF563 | 2011-2012 | 84th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act creating the transparency in private attorney contracts Act. Effective 7-1-12.
Spectrum: Committee Bill
Status: (Passed) 2012-05-02 - Signed by Governor. H.J. 900. [HF563 Detail]
Download: Iowa-2011-HF563-Introduced.html
Bill Title: A bill for an act creating the transparency in private attorney contracts Act. Effective 7-1-12.
Spectrum: Committee Bill
Status: (Passed) 2012-05-02 - Signed by Governor. H.J. 900. [HF563 Detail]
Download: Iowa-2011-HF563-Introduced.html
House
File
563
-
Introduced
HOUSE
FILE
563
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
HF
166)
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
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563
Section
1.
Section
13.7,
Code
2011,
is
amended
to
read
as
1
follows:
2
13.7
Special
counsel.
3
1.
Compensation
shall
not
be
allowed
to
any
person
for
4
services
as
an
attorney
or
counselor
to
an
executive
department
5
of
the
state
government,
or
the
head
thereof,
or
to
a
state
6
board
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.
This
section
subsection
does
23
not
affect
the
general
counsel
for
the
utilities
board
of
the
24
department
of
commerce,
the
legal
counsel
of
the
department
of
25
workforce
development,
or
the
general
counsel
for
the
property
26
assessment
appeal
board.
27
2.
The
executive
branch
and
the
attorney
general
shall
28
also
comply
with
chapter
23B
when
retaining
legal
counsel
on
a
29
contingency
fee
basis
under
this
section,
as
appropriate.
30
Sec.
2.
NEW
SECTION
.
23B.1
Citation.
31
This
chapter
may
be
known
and
cited
as
the
“Transparency
in
32
Private
Attorney
Contracts
Act”
.
33
Sec.
3.
NEW
SECTION
.
23B.2
Definitions.
34
For
the
purposes
of
this
chapter:
35
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1.
“Government
attorney”
means
an
attorney
employed
by
the
1
state
as
a
staff
attorney
in
the
attorney
general’s
office.
2
2.
“Private
attorney”
means
any
private
attorney
or
law
3
firm.
4
3.
“State”
means
the
state
of
Iowa
and
includes
state
5
officers,
departments,
boards,
commissions,
divisions,
bureaus,
6
councils,
and
units
of
organization,
however
designated,
of
the
7
executive
branch
of
state
government,
and
any
of
its
agents.
8
Sec.
4.
NEW
SECTION
.
23B.3
Contracts
for
legal
services.
9
1.
The
state
shall
not
enter
into
a
contingency
fee
contract
10
with
a
private
attorney
unless
the
attorney
general
makes
a
11
written
determination
prior
to
entering
into
such
a
contract
12
that
contingency
fee
representation
is
both
cost-effective
13
and
in
the
public
interest.
Any
written
determination
shall
14
include
specific
findings
for
each
of
the
following
factors:
15
a.
Whether
sufficient
and
appropriate
legal
and
financial
16
resources
exist
within
the
attorney
general’s
office
to
handle
17
the
matter.
18
b.
The
time
and
labor
required,
the
novelty,
complexity,
and
19
difficulty
of
the
questions
involved,
and
the
skill
required
to
20
perform
the
attorney
services
properly.
21
c.
The
geographic
area
where
the
attorney
services
are
to
22
be
provided.
23
d.
The
amount
of
experience
desired
for
the
particular
24
kind
of
attorney
services
to
be
provided
and
the
nature
of
the
25
private
attorney’s
experience
with
similar
issues
or
cases.
26
2.
If
the
attorney
general
makes
the
determination
27
described
in
subsection
1,
the
attorney
general
shall
28
follow
the
procurement
process
used
by
the
department
of
29
administrative
services
in
seeking
private
attorneys
to
30
represent
the
department
of
justice
on
a
contingency
fee
31
basis,
unless
the
attorney
general
determines
that
requesting
32
proposals
is
not
feasible
under
the
circumstances
and
sets
33
forth
the
basis
for
this
determination
in
writing.
34
3.
a.
The
state
shall
not
enter
into
a
contingency
fee
35
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563
contract
that
provides
for
a
private
attorney
to
receive
1
an
aggregate
contingency
fee
in
excess
of
the
sum
of
the
2
following:
3
(1)
Twenty-five
percent
of
any
recovery
up
to
and
including
4
ten
million
dollars.
5
(2)
Twenty
percent
of
any
portion
of
any
recovery
that
6
exceeds
ten
million
dollars
up
to
and
including
fifteen
million
7
dollars.
8
(3)
Fifteen
percent
of
any
portion
of
any
recovery
that
9
exceeds
fifteen
million
dollars
up
to
and
including
twenty
10
million
dollars.
11
(4)
Ten
percent
of
any
portion
of
any
recovery
that
exceeds
12
twenty
million
dollars
up
to
and
including
twenty-five
million
13
dollars.
14
(5)
Five
percent
of
any
portion
of
any
recovery
that
exceeds
15
twenty-five
million
dollars.
16
b.
Except
as
provided
in
paragraph
“c”
,
the
aggregate
17
contingency
fee
of
any
recovery
shall
not
exceed
fifty
million
18
dollars,
exclusive
of
reasonable
costs
and
expenses,
and
19
regardless
of
the
number
of
lawsuits
filed
or
the
number
of
20
private
attorneys
retained
to
achieve
the
recovery.
21
c.
The
attorney
general
may
request
a
waiver
from
the
22
executive
council
of
the
aggregate
contingency
fee
limit
in
23
paragraph
“b”
if
the
attorney
general
provides
a
thirty-day
24
notice
of
the
attorney
general’s
intent
to
request
a
waiver.
25
The
executive
council,
upon
unanimous
consent,
may
grant
such
a
26
waiver.
27
4.
The
attorney
general
shall
develop
a
standard
addendum
to
28
every
contract
for
contingent
fee
attorney
services
that
shall
29
be
used
in
all
cases,
describing
in
detail
what
is
expected
of
30
both
the
contracted
private
attorney
and
the
state,
including,
31
without
limitation,
all
of
the
following
requirements:
32
a.
A
government
attorney
shall
retain
complete
control
over
33
the
course
and
conduct
of
the
case.
34
b.
A
government
attorney
with
supervisory
authority
shall
be
35
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563
personally
involved
in
overseeing
the
litigation.
1
c.
A
government
attorney
shall
retain
veto
power
over
any
2
decisions
made
by
the
contracted
private
attorney.
3
d.
A
defendant
that
is
the
subject
of
such
litigation
may
4
contact
the
lead
government
attorney
directly,
without
having
5
to
confer
with
the
contracted
private
attorney.
6
e.
Decisions
regarding
settlement
of
the
case
shall
be
7
reserved
exclusively
to
the
discretion
of
the
government
8
attorney
and
the
state.
9
f.
A
government
attorney
with
supervisory
authority
for
the
10
case
shall
attend
all
settlement
conferences.
11
5.
Copies
of
any
executed
contingency
fee
contract
as
12
well
as
the
attorney
general’s
written
determination
to
13
enter
into
a
contingency
fee
contract
with
a
private
attorney
14
shall
be
posted
on
the
attorney
general’s
website
for
public
15
inspection
within
five
business
days
after
the
date
the
16
contract
is
executed
and
shall
remain
posted
on
the
website
for
17
the
duration
of
the
contingency
fee
contract,
including
any
18
extensions
or
amendments
thereto.
Any
payment
of
contingency
19
fees
shall
be
posted
on
the
attorney
general’s
website
within
20
fifteen
days
after
the
payment
of
such
contingency
fees
to
the
21
private
attorney
and
shall
remain
posted
on
the
website
for
at
22
least
one
year
thereafter.
23
6.
Any
private
attorney
under
contract
to
provide
services
24
to
the
state
on
a
contingency
fee
basis
shall,
from
the
25
inception
of
the
contract
until
at
least
four
years
after
26
the
contract
expires
or
is
terminated,
maintain
detailed
27
current
records,
including
documentation
of
all
expenses,
28
disbursements,
charges,
credits,
underlying
receipts
and
29
invoices,
and
other
financial
transactions
that
concern
the
30
provision
of
such
attorney
services.
The
private
attorney
31
shall
make
all
such
records
available
for
inspection
and
32
copying
upon
request
in
accordance
with
chapter
22.
In
33
addition,
the
private
attorney
shall
maintain
detailed
34
contemporaneous
time
records
for
the
attorneys
and
paralegals
35
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563
working
on
the
matter
in
increments
of
no
greater
than
1
one-tenth
of
an
hour
and
shall
promptly
provide
these
records
2
to
the
attorney
general,
upon
request.
3
7.
The
attorney
general
shall
submit
a
report
to
the
4
secretary
of
the
senate
and
the
chief
clerk
of
the
house
of
5
representatives
describing
the
use
of
contingency
fee
contracts
6
with
private
attorneys
in
the
preceding
calendar
year
by
7
February
1
of
each
year.
At
a
minimum,
the
report
shall
8
include
all
of
the
following
information:
9
a.
Identify
all
new
contingency
fee
contracts
entered
into
10
during
the
year
and
all
previously
executed
contingency
fee
11
contracts
that
remain
current
during
any
part
of
the
year,
and
12
for
each
contract
describe:
13
(1)
The
name
of
the
private
attorney
with
whom
the
state
has
14
contracted,
including
the
name
of
the
attorney’s
law
firm.
15
(2)
The
nature
and
status
of
the
legal
matter.
16
(3)
The
name
of
the
parties
to
the
legal
matter.
17
(4)
The
amount
of
any
recovery.
18
(5)
The
amount
of
any
contingency
fee
paid.
19
b.
Copies
of
any
written
determinations
made
under
20
subsection
1
or
2
during
the
year.
21
Sec.
5.
NEW
SECTION
.
23B.4
No
expansion
of
authority
to
22
contract.
23
This
chapter
shall
not
be
construed
to
expand
the
authority
24
of
a
state
agency
or
state
agent
to
enter
into
contracts
where
25
no
such
authority
previously
existed.
26
Sec.
6.
NEW
SECTION
.
23B.5
Chapter
inapplicable.
27
This
chapter
shall
not
apply
to
legal
services
contracts
28
under
chapter
13B.
29
EXPLANATION
30
This
bill
creates
the
transparency
in
private
attorney
31
contracts
Act
in
new
Code
chapter
23B
to
address
the
procedure
32
for
retention
of
a
private
attorney
by
this
state
defined
to
33
include
state
officers,
departments,
boards,
commissions,
34
divisions,
bureaus,
councils,
and
units
of
organization,
35
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563
however
designated,
of
the
executive
branch
of
state
1
government,
and
any
of
its
agents.
2
The
bill
specifies
a
procedure
for
the
state’s
retention
of
a
3
private
attorney
on
a
contingency
fee
basis.
The
bill
requires
4
the
attorney
general
to
analyze
certain
factors
and
make
a
5
written
determination
that
the
contingency
fee
representation
6
will
be
both
cost-effective
and
in
the
public
interest.
The
7
bill
requires
the
attorney
general
to
follow
the
procurement
8
process
used
by
the
department
of
administrative
services
in
9
seeking
private
attorneys
under
the
bill
unless
the
attorney
10
general
makes
a
written
determination
that
such
a
request
is
11
not
feasible
under
the
circumstances.
12
All
contingency
fees
in
the
bill
are
subject
to
tiered
13
limits
and
an
aggregate
cap
of
$50
million,
exclusive
of
14
reasonable
costs
and
expenses
(25
percent
of
any
recovery
up
15
to
and
including
$10
million;
plus
20
percent
of
the
next
$5
16
million
in
recoveries;
plus
15
percent
of
the
next
$5
million
17
in
recoveries;
plus
10
percent
of
the
next
$5
million
in
18
recoveries;
plus
5
percent
of
any
portion
of
the
recovery
that
19
exceeds
$25
million);
provided,
however,
that
the
attorney
20
general
may
request
a
waiver
from
the
executive
council
of
the
21
aggregate
contingency
fee
limit
under
certain
circumstances.
22
All
contingency
fee
contracts
must
include
certain
standard
23
provisions
to
help
assure
that
government
attorneys
retain
24
absolute
control
over
the
litigation.
The
bill
requires
the
25
contingency
fee
contract,
payments
made
under
the
contract,
and
26
the
attorney
general’s
written
determination
about
the
need
for
27
contingency
fee
representation
to
be
posted
on
the
attorney
28
general’s
website.
Other
records
relating
to
the
contract
are
29
subject
to
Code
chapter
22
(Iowa’s
open
records
law).
The
30
contracted
private
attorneys
and
paralegals
are
required
to
31
maintain
detailed
contemporaneous
time
records
for
presentation
32
to
the
attorney
general
upon
request.
The
attorney
general
is
33
required
to
submit
an
annual
report
to
the
secretary
of
the
34
senate
and
the
chief
clerk
of
the
house
of
representatives
35
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563
that
describes
the
state’s
retention
of
private
attorneys
on
a
1
contingency
fee
basis
in
the
preceding
calendar
year.
2
The
bill
does
not
expand
the
state’s
authority
to
enter
into
3
contracts
where
no
such
authority
previously
existed.
4
The
bill
provides
that
this
new
Code
chapter
does
not
apply
5
to
legal
services
contracts
under
Code
chapter
13B
relating
to
6
public
defenders.
7
The
bill
amends
Code
section
13.7,
the
current
Code
section
8
relating
to
the
retention
of
private
counsel
by
executive
9
branch
departments
and
by
the
attorney
general,
to
specify
that
10
the
executive
branch
and
the
attorney
general
shall
comply
with
11
this
bill
when
retaining
legal
counsel
on
a
contingency
fee
12
basis.
13
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