Senate Study Bill 3078 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOGG) A BILL FOR An Act relating to the employment of legal counsel in a pending 1 action or proceeding to protect the interests of the state. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5096XC (5) 85 rh/rj

S.F. _____ Section 1. Section 13.7, subsection 1, Code 2014, is amended 1 to read as follows: 2 1. a. Compensation shall not be allowed to any person for 3 services as an attorney or counselor to an executive department 4 of the state government, or the head of an executive department 5 of state government, or to a state board or commission. 6 However, the executive council may authorize employment of 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 The reasons and action of the council shall be entered upon its 13 records. 14 b. If the attorney general determines that the department 15 of justice cannot perform legal service in an action or 16 proceeding, the executive council shall request the department 17 involved in the action or proceeding to recommend legal counsel 18 to represent the department and shall require the department 19 to submit a statement from legal counsel concerning the legal 20 counsel’s estimated legal fees . 21 (1) If the attorney general concurs with the department 22 that the person legal counsel recommended is qualified and 23 suitable to represent the department, the person legal counsel 24 recommended shall be employed. Once employment has begun, the 25 legal counsel’s legal fees shall not exceed the estimated legal 26 fees without prior approval of the executive council. 27 (2) If the attorney general does not concur in 28 the recommendation, the department shall submit a new 29 recommendation. 30 c. This subsection does not affect the general counsel for 31 the utilities board of the department of commerce, the legal 32 counsel of the department of workforce development, or the 33 general counsel for the property assessment appeal board. 34 EXPLANATION 35 -1- LSB 5096XC (5) 85 rh/rj 1/ 2

S.F. _____ The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 Code section 13.7 provides the executive council (comprised 3 of the governor, secretary of state, auditor, treasurer, and 4 secretary of agriculture) with the authority to authorize 5 employment of certain outside legal assistance, at a reasonable 6 compensation in a pending action or proceeding to protect 7 the interests of the state, upon a sufficient showing by the 8 attorney general that the department of justice cannot perform 9 the service. If the attorney general determines that the 10 department of justice cannot perform legal service in an action 11 or proceeding, the executive council requires the department 12 involved in the action or proceeding to recommend legal counsel 13 to represent the department. This bill requires the department 14 to submit a statement from legal counsel concerning the legal 15 counsel’s estimated legal fees in this situation. If legal 16 counsel is employed, the legal counsel’s legal fees shall not 17 exceed the estimated legal fees without prior approval of the 18 executive council. 19 The bill does not apply to the general counsel for the 20 utilities board of the department of commerce, the legal 21 counsel of the department of workforce development, or the 22 general counsel for the property assessment appeal board (Code 23 section 13.7(1)), and the executive branch and the attorney 24 general are required to comply with the procedural requirements 25 of Code chapter 23B (transparency in private attorney 26 contracts) when retaining legal counsel on a contingency fee 27 basis. 28 -2- LSB 5096XC (5) 85 rh/rj 2/ 2