Bill Text: IA HF563 | 2011-2012 | 84th General Assembly | Enrolled
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-Enrolled.html
House
File
563
AN
ACT
CREATING
THE
TRANSPARENCY
IN
PRIVATE
ATTORNEY
CONTRACTS
ACT.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
13.7,
Code
Supplement
2011,
is
amended
to
read
as
follows:
13.7
Special
counsel.
1.
Compensation
shall
not
be
allowed
to
any
person
for
services
as
an
attorney
or
counselor
to
an
executive
department
of
the
state
government,
or
the
head
of
an
executive
department
of
state
government,
or
to
a
state
board
or
commission.
However,
the
executive
council
may
authorize
employment
of
legal
assistance,
at
a
reasonable
compensation,
in
a
pending
action
or
proceeding
to
protect
the
interests
of
the
state,
but
only
upon
a
sufficient
showing,
in
writing,
made
by
the
attorney
general,
that
the
department
of
justice
cannot
for
reasons
stated
by
the
attorney
general
perform
the
service.
The
reasons
and
action
of
the
council
shall
be
entered
upon
its
records.
If
the
attorney
general
determines
that
the
department
of
justice
cannot
perform
legal
service
in
an
action
or
proceeding,
the
executive
council
shall
request
the
department
involved
in
the
action
or
proceeding
to
recommend
legal
counsel
to
represent
the
department.
If
the
attorney
general
concurs
with
the
department
that
the
person
recommended
is
qualified
and
suitable
to
represent
the
department,
the
person
recommended
shall
be
employed.
If
the
attorney
general
does
not
concur
in
the
recommendation,
the
department
shall
submit
a
new
recommendation.
This
section
subsection
does
not
affect
the
general
counsel
for
the
utilities
board
of
the
department
of
commerce,
the
legal
counsel
of
the
department
of
workforce
development,
or
the
general
counsel
for
the
property
House
File
563,
p.
2
assessment
appeal
board.
2.
The
executive
branch
and
the
attorney
general
shall
also
comply
with
chapter
23B
when
retaining
legal
counsel
on
a
contingency
fee
basis
under
this
section,
as
appropriate.
Sec.
2.
NEW
SECTION
.
23B.1
Citation.
This
chapter
may
be
known
and
cited
as
the
“Transparency
in
Private
Attorney
Contracts
Act”
.
Sec.
3.
NEW
SECTION
.
23B.2
Definitions.
For
the
purposes
of
this
chapter:
1.
“Government
attorney”
means
an
attorney
employed
by
the
state
as
a
staff
attorney
in
the
attorney
general’s
office.
2.
“Private
attorney”
means
any
private
attorney
or
law
firm.
3.
“State”
means
the
state
of
Iowa
and
includes
state
officers,
departments,
boards,
commissions,
divisions,
bureaus,
councils,
and
units
of
organization,
however
designated,
of
the
executive
branch
of
state
government,
and
any
of
its
agents.
Sec.
4.
NEW
SECTION
.
23B.3
Contracts
for
legal
services.
1.
The
state
shall
not
enter
into
a
contingency
fee
contract
with
a
private
attorney
unless
the
attorney
general
makes
a
written
determination
prior
to
entering
into
such
a
contract
that
contingency
fee
representation
is
both
cost-effective
and
in
the
public
interest.
Any
written
determination
shall
include
specific
findings
for
each
of
the
following
factors:
a.
Whether
sufficient
and
appropriate
legal
and
financial
resources
exist
within
the
attorney
general’s
office
to
handle
the
matter.
b.
The
time
and
labor
required,
the
novelty,
complexity,
and
difficulty
of
the
questions
involved,
and
the
skill
required
to
perform
the
attorney
services
properly.
c.
The
geographic
area
where
the
attorney
services
are
to
be
provided.
d.
The
amount
of
experience
desired
for
the
particular
kind
of
attorney
services
to
be
provided
and
the
nature
of
the
private
attorney’s
experience
with
similar
issues
or
cases.
2.
If
the
attorney
general
makes
the
determination
described
in
subsection
1,
the
attorney
general
shall
follow
the
procurement
process
used
by
the
department
of
administrative
services
in
seeking
private
attorneys
to
represent
the
department
of
justice
on
a
contingency
fee
basis,
unless
the
attorney
general
determines
that
the
procurement
process
is
not
feasible
under
the
circumstances
and
sets
forth
the
basis
for
this
determination
in
writing.
House
File
563,
p.
3
3.
a.
Except
as
provided
in
paragraph
“c”
,
the
state
shall
not
enter
into
a
contingency
fee
contract
that
provides
for
a
private
attorney
to
receive
an
aggregate
contingency
fee
in
excess
of
the
sum
of
the
following:
(1)
Twenty-five
percent
of
any
recovery
up
to
and
including
ten
million
dollars,
exclusive
of
reasonable
costs
and
expenses.
(2)
Twenty
percent
of
any
portion
of
any
recovery
that
exceeds
ten
million
dollars
up
to
and
including
fifteen
million
dollars,
exclusive
of
reasonable
costs
and
expenses.
(3)
Fifteen
percent
of
any
portion
of
any
recovery
that
exceeds
fifteen
million
dollars
up
to
and
including
twenty
million
dollars,
exclusive
of
reasonable
costs
and
expenses.
(4)
Ten
percent
of
any
portion
of
any
recovery
that
exceeds
twenty
million
dollars
up
to
and
including
twenty-five
million
dollars,
exclusive
of
reasonable
costs
and
expenses.
(5)
Five
percent
of
any
portion
of
any
recovery
that
exceeds
twenty-five
million
dollars,
exclusive
of
reasonable
costs
and
expenses.
b.
Except
as
provided
in
paragraph
“c”
,
the
aggregate
contingency
fee
of
any
recovery
shall
not
exceed
fifty
million
dollars,
exclusive
of
reasonable
costs
and
expenses,
and
regardless
of
the
number
of
lawsuits
filed
or
the
number
of
private
attorneys
retained
to
achieve
the
recovery.
c.
The
attorney
general
may
request
a
waiver
from
the
executive
council
of
the
aggregate
contingency
fee
limits
in
paragraphs
“a”
and
“b”
if
the
attorney
general
provides
a
thirty-day
notice
of
the
attorney
general’s
intent
to
request
a
waiver.
The
executive
council,
upon
unanimous
consent,
may
grant
such
a
waiver.
4.
The
attorney
general
shall
develop
a
standard
addendum
to
every
contract
for
contingent
fee
attorney
services
that
shall
be
used
in
all
cases,
describing
in
detail
what
is
expected
of
both
the
contracted
private
attorney
and
the
state,
including,
without
limitation,
all
of
the
following
requirements:
a.
A
government
attorney
shall
retain
complete
control
over
the
course
and
conduct
of
the
case.
b.
A
government
attorney
with
supervisory
authority
shall
be
personally
involved
in
overseeing
the
litigation.
c.
A
government
attorney
shall
retain
veto
power
over
any
decisions
made
by
the
contracted
private
attorney.
d.
A
defendant
that
is
the
subject
of
such
litigation
may
contact
the
lead
government
attorney
directly,
without
having
House
File
563,
p.
4
to
confer
with
the
contracted
private
attorney.
e.
Decisions
regarding
settlement
of
the
case
shall
be
reserved
exclusively
to
the
discretion
of
the
government
attorney
and
the
state.
f.
A
government
attorney
with
supervisory
authority
for
the
case
shall
participate
in
all
settlement
conferences.
5.
Copies
of
any
executed
contingency
fee
contract
as
well
as
the
attorney
general’s
written
determination
to
enter
into
a
contingency
fee
contract
with
a
private
attorney
shall
be
posted
on
the
attorney
general’s
website
for
public
inspection
within
five
business
days
after
the
date
the
contract
is
executed
and
shall
remain
posted
on
the
website
for
the
duration
of
the
contingency
fee
contract,
including
any
extensions
or
amendments
thereto.
Any
payment
of
contingency
fees
shall
be
posted
on
the
attorney
general’s
website
within
fifteen
days
after
the
payment
of
such
contingency
fees
to
the
private
attorney
and
shall
remain
posted
on
the
website
for
at
least
one
year
thereafter.
6.
Any
private
attorney
under
contract
to
provide
services
to
the
state
on
a
contingency
fee
basis
shall,
from
the
inception
of
the
contract
until
at
least
four
years
after
the
contract
expires
or
is
terminated,
maintain
detailed
current
records,
including
documentation
of
all
expenses,
disbursements,
charges,
credits,
underlying
receipts
and
invoices,
and
other
financial
transactions
that
concern
the
provision
of
such
attorney
services.
The
private
attorney
shall
make
all
such
records
available
for
inspection
and
copying
upon
request
in
accordance
with
chapter
22.
7.
The
attorney
general
shall
submit
a
report
to
the
secretary
of
the
senate
and
the
chief
clerk
of
the
house
of
representatives
describing
the
use
of
contingency
fee
contracts
with
private
attorneys
in
the
preceding
calendar
year
by
February
1
of
each
year.
At
a
minimum,
the
report
shall
include
all
of
the
following
information:
a.
Identify
all
new
contingency
fee
contracts
entered
into
during
the
year
and
all
previously
executed
contingency
fee
contracts
that
remain
current
during
any
part
of
the
year,
and
for
each
contract
describe:
(1)
The
name
of
the
private
attorney
with
whom
the
state
has
contracted,
including
the
name
of
the
attorney’s
law
firm.
(2)
The
nature
and
status
of
the
legal
matter.
(3)
The
name
of
the
parties
to
the
legal
matter.
(4)
The
amount
of
any
recovery.
House
File
563,
p.
5
(5)
The
amount
of
any
contingency
fee
paid.
b.
Copies
of
any
written
determinations
made
under
subsection
1
or
2
during
the
year.
Sec.
5.
NEW
SECTION
.
23B.4
No
expansion
of
authority
to
contract.
This
chapter
shall
not
be
construed
to
expand
the
authority
of
a
state
agency
or
state
agent
to
enter
into
contracts
where
no
such
authority
previously
existed.
Sec.
6.
NEW
SECTION
.
23B.5
Chapter
inapplicable.
This
chapter
shall
not
apply
to
legal
services
contracts
under
chapter
13B.
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
______________________________
JOHN
P.
KIBBIE
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
563,
Eighty-fourth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Chief
Clerk
of
the
House
Approved
_______________,
2012
______________________________
TERRY
E.
BRANSTAD
Governor
