Bill Text: AZ HB2334 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Private attorney retention; contingency fees
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2011-02-10 - House JUD Committee action: Held [HB2334 Detail]
Download: Arizona-2011-HB2334-Introduced.html
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REFERENCE TITLE: private attorney retention; contingency fees |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2334 |
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Introduced by Representatives Harper: Burges
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AN ACT
amending title 41, Arizona Revised Statutes, by adding chapter 48; relating to legal services procurement.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, Arizona Revised Statutes, is amended by adding chapter 48, to read:
CHAPTER 48
PRIVATE ATTORNEY RETENTION
ARTICLE 1. GENERAL PROVISIONS
41-4801. Definitions
In this chapter, unless the context otherwise requires:
1. "A contract in excess of one million dollars" means a contract in which the fee to be paid to an attorney or a group of attorneys, either in the form of a flat, hourly or contingent fee, and their expenses, is more than or can be reasonably expected to be more than one million dollars.
2. "Fee" includes any compensation for legal services however measured, including flat, hourly and contingent fees.
41-4802. Procurement
A state agency or agent shall not retain a lawyer or a law firm to perform legal services on behalf of this state if the fee and expenses for the services are more than or are reasonably expected to be more than one hundred thousand dollars until an open and competitive bidding process has been undertaken.
41-4803. Oversight
A state agency or agent shall not enter into a contract in excess of one million dollars without an opportunity for legislative review of the contract terms as provided in section 41-4804.
41-4804. Implementation
A. Except as provided in subsection E, any state agency or agent entering into a contract in excess of one million dollars shall file a copy of the proposed contract with the chief clerk of the house of representatives. The state agency or agent shall also accompany the proposed contract with a written statement that identifies:
1. The reasons this state should retain private counsel and the consideration of alternatives.
2. The open and competitive bidding process that has been undertaken with respect to the proposed legal services.
3. The reasons for the selection of the lawyer or law firm that is the proposed contracting party.
4. The past or present relationship, if any, between the lawyer, the law firm or any partner or other principal in the law firm and the state agency or agent proposing to enter into the contract.
5. If the contract contemplates that all or part of the fee is contingent on the outcome of the legal proceeding, the reasons the contingent fee arrangement is believed to be in this state's interest and any efforts undertaken to obtain private counsel on a noncontingent fee basis.
B. Except as provided in subsection E, with the approval of the president of the senate and the speaker of the house of representatives, the chief clerk of the house of representatives shall refer the contract and the written statement to the appropriate committee.
C. Within forty‑five days after the filing of the proposed contract and statement with the chief clerk of the house of representatives, the reviewing committee may hold a public hearing on the proposed contract and, whether or not a public hearing is held, shall issue a report to the referring state agency or agent. The report shall include any recommended changes to the proposed contract that is approved by the reviewing committee. If the reviewing committee recommends no changes to the proposed contract within forty‑five days of the initial filing of the proposed contract with the chief clerk of the house of representatives, the referring state agency or agent may enter into the proposed contract. If the report of the reviewing committee recommends changes to the proposed contract pursuant to this subsection, the state agency or agent shall review the report and prepare a revised contract as deemed appropriate in view of the report and shall file with the chief clerk of the house of representatives a copy of the revised contract.
D. If the revised contract does not contain all changes recommended by the reviewing committee, the referring state agency or agent shall include with the revised contract filed with the chief clerk of the house of representatives a letter stating the reasons why the recommended changes were not adopted. The chief clerk of the house of representatives shall promptly refer the letter and revised contract to the reviewing committee, which may hold additional hearings and issue additional reports in the committee's discretion. Not earlier than forty‑five days after the filing of the letter and revised contract with the chief clerk of the house of representatives, the referring state agency or agent may enter into the revised contract. Notwithstanding this section, any revised contract containing terms not previously reviewed or recommended by the reviewing committee that can reasonably be expected to increase the fees and expenses to be paid shall be treated as a new proposed contract and shall be filed and reviewed pursuant to this section.
E. If the legislature is not in session and the state agency or agent wishes to enter into a contract in excess of one million dollars, the state agency or agent shall file the proposed contract and a written statement addressing the issues raised in subsection A, paragraphs 1 and 2 with the governor and the chief clerk of the house of representatives. Except as provided in subsection F, the governor shall establish a five member interim committee consisting of five legislators. The governor, the president of the senate, the speaker of the house of representatives, the minority leader of the senate and the minority leader of the house of representatives shall each appoint a member to the interim committee. The interim committee shall execute the legislative oversight duties prescribed in subsections C and D. All deadlines and responsibilities prescribed in those subsections apply as if the interim committee were the reviewing committee of the legislature.
F. If the state agency or agent in a writing filed with the governor and the chief clerk of the house of representatives states that time exigencies require that this state retain counsel before the periods provided in subsections C and D have elapsed, and provides the reasons for the exigencies, the governor shall establish a five member committee with members appointed as provided in subsection E. the chief clerk of the house of representatives shall refer the proposed contract and written statement addressing the issues raised in subsection A, paragraphs 1 and 2 to the committee. The committee shall consult with the state agency or agent to establish an expedited schedule for review and recommendations on the proposed contract.
41‑4805. Contingent fees
A. At the conclusion of any legal proceeding for which a state agency or agent retained outside counsel on a contingent fee basis, the outside counsel shall submit to the state agency or agent a statement of the hours worked on the case, the expenses incurred, the aggregate fee amount and a breakdown as to the hourly rate, based on hours worked divided into the fee recovered, less expenses.
B. In no case may this state incur expenses of more than one thousand dollars per hour for legal services. In cases in which a statement submitted pursuant to subsection A indicates an hourly rate of more than one thousand dollars, the fee amount shall be reduced to an amount equivalent to one thousand dollars per hour.
