PRINTER'S NO. 526
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
502
Session of
2017
INTRODUCED BY KAMPF, METCALFE, DUNBAR, IRVIN, TOPPER, COX,
KAUFFMAN, GABLER, CUTLER, MARSICO, LAWRENCE AND WARD,
FEBRUARY 14, 2017
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 14, 2017
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in source selection and contract formation,
providing for legal services contracts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 62 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 544. Legal services contracts.
(a) General rule.--A purchasing agency shall determine the
payment method to be used pursuant to a legal services contract
entered into under section 512.1 (relating to competitive
electronic auction bidding), 515 (relating to sole source
procurement) or 518 (relating to competitive selection
procedures for certain services).
(b) Contract.--The method of compensation determined under
subsection (a) shall be part of the contract for legal services.
(c) Contingent fee contracts.--The following shall apply:
(1) In order to enter into a legal services contract
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paid on a contingent fee basis, the purchasing agency shall
make a written determination that payment on a contingent fee
basis is all of the following:
(i) Feasible and efficient.
(ii) In the best interest of the Commonwealth.
(2) Contingent fee contracts under this subsection shall
comply with all of the following:
(i) Compensation shall not exceed the lesser of the
following:
(A) fifty million dollars, which shall be
adjusted annually for inflation beginning January 1,
2018, and each January 1 thereafter, to reflect the
percentage change in the Consumer Price Index for All
Urban Consumers for the Pennsylvania, New Jersey,
Delaware and Maryland area for the most recent 12-
month period for which figures have been officially
reported by the United States Department of Labor,
Bureau of Labor Statistics; or
(B) twenty-five percent in the aggregate of an
award or settlement in favor of the Commonwealth.
(ii) A contingent fee shall not be based on a
penalty or civil fine awarded or an amount attributable
to a penalty or civil fine.
(iii) The following provisions shall be included in
the contract:
(A) Commonwealth attorneys designated by the
head of the purchasing agency or, in the case of a
legal services contract entered into by an executive
agency as defined in section 102 of the act of
October 15, 1980 (P.L.950, No.164), known as the
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Commonwealth Attorneys Act, designated by the General
Counsel, shall retain final authority over the course
and conduct of the legal action, including authority
to:
(I) Review and approve all court filings,
including briefs, pleadings, motions and other
materials.
(II) Veto any decision of outside counsel.
(III) Directly contact a party to the
action.
(IV) Participate in any conference call,
hearing, trial or Commonwealth settlement.
(B) The Commonwealth shall maintain the
exclusive authority to accept a settlement.
(C) A detailed description of the expectations
for both the contractor and the Commonwealth.
(3) This subsection shall not apply to contracts in
which the gross amount of the award or settlement is less
than $100,000.
(d) Applicability.--This section shall not apply to legal
services contracts entered into by the Public School Employees'
Retirement System or the State Employees' Retirement System.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Commonwealth attorney." An attorney at law employed by the
purchasing agency who is eligible to participate in the
retirement system under 71 Pa.C.S. Pt. XXV (relating to
retirement for State employees and officers).
"Outside counsel." A private attorney at law, law firm,
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partnership, association or professional corporation.
Section 2. This act shall take effect in 60 days.
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