PRIOR PRINTER'S NO. 252 PRINTER'S NO. 4658
No. 223 Session of 2003
INTRODUCED BY DALLY, ARMSTRONG, BROWNE, CIVERA, FREEMAN, GEIST,
GRUCELA, HENNESSEY, HERSHEY, LEWIS, PALLONE, RUBLEY,
SCAVELLO, SCRIMENTI, SEMMEL, R. STEVENSON, THOMAS, TIGUE,
TURZAI, WILT, WASHINGTON AND VANCE, FEBRUARY 11, 2003
AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
REPRESENTATIVES, AS AMENDED, NOVEMBER 8, 2004
AN ACT
1 Establishing a procurement procedure for certain contracts for
2 legal services entered into between Commonwealth agencies and
3 private attorneys.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Private
8 Attorney Retention Sunshine Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Chief Clerk." The Chief Clerk of the House of
14 Representatives.
15 "Commonwealth agency." An administrative department, board
16 or commission, an independent department, board or commission or
17 an instrumentality thereof of the executive branch, including an
1 authorized agent of any of them. The term includes the Office of
2 Attorney General, the Department of the Auditor General and the
3 Treasury Department.
4 "Private attorney." A person who is licensed to practice law
5 in this Commonwealth or another jurisdiction and who is not an
6 employee of a Commonwealth agency.
7 "Private attorney contract" or "contract." An agreement for
8 legal services in which the fee paid to a private attorney or
9 group of private attorneys, either in the form of a flat, hourly <--
10 or contingent OR HOURLY fee and related expenses, exceeds or can <--
11 be reasonably expected to exceed $1,000,000 $500,000. <--
12 "REVIEWING COMMITTEE." THE STANDING COMMITTEE OF THE HOUSE <--
13 OF REPRESENTATIVES THAT REVIEWS THE PRIVATE ATTORNEY CONTRACT OR
14 THE INTERIM COMMITTEE ESTABLISHED UNDER SECTION 5 THAT REVIEWS
15 THE PRIVATE ATTORNEY CONTRACT.
16 Section 3. Competitive process required.
17 A Commonwealth agency that intends to enter into a private
18 attorney contract on behalf of the Commonwealth agency shall use
19 an open and competitive process to select the private attorney
20 and shall comply with this act.
21 Section 4. Legislative oversight during session.
22 (a) Copy to be filed.--A Commonwealth agency entering THAT <--
23 INTENDS TO ENTER into a private attorney contract shall file a
24 copy of the proposed contract with the Chief Clerk who, with the
25 approval of the President pro tempore of the Senate and Speaker
26 of the House of Representatives, shall refer the contract to the
27 appropriate STANDING committee of the House of Representatives. <--
28 (b) Legislative hearing.--Within 30 days after the referral,
29 the committee may convene a public hearing on the proposed
30 contract and shall issue a report to the referring Commonwealth
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1 agency. The report shall include any recommended changes to the
2 proposed contract that are agreed upon by A MAJORITY VOTE OF the <--
3 committee.
4 (c) Commonwealth agency review of report.--The referring
5 Commonwealth agency shall review the report and RECEIVED UNDER <--
6 THIS ACT AND, FOLLOWING REVIEW OF THE REPORT, shall revise the
7 private attorney contract as it deems appropriate in view of the
8 report and shall file a copy of the revised contract AND ANY <--
9 NOTIFICATION REQUIRED BY SUBSECTION (D) with the Chief Clerk.
10 (d) Notification of revised contract and execution.--
11 (1) If the revised contract does not contain all of the
12 changes recommended by the REVIEWING committee, the referring <--
13 Commonwealth agency shall notify the Chief Clerk in writing
14 THAT THE REVISED CONTRACT DOES NOT INCLUDE ALL OF THE <--
15 RECOMMENDED CHANGES AND SHALL PROVIDE A DETAILED EXPLANATION
16 with the reasons why the recommended changes were EACH OF THE <--
17 RECOMMENDED CHANGES WAS not incorporated into the revised
18 contract.
19 (2) The Chief Clerk shall, UPON RECEIPT, transmit the <--
20 notification to the appropriate committee of the House of <--
21 Representatives. THE CHAIRMAN OF THE REVIEWING COMMITTEE WHO <--
22 SHALL, UPON RECEIPT, TRANSMIT THE NOTIFICATION TO EACH MEMBER
23 OF THE REVIEWING COMMITTEE. UPON TRANSMISSION THE CHAIRMAN
24 SHALL ADVISE THE MEMBERS OF THE REVIEWING COMMITTEE AND THE
25 COMMONWEALTH AGENCY WHETHER HE INTENDS TO CONVENE A REVIEWING
26 COMMITTEE MEETING TO COMMENT ON THE CONTENTS OF THE
27 NOTIFICATION.
28 (3) Not sooner than 45 days after the filing of the
29 notification with the appropriate committee CHIEF CLERK, the <--
30 Commonwealth agency shall be authorized to execute the
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1 private attorney contract.
2 (e) Execution of approved contract.--If the appropriate <--
3 REVIEWING committee makes no recommended changes to the proposed <--
4 contract within the time period specified in subsection (b), the
5 proposed contract shall be deemed approved and the Commonwealth
6 agency may execute the private attorney contract.
7 Section 5. Nonsession procedure.
8 In the event that the General Assembly is not in session <--
9 during the time period in which a private attorney contract
10 filed with the Chief Clerk is to be reviewed as provided in
11 section 4(b), then the Governor, IF AT THE TIME A COMMONWEALTH <--
12 AGENCY FILES A PRIVATE ATTORNEY CONTRACT WITH THE CHIEF CLERK AS
13 REQUIRED BY THIS ACT, THE CHIEF CLERK DETERMINES THAT THE HOUSE
14 OF REPRESENTATIVES IS NOT SCHEDULED TO BE IN VOTING SESSION AT
15 ANY TIME DURING THE 30-DAY PERIOD IMMEDIATELY FOLLOWING THE
16 FILING OF THE PRIVATE ATTORNEY CONTRACT, THE CHIEF CLERK SHALL
17 NOTIFY THE GOVERNOR WHO, with the consent of the President pro
18 tempore of the Senate and the Speaker of the House of
19 Representatives, may establish an interim committee consisting
20 of five members of the General Assembly, one each to be
21 appointed by the Governor, the President pro tempore of the
22 Senate, the Minority Leader of the Senate, the Speaker of the
23 House of Representatives and the Minority Leader of the House of
24 Representatives. The interim committee shall perform its duties <--
25 and within the time frame as provided in section 4.
26 REPRESENTATIVES. THE MEMBER APPOINTED BY THE SPEAKER OF THE <--
27 HOUSE OF REPRESENTATIVES SHALL SERVE AS CHAIRMAN. WITHIN 30 DAYS
28 OF THE ESTABLISHMENT OF THE INTERIM COMMITTEE, THE CHAIRMAN MAY
29 CONVENE A PUBLIC HEARING ON THE PROPOSED CONTRACT, AND THE
30 INTERIM COMMITTEE SHALL ISSUE A REPORT TO THE REFERRING
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1 COMMONWEALTH AGENCY. THE REPORT SHALL INCLUDE ANY RECOMMENDED
2 CHANGES TO THE PROPOSED CONTRACT THAT ARE AGREED UPON BY A
3 MAJORITY VOTE OF THE COMMITTEE.
4 Section 6. Disclosure involving contingent fees.
5 (a) Contents of disclosure.--At the conclusion of any legal
6 proceeding in which a Commonwealth agency is represented by a
7 private attorney under a private attorney contract involving a <--
8 contingency fee, the Commonwealth agency shall demand the
9 following information to be disclosed in writing from the
10 private attorney:
11 (1) A statement of the hours worked on the matter.
12 (2) The expenses incurred on the matter.
13 (3) The aggregate fee paid or to be paid to the private
14 attorney.
15 (4) A breakdown as to the hourly rate, based on hours
16 worked divided into fee recovered, less expenses.
17 (b) Limitation on contingency fees.-- <--
18 (1) Notwithstanding any other provision of this act or
19 law to the contrary, no private attorney contract involving <--
20 contingency fees shall result in the private attorney
21 receiving in excess of $1,000 per hour for legal services. NO <--
22 COMMONWEALTH AGENCY SHALL ENTER INTO A CONTRACT THE TERMS OF
23 WHICH REQUIRE THE COMMONWEALTH OR A COMMONWEALTH AGENCY TO
24 COMPENSATE OR INCUR AN OBLIGATION TO COMPENSATE ANY PRIVATE
25 ATTORNEY OR GROUP OF PRIVATE ATTORNEYS, TO ENGAGE IN LEGAL
26 REPRESENTATION FOR COMPENSATION CONTINGENT IN WHOLE OR IN
27 PART UPON THE OUTCOME OF THE LEGAL REPRESENTATION, INCLUDING
28 THE AMOUNT OF ANY SETTLEMENT, RECOVERY OR AWARD. ANY SUCH
29 PRIVATE ATTORNEY CONTRACT SHALL BE VOID AND UNENFORCEABLE.
30 (2) In the event that a disclosure submitted under
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1 subsection (a), indicates THAT A PRIVATE ATTORNEY OR GROUP OF <--
2 PRIVATE ATTORNEYS RECEIVED an hourly rate in excess of $1,000
3 per hour for legal services, the fee amount shall be reduced
4 to an amount equivalent to $1,000 per hour.
5 (c) Contract provision.--No private attorney contract shall
6 be valid and enforceable unless it contains a provision
7 requiring compliance with this section.
8 Section 7. Construction.
9 Nothing in this act shall be construed as expanding the
10 authority of any Commonwealth agency to enter into contracts
11 where no such authority previously existed.
12 Section 8. Severability.
13 The provisions of this act are severable. If any provision of
14 this act or its application to any person or circumstance is
15 held invalid, the invalidity shall not affect other provisions
16 or applications of this act which can be given effect without
17 the invalid provision or application.
18 Section 9. Repeals.
19 All acts and parts of acts are repealed insofar as they are
20 inconsistent with this act.
21 Section 10. Effective date.
22 This act shall take effect in 60 days.
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