PRINTER'S NO. 2149
No. 1684 Session of 2003
INTRODUCED BY LEWIS, CAPPELLI, CREIGHTON, HERSHEY, ROSS AND
YOUNGBLOOD, JUNE 23, 2003
REFERRED TO COMMITTEE ON JUDICIARY, JUNE 23, 2003
AN ACT
1 Requiring competitive bidding for certain private attorney
2 contracts; providing for legislative oversight on such
3 contracts; establishing a legislative oversight procedure;
4 and limiting contingency fees in such contracts.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Private
9 Attorney Retention Sunshine Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Private attorney contract." A contract for legal services
15 in which the fee paid to an attorney or group of attorneys, in
16 the form of a flat, hourly or contingent fee, and their
17 expenses, exceeds or can be reasonably expected to exceed
18 $100,000.
1 "State agency." All of the following: the General Assembly,
2 a department of the executive branch of the government of this
3 Commonwealth, including the Governor's Cabinet, any board,
4 council, authority or commission of the Commonwealth, the boards
5 of trustees of all State-aided colleges and universities, the
6 councils of trustees of all State-owned colleges and
7 universities, the boards of trustees of all State-related
8 universities and all community colleges or similar organizations
9 created by or pursuant to a statute which declares in substance
10 that the organization performs or has for its purpose the
11 performance of an essential governmental function and through
12 the joint action of its members exercises governmental authority
13 and takes official action. The term does not include a caucus or
14 a meeting of a committee created under rules of the Senate or
15 House of Representatives.
16 "State agent." A public official or employee of a State
17 agency, or an agent acting on behalf of a State agency.
18 Section 3. Competitive bidding required.
19 A State agency or State agent that wishes to retain an
20 attorney or law firm to perform legal services on behalf of the
21 Commonwealth, the State agency or State agent shall not do so
22 until an open and competitive bidding process has been
23 undertaken.
24 Section 4. Legislative oversight required.
25 No State agency or State agent shall enter into a private
26 attorney contract without complying with this act and providing
27 the opportunity for at least one hearing in the General Assembly
28 on the terms of the legal contract in accordance with section 5.
29 Section 5. Procedure.
30 (a) Initial referral.--A State agency or State agent
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1 entering into a private attorney contract shall file a copy of
2 the proposed contract with the Chief Clerk of the House of
3 Representatives, who, with the approval of the President pro
4 tempore of the Senate and the Speaker of the House of
5 Representatives, shall refer such contract to the appropriate
6 committee.
7 (b) Public hearing.--Within 30 days after such referral, the
8 interim committee may hold a public hearing on the proposed
9 contract and shall issue a report to the referring State agency
10 or State agent. The report shall include any proposed changes to
11 the proposed contract voted upon by the committee. The State
12 agency or State agent shall review the report and adopt a final
13 contract as deemed appropriate in view of the report and shall
14 file with the Chief Clerk of the House of Representatives its
15 final contract.
16 (c) Posthearing notice.--If the proposed contract does not
17 contain the changes proposed by the committee, the referring
18 State agency or State agent shall submit written notice to the
19 Chief Clerk of the House of Representatives, including the final
20 contract and the reasons why the proposed changes were not
21 adopted. The chief clerk shall refer the letter and final
22 contract to the appropriate committee. Not earlier than 45 days
23 after the filing of the letter and final contract with the
24 committee, the State agency or State agent may enter into the
25 final contract.
26 (d) Effect of no action by committee.--If no proposed
27 changes to the proposed contract are recommended by the
28 committee within 60 days of the initial filing of the proposed
29 contract or any amendment of the contract with the Chief Clerk
30 of the House of Representatives, the State agency or State agent
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1 may enter into the contract.
2 (e) General Assembly not in session.--
3 (1) In the event that the General Assembly is not in
4 session and the Attorney General wishes to execute a contract
5 for legal services, the Governor, with the approval of the
6 President pro tempore of the Senate and the Speaker of the
7 House of Representatives, may establish a five-member interim
8 committee consisting of five members of the General Assembly,
9 one each to be appointed by the Governor, the President pro
10 tempore of the Senate, the Speaker of the House of
11 Representatives, the Minority Leader of the Senate and the
12 Minority Leader of the House of Representatives to execute
13 the oversight duties as set forth in subsection (b).
14 (2) The same deadline and reporting responsibilities
15 shall apply to the Attorney General and the interim committee
16 as would apply to a standing committee of the General
17 Assembly executing the duties set forth in subsection (b).
18 (f) Construction.--Nothing in this act shall be construed to
19 expand the authority of a State agency or State agent to enter
20 into contracts where no such authority otherwise exists.
21 Section 6. Contingent fees.
22 (a) Statement from private attorney.--At the conclusion of
23 any legal proceeding for which a State agency or State agent
24 retained outside counsel on a contingent fee basis, the Chief
25 Clerk of the House of Representatives shall receive from the
26 attorney or law firm representing the Commonwealth, the State
27 agency or State agent a statement of the hours worked on the
28 case, expenses incurred, the aggregate fee amount and a
29 breakdown as to the hourly rate, based on hours worked divided
30 into fee recovered, less expenses.
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1 (b) Limitation.--In no case shall the Commonwealth incur
2 fees and expenses under a private attorney contract in excess of
3 $250 per hour for legal services. In cases where a statement
4 submitted in accordance with subsection (a) indicates an hourly
5 rate in excess of $250, the fee amount shall be reduced to an
6 amount equivalent to $250 per hour.
7 Section 7. Effective date.
8 This act shall take effect in 60 days.
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