HLS 14RS-717 REENGROSSED
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Regular Session, 2014
HOUSE BILL NO. 799
BY REPRESENTATIVE STUART BISHOP
ATTORNEYS: Provides relative to the employment of special attorneys or counsel
AN ACT1
To amend and reenact R.S. 42:262, relative to legal representation of state entities; to2
prohibit the state entities from retaining any special attorney or counsel on a3
contingency fee basis in the absence of express statutory authority; to provide that4
attorney fees recovered by the state belong to the state; to provide for record-keeping5
and hourly rates of a special attorney or counsel representing the state; to require6
certain entities to obtain approval prior to employment of any special attorney or7
counsel; to provide for certain requirements relative to the contract, application and8
resolution; to provide for exceptions; to provide for a preference in hiring certain9
attorneys; to provide transparency relative to approval and ratification of a contract10
by the attorney general and governor; to provide for prospective application; and to11
provide for related matters.12
Be it enacted by the Legislature of Louisiana:13
Section 1. R.S. 42:262 is hereby amended and reenacted to read as follows:14
ยง262. Special attorneys attorney or counsel15
A. In the event that the attorney general, or any state agency, board or16
commission, not including any public postsecondary education institution, is17
represented by a special attorney or counsel, the special attorney or counsel shall not18
be compensated for such representation on a contingency fee or percentage basis in19
the absence of express statutory authority, including R.S. 17:100.10, R.S. 23:1669,20 HLS 14RS-717 REENGROSSED
HB NO. 799
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R.S. 37:2153, R.S. 41:724, 922, and 1512, R.S. 42:1157.3, R.S. 46:15, R.S. 47:1512,1
1515.3, 1516, 1516.1, and 1676. In retaining a special attorney or counsel,2
preference shall be given to private attorneys licensed to practice law in this state and3
law firms domiciled and licensed in this state.4
B. Any recovery or award of attorney fees, including settlement, in litigation5
involving the attorney general or any state agency, board, or commission, not6
including any public postsecondary education institution, belongs to the state and7
shall be deposited into the state treasury. No payment of attorney fees shall be made8
out of state funds in the absence of express statutory authority, including R.S.9
17:100.10, R.S. 23:1669, R.S. 37:2153, R.S. 41:724, 922, and 1512, R.S. 42:1157.3,10
R.S. 46:15, R.S. 47:1512, 1515.3, 1516, 1516.1, and 1676.11
C. Any special attorney or counsel retained or employed by the attorney12
general, or any state agency, board, or commission, not including any public13
postsecondary education institution, shall be considered a public servant such that14
the retention of such special attorney or counsel shall not circumvent the requirement15
of direct payment for services as set forth in R.S. 42:1111(A)(1).16
D. All contracts with any special attorney or counsel shall require the17
keeping of accurate records of the hours worked and the expenses incurred in the18
representation of the public entity. In no case shall the attorney general, or any state19
agency, board, or commission, not including any public postsecondary education20
institution, incur fees in excess of five hundred dollars per hour for legal services.21
In the event of a settlement or final judgment which would result in an award of22
attorney fees in excess of five hundred dollars per hour, the fee amount shall be23
reduced to an amount equivalent to five hundred dollars per hour, or the maximum24
rate approved by the Attorney Fee Review Board, whichever is greater.25
E. To the extent not otherwise prohibited by Subsections A, B, C, and D of26
this Section, the following provisions additionally apply to the retainer of any special27
attorney or counsel:28 HLS 14RS-717 REENGROSSED
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(1) In the event it should be necessary to protect the public interest, for any1
state board or commission to retain or employ any special attorney or counsel to2
represent it in any special matter for which services any compensation is to be paid3
by it, the board or commission may retain or employ such special attorney or counsel4
solely on written approval of the governor and the Attorney General attorney general5
and pay only such compensation as the governor and the Attorney General attorney6
general may designate or approve in the written approval. The approval shall be7
given in their discretion upon the application of the board or commission by a8
resolution thereof setting forth fully the reasons for the proposed retention or9
employment of the special attorney or counsel and the amount of the proposed10
compensation.11
(2) The applicant shall include in its application all of the following:12
(a) A resolution that includes all of the following:13
(i) A statement showing that a real necessity exists.14
(ii) A statement fully providing the reasons for the action.15
(iii) A statement of the total compensation to be paid.16
(iv) The statutory authority for the contingency fee if the contract contains17
such a fee.18
(b) A copy of the proposed contract described in the resolution.19
(3) The governor and Attorney General attorney general shall not ratify or20
approve any action of a board, or commission, not including any public21
postsecondary education institution, in employing any special attorney or counsel or22
paying any compensation for special service rendered, unless all the formalities as23
provided by this Part as to resolutions and the like, have been complied with.24
Section have been complied with or if any of the following apply:25
(a) The terms of the resolution do not match the required terms of the26
contract.27
(b) The need is not sufficiently shown in the resolution.28 HLS 14RS-717 REENGROSSED
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(c) The fee is unreasonable.1
(d) The governor or attorney general determines there is a valid reason not2
to ratify or approve the action.3
(4) The governor or attorney general shall respond to the application in4
writing by giving approval or rejection with reasons.5
Section 2. The provisions of this Act shall have prospective application only.6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Stuart Bishop HB No. 799
Abstract: Requires certain entities to receive approval for the employment of special
attorneys or counsel and provides procedures for requesting and approving
employment of special attorneys or counsel.
Proposed law requires express statutory authority for compensation to a special attorney or
counsel representing the attorney general, or any state agency, board or commission, not
including any public postsecondary education institution, on a contingency fee or percentage
basis.
Proposed law requires that a preference in hiring be given to attorneys licensed to practice
law in this state and law firms domiciled and licensed in this state.
Proposed law provides that any recovery or award of attorney fees including settlement, in
litigation involving the attorney general, or any state agency, board, or commission belongs
to the state and shall be deposited into the state treasury.
Proposed law requires that any special attorney or counsel retained or employed by the
attorney general, or any state agency, board, or commission, not including public
postsecondary education institutions, shall be considered a public servant such that the
retention shall not circumvent the requirement of direct payment for services.
Proposed law requires the keeping of accurate records of the hours worked and expenses
incurred in the representation of the public entity, and prohibits the entity from incurring fees
in excess of $500 per hour for legal services, and any award in excess of the $500 per hour
shall be reduced to an amount equivalent to $500 per hour, or the maximum rate approved
by the Attorney Fee Review Board, whichever is greater.
Present law requires written approval from the attorney general and governor for the
employment of any special attorney or counsel to represent any state board or commission,
not including any public postsecondary education institution, in any matter for which
compensation is to be paid for services by application and a resolution setting forth the
reasons for the employment of the special attorney or counsel and the proposed
compensation. HLS 14RS-717 REENGROSSED
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are additions.
Proposed law retains present law except that it removes the requirement for the submission
of a resolution.
Present law authorizes the attorney general and governor to designate the amount of
compensation in the written approval which shall be given in their discretion upon
application of the board or commission by a resolution setting forth the reasons for the
proposed retention or employment of the special attorney or counsel and the amount of the
proposed compensation.
Proposed law provides that the attorney general and governor may designate or approve the
amount of compensation in writing.
Proposed law requires the applicant to submit an application and a resolution that meets
requirements for a resolution as provided by present law. Further requires the applicant to
include in his application a copy of the proposed contract and a written statement from the
attorney designated to represent the entity, explaining why he could not handle the matter.
Present law prohibits the attorney general and governor from ratifying or approving any
action of a board in employing any special attorney or counsel or paying any compensation
for special services rendered unless all of the board or commission has complied with all of
the formalities regarding the resolution.
Proposed law retains present law and provides for the following additional prohibitions:
(1)The terms of the resolution do not match the required terms of the contract.
(2)The need is not sufficiently shown in the resolution.
(3)The fee is unreasonable.
(4)The governor or attorney general determines there is a valid reason not to ratify or
approve the action.
Proposed law requires the governor or attorney general to respond to the application in
writing by giving approval, conditional approval, or rejecting the application.
Proposed law provides that a resolution requesting special counsel shall include the
following:
(1)A statement showing a real necessity exists.
(2)A statement fully providing the reasons for the action.
(3)A statement of the total compensation to be paid.
(4)The statutory authority for the contingency fee if the contract contains a contingent
fee.
Proposed law provides for prospective application only.
(Amends R.S. 42:262) HLS 14RS-717 REENGROSSED
HB NO. 799
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the original bill.
1. Deleted provisions applying proposed law to parish and local governmental
entities.
2. Added provisions excepting public postsecondary education institutions from
proposed law.
3. Added provision requiring that a preference in hiring be given to attorneys
licensed to practice law in this state and law firms domiciled and licensed in
this state.
4. Added provisions specifying the contents of the applicant's resolution.
5. Added provision specifying only prospective application of proposed law.
House Floor Amendments to the engrossed bill.
1. Added citations to existing statutes authorizing contingency fees.
2. Added requirement of approval by the Attorney Fee Review Board.
3. Added technical amendments.