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Prepared by Jay Lueckel.
S. Bishop HB No. 799
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
ATTORNEYS. Provides relative to the employment of special attorneys or counsel.
DIGEST
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. Clarifies that monies deposited into
the Department of Justice Legal Support Fund includes proceeds from court judgments,
settlements, fines, fees and from the recovery or award of any attorney fees, among others.
Proposed law provides that no payment of attorney fees shall be made out of state funds in
the absence of express statutory authority, including certain present law, except such payment
of attorney fees as may be approved by the Joint Legislative Committee on the Budget during
the interim between legislative sessions.
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 not accept nor demand as payment for the services
rendered by the special attorney or counsel anything of economic value from any third party.
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.
Proposed law adds that proposed law shall not apply to attorneys or counsel retained pursuant
to present law for purposes of defending the state, its agencies and its employees in tort
litigation or other matters involving the Self-Insurance Fund as established in present law.
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 employm ent of the special attorney or counsel and the proposed
compensation.
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. Page 2 of 4
Prepared by Jay Lueckel.
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 that proposed law shall not apply to any legal fees or attorney
compensation made in connection with the issuance of bonds, notes, or other issuances of
indebtedness when such legal fees or attorney compensation are approved by the State Bond
Commission pursuant to present law.
Proposed law clarifies that monies deposited into the Department of Justice Legal Support
Fund includes proceeds from court judgments, settlements, fines, fees and from the recovery
or award of any attorney fees, among others.
Proposed law limits paying employee salary or wages or other expenses to be paid from
recovery or award until funding is approved by the Joint Legislative Committee on the
Budget.
Proposed law requires that each fiscal year, monies shall be deposited into the fund in an
amount sufficient to bring the unencumbered balance in the fund to $10 million.
Proposed law provides that provisions of the Act shall have prospective application only and
shall not apply to contracts to existing contracts prior to the effective date of all sections of
the Act nor to subsequent renewals of those contracts.
Sections of the Act relative to the Department of Justice Legal Support Fund become
effective upon notification by the state treasurer of the president of the Senate, the speaker
of the House of Representatives, the attorney general, and the Joint Legislative Committee
on the Budget when the fund balance exceeds the Fiscal Year 2013-2014 amount of $2
million. All other sections of the Act are effective upon signature of the governor. Page 3 of 4
Prepared by Jay Lueckel.
(Amends R.S. 42:262 and R.S. 49:259(A) and (C))
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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary A to the
reengrossed bill
1. Changes reference to R.S. 41:724, 922 and 1512 to instead reference R.S.
41:724 and 922.
2. Excepts from the prohibition on paying attorney fees from state funds in the
absence of express statutory authority the payment of attorney fees as may be
approved by the Joint Legislative Committee on the Budget during the
interim between legislative sessions.
3. Changes proposed law from considering any special attorney or counsel
retained or employed by the attorney general, or any state agency, board, or
commission, not including any public postsecondary education institution, to
be a public servant, such that their retention shall not circumvent the
requirement of direct payment for services to a prohibition on such counsel
accepting or demanding as payment for the services rendered anything of
economic value from any third party.
4. Adds that proposed law shall not apply to attorneys or counsel retained
pursuant to R.S. 39:1553 (B) and R.S. 49:258 for purposes of defending the
state, its agencies and its employees in tort litigation or other matters
involving the Self-Insurance Fund as established in R.S. 39:1533.
5. Adds that proposed law shall not apply to any legal fees or attorney
compensation made in connection with the issuance of bonds, notes, or other
issuances of indebtedness when such legal fees or attorney compensation are
approved by the State Bond commission pursuant to R.S. 39:1405.4. Page 4 of 4
Prepared by Jay Lueckel.
Committee Amendments Proposed by Senate Committee on Finance to the
reengrossed bill
1. Clarifies that monies deposited into the Department of Justice Legal Support
Fund includes proceeds from court judgments, settlements, fines, fees and
from the recovery or award of any attorney fees, among others.
2. Limits paying employee salary or wages or other expenses to be paid from
recovery or award until funding is approved by the Joint Legislative
Committee on the Budget.
3. Requires that each fiscal year, monies shall be deposited into the fund in an
amount sufficient to bring the unencumbered balance in the fund to $10
million.
4. Provides that provisions of the Act shall have prospective application only
and shall not apply to contracts to existing contracts prior to the effective date
of all sections of the Act nor to subsequent renewals of those contracts.
5. Sections of the Act relative to the Department of Justice Legal Support Fund
become effective upon notification by the state treasurer of the president of
the Senate, the speaker of the House of Representatives, the attorney general,
and the Joint Legislative Committee on the Budget when the fund balance
exceeds the Fiscal Year 2013-2014 amount of $2 million.
6. All other sections of the Act are effective upon signature of the governor.