SLS 14RS-803 REENGROSSED Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 SENATE BILL NO. 553 BY SENATOR ADLEY FLOOD PROTECTION AUTH. Provides relative to special attorneys for flood protection authorities. (gov sig) AN ACT1 To amend and reenact R.S. 42:262 and to enact R.S. 42:263(D), relative to special counsels;2 to provide relative to special attorneys for flood protection authorities; to provide for3 resolutions requesting special counsel; to provide for prospective and retroactive4 application; and to provide for related matters.5 Be it enacted by the Legislature of Louisiana:6 Section 1. R.S. 42:262 is hereby amended and reenacted and R.S. 42:263(D) is7 hereby enacted to read as follows: 8 §262. Special attorneys 9 A. In the event it should be necessary to protect the public interest, for any10 state board, or commission, or regional flood protection authority established11 under Article VI, Section 38.1 of the Louisiana Constitution of 1974, to retain or12 employ any special attorney or counsel to represent it in any special matter for which13 services any compensation is to be paid by it, the board, or commission, or regional14 flood protection authority may retain or employ such special attorney or counsel15 solely on written approval of the governor and the Attorney General attorney16 general and shall pay only such compensation as the governor and the Attorney17 SB NO. 553 SLS 14RS-803 REENGROSSED Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. General attorney general may designate in the written approval. The approval shall1 be given in their discretion upon the application of the board, or commission, or2 regional flood protection authority by a resolution thereof setting forth fully the3 reasons for the proposed retention or employment of the special attorney or counsel4 and the amount of the proposed compensation. The governor and Attorney General5 attorney general shall not ratify or approve any action of a board, commission, or6 regional flood authority in employing any special attorney or counsel or paying any7 compensation for special service rendered, unless all the formalities as provided by8 this Part as to resolutions and the like, have been complied with. The governor may9 delegate the authority granted to him under this Subsection to approve the10 retention of special attorney or counsel.11 B. Unless otherwise specifically authorized by law to use contingency fee12 agreements, no entity subject to this Section that is subject to the13 Administrative Procedure Act and represented by the attorney general when14 called upon do so, may retain or employ any special attorney or counsel15 pursuant to a contingency fee agreement until after the Joint Legislative16 Committee on the Budget has approved the contingency fee agreement.17 C. It is the intent of the legislature that Subsection A of this Section shall18 have both prospective and retroactive application. It is further the intent of the19 legislature to clarify that agreements not in accordance with Subsection A of20 this Section are and have always been contrary to the public policy of this state21 and void ab initio.22 D. It is the intent of the legislature that Subsection B of this Section shall23 apply only prospectively.24 §263. Resolution requesting special counsel25 * * *26 D.(1) Unless otherwise specifically authorized by law to use contingency27 fee agreements, no entity subject to this Section that is subject to the28 Administrative Procedure Act and represented by the attorney general when29 SB NO. 553 SLS 14RS-803 REENGROSSED Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. called upon do so, may retain or employ any special attorney or counsel1 pursuant to a contingency fee agreement until after the Joint Legislative2 Committee on the Budget has approved the contingency fee agreement.3 (2) It is the intent of the legislature that Subsection D of this Section shall4 apply only prospectively.5 Section 2. All agreements for the retention or employment of special counsel by a6 state board or commission or a regional flood protection authority that have not been7 approved by the governor and the attorney general under R.S. 42:262(A) as amended by this8 Act, are null and void unless and until such approval is obtained. Notwithstanding the9 foregoing, the Legislature hereby ratifies each such agreement, provided that it was approved10 by the attorney general as to the matters addressed in R.S. 42:262 as it existed one day11 before the effective date of this Act, and provided that the agreement states specific hourly12 rates for legal services. No payment is or may be due or paid for services rendered under13 any agreement that is null and void under this Section or R.S. 42:262(A) as amended by this14 Act, other than in quantum meruit. 15 Section 3. This Act shall become effective upon signature by the governor or, if not16 signed by the governor, upon expiration of the time for bills to become law without signature17 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If18 vetoed by the governor and subsequently approved by the legislature, this Act shall become19 effective on the day following such approval.20 The original instrument was prepared by J. Ashley Mitchell. The following digest, which does not constitute a part of the legislative instrument, was prepared by Sharon F. Lyles. DIGEST Adley (SB 553) Present law provides that in the event it should be necessary to protect the public interest, for any state board or commission to retain or employ any special attorney or counsel to represent it in any special matter for which services any compensation is to be paid by it, the board or commission may retain or employ such special attorney or counsel solely on written approval of the governor and the attorney general and pay only such compensation as the governor and the attorney general may designate in the written approval. The approval will be given in their discretion upon the application of the board or commission by a resolution thereof setting forth fully the reasons for the proposed retention or employment of the special attorney or counsel and the amount of the proposed compensation. The governor and attorney general will not ratify or approve any action of a board in employing any special SB NO. 553 SLS 14RS-803 REENGROSSED Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. attorney or counsel or paying any compensation for special service rendered, unless all the formalities as provided in present law as to resolutions and the like, have been complied with. Proposed law modifies present law and provides that any state board or commission, or any regional flood protection authority established under Article VI, Section 38.1 of the Louisiana Constitution of 1974, to retain or employ any special attorney or counsel to represent it in any special matter for which services any compensation is to be paid by it, the board, commission, or regional flood protection authority may retain or employ such special attorney or counsel solely on written approval of the governor and the attorney general and pay only such compensation as the governor and the attorney general may designate in the written approval. The approval will be given in their discretion upon the application of the board, or commission, or regional flood protection authority by a resolution thereof setting forth fully the reasons for the proposed retention or employment of the special attorney or counsel and the amount of the proposed compensation. The governor and attorney general will not ratify or approve any action of a board, commission or regional flood authority in employing any special attorney or counsel or paying any compensation for special service rendered, unless all the formalities as provided in present law as to resolutions and the like, have been complied with. Proposed law provides that the governor may delegate the authority granted to him under proposed law to approve the retention of special attorney or counsel and provides that it is further the intent of the legislature to clarify that agreements not in accordance with proposed law are and have always been contrary to the public policy of this state and void ab initio. Proposed law provides that proposed law relative to the governor's authority to approve retention of special attorney or counsel will have both prospective and retroactive application. Proposed law provides that unless otherwise specifically authorized by law to use contingency fee agreements, no entity subject to proposed law may retain or employ any special attorney or counsel pursuant to a contingency fee agreement until after the Joint Legislative Committee on the Budget has approved the contingency fee agreement and that proposed law will apply only prospectively. Present law provides that no parish governing authority, levee board except as provided in present law hereof, parish school board, city school board, or other local or state board will retain or employ any special attorney or counsel to represent it in any special matter or pay any compensation for any legal services whatever unless a real necessity exists, made to appear by a resolution thereof stating fully the reasons for the action and the compensation to be paid. The resolution then will be subject to the approval of the attorney general and, if approved by him, will be spread upon the minutes of the body and published in the official journal of the parish. Present law provides that the governing boards of the Cane River Levee and Drainage District, the Campti-Clarence Levee District, the Natchitoches Levee and Drainage District, the Red River Levee and Drainage District, the Fifth Louisiana Levee District, and the Nineteenth Louisiana Levee District may retain or employ special counsel as needed and without the approval of the attorney general. Present law provides that the Board of Commissioners of the Black Lake Bayou Recreation and Water Conservation District of Red River Parish may retain or employ general or special counsel as needed and without the approval of the attorney general. Proposed law provides that unless otherwise specifically authorized by law to use contingency fee agreements, no entity subject to the Administrative Procedure Act and represented by the attorney general under proposed law may retain or employ any special SB NO. 553 SLS 14RS-803 REENGROSSED Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. attorney or counsel pursuant to a contingency fee agreement until after the Joint Legislative Committee on the Budget has approved the contingency fee agreement and that proposed law shall apply only prospectively. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amend R.S. 42:262; adds R.S. 42:263(D)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Transportation, Highways, and Public Works to the original bill 1. Adds that requirement for approval by the Joint Legislative Committee on the Budget to retain or employ any special attorney or counsel on a contingency fee agreement applies to an entity that is subject to the Administrative Procedure Act and represented by the attorney general when called upon to do so.