The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
SB 424 Original 2018 Regular Session Morrish
Present law provides that in the event that the attorney general, or any state agency, board or
commission, not including any public postsecondary education institution, is represented by a special
attorney or counsel, the special attorney or counsel shall not be compensated for such representation
on a contingency fee or percentage basis in the absence of express statutory authority. Requires that
in retaining a special attorney or counsel, preference be given to private attorneys licensed to practice
law in this state and law firms domiciled and licensed in this state.
Present 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, not including any public
postsecondary education institution, belongs to the state and shall be deposited into the state treasury
into the Department of Justice Legal Support Fund. Provides that no payment of attorney fees shall
be made out of state funds in the absence of express statutory authority, except such payment of
attorney fees as may be approved by the Joint Legislative Committee on the Budget during the
interim between legislative sessions.
Present law provides that 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, 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.
Present law provides that all contracts with any special attorney or counsel require the keeping of
accurate records of the hours worked and the expenses incurred in the representation of the public
entity. Provides that in no case shall the attorney general, or any state agency, board, or commission,
not including any public postsecondary education institution, incur fees in excess of $500 per hour
for legal services. Provides that in the event of a settlement or final judgment which would result in
an award of attorney fees in excess of $500 per hour, the fee amount 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 provides that to the extent not otherwise prohibited by present law, the following
provisions additionally apply to the retainer of any special attorney or counsel:
(1)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, 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 or approve in the written approval. Provides that the approval be given in their discretion upon the application of the board or commission.
(2) The applicant shall include in its application all of the following:
(a)A resolution that includes all of the following:
(i)A statement showing that a real necessity exists.
(ii)A statement fully providing the reasons for the action.
(iii)A statement of the total compensation to be paid.
(iv)The statutory authority for the contingency fee if the contract contains such a fee.
(b)A copy of the proposed contract described in the resolution.
(3) The governor and attorney general shall not ratify or approve any action of a board, or
commission, not including any public postsecondary education institution, in employing any
special attorney or counsel or paying any compensation for special service rendered, unless
all the formalities as provided by present law have been complied with or if any of the
following apply:
(a)The terms of the resolution do not match the required terms of the contract.
(b)The need is not sufficiently shown in the resolution.
(c)The fee is unreasonable.
(d)The governor or attorney general determines there is a valid reason not to ratify or
approve the action.
(4) The governor or attorney general shall respond to the application in writing by giving
approval or rejection with reasons.
Present law provides exceptions to present law 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.
Present law provides exception from present law to attorneys or counsel retained pursuant to R.S.
39:1533(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.
Proposed law provides that present law shall not apply to attorneys or counsel retained by the State
Mineral and Energy Board for purposes of obtaining past due royalties pursuant to R.S. 31:133-143.
Otherwise retains present law. Present law establishes the Department of Justice Legal Support Fund in the state treasury. Provides
that the fund shall be comprised of proceeds recovered by the attorney general on behalf of the state
from court judgments, settlements, fines, fees, forfeitures and penalties, from the recovery or award
of any attorney fees as provided in R.S. 42:262, or from proceeds recovered by the attorney general
from any other source which revenues are received by the attorney general for deposit into the fund.
Excepts those judgments and recoveries made on or pertaining to any office of risk management
litigation, litigation involving the Department of Natural Resources or the Department of
Environmental Quality, or to the settlement funds, judgments, or final disposition of the claims
asserted in State of Louisiana v. BP Exploration & Production, et al., consolidated with In Re: Oil
Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010, MDL No. 2179
(E.D. La.).
Proposed law excepts from present law proceeds recovered from judgments, settlements, fines, fees,
forfeitures, and penalties, as well as recovery or award of any attorney fees, as provided in R.S.
31:133-143 by attorneys or counsel retained pursuant to R.S. 42:262(H).
Otherwise retains present law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 49:259(A); adds R.S. 42:262(H))