SB 19

This bill generally prohibits a state agency from contracting to provide legal

services for the state on a contingent fee basis unless the governor makes a written

determination that entering into such a contract is cost-effective and in the public

interest. If the governor makes such a determination, this bill imposes limits on

aggregate contingency fees based on the amount of the recovery as follows: if the

recovery is less than $10 million, the contingency fee limit is 25 percent of that

recovery; if the recovery is between $10 million and $15 million, the limit is 20

percent of that recovery; if the recovery is between $15 million and $20 million, the

limit is 15 percent of that recovery; if the recovery is between $20 million and $25

million, the limit is 10 percent of that recovery; and if the recovery is $25 million or

more, the limit is 5 percent of that recovery. In addition, this bill requires that

attorneys employed by the state retain certain powers in the contract. For instance,

the state attorneys must retain control over the course and conduct of the case, may

reject decisions made by any attorney retained under the contract, and have

exclusive discretion regarding settlement decisions. This bill also requires that

copies of such contingency fee contracts and notice of the amount of any contingency

fees paid be posted on the Internet site of the office of the governor. Finally, this bill

requires any attorney who is party to a contingency fee contract with the state to

maintain financial records related to the legal services provided.