PRINTER'S NO. 1340
No. 1158 Session of 2001
INTRODUCED BY DALLY, SAYLOR, CALTAGIRONE, M. COHEN, HENNESSEY,
SEMMEL, FREEMAN, TRELLO, TIGUE, WILT, RUBLEY, MANDERINO,
STEELMAN, THOMAS AND SCRIMENTI, MARCH 23, 2001
REFERRED TO COMMITTEE ON JUDICIARY, MARCH 23, 2001
AN ACT
1 Establishing a procurement procedure for certain contracts for
2 legal services entered into between Commonwealth agencies and
3 private attorneys.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Private
8 Attorney Retention Sunshine Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Chief Clerk." The Chief Clerk of the House of
14 Representatives.
15 "Commonwealth agency." An administrative department, board
16 or commission, an independent department, board or commission or
17 an instrumentality thereof of the executive branch, including an
18 authorized agent of any of them. The term includes the Office of
1 Attorney General, the Department of the Auditor General and the
2 Treasury Department.
3 "Private attorney." A person who is licensed to practice law
4 in this Commonwealth or another jurisdiction and who is not an
5 employee of a Commonwealth agency.
6 "Private attorney contract" or "contract." An agreement for
7 legal services in which the fee paid to a private attorney or
8 group of private attorneys, either in the form of a flat, hourly
9 or contingent fee and related expenses, exceeds or can be
10 reasonably expected to exceed $1,000,000.
11 Section 3. Competitive process required.
12 A Commonwealth agency that intends to enter into a private
13 attorney contract on behalf of the Commonwealth agency shall use
14 an open and competitive process to select the private attorney
15 and shall comply with this act.
16 Section 4. Legislative oversight during session.
17 (a) Copy to be filed.--A Commonwealth agency entering into a
18 private attorney contract shall file a copy of the proposed
19 contract with the Chief Clerk who, with the approval of the
20 President pro tempore of the Senate and Speaker of the House of
21 Representatives, shall refer the contract to the appropriate
22 committee of the House of Representatives.
23 (b) Legislative hearing.--Within 30 days after the referral,
24 the committee may convene a public hearing on the proposed
25 contract and shall issue a report to the referring Commonwealth
26 agency. The report shall include any recommended changes to the
27 proposed contract that are agreed upon by the committee.
28 (c) Commonwealth agency review of report.--The referring
29 Commonwealth agency shall review the report and shall revise the
30 private attorney contract as it deems appropriate in view of the
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1 report and shall file a copy of the revised contract with the
2 Chief Clerk.
3 (d) Notification of revised contract and execution.--
4 (1) If the revised contract does not contain all of the
5 changes recommended by the committee, the referring
6 Commonwealth agency shall notify the Chief Clerk in writing
7 with the reasons why the recommended changes were not
8 incorporated into the revised contract.
9 (2) The Chief Clerk shall transmit the notification to
10 the appropriate committee of the House of Representatives.
11 (3) Not sooner than 45 days after the filing of the
12 notification with the appropriate committee, the Commonwealth
13 agency shall be authorized to execute the private attorney
14 contract.
15 (e) Execution of approved contract.--If the appropriate
16 committee makes no recommended changes to the proposed contract
17 within the time period specified in subsection (b), the proposed
18 contract shall be deemed approved and the Commonwealth agency
19 may execute the private attorney contract.
20 Section 5. Nonsession procedure.
21 In the event that the General Assembly is not in session
22 during the time period in which a private attorney contract
23 filed with the Chief Clerk is to be reviewed as provided in
24 section 4(b), then the Governor, with the consent of the
25 President pro tempore of the Senate and the Speaker of the House
26 of Representatives, may establish an interim committee
27 consisting of five members of the General Assembly, one each to
28 be appointed by the Governor, the President pro tempore of the
29 Senate, the Minority Leader of the Senate, the Speaker of the
30 House of Representatives and the Minority Leader of the House of
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1 Representatives. The interim committee shall perform its duties
2 and within the time frame as provided in section 4.
3 Section 6. Disclosure involving contingent fees.
4 (a) Contents of disclosure.--At the conclusion of any legal
5 proceeding in which a Commonwealth agency is represented by a
6 private attorney under a private attorney contract involving a
7 contingency fee, the Commonwealth agency shall demand the
8 following information to be disclosed in writing from the
9 private attorney:
10 (1) A statement of the hours worked on the matter.
11 (2) The expenses incurred on the matter.
12 (3) The aggregate fee paid or to be paid to the private
13 attorney.
14 (4) A breakdown as to the hourly rate, based on hours
15 worked divided into fee recovered, less expenses.
16 (b) Limitation on contingency fees.--
17 (1) Notwithstanding any other provision of this act or
18 law to the contrary, no private attorney contract involving
19 contingency fees shall result in the private attorney
20 receiving in excess of $1,000 per hour for legal services.
21 (2) In the event that a disclosure submitted under
22 subsection (a), indicates an hourly rate in excess of $1,000
23 per hour for legal services, the fee amount shall be reduced
24 to an amount equivalent to $1,000 per hour.
25 (c) Contract provision.--No private attorney contract shall
26 be valid and enforceable unless it contains a provision
27 requiring compliance with this section.
28 Section 7. Construction.
29 Nothing in this act shall be construed as expanding the
30 authority of any Commonwealth agency to enter into contracts
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1 where no such authority previously existed.
2 Section 8. Severability.
3 The provisions of this act are severable. If any provision of
4 this act or its application to any person or circumstance is
5 held invalid, the invalidity shall not affect other provisions
6 or applications of this act which can be given effect without
7 the invalid provision or application.
8 Section 9. Repeals.
9 All acts and parts of acts are repealed insofar as they are
10 inconsistent with this act.
11 Section 10. Effective date.
12 This act shall take effect in 60 days.
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