The Solution
In order to insure that taxpayers are getting the best value for their money in their attorneys general offices, and that they have access to information on how that money is being spent, the American Tort Reform Association (ATRA) introduced the Transparency Code. The Code is a collection of model policies that state attorneys general are encouraged to adopt to provide maximum transparency in their office operations and accountability to citizens.
ATRA Attorney General Transparency Code
State attorneys general need the discretion and independence to enforce the laws of their respective states free from the influence of parties that may have a private interest in the outcome of litigation.
Litigation can be sufficiently complex, time consuming and expensive that at certain times, and on certain occasions, it may be necessary for state attorneys general to retain the services of outside legal counsel to perform work on behalf of the state.
To ensure transparency in these contracting processes and relationships, these five principles should be followed:
A. DISCLOSURE: All contracts with vendors, including outside counsel, who provide services to the state or perform legal work in the name of the state, should be posted on the Internet for public inspection.
B. VALUE: In every instance, the attorney general should seek to provide the highest quality services at the best value to state citizens when contracting with outside counsel. Unless an extraordinary situation requires assistance from a specific legal expert with technical or scientific experience not generally available, every effort should be made to competitively bid contracts for outside counsel.
C. OVERSIGHT: Given that contingent fee-based contracts are often used when attorneys general are pursuing litigation that potentially has a significant public policy or regulatory impact, such contracts should be subject to review by the Legislature.
D. REPORTING: Outside counsel providing services to the attorney general on behalf of a state’s citizens and taxpayers on a contingent fee basis shall be required to disclose detailed information on the hours worked, services performed, and fees received from the state, as long as this reporting does not undermine the attorney-client privilege.
E. ACCOUNTABILITY: All monies recovered by the attorney general in excess of $250,000 as a result of lawsuits won or settled by the state should be deposited in the state treasury for appropriation by the legislature unless a settlement with the attorney general’s office stipulates that the funds shall be allocated to a specific entity. At no time, shall an attorney general enter into a settlement that allows the office of the attorney general to disseminate funds at its discretion.
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