Progressing Policy
State legislative leaders are becoming increasingly concerned with the close relationship between outside trial attorneys and state attorneys general. If not properly monitored and regulated, these relationships can pose a threat to government transparency and accountability, a state's economic health and the constitutional separation of powers.
To that end, states across the country have sought and passed legislative remedies to guarantee public scrutiny on contracts with outside counsel, preserve the legislature's power to appropriate public funds, and prevent the litigious agendas of many attorneys general from hurting their state's economic development climate.
Below are a selection of the bills that have been introduced or passed in this area:
Florida
Transparency in Private Attorney Contracting (TPAC)
- Requires a written determination from the AG that outside counsel is cost-effective and in the public interest
- Requires outside counsel to keep complete written time and expense records
- Caps hourly rates in contingency fee contracts by scale of settlement
Mississippi
Private Attorney Retention Sunshine Act (PARSA)
- Requires outside counsel to keep complete written time and expense records
- Requires review of legal fees exceeding $500,000
- Caps contingency fee contracts at $1 million plus expenses
- Requires AG to open contracts to at least three separate law firms
Virginia
Budget bill amendment
- Requires settlements greater than $250,000 won on behalf of the Commonwealth to be deposited in the General Fund (state treasury)
- Requires the AG to provide an annual report on monetary settlements received by the Commonwealth
West Virginia
Private Attorney Retention Sunshine Act (PARSA)
- Requires AG to notify the governor and legislature of settlements in excess of $250,000
Wisconsin
Private Attorney Retention Sunshine Act (PARSA)
- Prohibits state agencies from retaining outside counsel on contingency fee contracts expected to exceed $1 million unless the contract is awarded to the lowest possible bidder and subject to legislative review
