Signed by Governor Matt Bevin

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that limits the fees that can be received by attorneys contracting with state agencies.

Highlights:

• Prohibits state agencies from awarding legal services contracts that provide for payment by contingency fee unless the head of such agency has attested in writing to information including, but not limited to, the following (Sec. 1):

• The contingency fee is cost effective;

• Appropriate legal resources do not exist within the agency;

• The amount of time and labor required; and

• The skills and expertise required.

• Limits contingency fees to the following amounts (Sec. 1):

• 20 percent for recovered amounts up to $10 million;

• 15 percent for recovered amounts between $10 and $15 million;

• 10 percent for recovered amounts between $15 and $20 million; and

• 5 percent for recovered amount of $20 million or more.

• Specifies that no contingency fee may exceed $20 million (Sec. 1).

• Requires that contingency fees be paid from actual amounts received as a result of litigation (Sec. 1).

• Specifies that the provisions of this statute shall not apply to contracts that were entered into prior to the effective date of that statute or to any extensions of such contracts (Sec. 6).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass with amendment a bill that limits the fees that can be received by attorneys contracting with state agencies.

Highlights:

• Prohibits state agencies from awarding legal services contracts that provide for payment by contingency fee unless the head of such agency has attested in writing to information including, but not limited to, the following (Sec. 1):

• The contingency fee is cost effective;

• Appropriate legal resources do not exist within the agency;

• The amount of time and labor required; and

• The skills and expertise required.

• Limits contingency fees to the following amounts (Sec. 1):

• 20 percent for recovered amounts up to $10 million;

• 15 percent for recovered amounts between $10 and $15 million;

• 10 percent for recovered amounts between $15 and $20 million; and

• 5 percent for recovered amount of $20 million or more.

• Specifies that no contingency fee may exceed $20 million (Sec. 1).

• Requires that contingency fees be paid from actual amounts received as a result of litigation (Sec. 1).

• Specifies that the provisions of this statute shall not apply to contracts that were entered into prior to the effective date of that statute or to any extensions of such contracts (Sec. 6).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that limits the fees that can be received by attorneys contracting with state agencies.

Highlights:

• Prohibits state agencies from awarding legal services contracts that provide for payment by contingency fee unless the head of such agency has attested in writing to information including, but not limited to, the following (Sec. 1):

• The contingency fee is cost effective;

• Appropriate legal resources do not exist within the agency;

• The amount of time and labor required; and

• The skills and expertise required.

• Limits contingency fees to the following amounts (Sec. 1):

• 20 percent for recovered amounts up to $10 million;

• 15 percent for recovered amounts between $10 and $15 million;

• 10 percent for recovered amounts between $15 and $20 million; and

• 5 percent for recovered amount of $20 million or more.

• Specifies that no contingency fee may exceed $20 million (Sec. 1).

• Requires that contingency fees be paid from actual amounts received as a result of litigation (Sec. 1).

Full Bill Text