HB227 Alabama 2013 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Co-Sponsors

Howard SanderfordPaul BeckmanMike BallKerry RichMary Sue McClurkinAllen FarleyRandy WoodTodd GreesonJack WilliamsJoe FaustWayne Johnson

Session

Regular Session 2013

Title

Attorney General, state litigation, contingency fee contracts with private attorneys, regulated, Transparency in Private Attorney Contracts Act, Sec. 41-16-72 am'd.

Summary

HB227 creates the Transparency in Private Attorney Contracts Act to regulate contingency-fee contracts for private attorneys representing the state in litigation, adding rules for selection, oversight, and public disclosure.

What This Bill Does

If enacted, the bill requires state litigation lawyers to be appointed by the Attorney General in consultation with the Governor from a AG-maintained listing, with fees negotiated and approved by the Governor and AG. Before entering a contingency-fee contract, state agencies must prepare a written determination showing cost-effectiveness and public interest, based on factors like resources, time, complexity, geographic area, and experience. It places a cap on contingency-fee payments tied to recovery amounts and allows emergency suspension of these limits by Governor’s order upon AG certification. It also imposes government control over litigation, requires an addendum to contracts, online posting of contracts and payments, and detailed time and cost records kept for at least four years.

Who It Affects

• State agencies, departments, boards, and other instrumentalities that procure litigation services and may enter contingency-fee contracts with private attorneys.
• Private attorneys and law firms that represent the state in litigation on a contingency-fee basis, who must follow eligibility, fee caps, oversight, recordkeeping, and transparency requirements.

Key Provisions

• Attorneys to represent the state in litigation must be appointed from a listing maintained by the Attorney General, with selection based on skill, experience, and fees.
• Contingency-fee contracts are limited by a tiered cap on the percentage of recoveries (25% up to $10M, 20% for $10M–$15M, 15% for $15M–$20M, 10% for $20M–$25M, 5% for $25M–$50M, 1% for over $50M).
• A written determination is required before entering a contingency-fee contract, showing it is cost-effective and in the public interest, with specific factors listed (resources, time, complexity, geography, experience).
• Government attorneys must maintain control over the case, supervise, and approve settlement decisions; lead government attorneys must attend settlements.
• An addendum detailing expectations for both the private attorney and the state must be used in all contingency-fee contracts.
• Copies of contracts, determinations, and contingency-fee payments must be posted online; detailed time and financial records must be kept for at least four years after contract end.
• Contingency fees must be paid from the State Treasury from funds recovered, unless a court orders otherwise; the Governor can suspend fee limits for a specific contract with AG certification during emergencies.
• The act does not apply to certain entities (e.g., courts, some higher education matters, or specific health service arrangements) and includes other standard procurement and reporting provisions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Attorney General