SB134 Alabama 2013 Session

Summary

Primary Sponsor

Cam Ward

Republican

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

SB134 would regulate state contingency fee contracts with private attorneys for litigation by adding transparency, oversight, fee caps, and required determinations of cost-effectiveness.

What This Bill Does

The bill requires state litigation to be handled by private attorneys chosen from a listing maintained by the Attorney General, with the Governor involved in selection. For contingency fee arrangements, a written finding must show the arrangement is cost-effective and in the public interest, considering specific factors. It imposes caps on overall contingency fees, keeps government control over case decisions and settlements, and requires addenda, online posting of contracts and payments, and detailed time and cost records kept by the private attorneys.

Who It Affects

• State agencies, departments, boards, and other state entities that hire private attorneys to represent the state in litigation.
• Private attorneys and law firms seeking or holding contingency fee contracts with the state, who must be listed, adhere to caps, and maintain records.
• The Governor and Attorney General, who approve contracts, oversee compliance, and access records.
• The general public, which will have online access to contract documents, determinations, and contingency fee payments.
• Public universities and certain other entities, which retain some independent authority over litigation and are not fully bound by all provisions of the act.

Key Provisions

• Attorneys representing the state in litigation must be appointed from a listing maintained by the Attorney General, with the Governor consulting on the selection and fees considered to obtain the best value.
• For contingency fee contracts, agencies must issue a written determination that the arrangement is cost-effective and in the public interest, citing factors such as internal resources, time and labor required, complexity, geography, and experience.
• Contingency fees are capped by a tiered schedule based on the recovery amount (e.g., up to 25% of the first $10M, 20% of $10–$15M, 15% of $15–$20M, 10% of $20–$25M, 5% of $25–$50M, and 1% above $50M).
• Government attorneys retain control over the case, supervise the litigation, veto private decisions, attend all settlement conferences, and reserve settlement decisions to the government; private counsel may be contacted only as directed by the lead government attorneys.
• The Attorney General must develop a standard contract addendum outlining expectations for both private counsel and the state, reflecting the requirements of the act.
• Contracts and related documents, including determinations and any contingency fee payments, must be posted online; private attorneys must maintain detailed records and time entries for at least four years after contract ends and provide records on request.
• Contingency fees must be paid from the State Treasury from recovered funds unless a court orders otherwise.
• The bill also establishes procurement rules for other professional services (physicians, architects, engineers, etc.) and includes diversity requirements and some exemptions (e.g., certain entities and emergency situations).

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Attorney General