First Substitute S.B. 264

This document includes House Floor Amendments incorporated into the bill on Wed, Mar 12, 2014 at 10:34 AM by lerror. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 12, 2014 at 8:30 PM by jeyring. -->

Senator J. Stuart Adams proposes the following substitute bill:

1 RETENTION OF OUTSIDE COUNSEL, EXPERT
2 WITNESSES, AND LITIGATION SUPPORT SERVICES
3 2014 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: J. Stuart Adams
6 House Sponsor: Daniel McCay
7
8 LONG TITLE
9 General Description:
10 This bill modifies a provision relating to the attorney general's procurement of litigation
11 related services.
12 Highlighted Provisions:
13 This bill:
14 . modifies a provision relating to attorney general rules on the procurement of outside
15 counsel and other litigation services;
16 . requires the attorney general to submit proposed rules to a legislative interim
17 committee;
18 . requires review of the proposed rules by a legislative interim committee; and
19 . modifies the required contents of proposed rules.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:

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House Floor Amendments 3-12-2014 je/rhr

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House Floor Amendments 3-12-2014 le/rhr 26

67-5-32, as enacted by Laws of Utah 2012, Fourth Special Session, Chapter 2
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 67-5-32 is amended to read:
30 67-5-32. Rulemaking authority regarding the procurement of outside counsel,
31 expert witnesses, and other litigation support services.
32 (1) (a) The attorney [general's office] general shall, [on or before August 1, 2012] in
33 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to
34 establish public disclosure, transparency, accountability, reasonable fees and limits on fees, and
35 reporting in relation to the procurement of outside counsel, expert witnesses, and other
36 litigation support services.
37 (b) On or before May 30, 2014, the attorney general shall submit to the H. [ [ ] Business and
38 Labor [ ] ] [ Judiciary ] .H Interim Committee, for its review, comment, and recommendations, the
38a attorney
39 general's proposed rules under Subsection (1)(a) relating to fee limits for outside counsel,
40 including any provisions relating to exceptions to or a waiver of the fee limits.
41 (c) Before September 1, 2014, the H. [ [ ] Business and Labor [ ] ] [ Judiciary ] .H Interim
41a Committee shall include
42 the attorney general's proposed rules described in Subsection (1)(b) on a committee agenda for
43 the purpose of allowing the committee to review, comment, and make recommendations on the
44 proposed rules.
45 (2) The rules described in Subsection (1) shall:
46 (a) ensure that a procurement for outside counsel is supported by a determination by
47 the attorney general that the procurement is in the best interests of the state, in light of available
48 resources of the attorney general's office;
49 (b) provide for the fair and equitable treatment of all potential providers of outside
50 counsel, expert witnesses, and other litigation support services;
51 (c) ensure a competitive process, to the greatest extent possible, for the procurement of
52 outside counsel, expert witnesses, and other litigation support services;
53 (d) ensure that fees for outside counsel, whether based on an hourly rate, contingency
54 fee, or other arrangement, are reasonable and consistent with industry standards;
55 (e) ensure that contingency fee arrangements do not encourage high risk litigation that
56 is not in the best interests of the citizens of the state;

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- 3 - 57 [(d)] (f) provide for oversight and control, by the attorney general's office, in relation to
58 outside counsel [hired under a contingency], regardless of the type of fee arrangement under
59 which outside counsel is hired;
60 (g) prohibit outside counsel from adding a party to a lawsuit or causing a new party to
61 be served with process without the express written authorization of the attorney general's
62 office;
63 [(e)] (h) establish for transparency regarding the procurement of outside counsel,
64 expert witnesses, and other litigation support services, subject to:
65 (i) Title 63G, Chapter 2, Government Records Access and Management Act; and
66 (ii) other applicable provisions of law and the Utah Rules of Professional Conduct;
67 [(f)] (i) establish standard contractual terms for the procurement of outside counsel,
68 expert witnesses, and other litigation support services; and
69 [(g)] (j) provide for the retention of records relating to the procurement of outside
70 counsel, expert witnesses, and other litigation support services.