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TALLAHASSEE, FL – Attorney General Bill McCollum today released the following statement after the Transparency in Private Attorney Contracting Act (HB 437), passed the House of Representatives this morning:

“Pay-to-play politics is one of the worst forms of public corruption in Florida, and this bill will insulate the Attorney General’s Office from undue or inappropriate influence,” said Attorney General McCollum. “I am pleased that Representative Eisnaugle has worked hard to pass this bill to promote transparency, and I look forward to being able to protect the public’s interest by maximizing recoveries to our citizens in the event of a contingency fee-based lawsuit.”

The bill, sponsored by Senator John Thrasher and Representative Eric Eisnaugle, requires common-sense provisions such as posting contracts and payments online, keeping detailed time records for private attorneys’ hours, and competitively selecting private attorneys. This January, as one of three statewide officials who oversee what is one of the nation’s largest public pension system, Attorney General McCollum also proposed a similar framework for master agreements with a group of law firms selected to represent the State Board of Administration (SBA) in potential securities litigation. His proposal received favorable votes from the Governor and the CFO, ensuring that going forward, there will be a $50 million cap on contingency fees paid to outside counsel and that these contracts will be subject to public scrutiny.

To further protect the public’s interest, and potential recoveries in a significant lawsuit, the Transparency in Private Attorney Contracting Act imposes sensible limitations on the contingency fee percentages to be applied to the damages award, and limits the maximum payout to $50 million in contingency fees, excluding costs. The bill will also require the Attorney General, prior to entering a contingency fee contract with a private attorney, to make a written determination that the representation is both cost-effective and in the public’s best interest. The private legal services engaged on a contingency basis must also be competitively procured, whenever possible.

The Attorney General’s Office has already implemented the bill's provisions as a policy, and passage of the legislation will codify the policy, establishing best practices both now and in the future. The legislation passed the House of Representatives with bipartisan support by a 71-40 vote.