HOUSE BILL 531

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Gail Chasey

AN ACT

RELATING TO LAWSUITS; AUTHORIZING THE ATTORNEY GENERAL TO CONTRACT FOR LEGAL SERVICES ON A CONTINGENT FEE BASIS; CREATING A FUND; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 8, Article 5 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] COMPENSATION UNDER CONTINGENT FEE CONTRACTS--ATTORNEY GENERAL CONTINGENT LEGAL SERVICES FUND CREATED.--

          A. The attorney general may contract for legal services for litigation on a contingent or partially contingent fee basis. The contract shall be awarded pursuant to the provisions of the Procurement Code. The campaign contribution disclosure required by the Procurement Code shall include all campaign contributions made to:

                (1) the governor;

                (2) the attorney general; or

                (3) a political committee formed to aid or promote the nomination or election of a candidate to a state office when that committee is controlled by, established by, established in consultation with or established at the request of:

                     (a) the governor;

                     (b) the attorney general; or

                     (c) an agent of the governor or the attorney general.

          B. The "attorney general contingent legal services fund" is created in the state treasury to make disbursements and transfers pursuant to this section. The fund shall be administered by the office of the attorney general, and money in the fund is appropriated to the office to pay legal fees of contingent fee contracts for legal services and reasonable costs and expenses associated with a claim. Money from the fund shall be disbursed on warrants signed by the secretary of finance and administration pursuant to vouchers signed by the attorney general or the attorney general's authorized representative.

          C. When pursuing a claim and using legal services on a contingent or partially contingent fee basis, all money received as satisfaction of the claim shall be deposited in the attorney general contingent legal services fund. The office of the attorney general shall disburse the amount that is due a legal contractor and any other costs and expenses associated with the claim. The balance that remains shall be for:

                (1) an action brought pursuant to the Unfair Practices Act, transferred to the attorney general's consumer protection fund;

                (2) an action concerning an investment or other loss suffered by a program or fund of the state, transferred to the program or fund that suffered the loss; and

                (3) a case awarding restitution to New Mexico residents, disbursed according to the terms of the court order or settlement agreement."

     SECTION 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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