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F I S C A L I M P A C T R E P O R T
SPONSOR Komadina
ORIGINAL DATE
LAST UPDATED
1/23/07
HB
SHORT TITLE Procurement of Lawyer Services
SB 50
ANALYST Propst
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY07
FY08
FY09 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
Total
GSD
Reports
Cost
Unknown
Recurring Public
Liability
Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
General Services Department (GSD)
SUMMARY
Synopsis of Bill
Relating to the Procurement Code; Providing Requirements for the Procurement of Lawyer
Services.
Senate Bill 50 requires that a contract with a lawyer or law firm that exceeds, or is reasonably
expected to exceed, $1,000,000 must be procured by competitive sealed proposals. Further,
Senate Bill 50 requires that the hourly fee for contracts referred to in the bill shall not exceed
$1,000. The hourly fee for a flat or contingency fee contract is determined by dividing the total
hours worked into the fee, less expenses. If that hourly fee exceeds $1,000 is must be reduced to
$1,000. Finally, a contract referred to in Senate Bill 50 must be approved by the Attorney
General and submitted to the Legislative Finance Committee for informational purposes.
SIGNIFICANT ISSUES
GSD indicates that currently, all contracts for attorney services that exceed $30 thousand are
processed through a request for proposal or other competitive process.
WEP/csd