SENATE BILL 404
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Stuart Ingle
AN ACT
RELATING TO THE ATTORNEY GENERAL; AUTHORIZING THE ATTORNEY GENERAL TO ENTER INTO CONTINGENT FEE CONTRACTS UNDER CERTAIN CONDITIONS; CREATING A FUND; PROHIBITING CERTAIN CONTRIBUTIONS BY CONTRACTORS OR POTENTIAL CONTRACTORS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new Section 8-5-2.2 NMSA 1978 is enacted to read:
"8-5-2.2. [NEW MATERIAL] CONTINGENCY FEE CONTRACTS AUTHORIZED--SUSPENSE FUND CREATED.--
A. If necessary to perform the duties of the attorney general, the attorney general may, pursuant to the provisions of this section, enter into contingency fee contracts with private attorneys to recover, through litigation or court-approved settlements, money due to the state or any of its departments, agencies, officers, instrumentalities, institutions or political subdivisions.
B. The amount due to private attorneys under a contingent fee contract shall be negotiated between the parties; provided that, exclusive of reimbursement for reasonable costs and expenses and irrespective of the number of lawsuits filed or the number of private attorneys retained under the contract, the total amount payable to private attorneys shall not exceed the following amounts:
(1) if the total amount recovered is less than ten million dollars ($10,000,000), the fee shall not exceed twenty-five percent of the amount recovered;
(2) if the total amount recovered is equal to or greater than ten million dollars ($10,000,000) but less than fifteen million dollars ($15,000,000), the fee shall not exceed two million five hundred thousand dollars ($2,500,000) plus twenty percent of the amount recovered over ten million dollars ($10,000,000);
(3) if the total amount recovered is equal to or greater than fifteen million dollars ($15,000,000) but less than twenty million dollars ($20,000,000), the fee shall not exceed three million five hundred thousand dollars ($3,500,000) plus fifteen percent of the amount recovered over fifteen million dollars ($15,000,000);
(4) if the total amount recovered is equal to or greater than twenty million dollars ($20,000,000) but less than twenty-five million dollars ($25,000,000), the fee shall not exceed four million two hundred fifty thousand dollars ($4,250,000) plus ten percent of the amount recovered over twenty million dollars ($20,000,000); and
(5) if the total amount recovered is equal to or greater than twenty-five million dollars ($25,000,000), the fee shall not exceed four million seven hundred fifty thousand dollars ($4,750,000) plus five percent of the amount recovered over twenty-five million dollars ($25,000,000); except that, regardless of the amount recovered, the total fee, exclusive of reimbursement for costs and expenses, shall not exceed twenty million dollars ($20,000,000).
C. Each contingent fee contract shall include a provision that mandates the termination of the contract with no additional payments due to the contractor if the contractor or any partner, associate or employee of the contractor is found guilty of violating the provisions of Section 1-19-34.8 NMSA 1978 or has been assessed a civil penalty for violating the provisions of that section.
D. The "attorney general suspense fund" is created in the state treasury. Each contingent fee contract shall provide that all amounts received by the contractor as satisfaction of a claim shall be transferred to the attorney general and deposited into the suspense fund. Upon the direction of the attorney general, the compensation due to the contractor shall be disbursed from the suspense fund to the contractor. After a disbursement to a contractor, the balance of each deposit shall be distributed to the appropriate permanent fund or other appropriate fund from which the loss occurred that originated the claim pursued by the contractor."
SECTION 2. A new section of the Campaign Reporting Act, Section 1-19-34.8 NMSA 1978, is enacted to read:
"1-19-34.8. [NEW MATERIAL] CERTAIN CONTRIBUTIONS TO CANDIDATES FOR ATTORNEY GENERAL PROHIBITED--CERTAIN CONTRACTS PROHIBITED.--
A. An attorney that has entered into a contingent fee contract with the attorney general pursuant to Section 8-5-2.2 NMSA 1978 or who has responded or intends to respond to a request for proposals for such a contract shall not make a contribution to or solicit contributions on behalf of:
(1) a candidate for nomination or election to the office of attorney general or a campaign committee established by the candidate; or
(2) a political committee:
(a) established by the attorney general or an agent of the attorney general or in consultation with or at the request of the attorney general or an agent of the attorney general; or
(b) controlled by the attorney general or an agent of the attorney general to aid or promote the nomination or election of any candidate to a state office.
B. A candidate or political committee described in Subsection A of this section shall not accept or solicit a contribution prohibited by that subsection.
C. As used in this section, "attorney" includes a private attorney; a private business entity, the primary business of which is the practice of law; or any partner, associate or employee of such an attorney or business entity."
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