LRB-3493/3
RPN:rs&cmh:pg
2001 - 2002 LEGISLATURE
February 20, 2002 - Introduced by Representatives Grothman, Krawczyk, Ladwig,
Stone, Ott, Nass, Hahn, Owens
and Townsend, cosponsored by Senators
Darling, Lazich and Schultz. Referred to Committee on Judiciary.
AB844,1,4 1An Act to amend 14.11 (1), 14.11 (2) (a) (intro.), 165.25 (1), 165.25 (4) (a) and
2165.25 (4) (ar); and to create 14.11 (3) and 165.24 of the statutes; relating to:
3restricting the states' authority to bring lawsuits involving contingency fee
4arrangements.
Analysis by the Legislative Reference Bureau
Under current law, if the governor determines that the rights, interests, or
property of the state have been or will be injured, the governor may require the
attorney general to prosecute any action or proceeding to redress or prevent such an
injury. In addition, under current law, the governor may appoint a special counsel
to assist the attorney general in prosecuting an action or proceeding, to defend any
action or proceeding instituted by the attorney general against an officer of the state,
to prosecute any action or proceeding in which the attorney general's interests are
contrary to those of the state, or to prosecute any action or proceeding that the
attorney general believes it is his or her duty to defend rather than prosecute.
This bill requires that before the governor may require the attorney general to
prosecute an action on behalf of the state, or before the governor may employ a special
counsel to prosecute an action on behalf of the state, the governor must receive
approval from the appropriate standing committees of each house of the legislature
if the action or proceeding involves the determination and payment of attorney
compensation under a contingency fee arrangement. This bill requires also that
before the state or any department, board, or agency of the state may prosecute any
action or proceeding that involves the determination and payment of attorney

compensation under a contingency fee arrangement, the attorney representing the
state or agency must receive approval from the appropriate standing committees of
each house of the legislature. The bill does not apply to cases when the state or
agency is acting in the capacity of a trust fund fiduciary for state trust funds.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB844, s. 1 1Section 1. 14.11 (1) of the statutes is amended to read:
AB844,2,102 14.11 (1) State property; legal protection of. The Except as provided in sub.
3(3), the
governor, whenever in the governor's opinion the rights, interests, or
4property of the state have been or are liable to be injuriously affected, may require
5the attorney general to institute and prosecute any proper action or proceeding for
6the redress or prevention thereof; and whenever the governor receives notice of any
7action or proceeding between other parties by which the rights, interests, or property
8of the state are liable to be injuriously affected, the governor shall inform the
9attorney general thereof and require the attorney general to take such steps as may
10be necessary to protect such rights, interests, or property.
AB844, s. 2 11Section 2. 14.11 (2) (a) (intro.) of the statutes is amended to read:
AB844,2,1412 14.11 (2) (a) (intro.) The Except as provided in sub. (3), the governor, if in the
13governor's opinion the public interest requires such action, may employ special
14counsel in the following cases:
AB844, s. 3 15Section 3. 14.11 (3) of the statutes is created to read:
AB844,3,316 14.11 (3) Approval of legislature. Before the governor may employ special
17counsel in any action or proceeding under sub. (2) or require the attorney general to
18institute and prosecute any action or proceeding under sub. (1), that involves the
19determination and payment of compensation for the attorney representing the state

1under a contingency fee arrangement, the governor shall obtain approval of the
2appropriate standing committees of each house of the legislature, as determined by
3the presiding officer of each house.
AB844, s. 4 4Section 4. 165.24 of the statutes is created to read:
AB844,3,13 5165.24 Approval of certain state actions and proceedings. Before the
6state or any department, board, or agency of the state may institute and prosecute
7any action or proceeding that involves the state or determination and payment of
8attorney compensation for the attorney representing the state or department, board,
9or agency of the state under a contingency fee arrangement, that attorney shall
10obtain approval of the appropriate standing committees of each house of the
11legislature, as determined by the presiding officer of each house. This section does
12not apply to contingency fees in actions or proceedings undertaken by a department,
13board, or agency when acting in the capacity of a trust fund fiduciary under ch. 25.
AB844, s. 5 14Section 5. 165.25 (1) of the statutes is amended to read:
AB844,4,215 165.25 (1) Represent state. Except as provided in s. 165.24 or 978.05 (5),
16appear for the state and prosecute or defend all actions and proceedings, civil or
17criminal, in the court of appeals and the supreme court, in which the state is
18interested or a party, and attend to and prosecute or defend all civil cases sent or
19remanded to any circuit court in which the state is a party; and, if requested by the
20governor or either house of the legislature, appear for and represent the state, any
21state department, agency, official, employee, or agent, whether required to appear
22as a party or witness in any civil or criminal matter, and prosecute or defend in any
23court or before any officer, any cause or matter, civil, or criminal, in which the state
24or the people of this state may be interested. The public service commission may
25request under s. 196.497 (7) that the attorney general intervene in federal

1proceedings. All expenses of the proceedings shall be paid from the appropriation
2under s. 20.455 (1) (d).
AB844, s. 6 3Section 6. 165.25 (4) (a) of the statutes is amended to read:
AB844,4,94 165.25 (4) (a) The Except as provided in s. 165.24, the department of justice
5shall furnish all legal services required by the investment board, the lottery division
6in the department of revenue, the public service commission, the department of
7transportation, the department of natural resources, the department of tourism, and
8the department of employee trust funds, together with any other services, including
9stenographic and investigational, as are necessarily connected with the legal work.
AB844, s. 7 10Section 7. 165.25 (4) (ar) of the statutes, as affected by 2001 Wisconsin Act 16,
11section 2856b, is amended to read:
AB844,4,1712 165.25 (4) (ar) The Except as provided in s. 165.24, the department of justice
13shall furnish all legal services required by the department of agriculture, trade and
14consumer protection relating to the enforcement of ss. 100.171, 100.173, 100.174,
15100.175, 100.177, 100.18, 100.182, 100.20, 100.205, 100.207, 100.209, 100.21,
16100.28, 100.37, 100.42, 100.50, and 100.51 and chs. 126, 136, 344, 704, 707, and 779,
17together with any other services as are necessarily connected to the legal services.
AB844, s. 8 18Section 8. Effective date.
AB844,4,2019 (1) This act takes effect on January 1, 2002, or on the day after publication,
20whichever is later.
AB844,4,2121 (End)
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