Sponsored by:
Assemblywoman BETTYLOU DECROCE
District 26 (Essex, Morris and Passaic)
SYNOPSIS
“Transparency in Government Legal Billing Act;” requires that bill for legal services rendered for public entity contain certain information as condition of payment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the payment of a bill for legal services rendered for the State or a political subdivision of the State and designated the “Transparency in Government Legal Billing Act,” and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the “Transparency in Government Legal Billing Act.”
2. A State entity, including any agency, department, office, board, bureau, commission, independent authority, or instrumentality of the State, and including any State institution of higher education, shall not pay a bill received by it for legal services of the type rendered by attorneys-at-law in this State unless, at the time of the authorization of the payment by any individual or body required to authorize such a payment or at the time of the payment if no authorization is required, the bill contains the following information:
(1) the name of the specific matter on which service was rendered;
(2) the date on which service was rendered;
(3) the name or identification number of the attorney who rendered the service;
(4) the hourly rate of that attorney or the specific method by which the rate for that attorney was determined;
(5) the total charge for each particular service, task, or billing entry;
(6) a description of each particular service rendered or task performed and the names of each individual involved;
(7) the amount of time spent on each particular service rendered or task performed;
(8) an itemized list of the expenses and disbursements for each particular service rendered or task performed, with specific notes on which expenses are reimbursable;
(9) the billing rate or the specific method by which the rate is to be determined as set forth in the valid contract or agreement pursuant to which the legal service was rendered; and
(10) the limit, if any, on the charges for legal services that may be billed as set forth in the valid contract or agreement pursuant to which the legal service was rendered, and whether payment of the bill will exceed that limit.
Payment of a bill for legal services shall not be made unless all the information required is contained in that bill in one comprehensive format. If an entry on a bill is deemed not sufficiently descriptive, payment shall not be made until the bill is amended to include the required description.
The requirements set forth in this section shall be in addition to any other requirements set forth in a statute, rule, regulation, ordinance, resolution, or policy of the public entity.
This section shall apply when payment is to be made in whole or in part with or from public funds.
Each such bill for legal services from the time of its receipt shall be a government record readily accessible for inspection, copying, or examination by the citizens of this State, in accordance with P.L.1963, c.73 (C.47:1A-1 et seq.).
This section shall apply to any such bill for legal services received after the effective date of this act, P.L. , c. (pending before the Legislature as this bill), unless the requirement would violate a specific provision in a valid contract or agreement in effect on that effective date pursuant to which the legal services included in the bill were rendered.
3. A contracting unit as defined in the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.), shall not pay a bill received by it for legal services of the type rendered by attorneys-at-law in this State unless, at the time of the authorization of the payment by any individual or body required to authorize such a payment or at the time of the payment if no authorization is required, the bill contains the following information:
(1) the name of the specific matter on which service was rendered;
(2) the date on which service was rendered;
(3) the name or identification number of the attorney who rendered the service;
(4) the hourly rate of that attorney or the specific method by which the rate for that attorney was determined;
(5) the total charge for each particular service, task, or billing entry;
(6) a description of each particular service rendered or task performed and the names of each individual involved;
(7) the amount of time spent on each particular service rendered or task performed;
(8) an itemized list of the expenses and disbursements for each particular service rendered or task performed, with specific notes on which expenses are reimbursable;
(9) the billing rate or the specific method by which the rate is to be determined as set forth in the valid contract or agreement pursuant to which the legal service was rendered; and
(10) the limit, if any, on the charges for legal services that may be billed as set forth in the valid contract or agreement pursuant to which the legal service was rendered, and whether payment of the bill will exceed that limit.
Payment of a bill for legal services shall not be made unless all the information required is contained in that bill in one comprehensive format. If an entry on a bill is deemed not sufficiently descriptive, payment shall not be made until the bill is amended to include the required description.
The requirements set forth in this section shall be in addition to any other requirements set forth in a statute, rule, regulation, ordinance, resolution, or policy of the public entity.
This section shall apply when payment is to be made in whole or in part with or from public funds.
Each such bill for legal services from the time of its receipt shall be a government record readily accessible for inspection, copying, or examination by the citizens of this State, in accordance with P.L.1963, c.73 (C.47:1A-1 et seq.).
This section shall apply to any such bill for legal services received after the effective date of this act, P.L. , c. (pending before the Legislature as this bill), unless the requirement would violate a specific provision in a valid contract or agreement in effect on that effective date pursuant to which the legal services included in the bill were rendered.
4. A board of education as defined in the “Public School Contracts Law,” P.L.1977, c.114 (C.18A:18A-1 et seq.), shall not pay a bill received by it for legal services of the type rendered by attorneys-at-law in this State unless, at the time of the authorization of the payment by any individual or body required to authorize such a payment or at the time of the payment if no authorization is required, the bill contains the following information:
(1) the name of the specific matter on which service was rendered;
(2) the date on which service was rendered;
(3) the name or identification number of the attorney who rendered the service;
(4) the hourly rate of that attorney or the specific method by which the rate for that attorney was determined;
(5) the total charge for each particular service, task, or billing entry;
(6) a description of each particular service rendered or task performed and the names of each individual involved;
(7) the amount of time spent on each particular service rendered or task performed;
(8) an itemized list of the expenses and disbursements for each particular service rendered or task performed, with specific notes on which expenses are reimbursable;
(9) the billing rate or the specific method by which the rate is to be determined as set forth in the valid contract or agreement pursuant to which the legal service was rendered; and
(10) the limit, if any, on the charges for legal services that may be billed as set forth in the valid contract or agreement pursuant to which the legal service was rendered, and whether payment of the bill will exceed that limit.
Payment of a bill for legal services shall not be made unless all the information required is contained in that bill in one comprehensive format. If an entry on a bill is deemed not sufficiently descriptive, payment shall not be made until the bill is amended to include the required description.
The requirements set forth in this section shall be in addition to any other requirements set forth in a statute, rule, regulation, ordinance, resolution, or policy of the public entity.
This section shall apply when payment is to be made in whole or in part with or from public funds.
Each such bill for legal services from the time of its receipt shall be a government record readily accessible for inspection, copying, or examination by the citizens of this State, in accordance with P.L.1963, c.73 (C.47:1A-1 et seq.).
This section shall apply to any such bill for legal services received after the effective date of this act, P.L. , c. (pending before the Legislature as this bill), unless the requirement would violate a specific provision in a valid contract or agreement in effect on that effective date pursuant to which the legal services included in the bill were rendered.
5. This act shall take effect on the first day of the second month next following the date of enactment.
STATEMENT
This bill, designated as the “Transparency in Government Legal Billing Act,” prohibits a State entity, local government entity, or board of education from paying a bill received by it for legal services of the type rendered by attorneys-at-law in this State unless, at the time of the authorization of the payment by any individual or body required to authorize such a payment or at the time of the payment if no authorization is required, the bill contains the following information:
(1) the name of the specific matter on which service was rendered;
(2) the date on which service was rendered;
(3) the name or identification number of the attorney who rendered the service;
(4) the hourly rate of that attorney or the specific method by which the rate for that attorney was determined;
(5) the total charge for each particular service, task, or billing entry;
(6) a description of each particular service rendered or task performed and the name of each individual involved;
(7) the amount of time spent on each particular service rendered or task performed;
(8) an itemized list of the expenses and disbursements for each particular service rendered or task performed, with specific notes on which expenses are reimbursable;
(9) the billing rate or the specific method by which the rate is to be determined as set forth in the valid contract or agreement pursuant to which the legal service was rendered; and
(10) the limit, if any, on the charges for legal services that may be billed as set forth in the valid contract or agreement pursuant to which the legal service was rendered, and whether payment of the bill will exceed that limit.
The bill for legal services must contain all the information required in one comprehensive format, and if an entry on a bill is deemed not sufficiently descriptive, payment cannot be made until the bill is amended to include the required description. The requirements of this bill will apply when payment is to be made in whole or in part with or from public funds.
Each such bill for legal services from the time of its receipt will be a government record readily accessible for inspection, copying, or examination by the citizens of this State, in accordance with the open public records act.
The requirement described above will apply to any such bill for legal services received after the first day of the second month next following this bill’s enactment, unless the requirement would violate a specific provision in a valid contract or agreement in effect on that day pursuant to which the billed legal services were rendered.
If enacted, this bill would codify the item regarding detailed billing invoices on the best practices checklist described by the State Comptroller for engaging and managing legal counsel in the report entitled “An Analysis of Legal Fees Paid By New Jersey Local Governments,” issued on June 25, 2013. The goal of the report is to provide guidance to government entities “concerning their management of the attorneys they hire” because the “potential financial impact of developing more cost-effective practices in this area is significant.” The State Comptroller recommends “that government entities throughout the state consult the guidance and examples set forth in this report to achieve greater transparency and cost savings in their dealings with their attorneys.”