A bill

 

To AMEND THE South Carolina Code of Laws by adding Article 29 to Title 1, Chapter 1 so as to prohibit a law firm that employs a member of the General Assembly, or an immediate family member of a member of the General assembly, from entering into a litigation retention agreement with a public entity in this State.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Chapter 1, Title 1 of the S.C. Code is amended by adding:

 

Article 29

 

State Litigation Retention Agreements

 

    Section 1-1-1910.  (A) No public entity in this State may enter into, approve, renew, extend, or materially amend a litigation retention agreement with a covered law firm.

    (B) This prohibition applies during a member of the General Assembly's tenure and for one year after the member departs office.

    (C) No covered law firm may receive direct or indirect compensation from a prohibited litigation retention agreement. This prohibition includes any form of compensation including, but not limited to, attorney's fees, contingency fees, referral fees, co-counsel fees, local counsel fees, subcontract payments, settlement-related fees, or expense reimbursements, except for reimbursement of reasonable costs approved prior to the member of the General Assembly's election and employment by a covered law firm.

    (D) For the purposes of this section:

       (1) "Covered law firm" means a law firm, legal professional association, legal professional limited liability company, partnership, corporation, or other legal services entity in which a member of the General Assembly, or an immediate family member of a member thereof, is an owner, partner, shareholder, member, officer, director, employee, of counsel attorney, contractor, compensated agent, referral fee recipient, profit-sharing participant, or other person entitled to receive direct or indirect compensation from the litigation matter.

       (2) "Public entity" means a state agency, department, board, commission, authority, local governing body, school district, special purpose district, or political subdivision of this State.

 

SECTION 2.  This act takes effect upon approval by the Governor.

 

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