2001 Legislation
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HOUSE BILL NO. 218 – Atty General, fees, opinions

HOUSE BILL NO. 218

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H0218.....................................................by APPROPRIATIONS
ATTORNEY GENERAL - Amends, repeals and adds to existing law to provide
correct terminology; to delete reference to interaccount receipts; to
provide that funds may be expended pursuant to legislative appropriation;
to provide for an amount in the Consumer Protection Fund that shall be
transferred to the General Fund; to provide for deposit of moneys collected
by the Attorney General as trustee for distributions to injured consumers;
to provide that the Attorney General shall provide legal representations to
certain state entities; to provide that the Attorney General shall give
written opinions without fee to the Superintendent of Public Instruction;
to delete the requirement that the Attorney General give written opinions
without fee to the trustees or commissioners of state institutions; to
provide that written opinions of the Attorney General shall be given upon
the request of certain state agencies; to clarify which entities are
exempted from certain requirements relating to legal services contracts; to
provide that the Division of Financial Management shall prepare an estimate
of costs for services provided; and to provide that the Division of
Financial Management and the Legislative Services Office shall allow state
agencies to modify their budget requests in response to such cost
estimates.
                                                                        
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/19    3rd rdg - PASSED - 69-0-1
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Campbell, Chase, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck,
      Jaquet, Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher,
      Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison,
      Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone,
      Swan, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Callister
    Floor Sponsor -- Clark
    Title apvd - to Senate
02/20    Senate intro - 1st rdg - to Fin
02/21    Rpt out - rec d/p - to 2nd rdg
02/22    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
      Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough,
      King-Barrutia, Lee, Lodge, Noh, Richardson, Risch, Sandy, Schroeder,
      Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth,
      Williams,
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor -- Cameron
    Title apvd - to House
03/09    To enrol
03/12    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/19    Governor signed
         Session Law Chapter 61
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 218
                                                                        
                                BY APPROPRIATIONS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SERVICES PROVIDED BY  STATE  AGENCIES;  AMENDING  SECTION  48-606,
  3        IDAHO  CODE,  TO  PROVIDE  CORRECT  TERMINOLOGY,  TO  DELETE  REFERENCE TO
  4        INTERACCOUNT RECEIPTS, TO PROVIDE THAT FUNDS MAY BE EXPENDED  PURSUANT  TO
  5        LEGISLATIVE APPROPRIATION, TO PROVIDE THAT AT THE BEGINNING OF EACH FISCAL
  6        YEAR  MONEYS  IN  THE  CONSUMER  PROTECTION  FUND WHICH EXCEED THE CURRENT
  7        YEAR'S APPROPRIATION PLUS ANY RESIDUAL  ENCUMBRANCES  MADE  AGAINST  PRIOR
  8        YEARS' APPROPRIATIONS BY FIFTY PERCENT OR MORE SHALL BE TRANSFERRED TO THE
  9        GENERAL FUND AND TO PROVIDE THAT ANY MONEYS COLLECTED BY THE ATTORNEY GEN-
 10        ERAL  AS TRUSTEE FOR DISTRIBUTIONS TO INJURED CONSUMERS SHALL BE DEPOSITED
 11        IN THE STATE TREASURY UNTIL SUCH TIME AS PAYMENT IS MADE TO AN  INDIVIDUAL
 12        OR INDIVIDUALS FOR RESTITUTION PURPOSES OR PURSUANT TO A COURT APPROVED CY
 13        PRES  DISTRIBUTION;  AMENDING SECTION 67-1401, IDAHO CODE, TO PROVIDE THAT
 14        THE ATTORNEY GENERAL SHALL PROVIDE LEGAL REPRESENTATION TO CERTAIN ENUMER-
 15        ATED STATE ENTITIES, TO PROVIDE THAT THE ATTORNEY GENERAL SHALL GIVE WRIT-
 16        TEN OPINIONS WITHOUT FEE TO THE SUPERINTENDENT OF PUBLIC  INSTRUCTION,  TO
 17        DELETE REQUIREMENT THAT THE ATTORNEY GENERAL GIVE WRITTEN OPINIONS WITHOUT
 18        FEE  TO THE TRUSTEES OR COMMISSIONERS OF STATE INSTITUTIONS AND TO PROVIDE
 19        THAT WRITTEN OPINIONS OF THE ATTORNEY GENERAL SHALL BE GIVEN UPON  REQUEST
 20        BY  CERTAIN STATE ENTITIES; AMENDING SECTION 67-1406, IDAHO CODE, TO CLAR-
 21        IFY WHICH STATE ENTITIES MAY EMPLOY  PRIVATE  COUNSEL;  REPEALING  SECTION
 22        67-1407,  IDAHO  CODE;  AMENDING  CHAPTER 14, TITLE 67, IDAHO CODE, BY THE
 23        ADDITION OF A NEW SECTION 67-1407, IDAHO CODE, TO PROVIDE FOR THE  ASSESS-
 24        MENT  OF  FEES FOR CERTAIN SERVICES; AMENDING SECTION 67-1408, IDAHO CODE,
 25        TO PROVIDE A CODE REFERENCE AND TO DELETE LANGUAGE RELATING TO ASSESSMENTS
 26        AND APPROPRIATION REQUESTS FOR  STATE  LEGAL  SERVICES;  AMENDING  SECTION
 27        67-1409,  IDAHO  CODE, TO CLARIFY WHICH ENTITIES ARE EXEMPTED FROM CERTAIN
 28        REQUIREMENTS RELATING TO LEGAL SERVICES CONTRACTS;  AND  AMENDING  SECTION
 29        67-3531,  IDAHO CODE, TO PROVIDE THAT THE DIVISION OF FINANCIAL MANAGEMENT
 30        SHALL PREPARE AN ESTIMATE OF COSTS FOR SERVICES PROVIDED BY CERTAIN  STATE
 31        SERVICE  AGENCIES,  TO  PROVIDE  THAT THE DIVISION OF FINANCIAL MANAGEMENT
 32        SHALL NOTIFY STATE AGENCIES OF SUCH ESTIMATES BY NOVEMBER 1 AND TO PROVIDE
 33        THAT THE DIVISION OF FINANCIAL MANAGEMENT  AND  THE  LEGISLATIVE  SERVICES
 34        OFFICE  SHALL  ALLOW  STATE  AGENCIES  TO  MODIFY THEIR BUDGET REQUESTS IN
 35        RESPONSE TO SUCH ESTIMATES.
                                                                        
 36    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 37        SECTION 1.  That Section 48-606, Idaho Code, be, and the  same  is  hereby
 38    amended to read as follows:
                                                                        
 39        48-606.  PROCEEDINGS  BY  ATTORNEY GENERAL. (1) Whenever the attorney gen-
 40    eral has reason to believe that any person is using, has used, or is about  to
 41    use  any  method, act or practice declared by this chapter to be unlawful, and
 42    that proceedings would be in the public interest, he may bring  an  action  in
 43    the name of the state against such person:
                                                                        
                                           2
                                                                        
  1        (a)  To  obtain a declaratory judgment that a method, act or practice vio-
  2        lates the provisions of this chapter;
  3        (b)  To enjoin any method, act or practice that violates the provisions of
  4        this chapter by issuance of a temporary restraining order  or  preliminary
  5        or  permanent  injunction,   upon the giving of appropriate notice to that
  6        person as provided by the Idaho rules of civil procedure;
  7        (c)  To recover on behalf of consumers actual damages  or  restitution  of
  8        money, property or other things received from such consumers in connection
  9        with a violation of the provisions of this chapter;
 10        (d)  To order specific performance by the violator;
 11        (e)  To  recover  from  the alleged violator civil penalties of up to five
 12        thousand dollars ($5,000) per violation for violation of the provisions of
 13        this chapter; and
 14        (f)  To recover from the alleged violator reasonable expenses,  investiga-
 15        tive costs and attorney's fees incurred by the attorney general.
 16        (2)  The  action  may  be  brought  in the district court of the county in
 17    which such person resides or has his principal place of business, or with con-
 18    sent of the parties, may be brought in the district court of  Ada  county.  If
 19    the  person  does  not reside in or have a principal place of business in this
 20    state, the action may be brought in any district court in this state. The said
 21    courts are authorized to issue temporary restraining orders or preliminary  or
 22    permanent  injunctions to restrain and prevent violations of the provisions of
 23    this chapter, and such injunctions shall be issued without bond.
 24        (3)  Unless the attorney general finds in writing  that  the  purposes  of
 25    this  chapter will be substantially and materially impaired by delay in insti-
 26    tuting legal proceedings, he shall, before initiating any legal proceedings as
 27    provided in this section, give notice in writing  that  such  proceedings  are
 28    contemplated to the person against whom proceedings are contemplated and allow
 29    such person a reasonable opportunity to appear before the attorney general and
 30    execute  an assurance of voluntary compliance or a consent judgment as in this
 31    chapter provided.
 32        (4)  In lieu of instigating or continuing an  action  or  proceeding,  the
 33    attorney  general  may  accept  a  consent judgment with respect to any act or
 34    practice alleged to be a violation of the provisions of this chapter,  and  it
 35    may  include  a  stipulation  for  the  payment  by  such person of reasonable
 36    expenses, investigative costs and attorney's fees  incurred  by  the  attorney
 37    general.  The consent judgment may also include a stipulation for civil penal-
 38    ties to be paid, not in excess of five thousand dollars ($5,000)  per  alleged
 39    violation;  a  stipulation  to pay to consumers actual damages or to allow for
 40    restitution of money, property or other things received from such consumers in
 41    connection with a violation of the provisions of this chapter; and/or a stipu-
 42    lation for specific performance. Before any consent judgment entered into pur-
 43    suant to this section shall be effective, it must be approved by the  district
 44    court  and an entry made thereof in the manner required for making an entry of
 45    judgment. Once such approval is received, any breach of the conditions of such
 46    consent judgment shall be treated as a violation of a court order,  and  shall
 47    be  subject to all penalties provided by law therefor, including the penalties
 48    set forth in section 48-615, Idaho Code.
 49        (5)  All penalties, costs and fees recovered by the attorney general shall
 50    be remitted to the consumer protection account fund which is hereby created in
 51    the state operating fund treasury. Moneys in the account shall be  treated  as
 52    interaccount receipts and fund may be expended pursuant to interaccount legis-
 53    lative  appropriation  and  shall  be used for the furtherance of the attorney
 54    general's duties and activities under this chapter. At the beginning  of  each
 55    fiscal  year,  those  moneys  in the consumer protection fund which exceed the
                                                                        
                                           3
                                                                        
  1    current year's appropriation plus any residual encumbrances made against prior
  2    years' appropriations by fifty percent (50%) or more shall be  transferred  to
  3    the general fund.
  4        (6)  Any moneys collected by the attorney general as trustee for distribu-
  5    tions to injured consumers shall be deposited in the state treasury until such
  6    time as payment is made to an individual or individuals for purposes of resti-
  7    tution or pursuant to a court approved cy pres distribution.
                                                                        
  8        SECTION  2.  That  Section 67-1401, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
                                                                        
 10        67-1401.  DUTIES OF ATTORNEY GENERAL. Except as otherwise provided in this
 11    chapter, it is the duty of the attorney general:
 12        1.  To perform all legal services for the state and to represent the state
 13    and all departments, agencies, offices, officers, boards, commissions,  insti-
 14    tutions  and other state entities, in all courts and before all administrative
 15    tribunals or bodies of any nature. Provided however, that such rRepresentation
 16    shall be for the legislative, and judicial branches, the governor, those state
 17    entities within the department of self-governing agencies, colleges  and  uni-
 18    versities,  only  upon request provided to those entities exempted pursuant to
 19    the provisions of section 67-1406, Idaho Code.  Whenever  required  to  attend
 20    upon  any  court  or  administrative  tribunal  the  attorney general shall be
 21    allowed necessary and actual expenses, all claims for which shall  be  audited
 22    by the state board of examiners.
 23        2.  To  advise  all departments, agencies, offices, officers, boards, com-
 24    missions, institutions and other state entities in all matters involving ques-
 25    tions of law.
 26        3.  After judgment in any of the causes referred to in the first  subdivi-
 27    sion,  to  direct the issuing of such process as may be necessary to carry the
 28    same into execution.
 29        4.  To account for and pay over to the proper officer all moneys  received
 30    which belong to the state.
 31        5.  To  supervise  nonprofit  corporations,  corporations,  charitable  or
 32    benevolent societies, person or persons holding property subject to any public
 33    or  charitable  trust  and  to enforce whenever necessary any noncompliance or
 34    departure from the general purpose of such trust and, in order  to  accomplish
 35    such purpose, said nonprofit corporations, corporations, charitable or benevo-
 36    lent  societies,  person  or persons holding property subject to any public or
 37    charitable trust are subject at all times to examination by the attorney  gen-
 38    eral, on behalf of the state, to ascertain the condition of its affairs and to
 39    what  extent,  if  at  all, said trustee or trustees may have failed to comply
 40    with trusts said trustee or trustees have assumed or may  have  departed  from
 41    the  general  purpose  for which it was formed. In case of any such failure or
 42    departure, the attorney general shall institute, in the name of the state, any
 43    proceeding necessary to enforce compliance with the terms of the trust or  any
 44    departure therefrom.
 45        6.  To  give  an  opinion  in  writing, without fee, to the legislature or
 46    either house thereof, or any senator or representative, and to  the  governor,
 47    secretary  of  state, treasurer, state controller, and the trustees or commis-
 48    sioners of state  institutions  superintendent  of  public  instruction,  when
 49    required  requested,  upon  any  question  of law relating to their respective
 50    offices. The attorney general shall keep a record of all written opinions ren-
 51    dered by the office and such opinions shall  be  compiled  annually  and  made
 52    available for public inspection. All costs incurred in the preparation of said
 53    opinions  shall  be borne by the office of the attorney general. A copy of the
                                                                        
                                           4
                                                                        
  1    opinions shall be furnished to the supreme court and to the state librarian.
  2        7.  When required by the public service, to repair to any  county  in  the
  3    state  and assist the prosecuting attorney thereof in the discharge of duties.
  4        8.  To  bid  upon  and purchase, when necessary, in the name of the state,
  5    and under the direction of the state controller, any property offered for sale
  6    under execution issued upon judgments in favor of or for the use of the state,
  7    and to enter satisfaction in whole or in part of such judgments as the consid-
  8    eration for such purchases.
  9        9.  Whenever the property of a judgment debtor in any  judgment  mentioned
 10    in  the preceding subdivision has been sold under a prior judgment, or is sub-
 11    ject to any judgment, lien, or encumbrance, taking precedence of the  judgment
 12    in  favor of the state, under the direction of the state controller, to redeem
 13    such property from such prior judgment, lien, or encumbrance; and all sums  of
 14    money necessary for such redemption must, upon the order of the board of exam-
 15    iners, be paid out of any money appropriated for such purposes.
 16        10. When necessary for the collection or enforcement of any judgment here-
 17    inbefore  mentioned,  to institute and prosecute, in behalf of the state, such
 18    suits or other proceedings as may be necessary to set aside and annul all con-
 19    veyances fraudulently made by such judgment debtors; the cost necessary to the
 20    prosecution must, when allowed by the board of examiners, be paid out  of  any
 21    appropriations for the prosecution of delinquents.
 22        11. To  exercise all the common law power and authority usually appertain-
 23    ing to the office and to discharge the other duties prescribed by law.
 24        12. To report to the governor, at the time required by this code, the con-
 25    dition of the affairs of the attorney general's  office  and  of  the  reports
 26    received from prosecuting attorneys.
 27        13. To  appoint deputy attorneys general and special deputy attorneys gen-
 28    eral and other necessary staff to assist in the performance of the  duties  of
 29    the  office.  Such  deputies and staff shall be nonclassified employees within
 30    the meaning of section 67-5302, Idaho Code.
                                                                        
 31        SECTION 3.  That Section 67-1406, Idaho Code, be, and the same  is  hereby
 32    amended to read as follows:
                                                                        
 33        67-1406.  EMPLOYMENT  OF ATTORNEYS RESTRICTED -- EXEMPTIONS. Notwithstand-
 34    ing any other provision of law to the contrary, no department, agency, office,
 35    officers, board, commission, institution or other state entity shall be repre-
 36    sented by or obtain its legal advice from an attorney at law  other  than  the
 37    attorney general except as follows:
 38        (1)  The  legislative and judicial branches of government and the governor
 39    may employ attorneys other than those under the supervision  of  the  attorney
 40    general,  and  such  attorneys may appear in any court. However, such entities
 41    may, upon request, utilize the attorney general's legal services.
 42        (2)  Those sState entities within the department of  self-governing  agen-
 43    cies  which  are  enumerated  in  sections  67-2601(2)(a),  67-2601(2)(b)  and
 44    67-2601(3),  Idaho  Code,  and  colleges  and universities, may employ private
 45    counsel to advise them and represent them before courts of the state of Idaho.
 46    Such entities may also obtain legal services from the attorney general on such
 47    terms as the parties may agree.
 48        (3)  Whenever the attorney general determines  that  it  is  necessary  or
 49    appropriate  in  the  public interest, the attorney general may authorize con-
 50    tracts for legal services pursuant to the provisions of section 67-1409, Idaho
 51    Code.
 52        (4)  The provisions of section 67-1401, Idaho Code, shall govern the  nor-
 53    mal  relationship  between  the attorney general and the state entities in the
                                                                        
                                           5
                                                                        
  1    executive branch  of state government. However, if after consultation with the
  2    attorney general, the governor determines in his sole  judgment,  which  shall
  3    not  be subject to judicial review, that counsel assigned to represent or give
  4    legal advice to any state entity, other than the  lieutenant  governor,  state
  5    controller,  state  treasurer,  secretary  of state, attorney general, and the
  6    superintendent of public instruction, cannot effectively  advocate  or  pursue
  7    the policies of the governor, the governor shall request that other counsel be
  8    provided  by the attorney general, and the attorney general shall provide from
  9    within the office of the attorney general or obtain from outside the office of
 10    the attorney general, depending upon the request of  the  governor,  qualified
 11    counsel acceptable to the governor to represent such state entity.
 12        (5)  Any  separate  counsel  employed pursuant to the foregoing exceptions
 13    shall be compensated with funds appropriated to such state entity, unless such
 14    separate counsel shall have been employed at the request or convenience of the
 15    attorney general or because of a conflict in representation  by  the  attorney
 16    general.
                                                                        
 17        SECTION  4.  That  Section 67-1407, Idaho Code, be, and the same is hereby
 18    repealed.
                                                                        
 19        SECTION 5.  That Chapter 14, Title 67, Idaho Code, be,  and  the  same  is
 20    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 21    ignated as Section 67-1407, Idaho Code, and to read as follows:
                                                                        
 22        67-1407.  FEES ASSESSED FOR SERVICES. In  conjunction  with  the  attorney
 23    general,  the  division  of  financial management shall determine on or before
 24    November 1 of each year an amount to be billed to state entities for  purposes
 25    of  carrying  out  the  provisions of this title. Such amount shall be paid by
 26    each state entity in the succeeding fiscal year to the indirect cost  recovery
 27    fund.  Before June 30 of each fiscal year, the state controller shall transfer
 28    an amount equal to such deposits to the state general fund.
                                                                        
 29        SECTION 6.  That Section 67-1408, Idaho Code, be, and the same  is  hereby
 30    amended to read as follows:
                                                                        
 31        67-1408.  BILLING  OF  STATE ENTITIES FOR LEGAL SERVICES. -- APPROPRIATION
 32    REQUESTS FOR GENERAL STATE LEGAL SERVICES. The attorney general, in  rendering
 33    assistance  to  the  departments, agencies, offices, officers, boards, commis-
 34    sions, institutions and other state entities, shall charge for  all  costs  of
 35    such assistance as determined pursuant to section 67-1407, Idaho Code, includ-
 36    ing,  but  not  limited to, salaries of attorneys, paralegals, administrative,
 37    clerical and other personnel, investigative services, independent contractors,
 38    operating expenses and capital outlay expenses of the office of  the  attorney
 39    general.  Whenever the attorney general determines that it would be beneficial
 40    to  physically  locate  attorneys  within  an agency, the attorney general and
 41    agency may enter into an agreement defining which operating, capital or  other
 42    expenses  will be paid by the attorney general and which expenses will be paid
 43    by the agency.
 44        On or before August 15 of each year, the attorney general  shall  estimate
 45    the legal service expenses that will be incurred by the office of the attorney
 46    general  during the succeeding fiscal year and shall notify all state entities
 47    that receive legal services of their estimated share of such expenses for  the
 48    succeeding  fiscal  year.  The  estimated  amount  shall be paid by each state
 49    entity in the succeeding fiscal year to the state legal services  fund  unless
 50    the  legislature,    by  appropriation or otherwise, adjusts the charge. On or
                                                                        
                                           6
                                                                        
  1    before August 15 of each year, the attorney general shall notify the  legisla-
  2    tive services office and the division of financial management of the office of
  3    the  governor regarding the amount of the charge to each state entity and also
  4    the amount of the general fund budget request  for  statewide  legal  services
  5    provided  to  the  state.  The  attorney  general  shall  manage  the attorney
  6    general's office to provide unified legal services based upon the legal  needs
  7    of  the  state.  For  this purpose the attorney general may, during any fiscal
  8    year, assign personnel based upon the legal needs existing regardless  of  the
  9    source of funding therefor.
                                                                        
 10        SECTION  7.  That  Section 67-1409, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        67-1409.  CONTRACTS FOR LEGAL SERVICES. (1)  The  attorney  general  shall
 13    determine  which  legal  services can most efficiently and effectively be pro-
 14    vided by the attorney general's staff and which legal services can most  effi-
 15    ciently  and  effectively  be provided by contract. The attorney general shall
 16    develop application forms  and  requests  for  proposals  utilizing  generally
 17    accepted cost containment considerations, for those attorneys desiring to per-
 18    form contract legal services for the state. Based upon the responses received,
 19    the  attorney  general  shall  recommend to the state board of examiners which
 20    attorneys or firms should be authorized to  represent  the  state.  The  state
 21    board  of  examiners  shall  consider the recommendations made by the attorney
 22    general and shall determine which attorneys or firms so recommended are autho-
 23    rized to contract to provide legal services for the state,  and  the  type  or
 24    types  of  legal services they are authorized to provide. In determining which
 25    attorneys shall be authorized for particular types of services, the  board  of
 26    examiners shall select attorneys who, in the board's judgment can best provide
 27    quality  legal  services  for  the  state  entities at an acceptable cost. The
 28    determinations of the board of examiners shall  not  be  subject  to  judicial
 29    review. Whenever the attorney general determines that an immediate appointment
 30    of  a  special  deputy  attorney general would be in the best interests of the
 31    state of Idaho, the attorney general may  enter  into  an  agreement  with  an
 32    attorney or firm to provide legal services for the state.
 33        (2)  The  performance  of  all contracts for legal services shall be moni-
 34    tored and supervised by the attorney general or his designee, and any payments
 35    pursuant to such contracts must be approved by the attorney general. This pro-
 36    vision shall not apply to contracts for legal services  entered  into  by  the
 37    legislative  and  judicial  branches  of state government and the governor and
 38    state entities within the department of self-governing agencies, colleges, and
 39    universities those entities exempted by section 67-1406, Idaho Code.
                                                                        
 40        SECTION 8.  That Section 67-3531, Idaho Code, be, and the same  is  hereby
 41    amended to read as follows:
                                                                        
 42        67-3531.  ANNUAL STATEWIDE INDIRECT COST ALLOCATION PLAN. (1) The division
 43    of  financial management shall develop an annual statewide indirect cost allo-
 44    cation plan in accordance with circular A-87 of the federal office of  manage-
 45    ment  and  budget.  The  central  service costs of the various central service
 46    agencies shall be allocated annually to the recipient state agencies, and such
 47    central service costs shall be included in an agency's indirect cost plans for
 48    the purpose of determining an indirect cost rate with  the  cognizant  federal
 49    agency, and shall  be included in an agency's federal grant application.
 50        (2)  In conjunction with the respective state service agency, the division
 51    of financial management shall prepare an estimate of costs for state budgeting
                                                                        
                                           7
                                                                        
  1    purposes  for  services  provided by the attorney general, the state treasurer
  2    and the state controller. The division of financial  management  shall  notify
  3    all  state  agencies  of  these  cost estimates for the next fiscal year on or
  4    before November 1. The division of financial management  and  the  legislative
  5    services  office shall allow state agencies to modify their budget requests in
  6    response to such estimates.
  7        (3)  The division of financial  management  shall  assess  each  recipient
  8    agency up to one hundred percent (100%) of the amounts allocated in the state-
  9    wide  cost  allocation plan. Amounts so assessed shall be separately accounted
 10    for and can be expended only after legislative appropriation.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                          RS 11006
                              
  The purpose of this bill is to change the methodology of budgeting
  for the Office of the Attorney General. At the present time, the
  Office of the Attorney General develops billing estimates each
  year based upon budgeting guidelines promulgated in the State
  Budget Development Manual. It is not until the Joint Finance-
  Appropriations Committee sets the appropriation for the Attorney
  General that the "actual" billing level can be determined. By
  this time many of the other state agency budgets have already
  been set, and it is inefficient to constantly reconsider single
  appropriation bills to add funding for these additional fees.
  With these proposed changes, state agencies will be billed on
  their actual usage of legal services rather than at a projected
  level. For example, in FY 2002, agencies will be billed for the
  actual level of services delivered in FY 2000. In the future, the
  Division of Financial Management will be responsible to prepare
  an estimate of costs for state budgeting purposes with the
  Attorney General, State Controller, and the State Treasurer for
  all service fees using statewide cost allocation methods. This
  will allow for more certainty in the appropriations process.
  
  This legislation also does away with the State Legal Services
  Fund and future appropriations for the Attorney General will be
  directly from the General Fund. Agencies will continue to be
  billed for legal services with the receipts going directly to the
  General Fund. Funding for educational services will continue to
  be appropriated from the Consumer Protection Fund, and excess
  receipts in the Consumer Protection Fund will transfer to the
  General Fund at the end of each fiscal year.
  
  
                       FISCAL IMPACT
                              
  The fiscal impact of this legislation is neutral.
  In the past, legal services fees were sent directly to the Office
  of the Attorney General and spent
  under an appropriation from the Legal Services Fund. Under this
  proposal, they will go instead to the
  General Fund. The Office of the Attorney General
  will be subject to an appropriation from the General Fund rather
  than an appropriation from receipts.
  
  CONTACT:
        Name:   Representative Jim Clark or
        Cathy Holland-Smith, Budget & Policy Analysis
         Phone:   334-3531
                                                Statement of Purpose/Fiscal Impact             H 218