AN ACT Relating to the selection of bond counsel by state or local government; adding a new chapter to Title 39 RCW; creating a new section; and repealing RCW 28B.07.120 and 43.180.090.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The purpose of this chapter is to lower government costs in issuing bonds by providing for increased competition in the selection of bond counsel. This increased competition is to be achieved by encouraging more attorneys with the requisite qualifications to apply for bond counsel contracts and by requiring all attorneys who apply for such contracts to state their fees in dollars per hour of legal work provided.

NEW SECTION. Sec. 2. For purposes of this chapter:

(1) "State agency" means the state of Washington, any agency of the state, or any public corporation created by the state; and

(2) "Local agency" means any county, city, town, special purpose district, municipal corporation, or quasi municipal corporation.

NEW SECTION. Sec. 3. A state or local agency authorized to issue bonds shall select bond counsel in the manner required by this chapter.

NEW SECTION. Sec. 4. (1) The attorney general shall create and maintain a roster of attorneys who the attorney general believes possess the requisite qualifications to serve as bond counsel for the issuance of bonds by a state agency and a roster of attorneys who the attorney general believes possess the requisite qualifications for the issuance of bonds by a local agency. If the attorney general considers it appropriate, the attorney general may create additional rosters for bond counsel specializing in certain areas. Each roster shall contain the name, address, and telephone number of each qualified attorney and the fees charged by the attorney for bond counsel services.

(2) In determining whether an applicant for a roster possesses the required qualifications, the attorney general shall consider only whether the applicant: (a) Has submitted a completed application, on a form approved by the attorney general, containing the information required under section 5 of this act; and (b) possesses the expertise and professional standing to provide bond counsel opinions which would be accepted by underwriters, bondholders, and other members of the financial community, and which would be in furtherance of the public interest in facilitating the issuance of valid bonds at the lowest cost and interest rate.

(3) Prior to creating the rosters and periodically thereafter, the attorney general shall publish advertisements, in such publications as the attorney general considers appropriate, inviting qualified attorneys to apply for the rosters.

(4) The attorney general shall adopt rules appropriate for the administration of this chapter, including but not limited to rules requiring all attorneys listed on a roster to maintain current information on the roster and, at intervals specified by the attorney general, to file statements acknowledging the correct status of that information. At any time, the attorney general may remove from a roster an attorney who the attorney general believes: (a) Is not sufficiently qualified to provide the kind of services required for listing on a roster; (b) has not maintained current information on the roster; (c) has failed to file a statement acknowledging the correct status of roster information or has failed to file it by the required date; or (d) has charged fees greater than provided in the roster.

NEW SECTION. Sec. 5. The attorney general shall prescribe an application form designed to produce information which state and local agencies can use to make comparisons between the fees of the attorneys listed on the rosters. In order to facilitate the comparison of fees, the application form shall be designed to show each applicant's fees stated solely either (1) in terms of dollars per hour worked or (2) in terms of dollars per hour worked with the hourly fee changing as the bond amount changes. In the prescribed application form, the attorney general shall list increments of bond volume and, where the fee schedule is stated as authorized in (2) of this section, the applicant shall state the hourly fee only for such increments.

NEW SECTION. Sec. 6. Neither a state agency nor a local agency may select an attorney to serve as bond counsel unless the attorney is on a roster applicable to the agency. Each agency shall have wide discretion in selecting the attorney it considers to be the most appropriate to provide the needed bond counsel services, but in the exercise of this discretion it shall consider all submitted fee schedules and the public interest in achieving both (1) savings in bond counsel fees and (2) issuance of bonds on terms most favorable to the agency.

NEW SECTION. Sec. 7. Under no circumstances may a bond counsel request, or a state or local agency pay, a fee greater than that specified in the fee schedule in the roster for that counsel.

NEW SECTION. Sec. 8. A state agency's selection of bond counsel shall not be final until the attorney general has approved the selection and has designated the bond counsel as a special assistant attorney general.

NEW SECTION. Sec. 9. The attorney general may serve as bond counsel on an "in house" basis for any or all state agencies without the services of a special assistant attorney general designated under section 8 of this act, and is encouraged to do so if the attorney general believes that public funds would be saved thereby. The provisions of other sections of this chapter shall not apply under circumstances where the attorney general exercises his or her authority under this section.

NEW SECTION. Sec. 10. This act shall not affect or impair any contract right or retainer agreement for bond counsel services existing on the effective date of this act.@bd

NEW SECTION. Sec. 11. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.@ed

NEW SECTION. Sec. 12. Sections 1 through 9 of this act shall constitute a new chapter in Title 39 RCW.

NEW SECTION. Sec. 13. The following acts or parts of acts are each repealed:

(1) Section 13, chapter 169, Laws of 1983 and RCW 28B.07.120; and

(2) Section 9, chapter 161, Laws of 1983 and RCW 43.180.090.