A Common Sense Reform

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Recent events show that Pennsylvania has had its fair share of problems with a lack of transparency in government, especially in the state Attorney General’s office.

Last fall, Attorney General Kathleen Kane came under scrutiny for a controversial contingency-fee contract with private law firm, Cohen Milstein Sellers & Toll, that was hired after contributing to Kane’s political campaign in earlier years.

Kane’s legal troubles have dominated the front pages of papers across the state, threatening to make Pennsylvania a national laughingstock, particularly hurting the state’s reputation among taxpayers and the business community.

When businesses fear that an attorney general is letting private-sector lawyers orchestrate lawsuits against them, they will be far less likely to expand or relocate in that state.

This hurts economic growth and job creation, wastes taxpayer resources and can perversely result in higher prices for goods and services as defendant companies pass their litigation costs on to consumers.

To guard against future problems that might result in arrangements like those which Kane has embraced, taxpayer groups in the Commonwealth are supporting legislation that would increase transparency in these private contracting laws.

Legislation sponsored by Sen Mike Folmer, R-Lebanon, would give the Commonwealth a more business-friendly reputation that can attract jobs and spur economic growth.

The bill would require any state agency that intends to hire legal services on a contingency fee basis to make a written determination that payment on this basis is feasible, efficient and in the best interest of the Commonwealth.

In other words, when the government wants to obtain legal services from private-sector attorneys, the legislation makes the process open to public view.

These more stringent guidelines ensure greater public accountability from future attorneys general and can reduce the likelihood of dangerous conflicts of interest.

The attorney general may sometimes need to hire outside counsel when in-house legal expertise for particular litigation is not available, but S.B. 316 makes sure that good-government principles are followed by granting legislators oversight of outside counsel contracts.

The bill would still allow private attorneys to be reasonably compensated for their work without getting rich at the expense of Pennsylvania taxpayers.

Twenty-two states have passed similar pro-taxpayer laws, and it is time for this Commonwealth to join this good-government parade.

We applaud Folmer for sponsoring this bill and urge Pennsylvania lawmakers to support his efforts to pass this great taxpayer reform, which would boost public integrity and help promote a healthier economy in the Keystone State.

James H. Broussard, of Lebanon, is chairman of Citizens Against Higher Taxes.