Requires open and competitive bidding for all contingent fee contracts for legal services between the state and outside counsel, where fees and services exceed $7,500. Requires proposed contracts for legal services between the state and outside counsel in excess of $1 million to be submitted to the legislative budget committee for approval. Requires, at the conclusion of representation, outside counsel to provide the state with a statement of hours worked and fees recovered through a contract for legal services between the state and outside counsel. Provides that in no instance shall the state pay fees, even on a contingent fee basis, in excess of $1,000 per hour.