Section 12. (a) The committee shall establish policies and procedures to provide fair compensation to private counsel and vendors, which shall include a remedy for an attorney aggrieved by the amount of payment. The committee shall also establish an audit and oversight department to monitor billing and private attorney and vendor compensation. All private attorney bills shall be processed for payment within 30 days of receipt by the chief counsel, excluding any bills held for review or audit. Bills shall be submitted to the committee within 30 days from the conclusion of a case or within 30 days after the end of such fiscal year during which the legal services were provided if the case is pending at the end of the fiscal year, whichever date is earlier. Bills submitted after such dates need not be processed for payment within 30 days. The amount of payment for a bill received by the chief counsel more than 30 days but less than 60 days from conclusion of a case, or more than 30 days but less than 60 days after the end of such fiscal year during which the legal services were provided, whichever date is earlier, shall be reduced by 10 per cent. Any bill submitted after 60 days shall not be processed for payment; provided, however, that the chief counsel may authorize the payment of such bill, either in whole or in part, upon a determination that the delay was due to extraordinary circumstances beyond the control of the attorney.

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(b) Bills shall be submitted to the committee for services provided under sections 27A to 27G, inclusive, of chapter 261 within 30 days of the last date of service or within 30 days after the end of such fiscal year during which the services were provided if the case is pending at the end of the fiscal year, whichever date is earlier. The amount of payment for a bill received by the chief counsel more than 30 days but less than 60 days from the last date of service, or more than 30 days but less than 60 after the end of such fiscal year during which services were provided, whichever date is earlier, shall be reduced by 10 per cent. Any bill submitted after 60 days shall not be processed for payment; provided, however, that the chief counsel may authorize the payment of such bill either in whole or in part upon a determination that the delay was due to extraordinary circumstances beyond the control of the vendor.

(c) The committee may further prescribe such policies and procedures for payment as it deems appropriate; provided, however, that the committee may impose interest and penalties, where appropriate, upon overpayment of the private attorney bills recovered from private attorneys and upon overpayment of vendor bills recovered from vendors.