Oklahoma 2024 Regular Session

Oklahoma House Bill HB2085 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 2085 Page 1 1
	3	+	HB2085 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 2085 By: Caldwell (Chad) of the
30		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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32		-	~~and~~
	31	+	STATE OF OKLAHOMA
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34		-	Daniels of the Senate
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 2085 By: Caldwell (Chad)
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	41	+	AS INTRODUCED
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42	43		An Act relating to state government; amending 74 O.S.
43	44		2021, Section 20i, as amended by Section 1, Chapter
44	45		308, O.S.L. 2022 (74 O .S. Supp. 2022, Section 20i),
45	46		which relates to legal representation of agency;
46	47		prohibiting certain attorneys from being voting
47	48		members of boards or commissions; and providing an
48	49		effective date.
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54	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	56		SECTION 1. AMENDATORY 74 O.S. 2021, Section 20i, as
56	57		amended by Section 1, Chapter 308, O.S.L. 2022 (74 O.S. Supp. 2022,
57	58		Section 20i), is amended to read as follows:
58	59		Section 20i. A. An agency or official o f the executive branch
59	60		may obtain legal representation by one or mor e attorneys by means of
60	61		one of the following:
61	62		1. Employing an attorney as such if otherwise authorized by
62	63		law;
63	64		2. Contracting with the Office of the Attorney General; or
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90	92		3. If the Attorney General is unable to represent the agency ,
91	93		or official due to a conflict of interest, or the Office of the
92	94		Attorney General is unable or lacks the personnel or expertise to
93	95		provide the specific representation required by su ch agency or
94	96		official, contracting with a private attorney or attorneys pursuant
95	97		to this section.
96	98		B. When entering into a contract for legal representation by
97	99		one or more private attorneys or law firms, an agency or official of
98	100		the executive branch shall select an attorney or attorneys or a law
99	101		firm or law firms from a list of attorneys and firms maintained by
100	102		the Attorney General. An agency may contract for legal
101	103		representation with one or more attorneys who are not on the list
102	104		only when there is no atto rney or firm on the list capable of
103	105		providing the specific representation and only with the a pproval of
104	106		the Attorney General. The list shall include any attorney or firm
105	107		who desires to furnish services to an agency or official of the
106	108		executive branch and who has filed a schedule of f ees for services
107	109		with and on a form approved by the Attorney Gen eral. The list of
108	110		attorneys and firms desiring to furnish services and a schedule of
109	111		fees for each attorney and firm shall be maintained and made
110	112		available to the public.
111	113		C. An agency or official may agree to deviate from the schedule
112	114		of fees only with the approval of the Attorney General and if the
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139	142		new schedule of fees would not violate the fee schedules set forth
140	143		in subsections D and E of this section.
141	144		D. An agency or official of the execu tive branch shall not
142	145		enter into a contingency fee contract that provides for the private
143	146		attorney or firm to receive an aggregate contingency fee that
144	147		exceeds:
145	148		1. Twenty-five percent (25%) of that portion of any amount
146	149		recovered that is Ten Million Dollars ($10,000,000.00) or less;
147	150		2. Twenty percent (20%) of that portion of any amount recovered
148	151		that is more than Ten Million Dollars ($10,000,000.00) but less than
149	152		or equal to Fifteen Million Dollars ($15,000,000.00) ;
150	153		3. Fifteen percent (15%) of that portion of any amount
151	154		recovered that is more than Fifteen Million Dollars ($15,000,000.00)
152	155		but less than or equal to Twenty Million Dollars ($20,000,000.00);
153	156		4. Ten percent (10%) of that portion of any amount recovered
154	157		that is more than Twenty Million Dollars ($20,000,000.00) but less
155	158		than or equal to Twenty -five Million Dollars ($25,000,000.00); and
156	159		5. Five percent (5%) of that portion of any amount recovered
157	160		that is more than Twenty-five Million Dollars ($25,000 ,000.00).
158	161		E. Notwithstanding subsection D of this section, the total fee
159	162		payable to all retained pr ivate attorneys in any contingency fee
160	163		contract shall not exceed Fifty Million Dollars ($50,000,000.00),
161	164		exclusive of any costs and expenses provided by the contract and
162	165		actually incurred by the retained private attorneys, regardless of
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189	193		the number of actions or proceedings or the number of retained
190	194		private attorneys involved in the matter.
191	195		F. The Attorney General shall develop a standard clause for
192	196		inclusion in every contract for contingent fee attorney services
193	197		that shall be used in all cases, describing in detail what is
194	198		expected of both the contracted private attorney and the state
195	199		including, but not limited to, the requirements as provided in this
196	200		subsection. The state shall not enter into a contract for
197	201		contingency fee attorney services that does not incorporate such the
198	202		following requirements:
199	203		1. The government attorneys shall retain complete control over
200	204		the course and conduct of the case;
201	205		2. A government attorney with supervisory authority shall be
202	206		personally involved in oversight of the case;
203	207		3. The government attorneys shall retain veto power over any
204	208		decision made by outside counsel related to the case;
205	209		4. Any defendant in the case may contact the lead government
206	210		attorneys directly, without having to confer with outside counsel;
207	211		5. A government attorney with supervisory authority for the
208	212		case shall attend all settlement conferences; and
209	213		6. Decisions regarding settlement of the case shall be reserved
210	214		exclusively to the discretion of the government attorneys and the
211	215		state.
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238	243		G. Copies of any executed contingency fee contract with the
239	244		private attorney shall be posted on the Attorney General's website
240	245		for public inspection within five (5) business days after the date
241	246		the contract is executed and shall remain posted on the website for
242	247		the duration of the contingency fee contract including any
243	248		extensions or amendments to the contract. Any payment of
244	249		contingency fees shall be posted on the Attorney General's website
245	250		within fifteen (15) days after the payment of the contingency fees
246	251		to the private attorney or law firm and shall remain posted on the
247	252		website for at least three hundred sixty-five (365) days after the
248	253		payment is made.
249	254		H. Any private attorney or law firm under contract to provide
250	255		services to the state on a contingency fee basis shall, from the
251	256		inception of the contract unt il at least four (4) years after the
252	257		contract expires or is terminated, maintain detailed current records
253	258		including documentation of all expenses, d isbursements, charges,
254	259		credits, underlying receipts and invoices and other financial
255	260		transactions related to the attorney services. The private attorney
256	261		or law firm shall make all such records available for inspection and
257	262		copying upon request of the Attorney General. In addition, the
258	263		private attorney or law firm shall maintain detail ed contemporaneous
259	264		time records for the attorneys and paralegals work ing on the matter
260	265		in increments of no greater than one-tenth (1/10) of an hour and
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287	293		shall promptly provide such records to the Attorney General upon
288	294		request.
289	295		I. Before entering into a co ntract for legal representat ion by
290	296		one or more private attorneys, an agency or official of the
291	297		executive branch shall furnish a copy of the proposed contract to
292	298		the Attorney General and notify the Attorney General of the
293	299		following:
294	300		1. The nature and scope of the representation including, but
295	301		not limited to, a description of any pending or anticipated
296	302		litigation or of the transaction requiring repre sentation;
297	303		2. The reason or reasons for not obtaining the representation
298	304		from an attorney employed by the agency or official, if an attorney
299	305		is employed by the agency or official;
300	306		3. The reason or reasons for not obtaining the representation
301	307		from the Attorney General by contract;
302	308		4. The anticipated cost of the representation including the
303	309		following:
304	310		a. the basis for or method of calculation of the fee
305	311		including, when applicable, the h ourly rate for each
306	312		attorney, paralegal, legal assistant, or other pers on
307	313		who will perform services under the contract, and
308	314		b. the basis for and method of calculation of any
309	315		expenses which will be reimbursed by the agency or
310	316		official under the contract;
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337	344		5. An estimate of the anticipated duration of the contract ;
338	345		6. The past or present relationship, if any, between such
339	346		attorney, law firm or any partner or other principal in such law
340	347		firm and the state agency or state agent proposing to enter into the
341	348		contract;
342	349		7. If the contract contemplates that all or part of the fee is
343	350		contingent on the outcome of the legal proceeding, the reasons the
344	351		contingent fee arrangement is believed to be in the state's interest
345	352		and any efforts undertaken to obtain private cou nsel on a
346	353		noncontingent fee basis; and
347	354		8. The justification for the determination that the selection
348	355		of a contract for legal representation by one or more private
349	356		attorneys or firms was made based on the ability of the private
350	357		attorney or firm to provide th e most economical and most competent
351	358		service which furthers the bes t interest of the state.
352	359		J. After the approval of the contract by the Attorney General
353	360		for legal representation by one or more private att orneys or law
354	361		firms, the Attorney General shall make available to the public on
355	362		the Attorney General 's website the information required pursuant to
356	363		paragraphs 1 through 8 of subsection I of this section.
357	364		K. 1. Before entering into a contract for legal representation
358	365		by one or more private attorneys or firms where the agency has
359	366		reason to believe that the case, transaction or mat ter will equal or
360	367		exceed Twenty Thousand Dollars ($20,000.00) or after employment when
361	368
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387	395		it becomes apparent that the case, tran saction or matter will equal
388	396		or exceeds exceed Twenty Thousand Dollars ($20,000.00), an agency or
389	397		official of the executive branch shall obtain the approval of the
390	398		Attorney General when the total cost, including fees and expenses,
391	399		of all contracts relating to the same case, transaction, or matter
392	400		will equal or exceed Twenty Thousand Dollars ($20,000.00).
393	401		2. Before entering into a contract for legal representation by
394	402		one or more private attorneys or firms to initiate a legal action on
395	403		behalf of the state where the agency has reason to believe that the
396	404		total cost of the case, transaction or matter including fees and
397	405		expenses will equal or exceed One Million D ollars ($1,000,000.00),
398	406		an agency or official of the executive branch shall initiate a
399	407		request for proposal from at least three qualified private attorneys
400	408		or firms, when possible, engaged in providing such services. Notice
401	409		of the request for proposal sha ll be published on the Attorney
402	410		General's website. The request for proposal shall solicit a
403	411		billable hourly rate, regardless of whether a contingency fee is
404	412		ultimately agreed upon, and shall specify the importance of pri ce,
405	413		quality, ability and experience . The selection of a contract for
406	414		legal representation by one or more private attorneys or firms shall
407	415		be made using the criteria established in the request for proposal
408	416		and shall be based on the response to the request which is the most
409	417		economical and provides the most competent service which furthers
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436	445		the best interests of the state. Most economical and most competent
437	446		shall not be construed to mean the least exp ensive proposal.
438	447		3. Any amendment, modification or extension of a contract
439	448		which, had it been a part of the original contract would have
440	449		required approval by the Attorney General, shall also require
441	450		approval by the Attorney General.
442	451		L. After entering into a contract for legal representation by
443	452		one or more private attorneys or firms where the agen cy has reason
444	453		to believe that the case, transaction or matter will equal or exceed
445	454		One Million Dollars ($1,000,000.00), an agency or official of the
446	455		executive branch shall submit a copy of the contract to the
447	456		Legislative Oversight Committee overseeing the operations of the
448	457		Legislative Office of Fiscal Transparency (LOFT) along with the
449	458		following:
450	459		1. A description of the litigation or of the transaction
451	460		requiring representation;
452	461		2. The reason or reasons for not obtaining the representation
453	462		from an attorney employed by the agency or official;
454	463		3. The justification for selecting an attorney or firm
455	464		contracted to represent the state; and
456	465		4. An estimate of the antici pated duration of the contract.
457	466		M. A settlement agreement shall not contemplate the ultimate
458	467		use and destination of recovered funds unle ss done in accordance
459	468
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485	495		with paragraphs 11 and 12 of subsection A of Section 18b of this
486	496		title.
487	497		N. Within ten (10) days of an agency or official of the
488	498		executive branch entering into a settlement agreement where a
489	499		private attorney or firm was hired on a contingency fee contract and
490	500		the settlement was equal to or greater than One Million Dollars
491	501		($1,000,000.00), the agency or official of the executive branch
492	502		shall present the settlement agreement to the Legislative Oversight
493	503		Committee with oversight of the operations of the Legislative Office
494	504		of Fiscal Transparency (LOFT), unless otherwise postponed by LOFT.
495	505		O. When an agency or official of the executive branch enters
496	506		into a contract for professional leg al services pursuant to this
497	507		section, the agency shall also comply with the applicable provisions
498	508		of Section 85.41 of this title.
499	509		P. The provisions of this section shall not apply to the
500	510		Oklahoma Indigent Defense Syste m created pursuant to Section 1355 et
501	511		seq. of Title 22 of the Oklahoma S tatutes.
502	512		Q. Upon request of an agency or official of the executive
503	513		branch, the Governor, the President Pro Tempore of the Senate and
504	514		the Speaker of the House of Representatives may exempt a legal
505	515		matter from the requirements of this s ection if an exempti on is
506	516		deemed to be in the best interest of the state. Such exemption
507	517		shall be issued at t heir discretion, in writing and by unanimous
508	518		consent, and shall be submitted to LOFT.
509	519
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535	546		R. By February 1 of each year, the Attorney General shall
536	547		submit a report to the Governor, the President Pro Tempore of the
537	548		Senate, the Speaker of the House of Re presentatives, the Chair of
538	549		the Appropriations and Budget Committee of th e House of
539	550		Representatives and the Chair of the Appropriations Committee of the
540	551		Senate, that describes the use of contracts with private attorneys
541	552		or law firms in the preceding calendar y ear. At a minimum, the
542	553		report shall identify all new contracts enter ed into during the
543	554		calendar year being reported and all previously executed contracts
544	555		that remain current during any part of the calendar year. For each
545	556		contract, the report shall contain:
546	557		1. The name of the private attorney with whom the agency has
547	558		contracted including the name of the attorney's law firm;
548	559		2. The nature and status of the legal matter;
549	560		3. The name of the parties to the legal matter;
550	561		4. The amount of any recovery;
551	562		5. The amount of any hourly rate; and
552	563		6. The amount of any contingency fee paid, if applicable.
553	564		S. The provisions of subsections B through R of this se ction
554	565		shall not apply to any agency that invests funds on behalf of its
555	566		beneficiaries and, as part of its fiduciary duty, retains one or
556	567		more private attorneys or law firms to pur sue individual, derivative
557	568		or class litigation concerning its investments or assets.
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584	596		T. The provisions of this section shall not apply to any entity
585	597		exempted from Article I of the Administrat ive Procedures Act
586	598		pursuant to paragraphs 6 and 7 of subsection A of Section 250.4 of
587	599		Title 75 of the Oklahoma Statutes .
588		-	U. No attorney employed by an appropriated agency, board,
589		-	commission, department, or other state government entity shall
590		-	provide legal advice beyond routine legal advice to a state board or
591		-	commission in which the attorneys’ employing agency has a voting
592		-	member serving on the state board or commission, except an attorney
593		-	who provides legal advice to any member who acts in a quasi -judicial
594		-	capacity to adjudicate matters brought before the state board or
595		-	commission pursuant to statute. Nothing in this subsection shall
596		-	prohibit an attorney from serving on a state government board or
597		-	commission. This subsection shall not apply to atto rneys at the
598		-	Office of the Attorney General or attorneys employed by a non -
599		-	appropriated board, commission, department, or other state
600		-	government entity. For purposes of this subsection "routine legal
601		-	advice" shall be limited to:
602		-	1. Guidance and advice on the Oklahoma Open Meeting Act and
603		-	voting;
604		-	2. General training on the powers and duties of the agency,
605		-	board, commission, department, or other state government entity and
606		-	its authority to act;
607		-	3. Ethics duties and requirements that are applicable , and
	600	+	U. No attorney shall provide legal advice to any state board or
	601	+	commission if the attorney is employed by an appropriated agency,
	602	+	board, commission, department , or other state government entity that
	603	+	has a voting member serving on the state board or commission, except
	604	+	an attorney who provides leg al advice to any memb er who acts in a
	605	+	quasi-judicial capacity to adjudicate matters brought before the
	606	+	state board or commission pursuant to statute . Nothing in this
	607	+	subsection shall prohibit an attorney from serving on a state
	608	+	government board or commission.
	609	+	SECTION 2. This act shall become ef fective November 1, 2023.
608	610
609		-	ENGR. H. B. NO. 2085 Page 13 1
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619		-	11
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629		-	21
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633		-
634		-	4. Conflict of interest advice.
635		-	SECTION 2. This act shall become ef fective November 1, 2023.
636		-	Passed the House of Representatives the 21st day of March, 2023.
637		-
638		-
639		-
640		-
641		-	Presiding Officer of the House
642		-	of Representatives
643		-
644		-
645		-
646		-	Passed the Senate the ____ day of __________, 2023.
647		-
648		-
649		-
650		-
651		-	Presiding Officer of the Senate
652		-
653		-
	611	+	COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT MODERNIZATION AND
	612	+	TECHNOLOGY, dated 02/28/2023 - DO PASS.