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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 266 By: Hall
AS INTRODUCED
An Act relating to state government; amending 74 O.S.
2021, Sections 18b, as last amended by Section 170,
Chapter 452, O.S.L. 2024 , and 20i, as last amended by
Section 1, Chapter 212, O.S.L. 2024 (74 O.S. Supp.
2024, Sections 18b and 20i), which relate to legal
representation of state entities ; providing for
certain funds to be retained by the Oklahoma
Municipal Power Authority; requiring electronic
submission of certain report; updating statutory
language; updating statutory references; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 20 21, Section 18b, as last
amended by Section 170, Chapter 452, O.S.L. 2024 (74 O.S. Supp.
2024, Section 18b), is amended to read as follows:
Section 18b. A. The duties of the Attorney General as the
chief law officer of the state shall be:
1. To appear for the state and prosecute and defend all actions
and proceedings, civil or cr iminal, in the Supreme Court and Court
of Criminal Appeals in which the state is interested as a party;
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2. To appear for the state and prosecute and defend all actions
and proceedings in any of the federal courts in which the state is
interested as a party;
3. To initiate or appear in any action in which the interests
of the state or the people of the state are at issue, or to appear
at the request of the Governor, the Legislatu re, or either branch
thereof, and prosecute and defend in any court or before any
commission, board or officers any cause or proceeding, civil or
criminal, in which the state may be a party or interested; and when
so appearing in any such cause or proceedi ng, the Attorney General
may, if the Attorney General deems it advisable and to the best
interest of the state, take and assume control of the prosecution or
defense of the state ’s interest therein;
4. To consult with and advise district attorneys, when
requested by them, in all matters pertaining to the duties of their
offices, when the district attorneys shall furnish the Attorney
General with a written opinion supported by citation of authorities
upon the matter submitted;
5. To give an opinion in writ ing upon all questions of law
submitted to the Attorney General by the Legislature or either
branch thereof, or by any state officer, board, commission or
department, provided, that the Attorney General shall not furnish
opinions to any but district attorn eys, the Legislature or either
branch thereof, or any other state official, bo ard, commission or
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department, and to them only upon matters in which they are
officially interested;
6. At the request of the Governor, State Auditor and Inspector,
State Treasurer, or either branch of the Legislature, to prosecute
any official bond or any contract in which the state is interested,
upon a breach thereof, and to prosecute or defend for the state all
actions, civil or criminal, relating to any matter connected wit h
either of their Departments;
7. Whenever requested by any state officer, bo ard or
commission, to prepare proper drafts for contracts, forms and other
writing which may be wanted for the use of the state;
8. To prepare drafts of bills and resolutions fo r individual
members of the Legislature upon their written request stating the
gist of the bill or resolution desired;
9. To enforce the proper application of monies appropriated by
the Legislature and to prosecute breaches of trust in the
administration of such funds;
10. To institute actions to recover state monies illegally
expended, to recover state property and to prevent the illegal use
of any state property, upon the request of the Governor or the
Legislature;
11. To pay into the State Treasury, i mmediately upon its
receipt, all monies received by the Attorney General belonging to
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the state. Provided, monies received on behalf of the Oklahoma
Municipal Power Authority shall be retained by the Authority ;
12. To settle, compromise and dispose of an action in which the
Attorney General represents the interests of the state, s o long as
the consideration negotiated for such settlement, compromise or
disposition is payable to the state or one of its agencies which is
a named party of the action and any monies, any property or other
item of value is paid first to the State Treasury;
13. To keep and file copies of all opinions, contracts, forms
and letters of the office, and to keep an index of all opinions,
contracts and forms according to subject and se ction of the law
construed or applied;
14. To keep a register or docket of al l actions, demands and
investigations prosecuted, defended or conducted by the Attorney
General in behalf of the state. The register or docket shall give
the style of the case o r investigation, where pending, court number,
office number, the gist of the matter, result and the names of the
assistants who handled the matter;
15. To keep a complete office file of all cases and
investigations handled by the Attorney General on behal f of the
state;
16. To report to the Legislature or either branch thereof
whenever requested upon any business relating to the duties of the
Office of the Attorney General’s office General;
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17. To institute civil actions against members of any state
board or commission for failure of such members to perform their
duties as prescribed by the statutes and the Constitution and to
prosecute members of any state board or commission for violation of
the criminal laws of this state where such violations have occ urred
in connection with the performance of such members ’ official duties;
18. To respond to any request for an opinion of the Office of
the Attorney General’s office General, submitted by a member of the
Legislature, regardless of subject matter, by writ ten opinion
determinative of the law regarding such subject matter;
19. To convene multicounty grand juries in such manner and for
such purposes as provided by law; provided, such grand juries are
composed of citizens from each of the counties on a pro ra ta basis
by county;
20. To investigate any report by the State Auditor and
Inspector filed with the Attorney General pursuant to Section 223 of
this title and prosecute all actions, civil or criminal, relating to
such reports or any irregularities or dere lictions in the management
of public funds or property which are violations of the laws of this
state;
21. To represent and protect the collective interests of all
utility consumers of this state in rate -related proceedings before
the Corporation Commissi on or in any other state or federal judicial
or administrative proceeding;
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22. To represent and protect the collective interests of
insurance consumers of this state in rate -related proceedings before
the Insurance Commissioner or in any other state or fe deral judicial
or administrative proceeding;
23. To investigate and prosecute any criminal action relating
to insurance fraud, if in the opinion of the Attorney General a
criminal prosecution is warranted, or to refer such matters to the
appropriate district attorney;
24. To monitor and evaluate any action by the federal
government including, but not limited to, executive orders by the
President of the United States, rules or regulations promulgated by
an agency of the federal government or acts of Congress to determine
if such actions are in violation of the Tenth Amendment to the
Constitution of the United States;
25. To cross-deputize police officers of the police department
of any municipality or any officer deputized by the county sheriff
or a designee subject to an interlocal governmental agreement with
the Office of the Attorney General’s Office General in an effort to
combine city, county, and state law enforcement efforts and to
encourage cooperation between city, county, and state law
enforcement officials. Liability for the conduct of any municipal
police officer cross -deputized under the terms and conditions of an
interlocal governmental agreement or any officer deputized by the
county sheriff under the terms and conditions of an interlocal
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governmental agreement shall remain the responsibility of the
respective employer for that officer; and
26. To maintain data related to human trafficking and to assist
law enforcement, social service agencies, and victim services
programs in identifying and supporting victims of human trafficking.
B. Nothing in this section shall be construed as requiring the
Attorney General to appear and defend or prosecute in any court any
cause or proceeding for or on behalf of the Oklahoma Tax Commission ,
the Board of Managers of the State Insurance Fund , or the
Commissioners of the Land Office.
C. In all appeals from the Corporation Commission to the
Supreme Court of Oklahoma in which the state is a party, the
Attorney General shall have the right to designate counsel of the
Corporation Commission as the Attorney General ’s legally appointed
representative in such appeals, and it shall be the duty of the
Corporation Commission counsel to act when so designated and to
consult and advise with the Attorney General regarding such appeals
prior to taking action therein.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 20i, as last
amended by Section 1, Chapter 212, O.S.L. 2024 (74 O.S. Supp. 2024,
Section 20i), is amended to read as follows:
A. An agency or official of the executive branch may obtain
legal representation by one or more attorneys by means of one of the
following:
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1. Employing an attorney as such if otherwise authorized by
law;
2. Contracting with the Office of the Attorney General; or
3. If the Attorney General is unable to represent the agency,
or official due to a conflict of interest, or the Office of the
Attorney General is unable or lacks the personnel or expertise to
provide the specific representation required by such agency or
official, contracting with a private attorney or attorneys pursuant
to this section.
B. When entering into a contract for legal representation by
one or more private attorneys or law firms, an agency or official of
the executive branch shall select an attorn ey or attorneys or a law
firm or law firms from a list of attorneys and firms maintained by
the Attorney General. An agency may contract for legal
representation with one or more attorneys who are not on the list
only when there is no attorney or firm on the list capable of
providing the specific representation and only with the approval of
the Attorney General. The list shall include any attorney or firm
who desires to furnish services to an agency or official of the
executive branch and who has filed a schedule of fees for services
with and on a form approved by the Attorney Gene ral. The list of
attorneys and firms desiring to furnish services and a schedule of
fees for each attorney and firm shall be maintained and made
available to the public.
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C. An agency or official may agree to deviate from the schedule
of fees only with the approval of the Attorney General and if the
new schedule of fees would not violate the fee schedules set forth
in subsections D and E of this section.
D. An agency or official of the executive branch shall not
enter into a contingency fee contract that provides for the private
attorney or firm to receive an aggregate contingency fee that
exceeds:
1. Twenty-five percent (25%) of that portion of any amount
recovered that is Ten Million Dollars ($10,000,000.00) or less;
2. Twenty percent (20%) of that portion of any amount recovered
that is more than Ten Million Dollars ($10,000,000.00) but less than
or equal to Fifteen Million Dollars ($15,000,000.00);
3. Fifteen percent (15%) of that portion of any amount
recovered that is more than Fifteen Million Doll ars ($15,000,000.00)
but less than or equal to Twenty Million Dollars ($20,000,000.00);
4. Ten percent (10%) of that portion of any amount recovered
that is more than Twenty Mil lion Dollars ($20,000,000.00) but less
than or equal to Twenty -five Million Dollars ($25,000,000.00); and
5. Five percent (5%) of that portion of any amount recovered
that is more than Twenty -five Million Dollars ($25,000,000.00).
E. Notwithstanding subs ection D of this section, the total fee
payable to all retained private attorn eys in any contingency fee
contract shall not exceed Fifty Million Dollars ($50,000,000.00),
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exclusive of any costs and expenses provided by the contract and
actually incurred by the retained private attorneys, regardless of
the number of actions or proceedings or the number of retained
private attorneys involved in the matter.
F. The Attorney General shall develop a standard clause for
inclusion in every contract for contingent fee attorney services
that shall be used in all cases, describing in detail wh at is
expected of both the contracted private attorney and the state
including, but not limited to, the requirements as provided in this
subsection. The state shall not enter in to a contract for
contingency fee attorney services that does not incorporate such
requirements:
1. The government attorneys shall retain complete control over
the course and conduct of the case;
2. A government attorney with supervisory authority shall be
personally involved in oversight of the case;
3. The government attorneys shall retain veto power over any
decision made by outside counsel related to the case;
4. Any defendant in the case may contact the lead government
attorneys directly, without h aving to confer with outside counsel;
5. A government attorney with supervisory authority for the
case shall attend all settlement conferences; and
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6. Decisions regarding settlement of the case shall be reserved
exclusively to the discretion of the gover nment attorneys and the
state.
G. Copies of any executed contingency fee cont ract with the
private attorney shall be posted on the Attorney General ’s website
for public inspection within five (5) business days after the date
the contract is executed and s hall remain posted on the website for
the duration of the contingency fee contract including any
extensions or amendments to the contract. Any payment of
contingency fees shall be posted on the Attorney General ’s website
within fifteen (15) days after the payment of the contingency fees
to the private attorney or law firm and shall remain posted on the
website for at least three hundred sixty -five (365) days after the
payment is made.
H. Any private attorney or law firm under contract to provide
services to the state on a contingency fee basis shall from the
inception of the contract until at least four (4) years after the
contract expires or is terminated, maintain detailed current records
including documentation of all expenses, disbursements, charges,
credits, underlying receipts and invoices and other financial
transactions related to the attorney services. The private attorney
or law firm shall make all such records available for inspection and
copying upon request of the Attorney General. In additio n, the
private attorney or law firm shall maintain detailed contemporaneous
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time records for the attorneys and paralegals working on the matter
in increments of no greater than one -tenth (1/10) of an hour and
shall promptly provide such records to the Atto rney General upon
request.
I. Before entering into a contract for legal repre sentation by
one or more private attorneys, an agency or official of the
executive branch shall furnish a copy of the proposed contract to
the Attorney General and notify the Att orney General of the
following:
1. The nature and scope of the representation including, but
not limited to, a description of any pending or anticipated
litigation or of the transaction requiring representation;
2. The reason or reasons for not obtaining the representation
from an attorney employed by the agency or official, if an attorney
is employed by the agency or official;
3. The reason or reasons for not obtaining the representation
from the Attorney General by contract;
4. The anticipated cost of the representation including the
following:
a. the basis for or method of calculation of the fee
including, when applicable, the hourly rate for each
attorney, paralegal, legal assistant, or other person
who will perform services under the contract, and
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b. the basis for and method of calculation of any
expenses which will be reimbu rsed by the agency or
official under the contract;
5. An estimate of the anticipated duration of the contract;
6. The past or present relationship, if any, between such
attorney, law firm or any partner or other principal in such law
firm and the state agency or state agent proposing to enter into the
contract;
7. If the contract contemplates that all or part of the fee is
contingent on the outcome of the legal proceeding, the reasons the
contingent fee arrangement is believed to be in the state ’s interest
and any efforts undertaken to obtain private counsel on a
noncontingent fee basis; and
8. The justification for the determination that the selection
of a contract for legal r epresentation by one or more private
attorneys or firms was made based on the ability of the private
attorney or firm to provide the most economical and most competent
service which furthers the best interest of the state.
J. After the approval of the con tract by the Attorney General
for legal representation by one or more private attorneys or law
firms, the Attorney General shall make available to the public on
the Attorney General ’s website the information required pursuant to
paragraphs 1 through 8 of s ubsection I of this section.
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K. 1. Before entering into a contract for legal representation
by one or more private attorneys or firms where the agency has
reason to believe that the case, transaction or matter will equal or
exceed Twenty Thousand Dollars ($20,000.00) or after employment when
it becomes apparent that the case, tran saction or matter will equal
or exceeds Twenty Thousand Dollars ($20,000.00), an agency or
official of the executive branch shall obtain the approval of the
Attorney General when the total cost including fees and expenses, of
all contracts relating to the same case, transaction, or matter will
equal or exceed Twenty Thousand Dollars ($20,000.00).
2. Before entering into a contract for legal representation by
one or more private a ttorneys or firms to initiate a legal action on
behalf of the state where the agency has reason to believe that the
total cost of the case, transaction or matter including fees and
expenses will equal or exceed One Million Dollars ($1,000,000.00),
an agency or official of the executive branch shall initiate a
request for proposal from at least three qualified private attorneys
or firms, when possible, engaged in providing such services. Notice
of the request for proposal shall be published on the Attorney
General’s website. The request for proposal shall solicit a
billable hourly rate, regardless of whether a contingency fee is
ultimately agreed upon, and shall specify the importance of price,
quality, ability and experience. The selection of a contract f or
legal representation by one or more private attorneys or firms shall
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be made using the criteria established in the request for proposal
and shall be based on the response to the request which is the most
economical and provides the most competent servic e which furthers
the best interests of the state. Most economical and most co mpetent
shall not be construed to mean the least expensive proposal.
3. Any amendment, modification or extension of a contract
which, had it been a part of the original contract would have
required approval by the Attorney General, shall also require
approval by the Attorney General.
L. After entering into a contract for legal representation by
one or more private attorneys or firms where the agency has reason
to believe that the case, transaction or matter will equal or exceed
One Million Dollars ($1,000 ,000.00), an agency or official of the
executive branch shall submit a copy of the contract to the
Legislative Oversight Committee legislative oversight committee
overseeing the operations of the Legislative Office of Fiscal
Transparency (LOFT) along with the following:
1. A description of the litigation or of the transaction
requiring representation;
2. The reason or reasons for not obtaining the representation
from an attorney employed by the agency or official;
3. The justification for selecting an at torney or firm
contracted to represent the state; and
4. An estimate of the anticipated duration of the contract.
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M. A settlement agreement shall not contemplate the ultimate
use and destination of recovered funds unless done in accordance
with paragraphs 11 and 12 of subsection B of Section 18b of this
title. Provided, the provisions of this subsection shall not apply
to settlement agreements entered into on behalf of the Okla homa
Municipal Power Authority .
N. Within ten (10) days of an agency or offic ial of the
executive branch entering into a settlement agreement where a
private attorney or firm was hired on a contingency fee contract and
the settlement was equal to or great er than One Million Dollars
($1,000,000.00), the agency or official of the executive branch
shall present the settlement agreement to the Legislative Oversight
Committee legislative oversight committee with oversight of the
operations of the Legislative Of fice of Fiscal Transparency (LOFT),
unless otherwise postponed by LOFT.
O. When an agency or official of the executive branch enters
into a contract for professional legal services pursuant to this
section, the agency shall also comply with the applicable provisions
of Section 85.41 of this title.
P. The provisions of this section shall not apply to the
Oklahoma Indigent Defense System created pursuant to Section 1355 et
seq. of Title 22 of the Oklahoma Statutes.
Q. Upon request of an agency or official of the executive
branch, the Governor, the President Pro Tempore of the Oklahoma
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State Senate and the Speaker of the Oklahoma House of
Representatives may exempt a legal matter from the requirements of
this section if an exemption is deemed to be in the be st interest of
the state. Such exemption shall be issued at their discretion, in
writing and by unanimous consent, and shall be submitted to LOFT.
R. By February 1 of each year, the Attorney General shall
submit a report electronically to the Governor, the President Pro
Tempore of the Senate, the Speaker of the House of Representa tives,
the Chair of the Appropriations and Budget Committee of the House of
Representatives and the Chair of the Appropriations Committee of the
Senate, that describes the use of contracts with private attorneys
or law firms in the preceding fiscal year. At a minimum, the report
shall identify all new contracts entered into during the fiscal year
being reported and all previously executed contracts that remain
current during any part of the fiscal year. For each contract, the
report shall contain:
1. The name of the private attorney with whom the agency has
contracted including the name of the attorney ’s law firm;
2. The nature and status of the legal matter;
3. The name of the parties to the legal matter;
4. The amount of any recovery;
5. The amount of any hourly rate;
6. The amount of any contingency fee paid, if applicable; and
7. The amount paid under the contract for the fiscal year.
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S. The provisions of subsections B through R of this section
shall not apply to any agency that invests funds on behalf of its
beneficiaries and, as part of its fiduciary duty, retains one or
more private attorneys or law firms to pursue individual, derivative
or class litigation concernin g its investments or assets.
T. The provisions of this section shall not apply to any entity
exempted from Article I of the Administrative Procedures Act
pursuant to paragraphs 6 and 7 of subsection A of Section 250.4 of
Title 75 of the Oklahoma Statutes.
SECTION 3. This act shall become effective November 1, 2025.
60-1-565 RD 12/30/2024 7:28:37 PM