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Oklahoma Legislature· SB 266Second Reading referred to Energy

An act relating to state government, the official text

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1                  STATE OF OKLAHOMA

1

2                 1st Session of the 60th Legislature (2025)

2

3 SENATE BILL 266                 By: Hall
3

4

4

5

5

6                  AS INTRODUCED

6

7   An Act relating to state government; amending 74 O.S.

7   2021, Sections 18b, as last amended by Section 170,

8   Chapter 452, O.S.L. 2024, and 20i, as last amended by

8   Section 1, Chapter 212, O.S.L. 2024 (74 O.S. Supp.

9   2024, Sections 18b and 20i), which relate to legal

9   representation of state entities; providing for

10  certain funds to be retained by the Oklahoma

10  Municipal Power Authority; requiring electronic

11  submission of certain report; updating statutory

11  language; updating statutory references; and

12  providing an effective date.

12

13

13

14

14

15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15

16  SECTION 1.     AMENDATORY  74 O.S. 2021, Section 18b, as last

16

17 amended by Section 170, Chapter 452, O.S.L. 2024 (74 O.S. Supp.
17

18 2024, Section 18b), is amended to read as follows:
18

19  Section 18b. A. The duties of the Attorney General as the

19

20 chief law officer of the state shall be:
20

21  1. To appear for the state and prosecute and defend all actions

21

22 and proceedings, civil or criminal, in the Supreme Court and Court
22

23 of Criminal Appeals in which the state is interested as a party;
23

24

24

    Req. No. 565                                              Page 1
1   2. To appear for the state and prosecute and defend all actions

1

2 and proceedings in any of the federal courts in which the state is
2

3 interested as a party;
3

4   3. To initiate or appear in any action in which the interests

4

5 of the state or the people of the state are at issue, or to appear
5

6 at the request of the Governor, the Legislature, or either branch
6

7 thereof, and prosecute and defend in any court or before any
7

8 commission, board or officers any cause or proceeding, civil or
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9 criminal, in which the state may be a party or interested; and when
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10 so appearing in any such cause or proceeding, the Attorney General
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11 may, if the Attorney General deems it advisable and to the best
11

12 interest of the state, take and assume control of the prosecution or
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13 defense of the state's interest therein;
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14  4. To consult with and advise district attorneys, when

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15 requested by them, in all matters pertaining to the duties of their
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16 offices, when the district attorneys shall furnish the Attorney
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17 General with a written opinion supported by citation of authorities
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18 upon the matter submitted;
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19  5. To give an opinion in writing upon all questions of law

19

20 submitted to the Attorney General by the Legislature or either
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21 branch thereof, or by any state officer, board, commission or
21

22 department, provided, that the Attorney General shall not furnish
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23 opinions to any but district attorneys, the Legislature or either
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24 branch thereof, or any other state official, board, commission or
24

    Req. No. 565                                            Page 2
1 department, and to them only upon matters in which they are
1

2 officially interested;
2

3   6. At the request of the Governor, State Auditor and Inspector,

3

4 State Treasurer, or either branch of the Legislature, to prosecute
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5 any official bond or any contract in which the state is interested,
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6 upon a breach thereof, and to prosecute or defend for the state all
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7 actions, civil or criminal, relating to any matter connected with
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8 either of their Departments;
8

9   7. Whenever requested by any state officer, board or

9

10 commission, to prepare proper drafts for contracts, forms and other
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11 writing which may be wanted for the use of the state;
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12  8. To prepare drafts of bills and resolutions for individual

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13 members of the Legislature upon their written request stating the
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14 gist of the bill or resolution desired;
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15  9. To enforce the proper application of monies appropriated by

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16 the Legislature and to prosecute breaches of trust in the
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17 administration of such funds;
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18  10. To institute actions to recover state monies illegally

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19 expended, to recover state property and to prevent the illegal use
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20 of any state property, upon the request of the Governor or the
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21 Legislature;
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22  11. To pay into the State Treasury, immediately upon its

22

23 receipt, all monies received by the Attorney General belonging to
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24

24

    Req. No. 565                                               Page 3
1 the state. Provided, monies received on behalf of the Oklahoma
1

2 Municipal Power Authority shall be retained by the Authority;
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3   12. To settle, compromise and dispose of an action in which the

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4 Attorney General represents the interests of the state, so long as
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5 the consideration negotiated for such settlement, compromise or
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6 disposition is payable to the state or one of its agencies which is
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7 a named party of the action and any monies, any property or other
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8 item of value is paid first to the State Treasury;
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9   13. To keep and file copies of all opinions, contracts, forms

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10 and letters of the office, and to keep an index of all opinions,
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11 contracts and forms according to subject and section of the law
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12 construed or applied;
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13  14. To keep a register or docket of all actions, demands and

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14 investigations prosecuted, defended or conducted by the Attorney
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15 General in behalf of the state. The register or docket shall give
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16 the style of the case or investigation, where pending, court number,
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17 office number, the gist of the matter, result and the names of the
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18 assistants who handled the matter;
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19  15. To keep a complete office file of all cases and

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20 investigations handled by the Attorney General on behalf of the
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21 state;
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22  16. To report to the Legislature or either branch thereof

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23 whenever requested upon any business relating to the duties of the
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24 Office of the Attorney General's office General;
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    Req. No. 565                                         Page 4
1   17. To institute civil actions against members of any state

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2 board or commission for failure of such members to perform their
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3 duties as prescribed by the statutes and the Constitution and to
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4 prosecute members of any state board or commission for violation of
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5 the criminal laws of this state where such violations have occurred
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6 in connection with the performance of such members' official duties;
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7   18. To respond to any request for an opinion of the Office of

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8 the Attorney General's office General, submitted by a member of the
8

9 Legislature, regardless of subject matter, by written opinion
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10 determinative of the law regarding such subject matter;
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11  19. To convene multicounty grand juries in such manner and for

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12 such purposes as provided by law; provided, such grand juries are
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13 composed of citizens from each of the counties on a pro rata basis
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14 by county;
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15  20. To investigate any report by the State Auditor and

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16 Inspector filed with the Attorney General pursuant to Section 223 of
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17 this title and prosecute all actions, civil or criminal, relating to
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18 such reports or any irregularities or derelictions in the management
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19 of public funds or property which are violations of the laws of this
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20 state;
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21  21. To represent and protect the collective interests of all

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22 utility consumers of this state in rate-related proceedings before
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23 the Corporation Commission or in any other state or federal judicial
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24 or administrative proceeding;
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    Req. No. 565                                            Page 5
1   22. To represent and protect the collective interests of

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2 insurance consumers of this state in rate-related proceedings before
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3 the Insurance Commissioner or in any other state or federal judicial
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4 or administrative proceeding;
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5   23. To investigate and prosecute any criminal action relating

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6 to insurance fraud, if in the opinion of the Attorney General a
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7 criminal prosecution is warranted, or to refer such matters to the
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8 appropriate district attorney;
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9   24. To monitor and evaluate any action by the federal

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10 government including, but not limited to, executive orders by the
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11 President of the United States, rules or regulations promulgated by
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12 an agency of the federal government or acts of Congress to determine
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13 if such actions are in violation of the Tenth Amendment to the
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14 Constitution of the United States;
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15  25. To cross-deputize police officers of the police department

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16 of any municipality or any officer deputized by the county sheriff
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17 or a designee subject to an interlocal governmental agreement with
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18 the Office of the Attorney General's Office General in an effort to
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19 combine city, county, and state law enforcement efforts and to
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20 encourage cooperation between city, county, and state law
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21 enforcement officials. Liability for the conduct of any municipal
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22 police officer cross-deputized under the terms and conditions of an
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23 interlocal governmental agreement or any officer deputized by the
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24 county sheriff under the terms and conditions of an interlocal
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    Req. No. 565                                              Page 6
1 governmental agreement shall remain the responsibility of the
1

2 respective employer for that officer; and
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3   26. To maintain data related to human trafficking and to assist

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4 law enforcement, social service agencies, and victim services
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5 programs in identifying and supporting victims of human trafficking.
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6   B. Nothing in this section shall be construed as requiring the

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7 Attorney General to appear and defend or prosecute in any court any
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8 cause or proceeding for or on behalf of the Oklahoma Tax Commission,
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9 the Board of Managers of the State Insurance Fund, or the
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10 Commissioners of the Land Office.
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11  C. In all appeals from the Corporation Commission to the

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12 Supreme Court of Oklahoma in which the state is a party, the
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13 Attorney General shall have the right to designate counsel of the
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14 Corporation Commission as the Attorney General's legally appointed
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15 representative in such appeals, and it shall be the duty of the
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16 Corporation Commission counsel to act when so designated and to
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17 consult and advise with the Attorney General regarding such appeals
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18 prior to taking action therein.
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19  SECTION 2.    AMENDATORY          74 O.S. 2021, Section 20i, as last

19

20 amended by Section 1, Chapter 212, O.S.L. 2024 (74 O.S. Supp. 2024,
20

21 Section 20i), is amended to read as follows:
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22  A. An agency or official of the executive branch may obtain

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23 legal representation by one or more attorneys by means of one of the
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24 following:
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    Req. No. 565                                             Page 7
1   1. Employing an attorney as such if otherwise authorized by

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2 law;
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3   2. Contracting with the Office of the Attorney General; or

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4   3. If the Attorney General is unable to represent the agency,

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5 or official due to a conflict of interest, or the Office of the
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6 Attorney General is unable or lacks the personnel or expertise to
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7 provide the specific representation required by such agency or
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8 official, contracting with a private attorney or attorneys pursuant
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9 to this section.
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10  B. When entering into a contract for legal representation by

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11 one or more private attorneys or law firms, an agency or official of
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12 the executive branch shall select an attorney or attorneys or a law
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13 firm or law firms from a list of attorneys and firms maintained by
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14 the Attorney General. An agency may contract for legal
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15 representation with one or more attorneys who are not on the list
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16 only when there is no attorney or firm on the list capable of
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17 providing the specific representation and only with the approval of
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18 the Attorney General. The list shall include any attorney or firm
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19 who desires to furnish services to an agency or official of the
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20 executive branch and who has filed a schedule of fees for services
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21 with and on a form approved by the Attorney General. The list of
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22 attorneys and firms desiring to furnish services and a schedule of
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23 fees for each attorney and firm shall be maintained and made
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24 available to the public.
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    Req. No. 565                                           Page 8
1   C. An agency or official may agree to deviate from the schedule

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2 of fees only with the approval of the Attorney General and if the
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3 new schedule of fees would not violate the fee schedules set forth
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4 in subsections D and E of this section.
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5   D. An agency or official of the executive branch shall not

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6 enter into a contingency fee contract that provides for the private
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7 attorney or firm to receive an aggregate contingency fee that
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8 exceeds:
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9   1. Twenty-five percent (25%) of that portion of any amount

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10 recovered that is Ten Million Dollars ($10,000,000.00) or less;
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11  2. Twenty percent (20%) of that portion of any amount recovered

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12 that is more than Ten Million Dollars ($10,000,000.00) but less than
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13 or equal to Fifteen Million Dollars ($15,000,000.00);
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14  3. Fifteen percent (15%) of that portion of any amount

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15 recovered that is more than Fifteen Million Dollars ($15,000,000.00)
15

16 but less than or equal to Twenty Million Dollars ($20,000,000.00);
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17  4. Ten percent (10%) of that portion of any amount recovered

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18 that is more than Twenty Million Dollars ($20,000,000.00) but less
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19 than or equal to Twenty-five Million Dollars ($25,000,000.00); and
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20  5. Five percent (5%) of that portion of any amount recovered

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21 that is more than Twenty-five Million Dollars ($25,000,000.00).
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22  E. Notwithstanding subsection D of this section, the total fee

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23 payable to all retained private attorneys in any contingency fee
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24 contract shall not exceed Fifty Million Dollars ($50,000,000.00),
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    Req. No. 565                                            Page 9
1 exclusive of any costs and expenses provided by the contract and
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2 actually incurred by the retained private attorneys, regardless of
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3 the number of actions or proceedings or the number of retained
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4 private attorneys involved in the matter.
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5   F. The Attorney General shall develop a standard clause for

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6 inclusion in every contract for contingent fee attorney services
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7 that shall be used in all cases, describing in detail what is
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8 expected of both the contracted private attorney and the state
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9 including, but not limited to, the requirements as provided in this
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10 subsection. The state shall not enter into a contract for
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11 contingency fee attorney services that does not incorporate such
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12 requirements:
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13  1. The government attorneys shall retain complete control over

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14 the course and conduct of the case;
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15  2. A government attorney with supervisory authority shall be

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16 personally involved in oversight of the case;
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17  3. The government attorneys shall retain veto power over any

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18 decision made by outside counsel related to the case;
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19  4. Any defendant in the case may contact the lead government

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20 attorneys directly, without having to confer with outside counsel;
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21  5. A government attorney with supervisory authority for the

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22 case shall attend all settlement conferences; and
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23

23

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    Req. No. 565                                              Page 10
1   6. Decisions regarding settlement of the case shall be reserved

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2 exclusively to the discretion of the government attorneys and the
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3 state.
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4   G. Copies of any executed contingency fee contract with the

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5 private attorney shall be posted on the Attorney General's website
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6 for public inspection within five (5) business days after the date
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7 the contract is executed and shall remain posted on the website for
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8 the duration of the contingency fee contract including any
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9 extensions or amendments to the contract. Any payment of
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10 contingency fees shall be posted on the Attorney General's website
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11 within fifteen (15) days after the payment of the contingency fees
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12 to the private attorney or law firm and shall remain posted on the
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13 website for at least three hundred sixty-five (365) days after the
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14 payment is made.
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15  H. Any private attorney or law firm under contract to provide

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16 services to the state on a contingency fee basis shall from the
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17 inception of the contract until at least four (4) years after the
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18 contract expires or is terminated, maintain detailed current records
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19 including documentation of all expenses, disbursements, charges,
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20 credits, underlying receipts and invoices and other financial
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21 transactions related to the attorney services. The private attorney
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22 or law firm shall make all such records available for inspection and
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23 copying upon request of the Attorney General. In addition, the
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24 private attorney or law firm shall maintain detailed contemporaneous
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    Req. No. 565                                              Page 11
1 time records for the attorneys and paralegals working on the matter
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2 in increments of no greater than one-tenth (1/10) of an hour and
2

3 shall promptly provide such records to the Attorney General upon
3

4 request.
4

5   I. Before entering into a contract for legal representation by

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6 one or more private attorneys, an agency or official of the
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7 executive branch shall furnish a copy of the proposed contract to
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8 the Attorney General and notify the Attorney General of the
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9 following:
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10  1. The nature and scope of the representation including, but

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11 not limited to, a description of any pending or anticipated
11

12 litigation or of the transaction requiring representation;
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13  2. The reason or reasons for not obtaining the representation

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14 from an attorney employed by the agency or official, if an attorney
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15 is employed by the agency or official;
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16  3. The reason or reasons for not obtaining the representation

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17 from the Attorney General by contract;
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18  4. The anticipated cost of the representation including the

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19 following:
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20          a. the basis for or method of calculation of the fee

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21                including, when applicable, the hourly rate for each

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22                attorney, paralegal, legal assistant, or other person

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23                who will perform services under the contract, and

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24

24

    Req. No. 565                                               Page 12
1   b. the basis for and method of calculation of any

1

2                 expenses which will be reimbursed by the agency or

2

3                 official under the contract;

3

4   5. An estimate of the anticipated duration of the contract;

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5   6. The past or present relationship, if any, between such

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6 attorney, law firm or any partner or other principal in such law
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7 firm and the state agency or state agent proposing to enter into the
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8 contract;
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9   7. If the contract contemplates that all or part of the fee is

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10 contingent on the outcome of the legal proceeding, the reasons the
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11 contingent fee arrangement is believed to be in the state's interest
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12 and any efforts undertaken to obtain private counsel on a
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13 noncontingent fee basis; and
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14  8. The justification for the determination that the selection

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15 of a contract for legal representation by one or more private
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16 attorneys or firms was made based on the ability of the private
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17 attorney or firm to provide the most economical and most competent
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18 service which furthers the best interest of the state.
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19  J. After the approval of the contract by the Attorney General

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20 for legal representation by one or more private attorneys or law
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21 firms, the Attorney General shall make available to the public on
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22 the Attorney General's website the information required pursuant to
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23 paragraphs 1 through 8 of subsection I of this section.
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24

24

    Req. No. 565                                              Page 13
1   K. 1. Before entering into a contract for legal representation

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2 by one or more private attorneys or firms where the agency has
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3 reason to believe that the case, transaction or matter will equal or
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4 exceed Twenty Thousand Dollars ($20,000.00) or after employment when
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5 it becomes apparent that the case, transaction or matter will equal
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6 or exceeds Twenty Thousand Dollars ($20,000.00), an agency or
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7 official of the executive branch shall obtain the approval of the
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8 Attorney General when the total cost including fees and expenses, of
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9 all contracts relating to the same case, transaction, or matter will
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10 equal or exceed Twenty Thousand Dollars ($20,000.00).
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11  2. Before entering into a contract for legal representation by

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12 one or more private attorneys or firms to initiate a legal action on
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13 behalf of the state where the agency has reason to believe that the
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14 total cost of the case, transaction or matter including fees and
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15 expenses will equal or exceed One Million Dollars ($1,000,000.00),
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16 an agency or official of the executive branch shall initiate a
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17 request for proposal from at least three qualified private attorneys
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18 or firms, when possible, engaged in providing such services. Notice
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19 of the request for proposal shall be published on the Attorney
19

20 General's website. The request for proposal shall solicit a
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21 billable hourly rate, regardless of whether a contingency fee is
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22 ultimately agreed upon, and shall specify the importance of price,
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23 quality, ability and experience. The selection of a contract for
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24 legal representation by one or more private attorneys or firms shall
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    Req. No. 565                                          Page 14
1 be made using the criteria established in the request for proposal
1

2 and shall be based on the response to the request which is the most
2

3 economical and provides the most competent service which furthers
3

4 the best interests of the state. Most economical and most competent
4

5 shall not be construed to mean the least expensive proposal.
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6   3. Any amendment, modification or extension of a contract

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7 which, had it been a part of the original contract would have
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8 required approval by the Attorney General, shall also require
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9 approval by the Attorney General.
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10  L. After entering into a contract for legal representation by

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11 one or more private attorneys or firms where the agency has reason
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12 to believe that the case, transaction or matter will equal or exceed
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13 One Million Dollars ($1,000,000.00), an agency or official of the
13

14 executive branch shall submit a copy of the contract to the
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15 Legislative Oversight Committee legislative oversight committee
15

16 overseeing the operations of the Legislative Office of Fiscal
16

17 Transparency (LOFT) along with the following:
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18  1. A description of the litigation or of the transaction

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19 requiring representation;
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20  2. The reason or reasons for not obtaining the representation

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21 from an attorney employed by the agency or official;
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22  3. The justification for selecting an attorney or firm

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23 contracted to represent the state; and
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24  4. An estimate of the anticipated duration of the contract.

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    Req. No. 565                                         Page 15
1   M. A settlement agreement shall not contemplate the ultimate

1

2 use and destination of recovered funds unless done in accordance
2

3 with paragraphs 11 and 12 of subsection B of Section 18b of this
3

4 title. Provided, the provisions of this subsection shall not apply
4

5 to settlement agreements entered into on behalf of the Oklahoma
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6 Municipal Power Authority.
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7   N. Within ten (10) days of an agency or official of the

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8 executive branch entering into a settlement agreement where a
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9 private attorney or firm was hired on a contingency fee contract and
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10 the settlement was equal to or greater than One Million Dollars
10

11 ($1,000,000.00), the agency or official of the executive branch
11

12 shall present the settlement agreement to the Legislative Oversight
12

13 Committee legislative oversight committee with oversight of the
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14 operations of the Legislative Office of Fiscal Transparency (LOFT),
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15 unless otherwise postponed by LOFT.
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16  O. When an agency or official of the executive branch enters

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17 into a contract for professional legal services pursuant to this
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18 section, the agency shall also comply with the applicable provisions
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19 of Section 85.41 of this title.
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20  P. The provisions of this section shall not apply to the

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21 Oklahoma Indigent Defense System created pursuant to Section 1355 et
21

22 seq. of Title 22 of the Oklahoma Statutes.
22

23  Q. Upon request of an agency or official of the executive

23

24 branch, the Governor, the President Pro Tempore of the Oklahoma
24

    Req. No. 565                               Page 16
1 State Senate and the Speaker of the Oklahoma House of
1

2 Representatives may exempt a legal matter from the requirements of
2

3 this section if an exemption is deemed to be in the best interest of
3

4 the state. Such exemption shall be issued at their discretion, in
4

5 writing and by unanimous consent, and shall be submitted to LOFT.
5

6   R. By February 1 of each year, the Attorney General shall

6

7 submit a report electronically to the Governor, the President Pro
7

8 Tempore of the Senate, the Speaker of the House of Representatives,
8

9 the Chair of the Appropriations and Budget Committee of the House of
9

10 Representatives and the Chair of the Appropriations Committee of the
10

11 Senate, that describes the use of contracts with private attorneys
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12 or law firms in the preceding fiscal year. At a minimum, the report
12

13 shall identify all new contracts entered into during the fiscal year
13

14 being reported and all previously executed contracts that remain
14

15 current during any part of the fiscal year. For each contract, the
15

16 report shall contain:
16

17  1. The name of the private attorney with whom the agency has

17

18 contracted including the name of the attorney's law firm;
18

19  2. The nature and status of the legal matter;

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20  3. The name of the parties to the legal matter;

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21  4. The amount of any recovery;

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22  5. The amount of any hourly rate;

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23  6. The amount of any contingency fee paid, if applicable; and

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24  7. The amount paid under the contract for the fiscal year.

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    Req. No. 565                                              Page 17
1   S. The provisions of subsections B through R of this section

1

2 shall not apply to any agency that invests funds on behalf of its
2

3 beneficiaries and, as part of its fiduciary duty, retains one or
3

4 more private attorneys or law firms to pursue individual, derivative
4

5 or class litigation concerning its investments or assets.
5

6   T. The provisions of this section shall not apply to any entity

6

7 exempted from Article I of the Administrative Procedures Act
7

8 pursuant to paragraphs 6 and 7 of subsection A of Section 250.4 of
8

9 Title 75 of the Oklahoma Statutes.
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10  SECTION 3. This act shall become effective November 1, 2025.

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    Req. No. 565                                             Page 18
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