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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 266 By: Hall
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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.
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13
13
14
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 74 O.S. 2021, Section 18b, as last
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17 amended by Section 170, Chapter 452, O.S.L. 2024 (74 O.S. Supp.
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18 2024, Section 18b), is amended to read as follows:
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19 Section 18b. A. The duties of the Attorney General as the
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20 chief law officer of the state shall be:
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21 1. To appear for the state and prosecute and defend all actions
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22 and proceedings, civil or criminal, in the Supreme Court and Court
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23 of Criminal Appeals in which the state is interested as a party;
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1 2. To appear for the state and prosecute and defend all actions
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2 and proceedings in any of the federal courts in which the state is
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3 interested as a party;
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4 3. To initiate or appear in any action in which the interests
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5 of the state or the people of the state are at issue, or to appear
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6 at the request of the Governor, the Legislature, or either branch
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7 thereof, and prosecute and defend in any court or before any
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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
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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
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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
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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
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Req. No. 565 Page 2
1 department, and to them only upon matters in which they are
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2 officially interested;
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3 6. At the request of the Governor, State Auditor and Inspector,
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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;
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9 7. Whenever requested by any state officer, board or
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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
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23 receipt, all monies received by the Attorney General belonging to
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1 the state. Provided, monies received on behalf of the Oklahoma
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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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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
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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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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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1 governmental agreement shall remain the responsibility of the
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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
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20 amended by Section 1, Chapter 212, O.S.L. 2024 (74 O.S. Supp. 2024,
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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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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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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)
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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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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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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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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
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3 shall promptly provide such records to the Attorney General upon
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4 request.
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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
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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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1 b. the basis for and method of calculation of any
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2 expenses which will be reimbursed by the agency or
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3 official under the contract;
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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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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
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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
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2 and shall be based on the response to the request which is the most
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3 economical and provides the most competent service which furthers
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4 the best interests of the state. Most economical and most competent
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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
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14 executive branch shall submit a copy of the contract to the
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15 Legislative Oversight Committee legislative oversight committee
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16 overseeing the operations of the Legislative Office of Fiscal
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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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1 M. A settlement agreement shall not contemplate the ultimate
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2 use and destination of recovered funds unless done in accordance
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3 with paragraphs 11 and 12 of subsection B of Section 18b of this
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4 title. Provided, the provisions of this subsection shall not apply
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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
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11 ($1,000,000.00), the agency or official of the executive branch
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12 shall present the settlement agreement to the Legislative Oversight
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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
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22 seq. of Title 22 of the Oklahoma Statutes.
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23 Q. Upon request of an agency or official of the executive
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24 branch, the Governor, the President Pro Tempore of the Oklahoma
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1 State Senate and the Speaker of the Oklahoma House of
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2 Representatives may exempt a legal matter from the requirements of
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3 this section if an exemption is deemed to be in the best interest of
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4 the state. Such exemption shall be issued at their discretion, in
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5 writing and by unanimous consent, and shall be submitted to LOFT.
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6 R. By February 1 of each year, the Attorney General shall
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7 submit a report electronically to the Governor, the President Pro
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8 Tempore of the Senate, the Speaker of the House of Representatives,
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9 the Chair of the Appropriations and Budget Committee of the House of
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10 Representatives and the Chair of the Appropriations Committee of the
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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
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13 shall identify all new contracts entered into during the fiscal year
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14 being reported and all previously executed contracts that remain
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15 current during any part of the fiscal year. For each contract, the
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16 report shall contain:
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17 1. The name of the private attorney with whom the agency has
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18 contracted including the name of the attorney's law firm;
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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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1 S. The provisions of subsections B through R of this section
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2 shall not apply to any agency that invests funds on behalf of its
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3 beneficiaries and, as part of its fiduciary duty, retains one or
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4 more private attorneys or law firms to pursue individual, derivative
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5 or class litigation concerning its investments or assets.
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6 T. The provisions of this section shall not apply to any entity
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7 exempted from Article I of the Administrative Procedures Act
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8 pursuant to paragraphs 6 and 7 of subsection A of Section 250.4 of
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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 18Every fact on this page links to its source, starting with the official bill record.