Okla. Stat. tit. 74, § 74-20i

- Approval by Attorney General - Report.

Oklahoma Statutes - Title 74. State Government Page 87

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:

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 attorney 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 General. 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.

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 Dollars ($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 Million Dollars ($20,000,000.00) but less

than or equal to Twenty-five Million Dollars ($25,000,000.00); and

Oklahoma Statutes - Title 74. State Government Page 88

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 subsection D of this section, the total fee

payable to all retained private attorneys in any contingency fee

contract shall not exceed Fifty Million Dollars ($50,000,000.00),

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 what 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 into 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;
scribing in detail what 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 into 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 having to confer with outside counsel;

5. A government attorney with supervisory authority for the

case shall attend all settlement conferences; and

6. Decisions regarding settlement of the case shall be reserved

exclusively to the discretion of the government attorneys and the

state.

G. Copies of any executed contingency fee contract 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 shall 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

Oklahoma Statutes - Title 74. State Government Page 89

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 addition, the

private attorney or law firm shall maintain detailed contemporaneous

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 Attorney General upon

request.

I. Before entering into a contract for legal representation 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 Attorney 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

b. the basis for and method of calculation of any

expenses which will be reimbursed 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
gal assistant, or other person

who will perform services under the contract, and

b. the basis for and method of calculation of any

expenses which will be reimbursed 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 representation 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 contract by the Attorney General

for legal representation by one or more private attorneys or law

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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 subsection I of this section.

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, transaction 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 attorneys 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 for

legal representation by one or more private attorneys or firms shall

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 service which furthers

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

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
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 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;

Oklahoma Statutes - Title 74. State Government Page 91

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 attorney or firm

contracted to represent the state; and

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

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 Section 18b of this title.

N. Within ten (10) days of an agency or official 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 greater 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 with oversight of the operations of the Legislative Office

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

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 best 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 to the Governor, the President Pro Tempore of the

Senate, the Speaker of the House of Representatives, 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;

Oklahoma Statutes - Title 74. State Government Page 92

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

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

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 concerning its investments or assets.
applicable; and

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

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 concerning 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.