House Votes to Reform State Legal Services

House lawmakers voted yesterday to reform the way the state handles legal services, particularly the hiring of outside attorneys, in an effort to ultimately reduce legal costs for state government.

Rep. Mark McCullough
R-Sapulpa

"In recent years, Oklahoma government has come under the spotlight for the millions of taxpayer dollars expended on private law firms," said state Rep. Mark McCullough, R-Sapulpa. "This legislation will give the public greater confidence that future expenditures of that type are legitimate and that contracts were not awarded as a sweetheart deal for politically connected law firms. The reforms contained in this legislation provide improved safeguards against such potential waste of public money."

House Bill 1223, by McCullough, would create the "Legal Services Reform Act." Under the proposed law, state agencies would have to gain the approval by the Office of the Attorney General for all outside attorney contracts.

If an agency receives permission to seek outside counsel, the contract would then have to go through a Request For Proposal (RFP) process.

In addition, all outside attorney contracts would have to be posted online on the agency’s website within four months. Under current law, contracts of $20,000 and less were exempt from public posting requirements.

"The Office of the Attorney General is where state agencies’ legal representation was originally vested, and this bill returns that power to the office – not with contract lawyers," McCullough said. "Throughout the years as agencies were granted exemptions to hire outside firms, we’ve seen the price tag associated for legal services skyrocket."

McCullough, an attorney, previously worked in the Civil Division of the Illinois Attorney General’s office. His role in that office was to defend a variety of state agencies against a wide range of claims.

In recent years, he noted Oklahoma has been criticized by the Wall Street Journal in an editorial noting the lack of transparency in the state’s hiring of private attorneys.

"I know from my own experience that the vast majority of claims filed against an agency can, or could be handled by the agency’s attorney of record – the Office of the Oklahoma Attorney General," McCullough said. "And in those cases where outside counsel is necessary, we should have a transparent process that prevents political influence from impacting a hiring decision."

House Bill 1223 passed the Oklahoma House of Representatives on a 64-34 vote today. It now goes to the state Senate.

Lawmakers Look to Rein in State’s Legal Bills

Legislation approved by a House committee this week could ultimately reduce runaway legal costs for state government.

Rep. Mark McCullough

"When millions of taxpayer dollars are being expended on private law firms, the public should have confidence that those expenditures are legitimate and that contracts are not a sweetheart deal for a politically connected law firm," said state Rep. Mark McCullough, R-Sapulpa. "The reforms contained in my legislation will provide greater safeguards against such potential waste of public money."

House Bill 1223, by McCullough, would create the "Legal Services Reform Act." Under the proposed law, state agencies would have to gain the approval by the Office of the Attorney General for all outside attorney contracts.

If an agency receives permission to seek outside counsel, the contract would then have to go through a Request For Proposal (RFP) process.

In addition, all outside attorney contracts would have to be posted online on the agency’s website within four months. Under current law, contracts of $20,000 and less were exempt from public posting requirements.

"The intent of this bill is to return legal representation of the agencies back to the attorney general’s office, where it was originally vested and intended to reside – not with contract lawyers," McCullough said. "That authority has gradually eroded over the years due to agencies asking for and getting statutory exemptions, and the price tag associated with those outside attorneys has continued to climb."

McCullough, an attorney, previously worked in the Civil Division of the Illinois Attorney General’s office. His role in that office was to defend a variety of state agencies against a wide range of claims.

In recent years, he noted Oklahoma has been criticized by the Wall Street Journal in an editorial noting the lack of transparency in the state’s hiring of private attorneys.

"I know from my own experience that the vast majority of claims filed against an agency can, or could be handled by the agency’s attorney of record – the Office of the Oklahoma Attorney General," McCullough said. "And in those cases where outside counsel is necessary, we should have a transparent process that prevents political influence from impacting a hiring decision."

House Bill 1223 passed out of the House Government Modernization Committee this week. It now proceeds to the floor of the Oklahoma House of Representatives.

School Districts Estimate HB 3393 Lawsuit Costs

The four Tulsa area school districts that are suing Attorney General Scott Pruitt have estimated the minimum cost of the lawsuit at $66,515. I think this is likely the starting point - my guess is that the cost will only increase from this point. It should be noted that they are quick to explain in great detail what the scholarships supposedly cost but they mask the estimated cost of their lawsuit. Here is the Q&A from the Union website:

Q: How much will this lawsuit cost?

A: The districts involved in this lawsuit have agreed to share in the cost, and should other districts join in the lawsuit, the costs will be further divided.  With only the four districts participating, it is estimated that this lawsuit will cost $1.56 per student over the course of the suit.   

Current enrollment for the four districts is 42,638: Jenks, 10,371; Union, 14,931; Broken Arrow, 16,732; and Liberty, 604. 

They were not willing to stay the course and continue to ignore HB 3393 because board members would have been required to pay their own legal bills in any legal action brought by the Attorney General. Evidently it's a lot cheaper to sue the Attorney General and to charge it to the students. 

Curtain Falls on State Attorney Sunshine Act

OKLAHOMA CITY (June 10, 2010) – Legislation that would require greater transparency when state agencies hire private attorneys will not become law this year, state Rep. Mark McCullough said today.

"This effort did not receive a final vote this year, which is unfortunate, because I believe the public should know when and how their tax money is used by state agencies to hire private attorneys," said state Rep. Mark McCullough, R-Sapulpa. "I believe our current process is lacking and does not encourage an arms-length transaction between agencies and the firms they hire, which is why I will continue this fight in the 2011 session."

Senate Bill 1379, by McCullough and state Sen. Anthony Sykes, creates the Private Attorney Retention Sunshine Act and would require state agencies hiring private attorneys to use a competitive, public process anytime the contracts are greater than $5,000.

"I supported this bill in committee and on the floor and will do so again next session until this common sense effort becomes law," said state Rep. Jason Nelson, R-Oklahoma City. "Currently there is too much opportunity for abuse and this legislation would open the process to much needed scrutiny."