2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2254 - Professional and Consulting Services › Subchapter C. Contingent Fee Contract for Legal Services › Section 2254.108. Fee Payment and Expense Reimbursement

Sec. 2254.108.  FEE PAYMENT AND EXPENSE REIMBURSEMENT.  (a)  Except as provided by Subsection (b), a contingent fee and a reimbursement of an expense under a contract with a state governmental entity is payable only from funds the legislature specifically appropriates to pay the fee or reimburse the expense.  An appropriation to pay the fee or reimburse the expense must specifically describe the individual contract, or the class of contracts classified by subject matter, on account of which the fee is payable or expense is reimbursable.  A general reference to contingent fee contracts for legal services or to contracts subject to this subchapter or a similar general description is not a sufficient description for purposes of this subsection.
(b)  If the legislature has not specifically appropriated funds for paying the fee or reimbursing the expense, a state governmental entity may pay the fee or reimburse the expense from other available funds only if:
(1)  the legislature is not in session;  and
(2)  the Legislative Budget Board gives its prior approval for that payment or reimbursement under Section 69, Article XVI, Texas Constitution, after examining the statement required under Section 2254.104(c) and determining that the requested payment and the contract under which payment is requested meet all the requirements of this subchapter.
(c)  A payment or reimbursement under the contract may not be made until:
(1)  final and unappealable arrangements have been made for depositing all recovered funds to the credit of the appropriate fund or account in the state treasury;  and
(2)  the state governmental entity and the state auditor have received from the contracting attorney or law firm the statement required under Section 2254.104(c).
(d)  Litigation and other expenses payable under the contract, including expenses attributable to attorney, paralegal, accountant, expert, or other professional work performed by a person who is not a contracting attorney or a partner, shareholder, or employee of a contracting attorney or law firm, may be reimbursed only if the state governmental entity or political subdivision and, if applicable, the entity's or subdivision's auditor determine that the expenses were reasonable, proper, necessary, actually incurred on behalf of the state governmental entity or political subdivision, and paid for by the contracting attorney or law firm.  The contingent fee may not be paid until the entity's or subdivision's auditor or the governing body of a political subdivision without an auditor, as applicable, has reviewed the relevant time and expense records and verified that the hours of work on which the fee computation is based were actually worked in performing reasonable and necessary services for the state governmental entity or political subdivision under the contract.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.03, eff. Sept. 1, 1999.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 857 (H.B. 2826), Sec. 6, eff. September 1, 2019.