Morales Bill Makes Comptroller Sign Off On AG’s Outside Lawyers

The text as introduced · 703 words

90R449 CS-D

By: Morales of Maverick
H.B. No. 368

A BILL TO BE ENTITLED

AN ACT

relating to the approval by the comptroller of public accounts of

certain contracts for legal services between an attorney and the

attorney general; imposing an administrative fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 402, Government Code, is

amended by adding Section 402.0211 to read as follows:

Sec. 402.0211. CONTRACTS FOR OUTSIDE COUNSEL RETAINED BY

ATTORNEY GENERAL. (a) This section applies only to a contract

between an attorney, other than an attorney who is a full-time

employee of the office of attorney general, and the attorney

general for the performance of legal services authorized or

required to be performed by the attorney general under this chapter

or other law.

(b) A contract to which this section applies must be

approved by the comptroller to be valid. If the comptroller denies

approval of a contract under this section, the attorney general

shall provide the legal services that are the subject of the

contract in the manner required under this chapter.

(c) An invoice from an attorney submitted to the attorney

general under a contract for legal services as described by

Subsection (a) must be:

(1) except as provided by Subsection (e), submitted to

the comptroller by the attorney general not later than the 25th day

after the date the attorney general receives the invoice; and

(2) reviewed by the comptroller only to determine

whether the legal services for which the attorney general is billed

were performed within the term of the contract and are within the

scope of the legal services authorized by the contract and are

therefore eligible for payment.

(d) The attorney general shall include with an invoice

submitted under Subsection (c)(1) a written certification that the

legal services for which the attorney general is billed were

performed within the term of the contract, are within the scope of

the legal services authorized by the contract, and are reasonably

necessary to fulfill the purpose of the contract. To certify an

invoice under this subsection, the attorney general must, at a

minimum, determine that the following items are supported by proper

documentation and submitted to the attorney general under the

requirements of the contract:

(1) the amount and types of expenses billed under the

invoice;

(2) the rates for legal services under the invoice;

and

(3) the number of hours billed for legal services

under the invoice.

(e) If the attorney general receives an invoice under a

contract for legal services as described by Subsection (a) and

rejects or disputes the invoice as not certifiable under Subsection

(d), the attorney general shall, not later than the 21st day after

the date the attorney general receives the invoice, notify the

attorney or law firm providing the invoice and request a corrected

invoice. The period under Subsection (c)(1) begins on the date the

attorney general receives a corrected invoice that is certifiable

under Subsection (d).

(f) If the comptroller rejects or disputes an invoice and

certification submitted by the attorney general under this section,

the comptroller shall notify the attorney general that the invoice

is not eligible for payment. The attorney general may submit a

corrected invoice and certification, and the requirements of

Subsections (c), (d), and (e) apply to the corrected invoice and

certification.

(g) An attorney or law firm must pay an administrative fee

to the comptroller for the review described in Subsection (c) when

entering into a contract to provide legal services to the attorney

general.

(h) The comptroller may adopt rules as necessary to

implement and administer this section.

SECTION 2. The heading to Section 402.0212, Government

Code, is amended to read as follows:

Sec. 402.0212. PROVISION OF LEGAL SERVICES TO STATE

AGENCIES --OUTSIDE COUNSEL.

SECTION 3. The change in law made by this Act applies only

to a contract entered into on or after the effective date of this

Act. A contract entered into before the effective date of this Act

is governed by the law in effect immediately before the effective

date of this Act, and that law is continued in effect for that

purpose.

SECTION 4. This Act takes effect September 1, 2027.