Relating to the procedure by which the attorney general approves or denies approval of a state agency contract for outside legal services.

Contracts

• Engagement Letters: Update standard engagement letters for state agencies to explicitly reference Section 402.0212, Government Code.
• Condition Precedent: Insert a clause stating that the attorney-client relationship and billable performance are contingent upon OAG approval.
• Alternative Counsel: For contracts with boards like TRS, include language confirming willingness to serve as "alternative counsel" if the primary firm is denied, as the statute explicitly allows boards to move to the next choice immediately upon denial.

Hiring/Training

• Intake Procedures: Train intake staff to calendar a 25-day "OAG Review Period" immediately upon contract submission. Do not fully allocate associate hours or clear final conflicts until this period expires.
• Pipeline Management: If you have contracts pending negotiation in August 2025, delay submission until September 1, 2025, to force the OAG into the statutory 25-day clock.

Reporting & Record-Keeping

• Submission Verification: You must obtain written proof of the exact date the state agency *transmits* the contract to the OAG. The 25-day clock is calculated from OAG receipt, not the date you signed the document.
• Denial Analysis: Maintain a permanent file of all written explanations for denial. These are now public records and should be analyzed to identify "curable" defects (e.g., fee caps) versus "substantive" defects (e.g., conflicts) for future bids.

Fees & Costs

• Fee Schedules: Ensure your proposed rates align with OAG maximum hourly rate guidelines *before* submission. With a strict 25-day deadline, the OAG is more likely to issue a flat denial for non-compliant rates rather than engage in prolonged negotiation.