SB992

Regular Session

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

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Office of the Attorney General (OAG)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Applies strictly to contracts *submitted* to the OAG on or after this date; no retroactive application).
Agency Rulemaking: No formal rulemaking is mandated, but the OAG must internally update submission workflows to track the 25-day window. Expect the OAG to strictly enforce fee guidelines to meet this accelerated timeline.

Immediate Action Plan

Audit Pending Pipelines: Identify any state agency contracts currently in negotiation and schedule their submission for September 1, 2025.
Revise Engagement Templates: Add the 25-day contingency clause to all public sector engagement letters immediately.
Establish "Day 26" Protocol: Create a standard operating procedure for your account managers to contact the agency General Counsel on Day 26 if no OAG response has been received.

Operational Changes Required

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.

Strategic Ambiguities & Considerations

The "Silence" Risk: The statute mandates the OAG "shall approve or deny" within 25 days but does not explicitly state that silence equals "deemed approved." If Day 26 arrives without a response, the contract enters a legal gray zone. You must be prepared to demand immediate status confirmation rather than assuming the contract is valid.
Specificity of Denial: The law requires a "written explanation" but sets no standard for detail. Be prepared for boilerplate denials (e.g., "Not in best interest of the State") that may require immediate escalation to the agency General Counsel to decipher.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsState Agencies, Boards & Commissions Attorney General

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 992
89R5329 GP-D	By: Nichols
	State Affairs
	2/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2019, we passed S.B. 1370 to address delays in payment for outside legal counsel invoices. The law extended the review period for invoices from 30 to 45 days to accommodate the complexity of these invoices. However, challenges remain in the approval process for contracts for outside legal services, particularly regarding the timeline for the attorney general's review.

State agencies rely on outside counsel for specialized legal services, and delays in contract approvals hinder timely legal work. S.B. 992 aims to improve the approval process for outside counsel contracts by ensuring a more efficient timeline and clearer communication when contracts are denied.

Specifically, S.B. 992 would require the attorney general to approve or deny contracts for outside legal services no later than 25 days after the contract is submitted by the requesting state agency. This shorter, more predictable timeline will eliminate ambiguity and ensure that agencies can move forward with essential legal work in a timely manner. Further, if the attorney general denies a contract for outside legal services, S.B. 992 requires the attorney general to provide a written explanation for the denial. This provision will provide transparency and clarity to the submitting agency, allowing them to address any concerns or issues raised by the attorney general and work toward resolution.

As proposed, S.B. 992 amends current law relating to the procedure by which the attorney general approves or denies approval of a state agency contract for outside legal services.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 402.0212, Government Code, by adding Subsection (a-1), as follows:

(a-1) Requires the attorney general to approve or deny approval of a contract for legal services described by Subsection (a) (relating to approval by the attorney general of a contract for legal services between an attorney and a state agency in the executive department) not later than the 25th day after the date the contract is received by the attorney general from the submitting state agency. Requires the attorney general, if the attorney general denies approval of the contract, to provide the state agency that submitted the contract a written explanation of the reason the attorney general denied approval of the contract.

SECTION 2. Amends Section 825.203(c), Government Code, as follows:

(c) Deletes existing text requiring the attorney general to timely act on a request to approve a contract for outside legal services under Section 402.0212 (Provision of Legal Services--Outside Counsel) and requiring the attorney general, if the attorney general denies the board of trustees' (board) request for approval of a contract for outside legal services, to provide the board with the reason for the denial. Makes nonsubstantive changes.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Effective date: September 1, 2025.

Senate Authors

Sen. Robert NicholsRepublican · Primary Author

Coauthors (1)

Sarah Eckhardt (D)

House Sponsor

Rep. Ken KingRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 992

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the procedure by which the attorney general approves or
	denies approval of a state agency contract for outside legal
	services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 402.0212, Government Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1) The attorney general shall approve or deny approval of
	a contract for legal services described by Subsection (a) not later
	than the 25th day after the date the contract is received by the
	attorney general from the submitting state agency. If the attorney
	general denies approval of the contract, the attorney general shall
	provide the state agency that submitted the contract a written
	explanation of the reason the attorney general denied approval of
	the contract.
	SECTION 2. Section 825.203(c), Government Code, is amended
	to read as follows:
	(c) [~~The attorney general shall timely act on a request to~~
	~~approve a contract for outside legal services under Section~~
	~~402.0212.~~] If the attorney general denies the board's request for
	approval of a contract for outside legal services,[:
	[~~(1)~~ ~~the attorney general shall provide the board with~~
	~~the reason for the denial; and~~
	[~~(2)~~] the board may select alternative outside legal
	counsel, subject to approval by the attorney general in accordance
	with this section and Section 402.0212.
	SECTION 3. The change in law made by this Act applies only
	to a contract for legal services submitted for approval to the
	attorney general on or after the effective date of this Act. A
	contract submitted for approval to the attorney general 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, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


February 22, 2025

TO:	Honorable Bryan Hughes, Chair, Senate Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB992 by Nichols (Relating to the procedure by which the attorney general approves or denies approval of a state agency contract for outside legal services.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

302 Office of the Attorney General

LBB Staff:

JMc, WP, LCO, JKe, NV

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB992

What does Texas SB992 do?

SB992 imposes a strict 25-day statutory deadline on the Office of the Attorney General (OAG) to approve or deny outside legal services contracts submitted by state agencies. This legislation eliminates the indefinite administrative limbo previously associated with state contract review, requiring private law firms and vendors to strictly calendar engagement start dates and requiring the OAG to provide written reasons for any contract denial. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies strictly to contracts submitted to the OAG on or after this date; no retroactive application).

Who authored SB992?

SB992 was authored by Texas Senator Robert Nichols during the Regular Session.

When was SB992 signed into law?

SB992 was signed into law by Governor Greg Abbott on May 29, 2025.

Which agencies enforce SB992?

SB992 is enforced by Office of the Attorney General (OAG).

How urgent is compliance with SB992?

The compliance urgency for SB992 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB992?

The cost impact of SB992 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB992 address?

SB992 addresses topics including state agencies, boards & commissions and attorney general.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.