[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6313351,"mediaKeyId","2388195-f15b69dd6e6aaca5f6038108b7717798","parentId",2388195,"title","OAG briefs panel on Meta settlement, outside counsel payments and litigation strategy amid questions on nonprofit investigations","audioSeconds",250,"startMs",1110000,"endMs",1360000,"viewUrl","/Search/View?dp=1&key=2388195-f15b69dd6e6aaca5f6038108b7717798&start=1110&end=1360","thumbnailUrl","https://assets.pipeline.soar.com/2388195-f15b69dd6e6aaca5f6038108b7717798/thumbnail_1110000.jpg","articleUrl","/articles/6313351/Texas/OAG-briefs-panel-on-Meta-settlement-outside-counsel-payments-and-litigation-strategy-amid-questions-on-nonprofit-investigations","mediaUrl","https://secure.pipeline.soar.com/6313351-586056d370c9dbf7c0d6e47ab76db907/orig.mp4?Expires=1771135674&Signature=POc2syjTtdIeIepwBtf73xMQjjyHJj4NtbiiCjPv670Jph8bkGiT8cZPmHeLpPyfHteRJI9yYcH-20LA5vxba8b2PT4lQL1aBdkS4krMrcyfXgdaVH~KF-aVKq9wFWpT6~QMgiZVaLyemoEm9fcCq13FbcCgIBXD0POX1KM6etkP~7K8wvq3JuqUW6zL~TOiQ6obim8y4VGgoyN2nBAh3rXUOJz~pzDTBMnbyCT-fkNtYCZb~eLjrWk3P~AIoRXyDbDsTOsgx~a~2YVFI~nTsxIK4Y8E~RFvQc3VdZnYUnyiNSixMSrnCVLB41kZlr~SzErc6-BoRyfnQFmS-Hnh7A__&Key-Pair-Id=KUT5TJCACFTXG","author","Texas State Legislature","date","2025-02-25T00:00:00Z","article","Brent Webster, first assistant attorney general, told the appropriations subcommittee the OAG has litigated thousands of matters and recently secured large recoveries for the state, including what he described as a $1.4 billion settlement with Meta. Webster said settlement funds reside in an OAG suspense account and include funding specifically earmarked to pay outside counsel who aided the litigation.

Why it matters: Webster urged the committee to let the agency use an LBB approval mechanism between legislative sessions so payments tied to statutory contingency limits can be processed without delays that might accrue interest on judgments. He said outside counsel in certain complex matters bring specialized, preexisting work product the OAG needs for efficient prosecution of large cases.

Members questioned how outside counsel are paid and whether those contracts are contingency or hourly with caps. Webster explained the state requires law firms to bill hours and caps fee payments under state statute; firms receive payment only if the state recovers. The panel also pressed the OAG on litigation involving religious charities such as Annunciation House, and Webster said the office alleged federal immigration-related violations and is on appeal from a district court ruling that criticized the AG's investigative document requests.

Representative Wu and others asked for documentation about how often the OAG declines to represent state agencies and about billing tied to cases against nonprofit organizations. Webster said the office reports declines to the legislature and offered to provide requested documentation to the committee. He also reiterated the OAG's position that if an organization uses tax-exempt status to commit crimes, the office will act irrespective of religious affiliation.

The office also addressed other litigation issues: LBB noted the Google AdTech litigation remains active with a trial expected in the current biennium and the related rider would be removed when the litigation concludes. On federal Rule 504 (504) litigation, Webster said the OAG challenged a Biden administration rule and clarified the office was not seeking to dismantle all section 504 protections for students, but instead challenged the administration rule's legal basis.","mediaType","Video","parentTitle","Appropriations - S/C on Articles I, IV, & V. 2/25/25","oneSentenceSummary","First Assistant Attorney General Brent Webster outlined major litigation wins and an outside counsel payment process tied to large settlements, while members questioned the office's treatment of charities and the role of outside firms.","taxTitle","Committee on Appropriations - S/C on Articles I, IV, & V, HOUSE OF REPRESENTATIVES, Legislative, Texas","taxId",16205,"location","Texas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6313356,"Appropriators hear OAG budget cuts, victims compensation account stressed by federal phone‑revenue rule",385,93000,478000,"/Search/View?dp=1&key=2388195-f15b69dd6e6aaca5f6038108b7717798&start=93&end=478","https://assets.pipeline.soar.com/2388195-f15b69dd6e6aaca5f6038108b7717798/thumbnail_93000.jpg","/articles/6313356/Texas/Appropriators-hear-OAG-budget-cuts-victims-compensation-account-stressed-by-federal-phonerevenue-rule","https://secure.pipeline.soar.com/6313356-5c7e68367c26d583e2feccb02ce636b7/orig.mp4?Expires=1771135674&Signature=Q9d35RhVUUp0cUx2XLbiTBJWrqYztdum3diZJM-04DjwT1NBWoexsI0-Uvc5gFYYeQmrSmnA7glOHwM60qoY5ddtGyJ286Y0UkyVpeo85oKQn6UggXrPHexydrW8uDfbxL1V7YttdCIq4IH9-CyACiIpZ7N7LXLhBsuKU7nbPglcZnspL9GeNU5-OmXjM3lxGSQ40wvsDKpCg~msYPgOull3RvTuVnX1wWsCwLyiKRKM9x0JQE9AxKubFIiEg62QXCrtkMBp8Dr-866INGbHPHZ4q5cdNJF~~UgAi0HzKxV7m4Clus7bMtGyVJ~5H2-A7UZBhn5soimfMhQ3s8Gq6Q__&Key-Pair-Id=KUT5TJCACFTXG","The House Appropriations subcommittee on Articles I, IV and V heard detailed budget recommendations for the Texas Office of the Attorney General on testimony from the Legislative Budget Board and the OAG. LBB analyst James Kessler said the introduced recommendations reduce the OAG's funding by $163.9 million and lower the FTE cap by three, while reversing agency-proposed method-of-finance swaps and adjusting one-time items.

The nut graf: committee members focused on how funding changes would affect crime victims programs. LBB highlighted two finance swaps the agency had requested and a projected revenue shortfall in the Crime Victims Compensation account (GR-D account 469), driven in part by a late‑2024 Federal Communications Commission rule limiting certain inmate phone revenue streams.

Kessler told the committee the LBB recommendation reverses an OAG proposal to swap $15.2 million from GR‑D account 469 to general revenue and to replace it with federal VOCA funds; the LBB also recommended reversing a $10.8 million swap from child support retained collections to general revenue. He said the swaps, if implemented, would reduce future federal match dollars by about $6 million annually beginning in FY 2028.

Committee members pressed for clarity on the phone revenue estimate. Kessler presented an LBB estimate of a $40.5 million loss to the victims account across the upcoming biennium due to the FCC rule; during questioning Brent Webster, first assistant attorney general, described the same policy change and referenced a figure closer to $42.5 million. Webster and Kessler both described agency staffing shortfalls as a driver of lower compensation awards paid to victims in recent years.

The packet presented by LBB also summarized program changes: removal of one‑time items associated with the OAG's child support IT modernization (phase 3 completes in the current biennium), reporting requirements tied to court cost receipts, deletion of riders tied to targeted assistant attorney general salary increases, and removal of a litigation-specific rider (Bridal 43) after the Google AdTech case winds down.

Committee chair and members requested follow-up briefings with the OAG and the Legislative Budget Board to clarify which receipts feed specific victim services and to ensure that victims' assistance and compensation remain funded if federal matches decline. No formal votes were taken in the hearing.

Looking ahead: staff said additional follow-up with the OAG and Texas Department of Criminal Justice is planned so the panel can quantify impacts and potential corrective riders before final conference work.","Legislative Budget Board analysts and the Office of the Attorney General told the House appropriations subcommittee that recommendations trim the AG's budget and flag a looming revenue shortfall in the Crime Victims Compensation account after an FCC rule limited inmate phone revenue.","actionData","errors"]

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OAG briefs panel on Meta settlement, outside counsel payments and litigation strategy amid questions on nonprofit investigations

Appropriators hear OAG budget cuts, victims compensation account stressed by federal phone‑revenue rule