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.