Sec. 404.097.  DEPOSIT OF FUNDS RECOVERED BY LITIGATION OR SETTLEMENT.  (a)  Notwithstanding Section 404.093, this section applies by its terms to each state governmental entity.
(b)  In this section, "contingent fee contract" and "state governmental entity" have the meanings assigned by Section 2254.101.
(c)  All funds recovered by a state governmental entity in litigation or in settlement of a matter that could have resulted in litigation, including funds designated as damages, amounts adjudged or awarded, attorney's fees, costs, interest, settlement proceeds, or expenses, are public funds of the state or the state governmental entity and shall be deposited in the state treasury to the credit of the appropriate fund or account.
(d)  Legal fees and expenses may be paid from the recovered funds under a contingent fee contract for legal services only:
(1)  after the funds are deposited in accordance with this section;  and
(2)  in accordance with Subchapter C, Chapter 2254, if that subchapter applies to the contract.
Added by Acts 1999, 76th Leg., ch. 1499, Sec. 3.02, eff. Sept. 1, 1999.  Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 1.14, eff. June 20, 2003.