APPLICABILITY

(a) This subchapter applies only to a contingent fee contract for legal services entered into by a state governmental entity or political subdivision. (b) The legislature by this subchapter is providing, in accordance with Sections 44 and 53, Article III, Texas Constitution, for the manner in which and the situations under which a state governmental entity or political subdivision may compensate a public contractor under a contingent fee contract for legal services. (c) This subchapter does not apply to a contract: (1) with a state agency to collect an obligation under Section 2107.003(b), (c), or (c-1); (2) for legal services entered into by an institution of higher education under Section 153.006, Education Code; or (3) for legal services provided to a school district under Subchapter M, Chapter 403. (d) This subchapter does not apply to a contract for legal services entered into by the Teacher Retirement System of Texas if the services are paid for from money that is not appropriated from the general revenue fund, including funds of a trust administered by the retirement system. (e) This subchapter does not apply to a contract for legal services entered into by a political subdivision for the collection of an obligation, as defined by Section 2107.001, that is delinquent or for services under Section 1201.027, except that Sections 2254.1032, 2254.1034, 2254.1036, and 2254.1037 do apply to the contract. For purposes of this subsection, an obligation does not include a fine or penalty that results from an action by a political subdivision under Chapter 7, Water Code.