Bill > HB2069

This bill requires that any contract for legal services where a local government entity, referred to as a "political subdivision" (which includes counties, cities, and other public bodies), agrees to pay an attorney a "contingent fee" – meaning the attorney only gets paid if they win the case or achieve a favorable outcome – must first be approved by the Tennessee Attorney General and Reporter. Before a political subdivision can even consider such a contract, its governing body must hold a public meeting to discuss specific reasons for needing outside legal help, the attorney's qualifications, why current government attorneys can't handle the case, why an hourly rate isn't feasible, and why a contingent fee is in the public's best interest. The governing body must also make a written finding that there's a significant need for the services, that local attorneys can't adequately provide them, and that an hourly rate is not a reasonable option. After these steps, the proposed contract, along with supporting documentation, must be submitted to the Attorney General and Reporter for approval, which must be granted or denied within 90 days with specific reasons for denial if applicable, otherwise the contract is considered approved. If a political subdivision uses a contingent fee contract that hasn't been approved as required, the Attorney General can intervene in any related legal proceeding and ask for it to be dismissed. This new requirement applies to contracts entered into or changed after July 1, 2026.

Government Affairs, Justice

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB2069&ga=114