Bill > SB2418

This bill requires that any proposed contract for legal services where a government entity, referred to as a "political subdivision" (which includes entities like counties, cities, and various public boards or authorities that use public funds), agrees to pay an attorney a "contingent fee" (meaning the attorney only gets paid if they win the case or achieve a successful 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 with specific notice requirements detailing why the legal services are needed, the attorney's qualifications, why the subdivision's own legal staff can't handle the case, and why a contingent fee is better than paying an hourly rate. The governing body must also make written findings confirming a substantial need for the services, the inability of their own staff to provide them, and the difficulty or impossibility of obtaining them at an hourly rate. After these steps, the contract must be approved in a public meeting. Crucially, the political subdivision must then submit the proposed contract, along with supporting documentation, to the Attorney General and Reporter for their approval. The Attorney General has 90 days to approve or deny the contract, providing specific reasons for denial if necessary, such as the case being similar to one already decided or being litigated by the state, or if the contract violates professional conduct rules for attorneys. If the Attorney General doesn't act within 90 days, the contract is considered approved. If a political subdivision uses a contingent fee contract that hasn't gone through this approval process, the Attorney General can intervene in any related legal proceeding and ask for the case to be dismissed. This new requirement applies to contracts entered into, amended, or revised after July 1, 2026.

Justice

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2418&ga=114