TN HB2069

Political subdivisions (counties, cities, metropolitan governments, boards, commissions, etc.) must hold a public meeting and provide detailed notice before entering into contingent fee contracts with attorneys, including justification for why hourly rate contracts are not feasible.

Governing bodies must make written findings documenting substantial need for the legal services, inability of in-house counsel to perform the work, and reasons why hourly rate arrangements are not reasonable.

All contingent fee contracts require approval from the Tennessee Attorney General and Reporter within 90 days; contracts are automatically approved if no action is taken within that period.

The Attorney General may refuse approval if the legal matter overlaps with state litigation, would not promote efficient resolution, or violates Tennessee rules of professional conduct.

The Attorney General may intervene in proceedings where political subdivisions use unapproved contingent fee contracts and request dismissal without prejudice; effective July 1, 2026.