TN SB2418

Political subdivisions (counties, cities, boards, commissions, etc.) must hold a public meeting and make written findings before entering contingent fee contracts with attorneys, including justifying why hourly rate contracts are not feasible.

All contingent fee legal contracts must be approved by the Tennessee Attorney General and Reporter before execution, with the political subdivision submitting the proposed contract, legal matter description, and required findings.

The Attorney General has 90 days to approve or refuse the contract; grounds for refusal include overlap with existing state litigation, inefficient resolution of the matter, or violation of attorney professional conduct rules.

Contracts not acted upon within 90 days are deemed approved automatically.

The Attorney General may intervene in proceedings where a political subdivision used an unapproved contingent fee contract and request dismissal; courts must dismiss such cases without prejudice if the contract was not properly approved.