House Bill 2069 amends Tennessee law to establish specific requirements for political subdivisions when entering into contingent fee contracts for legal services. The bill defines "contingent fee" and "political subdivision," and mandates that the governing body of a political subdivision must hold a public meeting to discuss the contract. This meeting must include detailed information such as the reasons for pursuing the legal matter, the qualifications of the attorney or law firm, and justifications for why the legal services cannot be performed by the subdivision's own attorneys or under a traditional hourly rate contract. Additionally, the governing body must make written findings confirming the necessity of the legal services and the inadequacy of other payment structures.

Before executing a contingent fee contract, the political subdivision must obtain approval from the attorney general and reporter, providing them with relevant documentation about the contract and the legal matter. The attorney general has 90 days to approve or refuse the contract based on specific criteria, including compliance with legal standards and the potential impact on ongoing legal matters. If the contract is not approved, the attorney general can intervene in any related judicial proceedings, leading to dismissal if the contract was not properly authorized. The provisions of this act will take effect on July 1, 2026, and will apply to contracts entered into or revised after that date.