House Bill 2069 amends Tennessee law regarding contingent fee contracts for legal services entered into by political subdivisions. The bill establishes a new section in Tennessee Code Annotated, Title 8, Chapter 6, Part 3, outlining the requirements for such contracts. It mandates that the governing body of a political subdivision must hold a public meeting to discuss the contract, providing detailed information about the reasons for pursuing the legal matter, the qualifications of the attorney or law firm, and the necessity of a contingent fee structure over an hourly rate. Additionally, the governing body must make written findings confirming the substantial need for the legal services and the inadequacy of internal resources to perform them.

Furthermore, before executing a contingent fee contract, the political subdivision must obtain approval from the attorney general and reporter, who will review the proposed contract and related documentation. 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 attorney general does not act within this timeframe, the contract is automatically deemed approved. The bill also allows the attorney general to intervene in any judicial proceedings involving unapproved contracts, leading to dismissal of the case if the contract was not properly authorized. This act is set to take effect on July 1, 2026, and applies to contracts entered into or revised after that date.