Committee adopts transparency measure limiting contingency-fee litigation by municipalities

Senator Stevens introduced SB 24-18 and explained the amendment requiring political subdivisions that seek to hire private plaintiff attorneys on a contingency-fee basis to give notice and an opportunity to the attorney general to review such arrangements. "The attorney general then has the opportunity to determine if the contingency fee arrangement is fair and appropriate and whether it interferes with the AG's mandate to oversee litigation on behalf of the state," Stevens said.

Roger Giaboni, testifying for the U.S. Chamber of Commerce Institute for Legal Reform, urged the committee to pass SB 24-18. "SB 24-18 is good government legislation. It ensures transparency in government contracting and brings Tennessee code more closely in line with the rule of law and fundamental principles of fairness," Giaboni said, adding the reform is not intended to prevent local governments from hiring lawyers to address legitimate local concerns.

Senator Kyle asked about the sponsor's comment that the bill would prevent "activist organizations" from using municipalities to effect policy changes in court; Giaboni said the bill's purpose is to ensure municipalities are not used as vehicles for statewide policy change that should be addressed in the legislature.

The committee adopted the amendment and, on roll call, advanced SB 24-18 to the calendar (7 ayes, 2 no).