Local Government, General - As introduced, requires proposed contingent fee contracts for legal services between a political subdivision of this state and a private-sector attorney to be approved by the attorney general and reporter prior to execution of the contract. - Amends TCA Title 7; Title 8 and Title 29.

SB 2418 requires Tennessee cities, counties, and other local governments to obtain approval from the state Attorney General and Reporter before signing legal contracts where attorneys are paid based on case outcomes (contingent fees). Before approval, local governments must hold public meetings explaining why external lawyers are needed, why internal staff or hourly fees won’t work, and how the contract benefits residents. The Attorney General has 90 days to approve or reject the contract, with specific reasons for denial. Contracts signed without approval could lead to court dismissal of related legal cases.