HB 1546: Local government; requirements for local authorities retaining legal services on a contingent fee basis; provide

Currently, Georgia law does not set specific statewide rules for how local governments hire outside lawyers to sue on their behalf in exchange for a cut of any money recovered, known as a contingent fee arrangement. This bill would add a new section to Georgia law (O.C.G.A. § 36-80-32) that requires a local authority's governing body to formally document why a contingency arrangement is needed, seek proposals from law firms in most cases, and weigh factors like the firm's qualifications and whether the fee could become excessive before approving a contract. Once approved locally, the contract would also need sign-off from the Attorney General, who would have 45 days to approve it, reject it for missing requirements, or reject it because the case overlaps with state litigation or state enforcement priorities. If the Attorney General misses the deadline, the contract is automatically approved. The rules would not apply to routine matters like debt collection or bond work, or to cases worth less than $100,000. The law would take effect as soon as the Governor signs it and would apply to future contracts.

• Requires local governments to document in writing why hiring a lawyer on a contingent fee basis is necessary before signing such a contract.
• Requires local governments to seek proposals from law firms before hiring one on a contingent fee basis, unless they document why that isn't feasible.
• Adds a new mandatory review step where the Georgia Attorney General must approve any qualifying contingent fee legal contract within 45 days.
• Lets the Attorney General reject a contract if the case overlaps with existing state litigation or belongs more properly under state enforcement.
• Exempts routine legal work like debt collection, bond services, and cases worth less than $100,000 from these new requirements.
• Specifies that decisions about settling or resolving a case must stay with the local government, not be handed off to the outside law firm.

County and municipal governments across Georgia that hire outside lawyers to sue on a contingency basis, the private attorneys and law firms who take on such cases, and the state Attorney General's office, which would gain new oversight authority over these local contracts.

Local governments that want to sue companies or other parties, such as in opioid or pollution litigation, using contingency fee lawyers would face new paperwork, public documentation, and a state approval step before those contracts take effect, potentially slowing down or blocking some local lawsuits.

• Adds new Code section 36-80-32 defining 'local authority' as counties, municipalities, and local political subdivisions, but not state authorities.
• Subsection (b) requires a documented determination that contingency fee litigation is in the local authority's best interest, based on need, resources, and complexity of the case.
• Subsection (b)(2) requires local authorities to request proposals from law firms unless they document that doing so isn't feasible.
• Subsection (d) requires local authorities to submit the contract, findings, and meeting records to the Attorney General before the contract can take effect.
• Subsection (e) gives the Attorney General 45 days to approve, deny for noncompliance, or deny because the matter overlaps with state litigation or enforcement priorities.
• Subsection (f) states that if the Attorney General misses the 45 day deadline, the contract is automatically considered approved.
• Subsection (g) exempts debt collection, bond-related services, insurance deductible recoupment, and cases under $100,000 from these requirements.
• Section 2 makes the law effective upon the Governor's signature and applies it to contracts entered into afterward.

1. 2026-03-18House Second Readers (House)
2. 2026-03-16House First Readers (House)
3. 2026-03-12House Hopper (House)

• Kasey Carpenter (R, HD-004)Primary sponsor

• local government contracts
• contingent fee lawyers
• Attorney General oversight
• county and municipal law
• government litigation