---
title: HB 1546. Local government; requirements for local authorities retaining legal services on a contingent fee basis; provide
collection: bills
id: 2025-2026/hb1546
cite_as: HB 1546, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1546
md_url: https://georgiacommons.org/bills/2025-2026/hb1546.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1546/text
source_url: https://www.legis.ga.gov/legislation/74040
date: 2026-03-18
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1546.md?full=1
bill_number: HB 1546
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-03-12
last_action: House Second Readers
sponsors:
  - Kasey Carpenter
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1546/2025
upstream_id: 2133384
summaries_model: claude-sonnet-5
topic_tags:
  - local government contracts
  - contingent fee lawyers
  - Attorney General oversight
  - county and municipal law
  - government litigation
---

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

## Text

House Bill 1546
By: Representative Carpenter of the 4th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 80 of Title 36 of the Official Code of Georgia Annotated, relating to
general provisions applicable to counties, municipal corporations, and other governmental
entities, so as to provide for requirements for local authorities retaining legal services on a
contingent fee basis; to provide for review and approval of contracts by the Attorney
General; to provide for restrictions on such contracts; to provide for definitions; to provide
for related matters; to provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 80 of Title 36 of the Official Code of Georgia Annotated, relating to general
provisions applicable to counties, municipal corporations, and other governmental entities,
is amended by adding a new Code section to read as follows:
<ins>"36-80-32.
(a) As used in this Code section, the term 'local authority' means a county, municipal
corporation, local political subdivision, or other local governmental entity; provided,
however, that such term does not include a state authority.
</ins>
<ins>(b) The governing body of any local authority which is authorized to file and pursue civil
actions may enter into an agreement with a private attorney or law firm to represent the
local authority on a contingent fee basis only if the governing body:
(1) Determines that the litigation to be pursued on a contingent fee basis is in the best
interest of the local authority and alternatives to a contingency fee are not efficient or
feasible. Such determination shall be documented in writing after considering the
following factors:
(A) Whether there is a substantial need for the legal services that are the subject of the
contingent fee contract;
(B) Whether there exists sufficient legal and financial resources within the local
authority to handle the matter;
(C) The time and labor required, the novelty and complexity of the questions involved,
and the skill required to perform the legal services properly; and
(D) Whether the legal services can be reasonably obtained from attorneys under a
contract providing for an hourly rate or flat fee payment structure;
(2) Requests proposals for retaining outside counsel, unless the local authority makes a
written finding indicating that the circumstances do not allow for a request for proposals
and that such a request would prejudice the local authority; and
(3) After complying with the provisions of paragraphs (1) and (2) of this subsection,
approves the contract after considering:
(A) The reasons for pursuing the matter that is the subject of the legal services for
which the attorney or law firm would be retained and the desired outcome of pursuing
the matter;
(B) The qualifications, experience, and competence of the attorney or law firm selected
by the governing body of the local authority;
</ins>
<ins>(C) The nature of any relationship between the local authority, governing body or
members of the governing body, and the attorney or law firm that is a party to the
contract; and
(D) Whether the percentage contingent fee in the contract could result in the attorney
or law firm that is a party to the contract collecting a fee that is not justified by the
amount of work or risk involved or otherwise excessive and thereby reduce the public's
recovery.
(c) A contingent fee contract for legal services between a local authority and an attorney
or law firm shall provide that decisions regarding the resolution of the case shall be
reserved exclusively to the local authority and shall not be delegated to outside counsel.
(d) Before a contingent fee contract for legal services approved by a local authority
pursuant to paragraph (3) of subsection (b) of this Code section shall be effective and
enforceable, the local authority shall obtain approval of the contract by the Attorney
General. The local authority shall provide to the Attorney General:
(1) A description of the legal matter that is the subject of the proposed contract;
(2) A copy of the findings made pursuant to paragraph (1) of subsection (b) of this Code
section;
(3) A copy of the request for proposals for outside counsel or finding that circumstances
do not allow such a request as provided by paragraph (2) of subsection (b) of this Code
section;
(4) A copy of the proposed contract; and
(5) The agenda, minutes, or other documentation of the open public meeting at which the
local authority approved the contract.
(e) Within 45 days after the Attorney General's receipt of the information described in
subsection (d) of this Code section, the Attorney General shall:
(1) Approve the contract;
</ins>
<ins>(2) Decline to approve the contract because one or more requirements of this Code
section were not fulfilled; or
(3) Decline to approve the contract for one or more of the following reasons:
(A) The legal matter that is the subject of the contract presents one or more questions
of law or fact that are in common with a matter the state has already addressed or is
pursuing; or
(B) The legal matter involves claims or issues that are more appropriately within the
scope of state enforcement and the pursuit of the matter independently by the local
authority could lead to inconsistent legal outcomes or undermine the state's unified
position.
(f) If the Attorney General declines to approve the contract pursuant to subsection (e) of
this Code section, the Attorney General shall provide notice to the local authority in writing
with a detailed explanation of the reason or reasons for refusing to approve the contract.
If the Attorney General fails to do so within 45 days after receipt of the information
described in subsection (d) of this Code section, such contract shall be deemed approved.
(g) The provisions of this Code section shall not apply to:
(1) Legal services involving collection of unpaid debts, sale of property, services related
to bonds, recoupment of costs, or deductibles from an at-fault party's insurance policy;
or
(2) Any matter in which the amount in controversy is less than $100,000.00.
(h) Nothing in this Code section shall be construed to provide a local authority with
authority to bring actions to file and prosecute civil recoveries where not authorized by law
or to permit retention of outside counsel on a contingent fee basis when prohibited by
public policy."
</ins>
SECTION 2.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval, and shall apply to contracts entered into on or after that date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

House Bill 1546 would set new rules for when Georgia counties, cities, and other local governments can hire private lawyers on a contingent fee basis, including a requirement that the state Attorney General approve such contracts.

### Plain-language summary

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.

### What it does

- 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.

### Who it affects

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.

### Why it matters

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.

### Key provisions

- 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.

## Status

- Status: Introduced (2026-03-12)
- Last action: House Second Readers (2026-03-18)
- Sponsors: Kasey Carpenter
- Official page: https://www.legis.ga.gov/legislation/74040

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1546.md?full=1