HB1546: HB1546 Local government; requirements for local authorities retaining legal services on a contingent fee basis; provide

Local governments in Georgia sometimes hire outside lawyers to sue on their behalf and pay those lawyers a percentage of any winnings instead of an hourly rate, known as a contingent fee. This bill adds a new section to Georgia law (O.C.G.A. § 36-80-32) setting conditions local authorities must meet before doing this. Before signing a contingent fee contract, a local government's governing body must document in writing why the arrangement is in the public's best interest, generally seek proposals from multiple firms, and weigh factors like the lawyer's qualifications and any conflicts of interest. The contract then must be sent to the Attorney General, who has 45 days to approve it, reject it for missing requirements, or reject it because the matter overlaps with state litigation. If the Attorney General misses the deadline, the contract is automatically approved. The rules do not apply to routine debt collection, bond work, or cases involving less than $100,000. The law would take effect as soon as the Governor signs it and would apply to contracts entered into after that date.

• Requires local governing bodies to document in writing why a contingent fee contract for legal services is in the public's best interest before signing one.
• Requires local authorities to seek proposals from multiple law firms unless they document that doing so would be impractical or harmful.
• Requires the Attorney General to review and approve contingent fee contracts before they can take effect, with a 45 day decision window.
• Allows the Attorney General to reject a contract if the case overlaps with state litigation or could produce inconsistent legal outcomes.
• Exempts routine legal work like debt collection, bond services, and cases worth less than $100,000 from these requirements.
• Specifies that decisions about resolving a case must stay with the local government and cannot be handed over to the outside lawyers.

Counties, municipalities, and other local governmental entities in Georgia that hire outside attorneys on a contingent fee basis; private lawyers and law firms seeking such contracts; and the Attorney General's office, which gains a new review role over these agreements.

Local governments that want to sue companies or other parties without paying upfront legal fees would face more paperwork and a mandatory state sign-off before those contracts count. This could slow down or block some local lawsuits, particularly ones that touch on issues the state is already pursuing.

• Section 1 adds O.C.G.A. § 36-80-32, defining 'local authority' to include counties, municipalities, and local political subdivisions but not state authorities.
• Subsection (b) requires a written best-interest determination, a request for proposals (with limited exceptions), and consideration of factors like fee fairness before a contract is approved.
• Subsection (c) requires that final decisions about resolving a case stay with the local authority, not the outside law firm.
• Subsections (d) through (f) require Attorney General review within 45 days, with automatic approval if the deadline is missed and written explanation required for any denial.
• Subsection (g) exempts debt collection, bond related services, insurance recoupment matters, and cases under $100,000 from the new requirements.
• Section 2 makes the law effective upon the Governor's signature and applies it to contracts entered into on or after that date.

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 city government
• legal services regulation