Committee advances bill limiting contingency‑fee municipal litigation to Attorney General review

The State and Local Government Committee advanced House Bill 2069 on April 1 after debate over the role of municipal contingency litigation and the distribution of opioid abatement funds.

Sponsor Representative Todd said the bill "restores guardrails" by requiring the attorney general to review contingency‑fee contracts before a political subdivision hires outside counsel and by clarifying that public nuisance should apply only to traditional interference with public rights to land. He said the measure was not intended to prevent municipalities from hiring lawyers on an hourly basis.

Several members pressed on opioid abatement settlements and whether local governments would lose funds previously secured through contingency litigation. Representative Mitchell argued Madison County and others had benefited from large recoveries and questioned vesting control in the Attorney General. "I don't think the attorney general knows what's best for Kingsport, Memphis ... more than the local people in those communities," Mitchell said.

Todd responded that the Attorney General is appropriate to coordinate cases with statewide application and pointed out that many of the recent large settlements have been negotiated by the state's attorney general’s office; he said municipalities would remain free to pursue cases locally and that the bill only curtails contingency arrangements that can create perverse incentives.

Legal counsel summarized the distinction between private and public nuisance and explained public nuisance as a civil tort involving interference with rights common to the public generally, such as widespread health or safety issues.

After discussion, the committee recorded 15 ayes, 5 nos and 1 present not voting and sent HB 2069 to Calendar and Rules.