Amends TCA Section 8-6-106.

Present law provides that in all cases where the interest of the state requires additional counsel to the attorney general and reporter or district attorney general in the judgment of the governor and attorney general and reporter, then the governor must employ such counsel. Present law also provides that the attorney general and reporter or district attorney general must inform the governor of, and consideration must be given to, whether the person or firm to be employed as additional counsel: (1) To defend the state in any action is then serving as counsel for a party in any action by that party against the state and whether the action, if adjudicated in that party's favor, is likely to result in an increase in state expenditures; or (2) To prosecute any action on behalf of the state is then serving as counsel in defense of any action against the state. This bill provides that in all cases where, in the judgment of the speaker of the house of representatives and the speaker of the senate, the interest of the state requires additional counsel to the attorney general and reporter, then the speaker of the house of representatives and the speaker of the senate must retain additional counsel to prosecute an action on behalf of the state as long as the representation does not result in an increase in state expenditures. ON FEBRUARY 27, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 38, AS AMENDED. AMENDMENT #1 clarifies that additional counsel must be retained only to prosecute an action against the federal government on behalf of the state. This amendment adds that representation must not include payment of a fixed or contingent fee to any such additional counsel, in addition to the requirement that the representation must not increase state expenditures. ON MARCH 13, 2023, THE SENATE SUBSTITUTED HOUSE BILL 38 FOR SENATE BILL 487 AND RESET HOUSE BILL 38. ON MARCH 20, 2023, THE SENATE FURTHER CONSIDERED AND PASSED HOUSE BILL 38.