SENATE Substitute for HOUSE BILL No. 2228
AN ACT concerning contingent fee contracts for legal services; relating to contracts
entered into for legal services by a political subdivision; requiring an open meeting
before a political subdivision may approve such a contract; requiring the attorney
general to approve such contract before such contract becomes effective.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) A political subdivision may only enter into a
contingent fee contract for legal services if the governing body of the
political subdivision:
(1) Calls a meeting for the purpose of considering the contract and
provides, in the notice or agenda of the meeting issued pursuant to
K.S.A. 75-4318, and amendments thereto, the:
(A) Reasons for pursuing the matter that is the subject of the legal
services of which the attorney or law firm would be retained and the
desired outcome of pursuing the matter;
(B) qualifications, experience and competence of the attorney or
law firm selected or considered for selection by the governing body;
(C) nature of any relationship, regardless of how short, between
the political subdivision or governing body and the attorney or law firm
that is a party to the contract;
(D) reasons the legal services cannot be adequately performed by
the attorneys and supporting personnel of the political subdivision;
(E) reasons the legal services cannot be reasonably obtained from
attorneys under a contract providing for an hourly rate payment
structure as opposed to a contingency fee structure; and
(F) reasons entering into a contingent fee contract for legal
services is in the best interest of the residents of the political
subdivision;
(2) makes a finding, in writing, that:
(A) It is in the best interest of the residents of the political
subdivision to contract for the legal services or there is a substantial
need for the legal services that are the subject of the contingent fee
contract;
(B) the legal services cannot be adequately performed by the
attorneys and supporting personnel of the political subdivision; and
(C) the legal services cannot reasonably be obtained from
attorneys under a contract providing for an hourly rate payment
structure because the nature of the legal matter that is the subject of the
contract or the political subdivision does not have the funds necessary
or would pay substantially more for the legal services provided under a
contract providing for an hourly rate payment structure; and
(3) approves the contract in an open meeting after discussion and
consideration of the items described in paragraph (1).
(b) (1) Before a contingency fee contract for legal services
approved by a political subdivision pursuant to subsection (a) is
effective and enforceable, the political subdivision shall obtain
approval of the contract by the attorney general. The political
subdivision shall provide to the attorney general:
(A) A copy of the proposed contract;
(B) a description of the legal matter that is the subject of the
proposed contract;
(C) a copy of the notice and agenda issued pursuant to subsection
(a)(1), the date such notice was issued and a description of the method
for providing such notice; and
(D) a copy of the written findings made pursuant to subsection (a)
(2).
(2) Within 45 days after the political subdivision has provided the
attorney general with the information described in paragraph (1), the
attorney general shall:
(A) Approve the contract and, if the request involves a matter of
purely local concern that does not implicate any statewide interest, shall
do so promptly; or
(B) refuse to approve the contract for one of the following
reasons:
(i) The legal matter that is the subject of the contract presents one SENATE Substitute for HOUSE BILL No. 2228—page 2
or more questions of law or fact that are in common with a lawsuit,
demand or settlement asserting or resolving claims that the state has
already addressed or is pursuing in court;
(ii) 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 political subdivision could lead to
inconsistent legal outcomes or undermine the state's unified position; or
(iii) the contract does not comply with the Kansas rules of
professional conduct for attorneys adopted by the Kansas supreme
court.
(3) If the attorney general refuses to approve the contract, the
attorney general shall provide notice to the political subdivision in
writing with a detailed explanation of the reason for refusing to approve
the contract. If the attorney general has not taken action and provided
the political subdivision notice of such action on a contract pursuant to
paragraph (2) within 45 days after receipt of such notice, such contract
shall be deemed approved.
(c) In any judicial or quasi-judicial proceeding in which a political
subdivision is represented by an attorney providing legal services under
a contingent fee contract for legal services that does not comply with
the provisions of this section, the attorney general may appear in such
proceeding and request that the proceeding be dismissed or intervene
and recover damages on behalf of the political subdivision. If the court
or quasi-judicial body concludes that the contract for legal services
does not comply with the provisions of this section, the court or quasi-
judicial body shall dismiss the matter without prejudice or allow the
attorney general to intervene on behalf of the political subdivision.
(d) Any contingent fee contract for legal services that was entered
into by a political subdivision between July 1, 2024 and July 1, 2025,
shall be submitted to the attorney general by the political subdivision
on or before July 1, 2026. The attorney general may review the contract
and approve or refuse to approve the contract pursuant to subsection
(b). Any judicial or quasi-judicial proceeding that is ongoing involving
a contingent fee contract for legal services entered into by a political
subdivision shall proceed unless the attorney general appears in such
proceeding as described in subsection (c).
(e) As used in this section:
(1) "Contingent fee" means any fee that is contingent on the
outcome of the matter for which the service is rendered;
(2) (A) "legal services" means all services:
(i) Performed by or under authority of a law firm or attorney,
whether or not such services are performed by someone admitted to
practice law in Kansas; and
(ii) that constitute the practice of law in Kansas;
(B) "legal services" does not include services performed by:
(i) Bond counsel or other attorneys to assist a political subdivision
with services related to bonds, temporary notes, no-fund warrants, state
infrastructure loans or lease financing;
(ii) attorneys or other persons to assist a political subdivision in
the collection of unpaid debts, fees, fines, costs, restitution, taxes or
utility bills;
(iii) attorneys to recoup costs, including deductibles, from an at-
fault party's insurance company;
(iv) attorneys to assist with the sale of property; or
(v) court trustees to assist the enforcement of support orders
pursuant to K.S.A. 20-375 et seq., and amendments thereto; and
(3) (A) "political subdivision" means:
(i) A political or taxing subdivision of the state, including
municipal and quasi-municipal corporations, board, commissions,
authorities, councils, committees, subcommittees and other subordinate
groups or administrative units thereof, receiving or expending and
supported, in whole or in part, by public funds; and
(ii) any municipality as defined in K.S.A. 75-1117, and
amendments thereto; and SENATE Substitute for HOUSE BILL No. 2228—page 3
(B) "political subdivision" does not include water utilities as
defined in K.S.A. 19-3501, and amendments thereto.
(f) The provisions of this section shall expire on July 1, 2029.
Sec. 2. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the House, and passed
that body
HOUSE concurred in
SENATE amendments __________________________________________________________________
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
President of the Senate.
Secretary of the Senate.
APPROVED ______________________________________________________________________________
Governor.