1 | 1 | | Session of 2025 |
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2 | 2 | | SENATE BILL No. 242 |
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3 | 3 | | By Committee on Judiciary |
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4 | 4 | | 2-6 |
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5 | 5 | | AN ACT concerning contingent fee contracts for legal services; relating to |
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6 | 6 | | contracts entered into for legal services by a political subdivision; |
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7 | 7 | | requiring an open meeting before a political subdivision may approve |
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8 | 8 | | such a contract; requiring the attorney general to approve such contract |
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9 | 9 | | before it becomes effective. |
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10 | 10 | | Be it enacted by the Legislature of the State of Kansas: |
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11 | 11 | | Section 1. (a) A political subdivision may only enter into a contingent |
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12 | 12 | | fee contract for legal services if the governing body of the political |
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13 | 13 | | subdivision: |
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14 | 14 | | (1) Calls a meeting for the purpose of considering the contract and |
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15 | 15 | | provides, in the notice of the meeting issued pursuant to K.S.A. 75-4318, |
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16 | 16 | | and amendments thereto, the: |
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17 | 17 | | (A) Reasons for pursuing the matter that is the subject of the legal |
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18 | 18 | | services of which the attorney or law firm would be retained and the |
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19 | 19 | | desired outcome of pursuing the matter; |
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20 | 20 | | (B) qualifications, experience and competence of the attorney or law |
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21 | 21 | | firm selected by the governing body; |
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22 | 22 | | (C) nature of any relationship, regardless of how short, between the |
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23 | 23 | | political subdivision or governing body and the attorney or law firm that is |
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24 | 24 | | a party to the contract; |
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25 | 25 | | (D) reasons the legal services cannot be adequately performed by the |
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26 | 26 | | attorneys and supporting personnel of the political subdivision; |
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27 | 27 | | (E) reasons the legal services cannot be reasonably obtained from |
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28 | 28 | | attorneys under a contract providing for an hourly rate payment structure |
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29 | 29 | | as opposed to a contingency fee structure; and |
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30 | 30 | | (F) reasons entering into a contingent fee contract for legal services is |
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31 | 31 | | in the best interest of the residents of the political subdivision; |
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32 | 32 | | (2) makes a finding, in writing, that: |
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33 | 33 | | (A) There is a substantial need for the legal services that are the |
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34 | 34 | | subject of the contingent fee contract; |
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35 | 35 | | (B) the legal services cannot be adequately performed by the |
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36 | 36 | | attorneys and supporting personnel of the political subdivision; and |
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37 | 37 | | (C) the legal services cannot reasonably be obtained from attorneys |
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38 | 38 | | under a contract providing for an hourly rate payment structure because |
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39 | 39 | | the nature of the legal matter that is the subject of the contract or the |
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75 | 75 | | 36 SB 242 2 |
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76 | 76 | | political subdivision does not have the funds necessary to pay the |
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77 | 77 | | estimated cost of the legal services provided under a contract providing for |
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78 | 78 | | an hourly rate payment structure; and |
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79 | 79 | | (3) approves the contract in an open meeting after discussion and |
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80 | 80 | | consideration of the items described in paragraph (1). |
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81 | 81 | | (b) (1) Before a contingency fee contract for legal services approved |
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82 | 82 | | by a political subdivision pursuant to subsection (a) is effective and |
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83 | 83 | | enforceable, the political subdivision shall obtain approval of the contract |
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84 | 84 | | by the attorney general. The political subdivision shall provide to the |
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85 | 85 | | attorney general: |
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86 | 86 | | (A) A copy of the proposed contract; |
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87 | 87 | | (B) a description of the legal matter that is the subject of the proposed |
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88 | 88 | | contract; |
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89 | 89 | | (C) a copy of the notice issued pursuant to subsection (a)(1), the date |
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90 | 90 | | such notice was issued and a description of the method for providing such |
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91 | 91 | | notice; |
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92 | 92 | | (D) a copy of the written findings made pursuant to subsection (a)(2). |
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93 | 93 | | (2) Within 90 days after the political subdivision has provided the |
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94 | 94 | | attorney general with the information described in paragraph (1), the |
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95 | 95 | | attorney general shall: |
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96 | 96 | | (A) Approve the contract; or |
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97 | 97 | | (B) refuse to approve the contract and provide the political |
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98 | 98 | | subdivision with one of the following reasons for the refusal to approve: |
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99 | 99 | | (i) The legal matter that is the subject of the contract presents one or |
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100 | 100 | | more questions of law or fact that are in common with a matter the state |
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101 | 101 | | has already address or is pursuing; |
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102 | 102 | | (ii) pursuit of the legal matter by the political subdivision will not |
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103 | 103 | | promote the just and efficient resolution of the matter; or |
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104 | 104 | | (iii) the contract does not comply with the Kansas rules of |
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105 | 105 | | professional conduct for attorneys adopted by the Kansas supreme court. |
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106 | 106 | | (3) If the attorney general has not taken action on a contract pursuant |
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107 | 107 | | to paragraph (2) within 90 days after receipt, such contract shall be |
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108 | 108 | | deemed approved. |
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109 | 109 | | (c) In any judicial or quasi-judicial proceeding in which a political |
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110 | 110 | | subdivision is represented by an attorney providing legal services under a |
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111 | 111 | | contingent fee contract for legal services that does not comply with the |
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112 | 112 | | provisions of this section, the attorney general may appear in such |
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113 | 113 | | proceeding and request that the proceeding be dismissed. If the court or |
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114 | 114 | | quasi-judicial body concludes that the contract for legal services does not |
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115 | 115 | | apply with the provisions of this section, the court or quasi-judicial body |
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116 | 116 | | shall dismiss the matter without prejudice. |
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117 | 117 | | (d) Any contingent fee contract for legal services that was entered |
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118 | 118 | | into by a political subdivision prior to July 1, 2025, shall be submitted to |
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161 | 161 | | 43 SB 242 3 |
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162 | 162 | | the attorney general by the political subdivision on or before July 1, 2026. |
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163 | 163 | | The attorney general shall review the contract and approve or refuse to |
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164 | 164 | | approve the contract pursuant to subsection (b). Any judicial or quasi- |
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165 | 165 | | judicial proceeding that is ongoing involving a contingent fee contract for |
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166 | 166 | | legal services entered into by a political subdivision shall proceed unless |
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167 | 167 | | the attorney general appears in such proceeding as described in subsection |
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168 | 168 | | (c). |
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169 | 169 | | (e) As used in this section: |
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170 | 170 | | (1) "Contingent fee" means any fee that is contingent on the outcome |
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171 | 171 | | of the matter for which the service is rendered; and |
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172 | 172 | | (2) "political subdivision" means: |
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173 | 173 | | (A) A political or taxing subdivision of the state, including municipal |
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174 | 174 | | and quasi-municipal corporations, board, commissions, authorities, |
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175 | 175 | | councils, committees, subcommittees and other subordinate groups or |
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176 | 176 | | administrative units thereof, receiving or expending and supported, in |
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177 | 177 | | whole or in part, by public funds; and |
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178 | 178 | | (B) any municipality as defined in K.S.A. 75-1117, and amendments |
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179 | 179 | | thereto. |
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180 | 180 | | (f) The provisions of this section shall expire on July 1, 2029. |
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181 | 181 | | Sec. 2. This act shall take effect and be in force from and after its |
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182 | 182 | | publication in the statute book. |
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