Missouri 2025 Regular Session

Missouri Senate Bill SB267 Latest Draft

Bill / Introduced Version Filed 12/06/2024

                             
FIRST REGULAR SESSION 
SENATE BILL NO. 267 
103RD GENERAL ASSEMBLY  
INTRODUCED BY SENATOR TRENT. 
0128S.01I 	KRISTINA MARTIN, Secretary  
AN ACT 
To amend chapter 507, RSMo, by adding thereto one new section relating to foreign funding of 
legal actions. 
 
Be it enacted by the General Assembly of the State of Missouri, as follows: 
     Section A.  Chapter 507, RSMo, is amended by adding thereto 1 
one new section, to be known as section 507.005, to read as 2 
follows:3 
     507.005.  1.  For those actions filed on or after 1 
August 28, 2025, no party, including an intervening party, 2 
shall receive funding from a foreign individual or foreign 3 
legal entity that is not a party to the action for some or 4 
all of the expenses, including any attorney's fees, for the 5 
action, whether or not on a nonrecourse basis in exchange 6 
for a contingent financial interest based upon the results 7 
of the action or a nonmone tary result that is not in the 8 
nature of a personal loan, bank loan, or insurance. 9 
     2.  The provisions of this section shall not apply if: 10 
     (1)  The party is an individual receiving funding for 11 
the action from a foreign individual within the thir d degree  12 
of affinity or consanguinity of the party; 13 
     (2)  The party is a legal entity that is owned or 14 
controlled, in whole or in part, by a foreign legal entity 15 
which is providing funding for the action to the party; 16 
     (3)  All parties agree to allow funding by foreign 17 
individuals or foreign legal entities; or 18   SB 267 	2 
     (4)  The court determines that in the interest of 19 
justice or in the interest of the parties there is good 20 
cause for the funding of the action by a foreign individual 21 
or foreign legal entity. 22 
     3.  A party may seek discovery on information regarding 23 
the funding of the action upon a showing of good cause. 24 
     4.  Upon a showing that another party to the action has 25 
received funding for expenses for the action in violation of 26 
this section, the party may file a motion to dismiss.  The  27 
court shall conduct a hearing within thirty days of the 28 
filing of a motion to determine whether the provisions of 29 
this section have been violated.  Upon a determination that 30 
the provisions of this section have been violated, the court 31 
shall dismiss the action without prejudice and may order any 32 
other relief as may be appropriate. 33 
     5.  As used in this section, the following terms mean: 34 
     (1) "Foreign individual", any individual, including a n  35 
agent of an individual, who is not a citizen or national of 36 
the United States, or any trust territory or protectorate of 37 
the United States; 38 
     (2) "Foreign legal entity", any legal entity created 39 
under the laws of: 40 
     (a)  Any government other th an the government of the 41 
United States or any state or political subdivision of the 42 
United States; or 43 
     (b)  The United States, or any state or territory of 44 
the United States, if a majority of the ownership of the 45 
stock of such legal entity is direc tly or indirectly owned, 46 
legally or beneficially, by one or more governments other 47 
than the government of the United States or any state or 48 
territory of the United States, foreign individuals, or 49 
legal entities created under the laws of any government 50   SB 267 	3 
other than the government of the United States or any state 51 
or territory of the United States, or if a majority of the 52 
membership of any such entity is composed of foreign 53 
individuals or legal entities created under the laws of a 54 
government other than the government of the United States or 55 
any state or territory of the United States. 56 
The term "foreign legal entity" shall include any agent of 57 
any legal entity described in this subdivision. 58 
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