Session of 2025
SENATE BILL No. 242
By Committee on Judiciary
2-6
1AN ACT concerning contingent fee contracts for legal services; relating to
2contracts entered into for legal services by a political subdivision;
3requiring an open meeting before a political subdivision may approve
4such a contract; requiring the attorney general to approve such contract
5before it becomes effective.
6
7Be it enacted by the Legislature of the State of Kansas:
8Section 1. (a) A political subdivision may only enter into a contingent
9fee contract for legal services if the governing body of the political
10subdivision:
11(1) Calls a meeting for the purpose of considering the contract and
12provides, in the notice of the meeting issued pursuant to K.S.A. 75-4318,
13and amendments thereto, the:
14(A) Reasons for pursuing the matter that is the subject of the legal
15services of which the attorney or law firm would be retained and the
16desired outcome of pursuing the matter;
17(B) qualifications, experience and competence of the attorney or law
18firm selected by the governing body;
19(C) nature of any relationship, regardless of how short, between the
20political subdivision or governing body and the attorney or law firm that is
21a party to the contract;
22(D) reasons the legal services cannot be adequately performed by the
23attorneys and supporting personnel of the political subdivision;
24(E) reasons the legal services cannot be reasonably obtained from
25attorneys under a contract providing for an hourly rate payment structure
26as opposed to a contingency fee structure; and
27(F) reasons entering into a contingent fee contract for legal services is
28in the best interest of the residents of the political subdivision;
29(2) makes a finding, in writing, that:
30(A) There is a substantial need for the legal services that are the
31subject of the contingent fee contract;
32(B) the legal services cannot be adequately performed by the
33attorneys and supporting personnel of the political subdivision; and
34(C) the legal services cannot reasonably be obtained from attorneys
35under a contract providing for an hourly rate payment structure because
36the nature of the legal matter that is the subject of the contract or the
1political subdivision does not have the funds necessary to pay the
2estimated cost of the legal services provided under a contract providing for
3an hourly rate payment structure; and
4(3) approves the contract in an open meeting after discussion and
5consideration of the items described in paragraph (1).
6(b) (1) Before a contingency fee contract for legal services approved
7by a political subdivision pursuant to subsection (a) is effective and
8enforceable, the political subdivision shall obtain approval of the contract
9by the attorney general. The political subdivision shall provide to the
10attorney general:
11(A) A copy of the proposed contract;
12(B) a description of the legal matter that is the subject of the proposed
13contract;
14(C) a copy of the notice issued pursuant to subsection (a)(1), the date
15such notice was issued and a description of the method for providing such
16notice;
17(D) a copy of the written findings made pursuant to subsection (a)(2).
18(2) Within 90 days after the political subdivision has provided the
19attorney general with the information described in paragraph (1), the
20attorney general shall:
21(A) Approve the contract; or
22(B) refuse to approve the contract and provide the political
23subdivision with one of the following reasons for the refusal to approve:
24(i) The legal matter that is the subject of the contract presents one or
25more questions of law or fact that are in common with a matter the state
26has already address or is pursuing;
27(ii) pursuit of the legal matter by the political subdivision will not
28promote the just and efficient resolution of the matter; or
29(iii) the contract does not comply with the Kansas rules of
30professional conduct for attorneys adopted by the Kansas supreme court.
31(3) If the attorney general has not taken action on a contract pursuant
32to paragraph (2) within 90 days after receipt, such contract shall be
33deemed approved.
34(c) In any judicial or quasi-judicial proceeding in which a political
35subdivision is represented by an attorney providing legal services under a
36contingent fee contract for legal services that does not comply with the
37provisions of this section, the attorney general may appear in such
38proceeding and request that the proceeding be dismissed. If the court or
39quasi-judicial body concludes that the contract for legal services does not
40apply with the provisions of this section, the court or quasi-judicial body
41shall dismiss the matter without prejudice.
42(d) Any contingent fee contract for legal services that was entered
43into by a political subdivision prior to July 1, 2025, shall be submitted to
1the attorney general by the political subdivision on or before July 1, 2026.
2The attorney general shall review the contract and approve or refuse to
3approve the contract pursuant to subsection (b). Any judicial or quasi-
4judicial proceeding that is ongoing involving a contingent fee contract for
5legal services entered into by a political subdivision shall proceed unless
6the attorney general appears in such proceeding as described in subsection
7(c).
8(e) As used in this section:
9(1) "Contingent fee" means any fee that is contingent on the outcome
10of the matter for which the service is rendered; and
11(2) "political subdivision" means:
12(A) A political or taxing subdivision of the state, including municipal
13and quasi-municipal corporations, board, commissions, authorities,
14councils, committees, subcommittees and other subordinate groups or
15administrative units thereof, receiving or expending and supported, in
16whole or in part, by public funds; and
17(B) any municipality as defined in K.S.A. 75-1117, and amendments
18thereto.
19(f) The provisions of this section shall expire on July 1, 2029.
20Sec. 2. This act shall take effect and be in force from and after its
21publication in the statute book.