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SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 3347
103RD GENERAL ASSEMBL Y
7261H.02C JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapters 67 and 31 1, RSMo, by adding thereto two new sections relating to
political subdivisions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapters 67 and 31 1, RSMo, are amended by adding thereto two new
2 sections, to be known as sections 67.5500 and 31 1.038, to read as follows:
67.5500. 1. As used in this section, the following terms shall mean:
2 (1) "Contingent fee", any fee that is contingent on the outcome of the matter for
3 which the service is ren dered ;
4 (2) "Political subdivision", shall include:
5 (a) A political or taxing subdivision of this state, including municipal and quasi-
6 municipal corporations, boards, commissions, authorities, councils, committees,
7 subcommittees, and other subordinate gr oups or administrative units ther eof,
8 r eceiving or expending and supported by , in whole or in part, public funds; and
9 (b) Any municipality that is a city , town, or village that is incorporated in
10 accordance with the laws of this state.
11 2. A political subdivision may enter into a contingent fee contract for legal
12 services only if the governing body of the political subdivision:
13 (1) Calls an official public meeting for the purpose of considering the contract
14 and prov ides in the notice of the meeting the following:
15 (a) Reasons for pursuing the matter that is the subject of the legal services for
16 which the attorney or law firm would be ret ained and the desir ed outcome of pursuing
17 the matter;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (b) Qualifications, experience, and competence of the attorney or law firm
19 selected by the governing body;
20 (c) The nature of any rela tionship, rega rdless of duration, between the political
21 subdivision or governing body and the attorney or law firm that is a party to the
22 contract;
23 (d) Reasons the legal services cannot be adequately performed by the attorneys
24 and supporting personnel of the political subdivision;
25 (e) Reasons the legal services cannot be rea sonably obtained fr om attorneys
26 under a contract provi ding for an hourly rate payment structur e as opposed to a
27 contingency fee structur e; and
28 (f) Reasons why entering into a contingent fee contract for legal services is in the
29 best inter est of the res idents of the political subdivision; and
30 (2) Makes a written finding that:
31 (a) There is a substantial need for the legal services that ar e the subject of the
32 contingent fee contract;
33 (b) The legal services cannot be adequately performed by the attorneys and
34 supporting personnel of the political subdivision;
35 (c) The legal services cannot reas onably be obtained fro m attorneys under a
36 contract pro viding for an hourly rate payment structur e because of the nature of the
37 legal matter that is the subject of the contract or because the political subdivision does
38 not have the funds necessary to pay the estimated cost of the legal services pr ovided
39 under a contract prov iding for an hourly rate payment structure; and
40 (d) Appr oves the contract in an open meeting after discussion and consideration
41 of the items in subdivision (1) of this subsection.
42 3. A contingent fee contract for legal services between a political subdivision and
43 an attorney or law firm shall:
44 (1) Pr ovide that the political subdivision reta ins ultimate contr ol over the course
45 and conduct of the case;
46 (2) Pr ovide that final appr oval r egarding res olution of the case is r eserved
47 exclusively to the political subdivision; and
48 (3) Not pr ovide for the private attorney or law firm to re ceive a contingency fee
49 that exceeds the levels pr ovided by subsections 7 and 8 of section 34.378.
50 4. Before a contingency fee contract for legal services appr oved by a political
51 subdivision is effective and enforcea ble, the political subdivision shall obtain appr oval of
52 the contract fro m the attorney general. The political subdivision shall provi de to the
53 attorney general:
54 (1) A copy of the prop osed contract;
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55 (2) A description of the legal matter that is the subject of the pr oposed contract;
56 (3) A copy of the notice issued under subdivision (1) of subsection 2 of this
57 section, the date such notice was issued, and a description of the method for pro viding
58 such notice; and
59 (4) A copy of the written findings made under subdivision (2) of subsection 2 of
60 this section.
61 5. The attorney general shall, within forty-five days after the political
62 subdivision has provi ded the attorney general with the information described
6 3 subsection 3 of this section:
64 (1) Appr ove the contract and, if the reque st involves a matter of pur ely local
65 concern that does not implicate any statewide interes t, shall do so pro mptly; or
66 (2) Refuse to appr ove the contract for one of the following reas ons:
67 (a) The legal matter that is the subject of the contract pr esents one or mor e
68 questions of law or fact that are in common with a matter the state has alrea dy
69 addr essed or is pursuing;
70 (b) The legal matter involves claims or issues that ar e mor e appr opriately within
71 the scope of state enforc ement and the pursuit of the matter independently by the
72 political subdivision could lead to inconsistent legal outcomes or undermine the state's
73 unified position; or
74 (c) The contract does not comply with the Missouri rules of pr ofessional conduct
75 for attorneys adopted by the Missouri suprem e court.
76 6. If the attorney general has not taken action on a contract under subsection 5
77 of this section within forty-five days of recei pt, such contract shall be deemed appr oved.
78 7. In any judicial or quasi-judicial pro ceeding in which a political subdivision is
79 r epresent ed by an attorney provi ding legal services under a contingent fee contract for
80 legal services that does not comply with the pro visions of this section, the attorney
81 general may appear in such proc eeding and requ est that the pr oceeding be dismissed. If
82 the court or quasi-judicial body concludes that the contract for legal services does not
83 comply with the pr ovisions of this section, the court or quasi-judicial body shall dismiss
84 the matter without prej udice.
85 8. The attorney general shall r eview the contract and appr ove or re fuse to
86 appr ove the contract under subsection 5 of this section. Any judicial or quasi-judicial
87 pr oceeding that is ongoing involving a contingent fee contract for legal services enter ed
88 into by a political subdivision shall proce ed unless the attorney general appears in such
89 pr oceeding as described in subsection 7 of this section.
90 9. Nothing contained in this section shall apply to any action brou ght prior to
91 August 28, 2026.
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31 1.038. 1. The state expr essly pr eempts the field of re gulating the sale of
2 alcoholic beverages specifically as it rel ates to the size of the container , the volume of
3 fluid ounces in the container , the alcohol content of the liquid in the container , and the
4 number of containers that can be pur chased per transaction.
5 2. The state shall supersede and r ender null and void any local laws, ordinances,
6 orders, rules, or regu lations enacted by a county , city , municipality , or other political
7 subdivision before, on, or after the effective date of this section that attempts to r egulate
8 the sale of alcoholic beverages as detailed in this section.
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