Session of 1998
By Joint Committee on State Building Construction
            9             AN ACT concerning state building construction; relating to certain claims
10             arising therefrom; providing for recovery and disposition of amounts
11             received for costs incurred; amending K.S.A. 75-1267 and 75-3785 and
12             repealing the existing sections.
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 75-1267 is hereby amended to read as follows:
16       75-1267. (a) The secretary of administration shall obtain and maintain
17       copies of all drawings, specifications, contracts, change orders, field or-
18       ders, warranties and other documents relating to all capital improvement
19       projects for the construction of buildings or for major repairs or improve-
20       ments to buildings for state agencies. It is the responsibility of the sec-
21       retary of administration to prepare all of the necessary documentation to
22       support claims by the state against any project architect, contractor, man-
23       ufacturer, supplier or other person regarding any such capital improve-
24       ment project.
25           (b) It is the responsibility of each state agency for which such a capital
26       improvement project was completed to initially refer all claims on behalf
27       of or against the state arising from the project to the secretary of admin-
28       istration. The secretary of administration shall attempt to effect an infor-
29       mal or formal resolution of all such claims in a manner satisfactory to the
30       interests of the state. Failing such a resolution, the secretary of admin-
31       istration shall refer and the state agency for which the project was com-
32       pleted may refer all such claims to the attorney general for action. Written
33       notice of each such referral to the attorney general shall be given to the
34       governor by the secretary of administration and the state agency making
35       such referral. Upon each such referral, the attorney general shall institute
36       and prosecute or defend all appropriate legal proceedings regarding such
37       claims. In any such legal proceeding, the court may award the state all
38       or a portion of the costs of the proceeding, including reasonable attorney
39       fees, witness fees and any amounts expended from the construction defects
40       recovery fund or from any other fund in the state treasury in support of
41       such proceeding or related to any such claim.
42           (c) On or before November 15 each year, the secretary of adminis-
43       tration shall report to the joint committee on state building construction

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  1       as to the nature and status of all claims made on behalf of the state arising
  2       from state projects for the construction of buildings or major repairs or
  3       improvements to buildings which are referred to or acted on by the sec-
  4       retary of administration under this section, and shall include in such re-
  5       port any recommendations deemed appropriate by the secretary of ad-
  6       ministration.
  7           (d) No document required to be kept and maintained under this sec-
  8       tion which relates to any correctional institution, as defined by K.S.A. 75-
  9       5202 and amendments thereto, or any other facility under the jurisdiction
10       and control of the secretary of corrections or to any secured area or other
11       area where public access is limited, shall be open for public inspection
12       or reproduction under K.S.A. 45-201 and 45-202, and amendments
13       thereto. The secretary of administration may limit reproduction of any
14       other documents required to be kept and maintained under this section
15       which may be used for commercial or similar purposes to the extent
16       deemed appropriate by the secretary in the best interests of the state,
17       except that there shall be no limitation on the reproduction of documents
18       pertaining to buildings on the state or national register of historic places
19       unless inspection of any such document is prohibited by the terms of the
20       preceding sentence.
21           Sec. 2. K.S.A. 75-3785 is hereby amended to read as follows: 75-
22       3785. (a) There is hereby created in the state treasury the construction
23       defects recovery fund.
24           (b) All proceeds received by state agencies shall be deposited in the
25       construction defects recovery fund. All expenditures from the construc-
26       tion defects recovery fund in excess of $25,000 for the purposes stated in
27       paragraph (4) of this subsection shall be subject to the prior approval of
28       the state finance council, which is hereby characterized as a matter of
29       legislative delegation and subject to the guidelines prescribed in subsec-
30       tion (c) of K.S.A. 75-3711c, and amendments thereto. All other expend-
31       itures from the construction defects recovery fund shall be subject to the
32       prior approval of the secretary of administration, and the secretary of
33       administration shall report each such expenditure to the joint committee
34       on state building construction. Where expenditures are made in support
35       of litigation in which the state is involved, such expenditures also shall be
36       subject to the prior approval of the attorney general. All expenditures
37       shall be paid pursuant to vouchers of the director of accounts and reports
38       approved by the director of architectural services and shall be for one or
39       more of the following purposes:
40           (1) To identify the nature, extent and causes of defects in the design,
41       construction or other work on capital improvements;
42           (2) to provide architectural, engineering or other technical services
43       to determine methods for correcting or repairing such defects;

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  1           (3) to provide services in support of claims by the state or to defend
  2       claims against the state concerning state construction projects; or
  3           (4) to correct or repair defects in buildings or facilities under the
  4       jurisdiction of state agencies, or to make other repairs or perform main-
  5       tenance related to such defects.
  6           (c) As used in this section, ``proceeds'' means money paid to the state
  7       of Kansas or any state agency for forfeited bid bonds, or by an insurer,
  8       or by a person or firm performing duties related to construction under a
  9       contract with a state agency, to compensate or reimburse the state for
10       errors, omissions or other construction, architectural or engineering re-
11       lated defects adversely affecting the state or a state agency, including any
12       amounts recovered for any amounts expended from the construction de-
13       fects recovery fund or from any other fund in the state treasury (1) to
14       identify, investigate or study such defects or to correct or to make other
15       repairs or perform maintenance related to such defects or (2) in support
16       of claims by the state or to defend claims against the state concerning such
17       defects.
18           Sec. 3. K.S.A. 75-1267 and 75-3785 are hereby repealed.
19           Sec. 4. This act shall take effect and be in force from and after its
20       publication in the Kansas register.