By Joint Committee on State Building Construction

  8             AN  ACT concerning state building construction; relating to certain
  9             claims arising therefrom; providing for recovery and disposition of
10             amounts received for costs incurred; amending K.S.A. 75-1267 and 75-
11             3785 and repealing the existing sections.
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 75-1267 is hereby amended to read as follows: 75-
15       1267. (a) The secretary of administration shall obtain and maintain copies
16       of all drawings, specifications, contracts, change orders, field orders, war-
17       ranties and other documents relating to all capital improvement projects
18       for the construction of buildings or for major repairs or improvements to
19       buildings for state agencies. It is the responsibility of the secretary of
20       administration to prepare all of the necessary documentation to support
21       claims by the state against any project architect, contractor, manufacturer,
22       supplier or other person regarding any such capital improvement project.
23             (b) It is the responsibility of each state agency for which such a capital
24       improvement project was completed to initially refer all claims on behalf
25       of or against the state arising from the project to the secretary of admin-
26       istration. The secretary of administration shall attempt to effect an infor-
27       mal or formal resolution of all such claims in a manner satisfactory to the
28       interests of the state. Failing such a resolution, the secretary of admin-
29       istration shall refer and the state agency for which the project was com-
30       pleted may refer all such claims to the attorney general for action. Written
31       notice of each such referral to the attorney general shall be given to the
32       governor by the secretary of administration and the state agency making
33       such referral. Upon each such referral, the attorney general shall institute
34       and prosecute or defend all appropriate legal proceedings regarding such
35       claims. In any such legal proceeding, the court may award the state all
36       or a portion of the costs of the proceeding, including reasonable attorney
37       fees, witness fees and any amounts expended from the construction defects
38       recovery fund or from any other fund in the state treasury in support of
39       such proceeding or related to any such claim.
40             (c) On or before November 15 each year, the secretary of adminis-
41       tration shall report to the joint committee on state building construction
42       as to the nature and status of all claims made on behalf of the state arising
43       from state projects for the construction of buildings or major repairs or
44       improvements to buildings which are referred to or acted on by the sec-
45       retary of administration under this section, and shall include in such re-
46       port any recommendations deemed appropriate by the secretary of
47       administration.
48             (d) No document required to be kept and maintained under this sec-
49       tion which relates to any correctional institution, as defined by K.S.A. 75-
50       5202 and amendments thereto, or any other facility under the jurisdiction
51       and control of the secretary of corrections or to any secured area or other
52       area where public access is limited, shall be open for public inspection
53       or reproduction under K.S.A. 45-201 and 45-202, and amendments
54       thereto. The secretary of administration may limit reproduction of any
55       other documents required to be kept and maintained under this section
56       which may be used for commercial or similar purposes to the extent
57       deemed appropriate by the secretary in the best interests of the state,
58       except that there shall be no limitation on the reproduction of documents
59       pertaining to buildings on the state or national register of historic places
60       unless inspection of any such document is prohibited by the terms of the
61       preceding sentence.
62             Sec.  2. K.S.A. 75-3785 is hereby amended to read as follows: 75-
63       3785. (a) There is hereby created in the state treasury the construction
64       defects recovery fund.
65             (b) All proceeds received by state agencies shall be deposited in the
66       construction defects recovery fund. All expenditures from the construc-
67       tion defects recovery fund in excess of $25,000 for the purposes stated in
68       paragraph (4) of this subsection shall be subject to the prior approval of
69       the state finance council, which is hereby characterized as a matter of
70       legislative delegation and subject to the guidelines prescribed in subsec-
71       tion (c) of K.S.A. 75-3711c, and amendments thereto. All other expend-
72       itures from the construction defects recovery fund shall be subject to the
73       prior approval of the secretary of administration, and the secretary of
74       administration shall report each such expenditure to the joint committee
75       on state building construction. Where expenditures are made in support
76       of litigation in which the state is involved, such expenditures also shall be
77       subject to the prior approval of the attorney general. All expenditures
78       shall be paid pursuant to vouchers of the director of accounts and reports
79       approved by the director of architectural services and shall be for one or
80       more of the following purposes:
81             (1) To identify the nature, extent and causes of defects in the design,
82       construction or other work on capital improvements;
83             (2) to provide architectural, engineering or other technical services
84       to determine methods for correcting or repairing such defects;
85             (3) to provide services in support of claims by the state or to defend
86       claims against the state concerning state construction projects; or
87             (4) to correct or repair defects in buildings or facilities under the
88       jurisdiction of state agencies, or to make other repairs or perform main-
89       tenance related to such defects.
90             (c) As used in this section, "proceeds" means money paid to the state
91       of Kansas or any state agency for forfeited bid bonds, or by an insurer,
92       or by a person or firm performing duties related to construction under a
93       contract with a state agency, to compensate or reimburse the state for
94       errors, omissions or other construction, architectural or engineering re-
95       lated defects adversely affecting the state or a state agency, including any
96       amounts recovered for any amounts expended from the construction de-
97       fects recovery fund or from any other fund in the state treasury (1) to
98       identify, investigate or study such defects or to correct or to make other
99       repairs or perform maintenance related to such defects or (2) in support
100       of claims by the state or to defend claims against the state concerning such
101       defects
102       Sec.  3. K.S.A. 75-1267 and 75-3785 are hereby repealed.
103        Sec.  4. This act shall take effect and be in force from and after its
104       publication in the Kansas register.