Approved: 4-3-07
Date
MINUTES OF THE SENATE COMMERCE COMMITTEE
The meeting was called to order by Chairperson Karin Brownlee at 8:30 A.M. on February 28, 2007 in Room 123-S of the Capitol.
All members were present except:
Jean Schodorf- excused
Committee staff present:
Kathie Sparks, Kansas Legislative Research Department
Mike Heim, Revisor of Statutes
Jackie Lunn, Committee Assistant
Conferees appearing before the committee:
Others attending:
See attached list.
SB 333--Fairness in public building construction contract act
Chairperson Brownlee announced to the Committee they would be working SB 333 today. She introduced Corey Peterson representing AGC of Kansas, to explain the Proposed Compromise Balloon he was offering. (Attachment 1) He stated a group of owner representatives and construction related interest met to go over this bill and try to come up with common ground to make this a fair bill for everyone involved. They took the notes of the meeting and developed the balloon they offered. Mr. Peterson reviewed the balloon for the Committee.
Questions and discussion followed. During the discussion the Committee heard from Bob Totten representing Kansas Contractors. He stated they did not support the amendment because it added on page 1, under the definition of construction, line 23, “road, highway, bridges” and they were not in the original bill that they did support. After much discussion, it was decided by the Committee to remove the addition of “road, highway, bridges” from the Proposed Compromise Balloon.
Upon the conclusion of discussion, Senator Kelley made a motion to add water and waste water facilities on Page 1 (a) under the definition of construction, on the Proposed Compromise Balloon. Senator Emler seconded. Motion carried.
Questions followed on page 1 of the Proposed Compromise Balloon..
Senator Emler made a motion to remove the word “building” out of the title and any where it is used in the bill. Senator Jordan seconded.
Discussion followed.
Chairperson Brownlee called for a vote on the motion on the floor. Motion carried.
Chairperson Brownlee announced they had completed Page 1 of the Proposed Compromise Balloon and would move on to Page 2. Questions and discussion followed.
Senator Reitz made a motion to adopt new language on Page 2, line 32 .of the Proposed Compromise Balloon after the word payment, “according to terms of the contract”. Senator Barone seconded. Motion carried.
Senator Jordan made a motion to adopt the new language on Page 2, line 36 (d), after the word record “or agent of the owner” and line 38 after the word days “of receipt from contractor.” of the Proposed Compromise Balloon . Senator Teichman seconded. Motion carried.
Senator Kelly made a motion to accept the changes on Page 3, line 13, changing the retainage, “Change “5%” to “10%” of the Proposed Compromise Balloon. Senator Teichman seconded.
Discussion followed.
Chairperson Brownlee called for a vote. Motion carried.
Senator Emler made a motion to delete the language on Page 3, line 22, 23 and 24 “no more than 150% of the value of work that is not completed due to no fault of the subcontractor may be withheld pending completion” . Senator Kelly seconded. Motion carried.
Senator Kelly made a motion to accept the language being added on Page 3, line 35 after the word risk, striking “to the owner. The” and adding “or additional cost to the owner or contractor. Once so determined, the” of the Proposed Compromise Balloon. Senator Emler seconded. Motion carried.
Chairperson Brownlee moved the Committee’s attention to Page 4 of the Proposed Compromise Balloon.
Discussion followed.
Senator Barone made a motion to accept the new language Page 4, Line 26 after (90P-205-R6) “or any subsequent editions” of the Proposed Compromise Balloon. Senator Jordan seconded. Motion carried.
Discussion followed.
Senator Jordan made a motion for the Revisor to cleanup the language in the bill. Senator Reitz seconded. Motion carried.
Chairperson Brownlee called the Committee’s attention to the correspondence from J. Joseph Waters, Director Facilities Department, Johnson County, with proposed language that addresses their concerns with the bill. (Attachment 2)
Senator Emler made a motion to move SB 333 out favorably as amended. Senator Jordan seconded. Motion carried.
Meeting adjourned at 9:30 a.m. with the next scheduled meeting for March 1st at 8:30 a.m. in room 123 S.