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HB 2116

Relating to tax rates; prescribing an effective date.

2025 Regular Session Introduced by Werner Reschke

Cities and counties under 35k must include DA-146a contract terms in most vendor agreements, with small vote-only exceptions, starting after July 1, 2025.

In committee upon adjournment.
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Bill Summary · HB 2116

HB 2116 — Summary (Session of 2025, Conference committee report available)

Main purpose

Require certain smaller Kansas cities and counties to incorporate standard contract provisions (the Department of Administration’s Form DA‑146a, used in state contracts) into their vendor and other contracts — with limited, recorded‑vote exceptions — and to prohibit municipal contracts that (1) require the municipality to indemnify private parties for third‑party acts, or (2) select laws or courts outside Kansas to govern or resolve disputes.

Key provisions

  • Mandatory terms: Any contract entered into by affected city or county governing bodies must contain the “mandatory contract provisions” prescribed by the Department of Administration (Form DA‑146a), which address warranties, liabilities, taxes, insurance, applicable law, etc.
  • Effective date: Applies to contracts entered into after July 1, 2025 (clarified by Senate Committee of the Whole).
  • Deemed incorporation: Contracts entered after the effective date are deemed to include DA‑146a mandatory provisions even if the text is omitted, unless the governing body takes affirmative steps described below.
  • Local exception by vote: A city governing body or a county board may omit one or more of the DA‑146a mandatory provisions only by an affirmative recorded majority vote of its members.
  • Non‑waivable provisions:
    • Indemnity prohibition (Section 2): Cities/counties may not enter contracts that require the municipality to indemnify or hold harmless another party for damages, injury, or death resulting from actions or failures to act by parties other than the municipality (its governing body, officers, or employees). Such indemnity provisions are void and contrary to public policy.
    • Governing law and jurisdiction (Section 3): Contracts must be governed by Kansas law and may not be made subject to the laws or courts of another state; provisions to the contrary are void and unenforceable.

Who is affected

  • Scope (Section 4): Applies only to:
    • Kansas cities of the second or third class; and
    • Counties with population under 35,000.
  • Affects municipal governing bodies, city/county officers or employees acting on their behalf, and private vendors/contractors that contract with those municipalities.

Rationale, testimony, and potential impacts

  • Proponents (Kansas Association of Counties; City of Independence) argued smaller jurisdictions have less bargaining leverage and that standardizing mandatory terms gives them protection comparable to larger governments.
  • The League of Kansas Municipalities provided neutral testimony, noting the change could help some negotiations but hinder others.
  • Fiscal note: Form changes would impose no estimated fiscal effect on counties or cities per state associations; however, effects on contract negotiation outcomes and service costs are possible but not quantifiable.

Procedural / timeline notes

  • Introduced at request of Rep. Blex; hearings held in House and Senate local government committees.
  • Senate Committee of the Whole amended the effective incorporation date to apply to contracts entered after July 1, 2025.
  • Conference committee report is now available (bill advanced through committee and floor actions in early 2025).

Compiled from official sources — confirm details with the bill’s official record.

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