Kansas 2025-2026 Regular Session

Kansas Senate Bill SB54 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	Substitute for SENATE BILL No. 54
2		-	AN ACT concerning the code of civil procedure; relating to litigation funding by third
3		-	parties; limiting discovery and disclosure of third-party litigation funding
4		-	agreements; requiring reporting of such agreements to the court; amending K.S.A.
5		-	2024 Supp. 60-226 and repealing the existing section.
	1	+	Session of 2025
	2	+	SENATE BILL No. 54
	3	+	By Committee on Judiciary
	4	+	1-21
	5	+	AN ACT concerning the code of civil procedure; relating to litigation
	6	+	funding by third parties; limiting discovery and disclosure of third-
	7	+	party agreements in certain circumstances; requiring reporting of such
	8	+	agreements to the judicial council and a judicial council committee to
	9	+	study third-party agreements; requiring the clerk of the supreme court
	10	+	to develop a form for reports; exempting such reports from the open
	11	+	records act; amending K.S.A. 2024 Supp. 60-226 and repealing the
	12	+	existing section.
6	13		Be it enacted by the Legislature of the State of Kansas:
7	14		Section 1. K.S.A. 2024 Supp. 60-226 is hereby amended to read as
8		-	follows: 60-226. (a) Discovery methods. Parties may obtain discovery
9		-	by one or more of the following methods: Depositions on oral
10		-	examination or written questions; written interrogatories; production of
11		-	documents or things or permission to enter onto land or other property
12		-	under K.S.A. 60-234, K.S.A. 60-245(a)(1)(A)(iii) or K.S.A. 60-245a,
13		-	and amendments thereto; physical and mental examinations; and
14		-	requests for admission.
	15	+	follows: 60-226. (a) Discovery methods. Parties may obtain discovery by
	16	+	one or more of the following methods: Depositions on oral examination or
	17	+	written questions; written interrogatories; production of documents or
	18	+	things or permission to enter onto land or other property under K.S.A. 60-
	19	+	234, K.S.A. 60-245(a)(1)(A)(iii) or K.S.A. 60-245a, and amendments
	20	+	thereto; physical and mental examinations; and requests for admission.
15	21		(b) Discovery scope and limits. (1) Scope in general. Unless
16	22		otherwise limited by court order, the scope of discovery is as follows:
17	23		Parties may obtain discovery regarding any nonprivileged matter that is
18	24		relevant to any party's claim or defense and proportional to the needs of
19		-	the case, considering the importance of the issues at stake in the action,
20		-	~~the~~ amount in controversy, the parties' relative access to relevant
21		-	~~information,~~ the parties' resources, the importance of the discovery in
22		-	~~resolving the~~ issues and whether the burden or expense of the proposed
23		-	~~discovery~~ outweighs its likely benefit. Information within this scope of
24		-	~~discovery~~ need not be admissible in evidence to be discoverable.
	25	+	the case, considering the importance of the issues at stake in the action, the
	26	+	amount in controversy, the parties' relative access to relevant information,
	27	+	the parties' resources, the importance of the discovery in resolving the
	28	+	issues and whether the burden or expense of the proposed discovery
	29	+	outweighs its likely benefit. Information within this scope of discovery
	30	+	need not be admissible in evidence to be discoverable.
25	31		(2) Limitations on frequency and extent. (A) On motion, or on its
26	32		own, the court may limit the frequency or extent of discovery methods
27	33		otherwise allowed by the rules of civil procedure and must do so if it
28	34		determines that:
29		-	(i) The discovery sought is unreasonably cumulative or
30		-	duplicative, or can be obtained from some other source that is more
31		-	convenient, less burdensome or less expensive;
32		-	(ii) the party seeking discovery has had ample opportunity to
33		-	obtain the information by discovery in the action; or
	35	+	(i) The discovery sought is unreasonably cumulative or duplicative,
	36	+	or can be obtained from some other source that is more convenient, less
	37	+	burdensome or less expensive;
	38	+	(ii) the party seeking discovery has had ample opportunity to obtain
	39	+	the information by discovery in the action; or
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34	76		(iii) the proposed discovery is outside the scope permitted by
35	77		subsection (b)(1).
36	78		(B) A party need not provide discovery of electronically stored
37	79		information from sources that the party identifies as not reasonably
38	80		accessible because of undue burden or cost. On motion to compel
39	81		discovery or for a protective order, the party from whom discovery is
40	82		sought must show that the information is not reasonably accessible
41		-	because of undue burden or cost. If that showing is made, the court
42		-	~~may~~ nonetheless order discovery from such sources if the requesting
43		-	~~party~~ shows good cause, considering the limitations of subsection (b)
44		-	~~(2)(A). The~~ court may specify conditions for the discovery.
	83	+	because of undue burden or cost. If that showing is made, the court may
	84	+	nonetheless order discovery from such sources if the requesting party
	85	+	shows good cause, considering the limitations of subsection (b)(2)(A). The
	86	+	court may specify conditions for the discovery.
45	87		(3) Agreements. (A) Insurance agreements. A party may obtain
46		-	discovery of the existence and contents of any insurance agreement
47		-	under which an insurance business may be liable to satisfy part or all of
48		-	a possible judgment in the action or to indemnify or reimburse for
49		-	payments made to satisfy the judgment. Information concerning the
50		-	insurance agreement is not by reason of disclosure admissible in
51		-	evidence at trial. For purposes of this paragraph, an application for
52		-	insurance is not a part of an insurance agreement.
53		-	(B) (i) Third-party litigation funding agreements. (a) A party shall
54		-	provide to the court, for in camera review, any third-party litigation
55		-	funding agreement within 30 days after commencement of a legal
56		-	action or 30 days after execution of a third-party litigation funding
57		-	agreement, whichever is later.
58		-	(b) Except as otherwise stipulated by the parties or ordered by the
59		-	court, if a party has entered into a third-party litigation funding
60		-	agreement, such party shall deliver to all other parties, within 30 days Substitute for SENATE BILL No. 54—page 2
61		-	after commencement of a legal action or 30 days after execution of
62		-	such third-party litigation funding agreement, whichever is later, a
63		-	sworn statement disclosing:
64		-	(1) The identity of all contracting parties to the third-party
65		-	litigation funding agreement, including the name, address and, if a
66		-	party is a legal entity, the place of formation of such entity;
67		-	(2) whether the agreement grants a third-party funder control or
68		-	approval rights with respect to litigation or settlement decisions or
69		-	otherwise has the potential to create conflicts of interest between the
70		-	third-party funder and the party and, if the agreement does grant such
71		-	control or approval rights, the nature of the terms and conditions
72		-	relating to such control or approval rights;
73		-	(3) whether the agreement grants a third-party funder the right to
74		-	receive materials designated as confidential pursuant to a protective or
75		-	confidentiality agreement or order in the action;
76		-	(4) the existence of any known relationship between a third-party
77		-	funder and the adverse party, the adverse party's counsel or the court;
78		-	(5) a description of the nature of the financial interest, including,
79		-	but not limited to, whether such interest is, in whole or in part,
80		-	recourse or non-recourse; and
81		-	(6) whether any foreign person from a foreign country of concern
82		-	is providing funding, directly or indirectly, for the third-party litigation
83		-	funding agreement and, if so, the name, address and country of
84		-	incorporation or registration of the foreign person.
85		-	(ii) Limitations on discovery of third-party litigation funding
86		-	agreements. (a) Information concerning the third-party litigation
87		-	funding agreement is not by reason of disclosure admissible in
88		-	evidence at trial.
89		-	(b) Subsection (b)(3)(B)(i) shall not be construed to require a
90		-	nonprofit corporation or association to disclose its members or donors.
91		-	(c) Except as provided in subsection (b)(3)(B)(i), the provisions of
92		-	this section shall not be construed to modify the applicability of articles
93		-	2 or 4 of chapter 60 of the Kansas Statutes Annotated, and amendments
	88	+	discovery of the existence and contents of any insurance agreement under
	89	+	which an insurance business may be liable to satisfy part or all of a
	90	+	possible judgment in the action or to indemnify or reimburse for payments
	91	+	made to satisfy the judgment. Information concerning the insurance
	92	+	agreement is not by reason of disclosure admissible in evidence at trial.
	93	+	For purposes of this paragraph, an application for insurance is not a part of
	94	+	an insurance agreement.
	95	+	(B) (i) Third-party agreements. A party may obtain discovery of the
	96	+	existence and content of any third-party agreement.
	97	+	(ii) Limitations on discovery of third-party agreements. (a) On
	98	+	motion, a court must prohibit any inquiry into the existence or
	99	+	nonexistence of a third-party agreement on a finding, by a preponderance
	100	+	of the evidence, that such inquiry may cause undue prejudice to the party
	101	+	objecting to such inquiry. When making such a finding, the court must
	102	+	consider the political, ideological or social nature of the case, the likely
	103	+	balance of litigation resources between the parties, whether such inquiry
	104	+	would be proportional to the needs of the case and any other relevant
	105	+	information presented by the parties.
	106	+	(b) Information concerning the third-party agreement is not by
	107	+	reason of disclosure admissible in evidence at trial.
	108	+	(c) Subsection (b)(3)(B) shall not be construed to require a nonprofit
	109	+	corporation or association to disclose its members or donors or require
	110	+	disclosure of otherwise privileged information.
	111	+	(d) Unless the court finds that a third-party agreement would be
	112	+	admissible under the rules of evidence and necessary to prove an element
	113	+	of a claim in the case, disclosure of the existence or content of such
	114	+	agreement must not be required in any action brought:
	115	+	(1) By or on behalf of the state or any political subdivision of the
	116	+	state enforcing a law or seeking to protect against an imminent threat to
	117	+	health or public safety; or
	118	+	(2) solely in the public interest or on behalf of the general public if:
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	162	+	(A) The plaintiff does not seek any relief that is different from the
	163	+	relief sought for the general public or a class of which the plaintiff is a
	164	+	member unless such relief is a claim for attorney fees, costs or penalties;
	165	+	(B) the action, if successful, would enforce an important right
	166	+	affecting the public interest and would confer a significant pecuniary or
	167	+	nonpecuniary benefit on the general public or a large class of persons;
	168	+	and
	169	+	(C) private enforcement is necessary and places a disproportionate
	170	+	financial burden on the plaintiff's state in the matter.
	171	+	(e) When requested by the disclosing party, the court must issue an
	172	+	order to protect discovery of a third-party agreement from disclosure other
	173	+	than to the parties, the parties' counsel, experts and others necessary to
	174	+	the legal claim.
	175	+	(C) Reporting of third-party agreements. (i) On and after July 1,
	176	+	2025, any third-party agreement under which a person has a contractual
	177	+	right to receive, directly or indirectly, compensation that is contingent in
	178	+	any respect on the outcome of the claim must be reported to the judicial
	179	+	council within 45 days after the commencement of an action in any Kansas
	180	+	court in which such a third-party agreement exists or within 45 days after
	181	+	such third-party agreement is entered into, whichever is later. The judicial
	182	+	council must provide the person who reported such agreement
	183	+	documentation showing that such report was made. Any third-party
	184	+	agreement that is not reported pursuant to this subparagraph is void and
	185	+	unenforceable unless such agreement relates to an action described in
	186	+	subsection (b)(3)(B)(ii)(d).
	187	+	(ii) The clerk of the supreme court shall prescribe a form for use
	188	+	under this subparagraph. Such form shall include a method of reporting
	189	+	whether the third-party agreement is a third-party agreement with a
	190	+	foreign person and any other information the clerk determines is
	191	+	necessary for the judicial council to complete the study required by
	192	+	subsection (b)(3)(D).
	193	+	(iii) Reports received pursuant to this subparagraph shall be
	194	+	confidential and shall not be subject to the provisions of the open records
	195	+	act, K.S.A. 45-215, et seq., and amendments thereto. The provisions of this
	196	+	clause shall expire on July 1, 2030, unless the legislature reviews and
	197	+	reenacts this provision pursuant to K.S.A. 45-229, and amendments
94	198		thereto.
95		-	(4) Trial preparation; materials. (A) Documents and tangible
96		-	things. Ordinarily, a party may not discover documents and tangible
97		-	things that are prepared in anticipation of litigation or for trial by or for
98		-	another party or its representative, including the other party's attorney,
99		-	consultant, surety, indemnitor, insurer or agent. But, subject to
100		-	subsection (b)(5), those materials may be discovered if:
101		-	(i) They are otherwise discoverable under paragraph (1); and
	199	+	(D) On or before July 1, 2028, the judicial council shall establish a
	200	+	committee to study the issue of third-party agreements. Such committee
	201	+	shall review all reports submitted pursuant to subsection (b)(3)(C) and
	202	+	any other information related to such agreements the committee deems
	203	+	necessary. Beginning on December 1, 2029, and each December 1
	204	+	thereafter, the judicial council shall report to the chief justice of the
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	248	+	supreme court, attorney general, house standing committee on judiciary
	249	+	and senate standing committee on judiciary on the topic of third-party
	250	+	agreements in Kansas and in other states and make recommendations on
	251	+	the use of such third-party agreements in Kansas.
	252	+	(4) Trial preparation; materials. (A) Documents and tangible things.
	253	+	Ordinarily, a party may not discover documents and tangible things that
	254	+	are prepared in anticipation of litigation or for trial by or for another party
	255	+	or its representative, including the other party's attorney, consultant, surety,
	256	+	indemnitor, insurer or agent. But, subject to subsection (b)(5), those
	257	+	materials may be discovered if:
	258	+	(i) They are otherwise discoverable under paragraph (1) subsection
	259	+	(b)(1); and
102	260		(ii) the party shows that it has substantial need for the materials to
103	261		prepare its case and cannot, without undue hardship, obtain their
104	262		substantial equivalent by other means.
105	263		(B) Protection against disclosure. If the court orders discovery of
106	264		those materials, it must protect against disclosure of the mental
107		-	impressions, conclusions, opinions or legal theories of a party's
108		-	~~attorney or~~ other representative concerning the litigation.
	265	+	impressions, conclusions, opinions or legal theories of a party's attorney or
	266	+	other representative concerning the litigation.
109	267		(C) Previous statement. Any party or other person may, on request
110	268		and without the required showing, obtain the person's own previous
111	269		statement about the action or its subject matter. If the request is refused,
112	270		the person may move for a court order, and K.S.A. 60-237, and
113	271		amendments thereto, applies to the award of expenses. A previous
114	272		statement is either:
115	273		(i) A written statement that the person has signed or otherwise
116	274		adopted or approved; or
117		-	(ii) a contemporaneous stenographic, mechanical, electrical or
118		-	~~other~~ recording, or a transcription of it, that recites substantially
119		-	~~verbatim the~~ person's oral statement. ~~Substitute for SENATE BILL No. 54—page 3~~
	275	+	(ii) a contemporaneous stenographic, mechanical, electrical or other
	276	+	recording, or a transcription of it, that recites substantially verbatim the
	277	+	person's oral statement.
120	278		(5) Trial preparation; experts.
121		-	(A) Deposition of an expert who may testify. A party may depose
122		-	~~any~~ person who has been identified as an expert whose opinions may
123		-	be presented at trial. If a disclosure is required under subsection (b)(6),
124		-	~~the~~ deposition may be conducted only after the disclosure is provided.
125		-	(B) Trial-preparation protection for draft disclosures. Subsections
126		-	~~(b)~~(4)(A) and (b)(4)(B) protect drafts of any disclosure required under
127		-	subsection (b)(6), and drafts of a disclosure by an expert witness
128		-	~~provided~~ in lieu of the disclosure required by subsection (b)(6),
129		-	~~regardless of the~~ form in which the draft is recorded.
	279	+	(A) Deposition of an expert who may testify. A party may depose any
	280	+	person who has been identified as an expert whose opinions may be
	281	+	presented at trial. If a disclosure is required under subsection (b)(6), the
	282	+	deposition may be conducted only after the disclosure is provided.
	283	+	(B) Trial-preparation protection for draft disclosures. Subsections (b)
	284	+	(4)(A) and (b)(4)(B) protect drafts of any disclosure required under
	285	+	subsection (b)(6), and drafts of a disclosure by an expert witness provided
	286	+	in lieu of the disclosure required by subsection (b)(6), regardless of the
	287	+	form in which the draft is recorded.
130	288		(C) Trial-preparation protection for communications between a
131		-	party's attorney and expert witnesses. Subsections (b)(4)(A) and (b)(4)
132		-	(B) protect communications between the party's attorney and any
133		-	witness about whom disclosure is required under subsection (b)(6),
134		-	regardless of the form of the communications, except to the extent that
135		-	the communications:
	289	+	party's attorney and expert witnesses. Subsections (b)(4)(A) and (b)(4)(B)
	290	+	protect communications between the party's attorney and any witness
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	334	+	about whom disclosure is required under subsection (b)(6), regardless of
	335	+	the form of the communications, except to the extent that the
	336	+	communications:
136	337		(i) Relate to compensation for the expert's study or testimony;
137	338		(ii) identify facts or data that the party's attorney provided and that
138	339		the expert considered in forming the opinions to be expressed; or
139		-	(iii) identify assumptions that the party's attorney provided and
140		-	~~that~~ the expert relied on in forming the opinions to be expressed.
	340	+	(iii) identify assumptions that the party's attorney provided and that
	341	+	the expert relied on in forming the opinions to be expressed.
141	342		(D) Expert employed only for trial preparation. Ordinarily, a party
142	343		may not, by interrogatories or deposition, discover facts known or
143		-	opinions held by an expert who has been retained or specially
144		-	~~employed~~ by another party in anticipation of litigation or to prepare for
145		-	~~trial and who~~ is not expected to be called as a witness at trial. But a
146		-	~~party may do so~~ only:
	344	+	opinions held by an expert who has been retained or specially employed
	345	+	by another party in anticipation of litigation or to prepare for trial and who
	346	+	is not expected to be called as a witness at trial. But a party may do so
	347	+	only:
147	348		(i) As provided in K.S.A. 60-235(b), and amendments thereto; or
148	349		(ii) on showing exceptional circumstances under which it is
149		-	impracticable for the party to obtain facts or opinions on the same
150		-	~~subject~~ by other means.
151		-	(E) Payment. Unless manifest injustice would result, the court
152		-	~~must~~ require that the party seeking discovery:
	350	+	impracticable for the party to obtain facts or opinions on the same subject
	351	+	by other means.
	352	+	(E) Payment. Unless manifest injustice would result, the court must
	353	+	require that the party seeking discovery:
153	354		(i) Pay the expert a reasonable fee for time spent in responding to
154	355		discovery under subsection (b)(5)(A) or (b)(5)(D); and
155		-	(ii) for discovery under subsection (b)(5)(D), also pay the other
156		-	party a fair portion of the fees and expenses it reasonably incurred in
157		-	obtaining the expert's facts and opinions.
158		-	(6) Disclosure of expert testimony. (A) Required disclosures. A
159		-	party must disclose to other parties the identity of any witness it may
160		-	use at trial to present expert testimony. The disclosure must state:
161		-	(i) The subject matter on which the expert is expected to testify;
162		-	and
	356	+	(ii) for discovery under subsection (b)(5)(D), also pay the other party
	357	+	a fair portion of the fees and expenses it reasonably incurred in obtaining
	358	+	the expert's facts and opinions.
	359	+	(6) Disclosure of expert testimony. (A) Required disclosures. A party
	360	+	must disclose to other parties the identity of any witness it may use at trial
	361	+	to present expert testimony. The disclosure must state:
	362	+	(i) The subject matter on which the expert is expected to testify; and
163	363		(ii) the substance of the facts and opinions to which the expert is
164	364		expected to testify.
165		-	(B) Witness who is retained or specially employed. Unless
166		-	~~otherwise~~ stipulated or ordered by the court, if the witness is retained or
167		-	~~specially~~ employed to provide expert testimony in the case, or is one
168		-	~~whose duties~~ as the party's employee regularly involve giving expert
169		-	~~testimony, the~~ disclosure under subsection (b)(6)(A) must also state a
170		-	~~summary of the~~ grounds for each opinion.
	365	+	(B) Witness who is retained or specially employed. Unless otherwise
	366	+	stipulated or ordered by the court, if the witness is retained or specially
	367	+	employed to provide expert testimony in the case, or is one whose duties
	368	+	as the party's employee regularly involve giving expert testimony, the
	369	+	disclosure under subsection (b)(6)(A) must also state a summary of the
	370	+	grounds for each opinion.
171	371		(C) Time to disclose expert testimony. A party must make these
172		-	disclosures at the times and in the sequence that the court orders.
173		-	~~Absent a~~ stipulation or court order, the disclosures must be made:
	372	+	disclosures at the times and in the sequence that the court orders. Absent a
	373	+	stipulation or court order, the disclosures must be made:
174	374		(i) At least 90 days before the date set for trial or for the case to be
175	375		ready for trial; or
176		-	(ii) if the evidence is intended solely to contradict or rebut
177		-	evidence on the same subject matter identified by another party under
178		-	subsection (b)(6)(B), within 30 days after the other party's disclosure. Substitute for SENATE BILL No. 54—page 4
179		-	(D) Supplementing the disclosure. The parties must supplement
180		-	these disclosures when required under subsection (e).
	376	+	(ii) if the evidence is intended solely to contradict or rebut evidence
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	420	+	on the same subject matter identified by another party under subsection (b)
	421	+	(6)(B), within 30 days after the other party's disclosure.
	422	+	(D) Supplementing the disclosure. The parties must supplement these
	423	+	disclosures when required under subsection (e).
181	424		(E) Form of disclosures. Unless otherwise ordered by the court, all
182	425		disclosures under this subsection must be:
183	426		(i) In writing, signed and served; and
184	427		(ii) filed with the court in accordance with K.S.A. 60-205(d), and
185	428		amendments thereto.
186		-	(7) Claiming privilege or protecting trial preparation materials.
187		-	~~(A)~~ Information withheld. When a party withholds information
188		-	~~otherwise~~ discoverable by claiming that the information is privileged or
189		-	~~subject to~~ protection as trial preparation material, the party must:
	429	+	(7) Claiming privilege or protecting trial preparation materials. (A)
	430	+	Information withheld. When a party withholds information otherwise
	431	+	discoverable by claiming that the information is privileged or subject to
	432	+	protection as trial preparation material, the party must:
190	433		(i) Expressly make the claim; and
191		-	(ii) describe the nature of the documents, communications or
192		-	~~things~~ not produced or disclosed, and do so in a manner that, without
193		-	~~revealing~~ information itself privileged or protected, will enable other
194		-	~~parties to~~ assess the claim.
	434	+	(ii) describe the nature of the documents, communications or things
	435	+	not produced or disclosed, and do so in a manner that, without revealing
	436	+	information itself privileged or protected, will enable other parties to
	437	+	assess the claim.
195	438		(B) Information produced. If information produced in discovery is
196		-	subject to a claim of privilege or of protection as trial preparation
197		-	~~material,~~ the party making the claim may notify any party that received
198		-	~~the~~ information of the claim and the basis for it. After being ~~notified, a~~
199		-	party must promptly return, sequester or destroy the specified
200		-	information and any copies it has; must not use or disclose ~~the~~
201		-	information until the claim is resolved; must take reasonable steps to
202		-	retrieve the information if the party disclosed it before being notified;
203		-	~~and~~ may promptly present the information to the court under seal for a
	439	+	subject to a claim of privilege or of protection as trial preparation material,
	440	+	the party making the claim may notify any party that received the
	441	+	information of the claim and the basis for it such claim. After being
	442	+	notified, a party must promptly return, sequester or destroy the specified
	443	+	information and any copies it has; in possession, must not use or disclose
	444	+	the information until the claim is resolved;, must take reasonable steps to
	445	+	retrieve the information if the party disclosed it before being notified; and
	446	+	may promptly present the information to the court under seal for a
204	447		determination of the claim. The producing party must preserve the
205	448		information until the claim is resolved.
206	449		(c) Protective orders. (1) In general. A party or any person from
207	450		whom discovery is sought may move for a protective order in the court
208	451		where the action is pending, as an alternative on matters relating to a
209	452		deposition, in the district court where the deposition will be taken. The
210	453		motion must include a certification that the movant has in good faith
211		-	conferred or attempted to confer with other affected parties in an effort
212		-	to resolve the dispute without court action and must describe the steps
213		-	~~taken~~ by all attorneys or unrepresented parties to resolve the issues in
214		-	~~dispute.~~ The court may, for good cause, issue an order to protect a party
215		-	~~or person~~ from annoyance, embarrassment, oppression or undue burden
216		-	~~or expense,~~ including one or more of the following:
	454	+	conferred or attempted to confer with other affected parties in an effort to
	455	+	resolve the dispute without court action and must describe the steps taken
	456	+	by all attorneys or unrepresented parties to resolve the issues in dispute.
	457	+	The court may, for good cause, issue an order to protect a party or person
	458	+	from annoyance, embarrassment, oppression or undue burden or expense,
	459	+	including one or more of the following:
217	460		(A) Forbidding the disclosure or discovery;
218	461		(B) specifying terms, including time and place or the allocation of
219	462		expenses, for the disclosure or discovery;
220		-	(C) prescribing a discovery method other than the one selected by
221		-	the party seeking discovery;
222		-	(D) forbidding inquiry into certain matters, or limiting the scope
223		-	of disclosure or discovery to certain matters;
224		-	(E) designating the persons who may be present while the
225		-	discovery is conducted;
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	506	+	(C) prescribing a discovery method other than the one selected by the
	507	+	party seeking discovery;
	508	+	(D) forbidding inquiry into certain matters, or limiting the scope of
	509	+	disclosure or discovery to certain matters;
	510	+	(E) designating the persons who may be present while the discovery
	511	+	is conducted;
226	512		(F) requiring that a deposition be sealed and opened only on court
227	513		order;
228	514		(G) requiring that a trade secret or other confidential research,
229	515		development or commercial information not be revealed or be revealed
230	516		only in a specified way; and
231		-	(H) requiring that the parties simultaneously file specified
232		-	documents or information in sealed envelopes, to be opened as the
233		-	court orders.
234		-	(2) Ordering discovery. If a motion for a protective order is wholly
235		-	or partly denied the court may, on just terms, order that any party or
236		-	person provide or permit discovery.
237		-	(3) Awarding expenses. The provisions of K.S.A. 60-237, and Substitute for SENATE BILL No. 54—page 5
	517	+	(H) requiring that the parties simultaneously file specified documents
	518	+	or information in sealed envelopes, to be opened as the court orders.
	519	+	(2) Ordering discovery. If a motion for a protective order is wholly or
	520	+	partly denied the court may, on just terms, order that any party or person
	521	+	provide or permit discovery.
	522	+	(3) Awarding expenses. The provisions of K.S.A. 60-237, and
238	523		amendments thereto, apply to the award of expenses.
239	524		(d) Sequence of discovery. Unless the parties stipulate or the court
240	525		orders otherwise for the parties' and witnesses' convenience and in the
241	526		interests of justice:
242	527		(1) Methods of discovery may be used in any sequence; and
243		-	(2) discovery by one party does not require any other party to
244		-	~~delay~~ its discovery.
245		-	(e) Supplementing disclosures and responses. (1) In general. A
246		-	~~party~~ who has made a disclosure under subsection (b)(6), or who has
247		-	~~responded~~ to an interrogatory, request for production or request for
248		-	~~admission, must~~ supplement or correct its disclosure or response:
	528	+	(2) discovery by one party does not require any other party to delay
	529	+	its discovery.
	530	+	(e) Supplementing disclosures and responses. (1) In general. A party
	531	+	who has made a disclosure under subsection (b)(6), or who has responded
	532	+	to an interrogatory, request for production or request for admission, must
	533	+	supplement or correct its disclosure or response:
249	534		(A) In a timely manner if the party learns that in some material
250	535		respect the disclosure or response is incomplete or incorrect, and if the
251		-	additional or corrective information has not otherwise been made
252		-	~~known~~ to the other parties during the discovery process or in writing; or
	536	+	additional or corrective information has not otherwise been made known
	537	+	to the other parties during the discovery process or in writing; or
253	538		(B) as ordered by the court.
254		-	(2) Expert witness. For an expert to whom the disclosure
255		-	requirement in subsection (b)(6) applies, the party's duty to supplement
256		-	extends both to information included in the disclosure and to
257		-	information given during the expert's deposition. Any additions or
258		-	changes to this information must be disclosed at least 30 days before
259		-	trial, unless the court orders otherwise.
	539	+	(2) Expert witness. For an expert to whom the disclosure requirement
	540	+	in subsection (b)(6) applies, the party's duty to supplement extends both to
	541	+	information included in the disclosure and to information given during the
	542	+	expert's deposition. Any additions or changes to this information must be
	543	+	disclosed at least 30 days before trial, unless the court orders otherwise.
260	544		(f) Signing disclosures and discovery requests, responses and
261	545		objections. (1) Signature required; effect of signature. Every disclosure
262		-	under subsection (b)(6) and every discovery request, response or
263		-	objection must be signed by at least one attorney of record in the
264		-	attorney's own name, or by the party personally, if unrepresented, and
265		-	must state the signor's address, e-mail address and telephone number.
266		-	By signing, an attorney or party certifies that to the best of the person's
267		-	knowledge, information and belief formed after a reasonable inquiry:
268		-	(A) With respect to a disclosure, it is complete and correct as of
269		-	the time it is made;
	546	+	under subsection (b)(6) and every discovery request, response or objection
	547	+	must be signed by at least one attorney of record in the attorney's own
	548	+	name, or by the party personally, if unrepresented, and must state the
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	592	+	signor's address, e-mail address and telephone number. By signing, an
	593	+	attorney or party certifies that to the best of the person's knowledge,
	594	+	information and belief formed after a reasonable inquiry:
	595	+	(A) With respect to a disclosure, it is complete and correct as of the
	596	+	time it is made;
270	597		(B) with respect to a discovery request, response or objection, it is:
271	598		(i) Consistent with the rules of civil procedure and warranted by
272	599		existing law or by a nonfrivolous argument for extending, modifying or
273	600		reversing existing law or for establishing new law;
274		-	(ii) not interposed for any improper purpose, such as to harass,
275		-	cause unnecessary delay or needlessly increase the cost of litigation;
276		-	and
	601	+	(ii) not interposed for any improper purpose, such as to harass, cause
	602	+	unnecessary delay or needlessly increase the cost of litigation; and
277	603		(iii) neither unreasonable nor unduly burdensome or expensive
278		-	considering the needs of the case, prior discovery in the case, the
279		-	amount in controversy and the importance of the issues at stake in the
280		-	action.
281		-	(2) Failure to sign. Other parties have no duty to act on an
282		-	unsigned disclosure, request, response or objection until it is signed,
283		-	and the court must strike it unless a signature is promptly supplied after
284		-	the omission is called to the attorney's or party's attention.
285		-	(3) Sanction for improper certification. If a certification violates
286		-	this section without substantial justification, the court, on motion, or on
287		-	its own, must impose an appropriate sanction on the signer, the party on
288		-	whose behalf the signer was acting, or both. The sanction may include
289		-	an order to pay the reasonable expenses, including attorney's fees,
290		-	caused by the violation.
291		-	(g) Definitions. As used in this section:
292		-	(1) "Foreign country of concern" means any foreign adversary as
293		-	such term is defined by 15 C.F.R. § 7.4, as in effect on July 1, 2025,
294		-	and any organization that is designated as a foreign terrorist
295		-	organization as of July 1, 2025, pursuant to 8 U.S.C. § 1189, as in
296		-	effect on July 1, 2025. Substitute for SENATE BILL No. 54—page 6
297		-	(2) "Foreign person" means:
298		-	(A) An individual that is not a citizen of the United States or an
299		-	alien lawfully admitted for permanent residence in the United States;
300		-	(B) an unincorporated association when a majority of the
301		-	members are not citizens of the United States or aliens lawfully
302		-	admitted for permanent residence in the United States;
	604	+	considering the needs of the case, prior discovery in the case, the amount
	605	+	in controversy and the importance of the issues at stake in the action.
	606	+	(2) Failure to sign. Other parties have no duty to act on an unsigned
	607	+	disclosure, request, response or objection until it is signed, and the court
	608	+	must strike it unless a signature is promptly supplied after the omission is
	609	+	called to the attorney's or party's attention.
	610	+	(3) Sanction for improper certification. If a certification violates this
	611	+	section without substantial justification, the court, on motion, or on its
	612	+	own, must impose an appropriate sanction on the signer, the party on
	613	+	whose behalf the signer was acting, or both. The sanction may include an
	614	+	order to pay the reasonable expenses, including attorney's fees, caused by
	615	+	the violation.
	616	+	(g) As used in this section:
	617	+	(1) "Foreign person" means:
	618	+	(A) An individual that is not a citizen of the United States or an alien
	619	+	lawfully admitted for permanent residence in the United States;
	620	+	(B) an unincorporated association when a majority of the members
	621	+	are not citizens of the United States or aliens lawfully admitted for
	622	+	permanent residence in the United States;
303	623		(C) a corporation that is not incorporated in the United States;
304		-	(D) a government, political subdivision or political party of a
305		-	~~country~~ other than the United States;
306		-	(E) an entity that is organized under the laws of a ~~county~~ other
307		-	~~than~~ the United States;
308		-	(F) an entity that has a principal place of business in a country
309		-	~~other~~ than the United States and has shares or other ownership interest
310		-	~~held by~~ the government or a government official of a country other
311		-	~~than the~~ United States; or
	624	+	(D) a government, political subdivision or political party of a county
	625	+	other than the United States;
	626	+	(E) an entity that is organized under the laws of a country other than
	627	+	the United States;
	628	+	(F) an entity that has a principal place of business in a country other
	629	+	than the United States and has shares or other ownership interest held by
	630	+	the government or a government official of a country other than the
	631	+	United States; or
312	632		(G) an organization in which any person or entity described in
313		-	subsections (g)(2)(A) through (g)(2)(F) holds a controlling or majority
	633	+	subsections (g)(1)(A) through (g)(1)(F) holds a controlling or majority
314	634		interest or in which the holdings of any such persons or entities,
315		-	considered together, would constitute a controlling majority interest.
316		-	(3) "Reasonable interest" means a total interest not greater than
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	678	+	considered together, would constitute a controlling or majority interest.
	679	+	(2) "Reasonable interest" means a total interest not greater than
317	680		11.1% of the principal.
318		-	(4) "Third-party litigation funding agreement" means any
319		-	agreement under which any person, other than a party, an attorney
320		-	representing the party, such attorney's firm or a member of the family
321		-	or household of a party has agreed to pay expenses directly related to
322		-	prosecuting the legal claim and has a contractual right to receive
323		-	compensation that is contingent in any respect on the outcome of the
324		-	claim. "Third-party litigation funding agreement" does not include an
325		-	agreement that does not afford the nonparty agreeing to pay legal
326		-	expenses any profit from the legal claim beyond repayment of the
	681	+	(3) "Third-party agreement" means any agreement under which any
	682	+	person, other than a party, an attorney representing the party, such
	683	+	attorney's firm or a member of the family or household of a party has
	684	+	agreed to pay expenses directly related to prosecuting the legal claim and
	685	+	has a contractual right to receive compensation that is contingent in any
	686	+	respect on the outcome of the claim. "Third-party agreement" does not
	687	+	include an agreement that does not afford the nonparty agreeing to pay
	688	+	legal expenses any profit from the legal claim beyond repayment of the
327	689		amount such nonparty has contractually agreed to provide plus
328	690		reasonable interest.
329		-	(h) The provisions of subsection (b)(3)(B) are severable. If any
330		-	portion of such subsection is held by a court to be unconstitutional or
331		-	invalid, or the application of any portion of such subsection to any
332		-	person or circumstance is held by a court to be unconstitutional or
333		-	invalid, the invalidity shall not affect the other portions of such
334		-	subsection that can be given effect without the invalid portion or
335		-	application, and the applicability of such other portions of such
336		-	subsection to any person or circumstance remains valid and
337		-	enforceable.
338		-	Sec. 2. K.S.A. 2024 Supp. 60-226 is hereby repealed. Substitute for SENATE BILL No. 54—page 7
	691	+	(h) The provisions of subsections (b)(3)(B), (b)(3)(C) and (b)(3)(D)
	692	+	are severable. If any portion of such subsections is held by a court to be
	693	+	unconstitutional or invalid, or the application of any portion of such
	694	+	subsections to any person or circumstance is held by a court to be
	695	+	unconstitutional or invalid, the invalidity shall not affect the other
	696	+	portions of such subsections that can be given effect without the invalid
	697	+	portion or application, and the applicability of such other portions of such
	698	+	subsection to any person or circumstance remains valid and enforceable.
	699	+	Sec. 2. K.S.A. 2024 Supp. 60-226 is hereby repealed.
339	700		Sec. 3. This act shall take effect and be in force from and after its
340	701		publication in the statute book.
341		-	I hereby certify that the above BILL originated in the
342		-	SENATE, and passed that body
343		-	__________________________
344		-	SENATE concurred in
345		-	HOUSE amendments _______________________
346		-	_________________________
347		-	President of the Senate.
348		-	_________________________
349		-	Secretary of the Senate.
350		-
351		-	Passed the HOUSE
352		-	as amended _________________________
353		-	_________________________
354		-	Speaker of the House.
355		-	_________________________
356		-	Chief Clerk of the House.
357		-	APPROVED _____________________________
358		-	_________________________
359		-	Governor.
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