38-511. Cancellation of political subdivision
and state contracts; definition
A. The state, its political subdivisions or any department or agency of either may,
within three years after its execution, cancel any contract, without penalty or further
obligation, made by the state, its political subdivisions, or any of the departments or
agencies of either if any person significantly involved in initiating, negotiating,
securing, drafting or creating the contract on behalf of the state, its political
subdivisions or any of the departments or agencies of either is, at any time while the
contract or any extension of the contract is in effect, an employee or agent of any other
party to the contract in any capacity or a consultant to any other party of the contract
with respect to the subject matter of the contract.
B. Leases of state trust land for terms longer than ten years cancelled under this
section shall respect those rights given to mortgagees of the lessee by section 37-289
and other lawful provisions of the lease.
C. The cancellation under this section by the state or its political subdivisions
shall be effective when written notice from the governor or the chief executive officer
or governing body of the political subdivision is received by all other parties to the
contract unless the notice specifies a later time.
D. The cancellation under this section by any department or agency of the state or
its political subdivisions shall be effective when written notice from such party is
received by all other parties to the contract unless the notice specifies a later time.
E. In addition to the right to cancel a contract as provided in subsection A of
this section, the state, its political subdivisions or any department or agency of either
may recoup any fee or commission paid or due to any person significantly involved in
initiating, negotiating, securing, drafting or creating the contract on behalf of the
state, its political subdivisions or any department or agency of either from any other
party to the contract arising as the result of the contract.
F. Notice of this section shall be included in every contract to which the state,
its political subdivisions, or any of the departments or agencies of either is a party.
G. For purposes of this section, "political subdivisions" do not include entities
formed or operating under title 48, chapter 11, 12, 13, 17, 18, 19 or 22.
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