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chapter-50•Chapter 50 — Unfair Trade and Consumer Protection
chapter-50K.S.A. ch. 50Code01.01.1900
Unofficial online text published by the Kansas Office of Revisor of Statutes; the printed volumes of the Kansas Statutes Annotated are the authoritative version. Current through the 2025 session laws.
Except as provided in K.S.A. 50-163, and amendments thereto, a trust is a combination of capital, skill, or acts, by two or more persons, for either, any or all of the following purposes:
First.
To create or carry out restrictions in trade or commerce, or to carry out restrictions in the full and free pursuit of any business authorized or permitted by the laws of this state.
Second.
To increase or reduce the price of merchandise, produce or commodities, or to control the cost or rates of insurance.
Third.
To prevent competition in the manufacture, making, transportation, sale or purchase of merchandise, produce or commodities.
Fourth.
To fix any standard or figure, whereby such person's price to the public shall be, in any manner, controlled or established, any article or commodity of merchandise, produce or commerce intended for sale, use or consumption in this state.
Fifth.
To make or enter into, or execute or carry out, any contract, obligation or agreement of any kind or description by which such person shall: (a) Bind or have to bind themselves not to sell, manufacture, dispose of or transport any article or commodity, or article of trade, use, merchandise, commerce or consumption below a common standard figure;
(b) agree in any manner to keep the price of such article, commodity or transportation at a fixed or graded figure;
(c) in any manner establish or settle the price of any article or commodity or transportation between them or themselves and others to preclude a free and unrestricted competition among themselves or others in transportation, sale or manufacture of any such article or commodity; or
(d) agree to pool, combine or unite any interest they may have in connection with the manufacture, sale or transportation of any such article or commodity, that such person's price in any manner is affected. Any such combinations are hereby declared to be against public policy, unlawful and void.
History: L. 1897, ch. 265, § 1; R.S. 1923, 50-101; L. 2000, ch. 136, § 4; L. 2013, ch. 102, § 2; April 18.
All persons within this state are hereby denied the right to form or to be in any manner interested, either directly or indirectly, as principal, agent, representative, consignee or otherwise, in any trust as defined in K.S.A. 50-101, and amendments thereto.
History: L. 1897, ch. 265, § 2; R.S. 1923, 50-102; L. 2000, ch. 136, § 5; July 1.
(a) The attorney general may bring an action:
(1) To obtain a declaratory judgment that an act or practice violates this act;
(2) to obtain a temporary restraining order prohibiting violations of this act;
(3) to enjoin violations of this act;
(4) to recover reasonable expenses and investigation fees;
(5) to obtain civil penalties as authorized by this act;
(6) to forfeit the charter and for the dissolution of the corporate existence of any corporation holding a charter under the laws of the state of Kansas;
(7) to enjoin any person, within or without this state, which has violated or is violating this act, and their officers, agents, representatives or consignees, from doing business within this state, either directly or indirectly;
(8) to recover actual damages on behalf of any person or persons by reason of violations of this act; or
(9) to void any contract or agreement in violation of any of the provisions of this act.
(b) In any action brought by the attorney general, the court may without requiring bond of the attorney general:
(1) Make such orders or judgments as may be necessary to prevent violations of this act;
(2) make such orders or judgments as may be necessary to enforce any remedy available to the attorney general; or
(3) grant other appropriate relief.
History: L. 1897, ch. 265, § 3; R.S. 1923, 50-103; L. 2000, ch. 136, § 6; July 1.
History: L. 1897, ch. 265, § 4; R.S. 1923, 50-104; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1897, ch. 265, § 5; R.S. 1923, 50-105; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1897, ch. 265, § 6; R.S. 1923, 50-106; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1897, ch. 265, § 7; R.S. 1923, 50-107; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1897, ch. 265, § 8; R.S. 1923, 50-108; L. 1985, ch. 181, § 2; L. 2000, ch. 136, § 7; Repealed, L. 2013, ch. 102, § 7; April 18.
The attorney general shall:
(a) Enforce this act throughout the state;
(b) cooperate with state and local officials, officials of other states and officials of the federal government in the administration of comparable statutes;
(c) maintain a public file of final judgments rendered under this act that have been either reported officially or made available for public dissemination under subsection (a)(3) of K.S.A. 50-630, and amendments thereto, and of consent judgments; and
(d) include in the report required by subsection (a)(6) of K.S.A. 50-628, and amendments thereto, a statement of the investigatory and enforcement procedures and policies of the attorney general's office, of the number of investigations and enforcement proceedings instituted and of their disposition, and of the other activities of the office and of other persons to carry out the purposes of this act.
History: L. 1897, ch. 265, § 9; R.S. 1923, 50-109; L. 2000, ch. 136, § 8; July 1.
(a) Jurisdiction. For the purpose of enforcing this act, the courts of this state shall have power to exercise jurisdiction over persons to the maximum extent permitted by the constitution of the United States.
(b) Venue. Every action pursuant to this act shall be brought in the district court of any county in which there occurred an act or practice declared to be a violation of this act or in the district court of Shawnee county.
History: L. 1897, ch. 265, § 10; R.S. 1923, 50-110; L. 2000, ch. 136, § 9; July 1.
History: L. 1897, ch. 265, § 11; R.S. 1923, 50-111; Repealed, L. 1951, ch. 325, § 1; June 30.
Except as provided in K.S.A. 50-163, and amendments thereto, all arrangements, contracts, agreements, trusts, or combinations between persons made with a view or which tend to prevent full and free competition in the importation, transportation or sale of articles imported into this state, or in the product, manufacture or sale of articles of domestic growth or product of domestic raw material, or for the loan or use of money, or to fix attorney or doctor fees, and all arrangements, contracts, agreements, trusts or combinations between persons, designed or which tend to advance, reduce or control the price or the cost to the producer or to the consumer of any such products or articles, or to control the cost or rate of insurance, or which tend to advance or control the rate of interest for the loan or use of moneys to the borrower, or any other services, are hereby declared to be against public policy, unlawful and void.
History: L. 1889, ch. 257, § 1; R.S. 1923, 50-112; L. 2000, ch. 136, § 10; L. 2013, ch. 102, § 3; April 18.
It shall be unlawful for any corporation to issue or to own trust certificates, other than the regularly and lawfully authorized stock thereof, or for any corporation, agent, officer or employees, or the directors or stockholders of any corporation, to enter into any combination, contract or agreement with any person or persons, or with any stockholder or director thereof, the purpose and effect of which combination, contract or agreement shall be to place the management or control of such combination or combinations, or the manufactured product thereof, in the hands of any trustee or trustees, with the intent to limit or fix the price or lessen the production and sale of any article of commerce, use or consumption, or to prevent, restrict or diminish the manufacture or output of any such article.
History: L. 1889, ch. 257, § 2; R.S. 1923, 50-113; L. 2000, ch. 136, § 11; July 1.
History: L. 1889, ch. 257, § 3; R.S. 1923, 50-114; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1889, ch. 257, § 4; R.S. 1923, 50-115; L. 1985, ch. 181, § 3; L. 2000, ch. 136, § 12; Repealed, L. 2013, ch. 102, § 7; April 18.
When an action at law or suit in equity shall be commenced in any court of this state, it shall be lawful in the defense thereof to plead in bar or in abatement that the plaintiff or any other person interested in the prosecution of the case is a member or agent of an unlawful combination as described in K.S.A. 50-112 and 50-113, or that the cause of action grows out of such combination, or out of some business or transaction thereof.
History: L. 1889, ch. 257, § 5; March 9; R.S. 1923, 50-116.
The purchase, sale or manufacture of any goods, wares, merchandise or other commodities in this state by any person who has entered into any such arrangements, contracts, agreements, trusts or combinations in any other state or territory, as described in K.S.A. 50-112 and 50-113, and amendments thereto, or the purchase, sale or manufacture of any such articles by any agent or attorney for such person, or as an agent, officer or stockbroker of any such corporation, as a trustee, committee, or in any capacity whatever, shall constitute a violation of this act, and shall subject the offender to the liabilities and penalties as provided by this act.
History: L. 1889, ch. 257, § 6; R.S. 1923, 50-117; L. 2000, ch. 136, § 13; July 1.
History: L. 1889, ch. 257, § 7; R.S. 1923, 50-118; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1889, ch. 257, § 8; R.S. 1923, 50-119; L. 1974, ch. 446, § 20; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1889, ch. 257, § 9; R.S. 1923, 50-120; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1899, ch. 77, § 1; R.S. 1923, 50-121; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1899, ch. 77, § 2; L. 1909, ch. 121, § 1; R.S. 1923, 50-122; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 121, § 2; R.S. 1923, 50-123; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 121, § 3; R.S. 1923, 50-124; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 121, § 4; R.S. 1923, 50-125; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 121, § 5; R.S. 1923, 50-126; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 121, § 6; R.S. 1923, 50-127; L. 1990, ch. 309, § 34; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1899, ch. 77, § 3; L. 1909, ch. 121, § 7; R.S. 1923, 50-128; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 121, § 8; R.S. 1923, 50-129; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1899, ch. 77, § 4; R.S. 1923, 50-130; Repealed, L. 2000, ch. 136, § 28; July 1.
No person doing business in Kansas shall make any agreement, expressed or implied, or by any understanding or combination with any person, within or without the state, by which any shipper of seeds, grains, hay or livestock is defrauded out of any portion of the net weight of any consignment of grain, seeds, hay or livestock. All such agreements or combinations are hereby declared to be in violation of this act.
History: L. 1899, ch. 293, § 1; R.S. 1923, 50-131; L. 2000, ch. 136, § 14; July 1.
No person, servant, agent or employee of any person doing business within the state of Kansas shall conspire or combine with any other persons, within or without the state for the purpose of monopolizing any line of business, or shall conspire or combine for the purpose of preventing the producer of grain, seeds or livestock or hay, or the local buyer thereof, from shipping or marketing the same without the agency of any third person.
History: L. 1899, ch. 293, § 2; R.S. 1923, 50-132; L. 2000, ch. 136, § 15; July 1.
No person, as agent or employee of any person, shall enter into an agreement, expressed or implied, by which it is stipulated that grain, seeds or hay shall not be shipped by the producer or local buyer unless accompanied with warehouse receipts or that the same shall in any manner be under the control of any warehouseman or agent as a condition precedent to the marketing of such grain. All such agreements shall be deemed and are hereby declared unlawful and in violation of this act.
History: L. 1899, ch. 293, § 3; R.S. 1923, 50-133; L. 2000, ch. 136, § 16; July 1.
History: L. 1899, ch. 293, § 4; R.S. 1923, 50-134; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1899, ch. 293, § 5; R.S. 1923, 50-135; Repealed, L. 1973, ch. 216, § 2; July 1.
It shall be unlawful for any grain dealer or grain dealers or any other person or persons, to enter into any agreement, contract or combination with any other grain dealer or grain dealers or any other person or persons, for the pooling of prices of different and competing dealers and buyers, or to divide between them the aggregate or net proceeds of the earnings of such dealers and buyers, or any portion thereof, or for fixing the price which any grain dealer or grain dealers or any other person or persons, shall pay for grain, hogs, cattle, or stock of any kind or nature whatever. In case of any agreement, contract or combination of such pooling of prices of different and competing dealers and buyers, or to divide between them the aggregate or net proceeds of the earnings of such dealers and buyers, or any portion thereof, or for fixing the price which any grain dealer or grain dealers or any other person or persons, shall pay for grain, hogs, cattle, or stock of any kind or nature whatever, each day of its continuance shall be deemed a separate offense.
History: L. 1887, ch. 175, § 1; R.S. 1923, 50-136; L. 2000, ch. 136, § 17; July 1.
In case any grain dealer or dealers or any person or persons subject to the provisions of this act, shall do or cause to be done or permit to be done any act, matter or thing in this act prohibited or declared to be unlawful, or shall omit to do any act, matter or thing in this act required to be done, such grain dealer or grain dealers or any other person or persons shall be liable to the person or persons injured thereby to the full amount of damages sustained in consequence of any such violation of the provisions of this act, together with reasonable attorney fees, to be fixed by the court in every case of recovery, which attorney fees shall be taxed and collected as a part of the costs in the case.
History: L. 1887, ch. 175, § 2; R.S. 1923, 50-137; L. 2000, ch. 136, § 18; July 1.
History: L. 1887, ch. 175, § 3; R.S. 1923, 50-138; Repealed, L. 2000, ch. 136, § 28; July 1.
All actions brought to enforce this act shall be brought pursuant to chapter 60 of the Kansas Statutes Annotated, and amendments thereto.
History: L. 1907, ch. 259, § 1; R.S. 1923, 50-139; L. 2000, ch. 136, § 19; July 1.
History: L. 1907, ch. 259, §§ 2 to 6; R.S. 1923, §§ 50-140 to 50-144; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 261, § 1; R.S. 1923, 50-145; Repealed, L. 2000, ch. 136, § 28; July 1.
History: L. 1909, ch. 261, § 2; R.S. 1923, 50-146; Repealed, L. 2000, ch. 136, § 28; July 1.
The rights and remedies given by this act shall be construed as cumulative of all other laws in force in this state, and shall not affect, change or repeal any other remedies or rights now existing in this state for the enforcement, payment or collection of fines, penalties and forfeitures.
History: L. 1909, ch. 261, § 3; April 2; R.S. 1923, 50-147.
As used in this act: (a) "Trade" means the business of buying or selling any commodity of general use within the state; and
(b) "person" or "persons" includes individuals, corporations, limited liability companies, general partnerships, limited partnerships, firms, companies, voluntary associations and other associations or business entities, existing under or authorized by the state of Kansas, or the laws of any other state, territory, or foreign country. The provisions of this act shall not apply to persons whose business is under the supervision and control of the state corporation commission or the banking department.
History: L. 1915, ch. 368, § 1; R.S. 1923, 50-148; L. 2000, ch. 136, § 20; July 1.
Any person, foreign or domestic, doing business in the state of Kansas, and engaged in the production, manufacture, distribution, sale or purchase of any commodity in general use, that shall intentionally for the purpose of destroying competition, discriminate between the different sections, communities, or cities of this state, by buying at a higher rate or selling at a lower rate, any such commodity, in one section, community or city, or any portion thereof, than is charged or paid for such commodity in other section, community, or city, after equalizing the distance from the point of production to the factory, for distribution, and freight rates therefrom, shall be in violation with the provisions of this act.
History: L. 1915, ch. 368, § 2; R.S. 1923, 50-149; L. 2000, ch. 136, § 21; July 1.
History: L. 1915, ch. 368, §§ 3 to 5; R.S. 1923, 50-150 to 50-152; Repealed, L. 2000, ch. 136, § 28; July 1.
(a) Whenever the attorney general has reason to believe that any provision of this act has been violated or that any announced conduct of two or more business entities, announced by an authorized agent of one such business entity in which the combined annual gross sales of such business entities involved exceed $500,000,000, will substantially lessen competition or tend to create a monopoly in violation of this act, the attorney general, or any deputy attorney general or assistant attorney general, may:
(1) Administer oaths and affirmations;
(2) subpoena witnesses or matter, propound written questions to be answered under oath;
(3) take testimony under oath;
(4) examine or cause to be examined any documentary material of whatever nature relevant to such alleged violations; and
(5) collect evidence.
(b) The attorney general may designate representatives, including officials of the state in which the matter is located, to inspect the matter on the attorney general's behalf, and the attorney general may respond to similar requests from officials of other states.
(c) Service by the attorney general of any subpoena shall be made by:
(1) The mailing thereof by certified mail to the last known place of business, residence or abode within or without this state; or
(2) in the manner provided in the code of civil procedure as if a petition has been filed.
(d) The attorney general may request that an individual who refuses to comply with a subpoena, on the ground that testimony or matter may incriminate the individual, be ordered by the court to provide the testimony or matter. Except in a prosecution for perjury, an individual who complies with a court order to provide testimony or matter after asserting a privilege against self-incrimination to which the individual is entitled by law, may not be subjected to a criminal proceeding or to a civil penalty to the transaction concerning which the individual is required to testify or produce relevant matter.
(e) If any person willfully fails or refuses to obey any subpoena issued by the attorney general pursuant to this act, the attorney general, after notice, may apply to the district court, and, after a hearing thereon, the district court may issue an order:
(1) Granting injunctive relief restraining the sale or advertisement of any merchandise or services by such persons;
(2) vacating, annulling or suspending the corporate charter of a corporation created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to the person which are used to further the allegedly unlawful practice; or
(3) granting such other relief as may be required, until the person obeys the subpoena.
History: L. 1919, ch. 316, § 1; R.S. 1923, 50-153; L. 1973, ch. 134, § 45; L. 2000, ch. 136, § 22; July 1.
History: L. 1919, ch. 316, §§ 2–4; R.S. 1923, 50-154–56; Repealed, L. 2000, ch. 136, § 28; July 1.
In any action or proceeding for violation of the antitrust, discrimination in restraint of trade or unfair competition laws of this state, proof that the act complained of was done in compliance with the provisions of any code, agreement, license, rule or regulation in effect under the terms of the national industrial recovery act or the federal agricultural adjustment act, to which the defendant was a party at the time of such act, shall be a complete defense to such action or proceeding.
History: L. 1933, ch. 78, § 1 (Special Session); L. 2000, ch. 136, § 23; July 1.
The provisions of K.S.A. 50-101 through 50-162 and 50-163, and amendments thereto, may be cited as the Kansas restraint of trade act.
History: L. 2000, ch. 136, § 1; L. 2013, ch. 102, § 4; April 18.
The attorney general may conduct research, hold public hearings, make inquiries and publish studies relating to antitrust, monopolies, combinations and other subjects relating to restraint of trade.
History: L. 2000, ch. 136, § 2; July 1.
(a) The commission of any act or practice declared to be a violation of the Kansas restraint of trade act shall render the violator liable to the state for the payment of a civil penalty in a sum set by the court of not less than $100 nor more than $5,000 for each day such violation shall have occurred.
(b) Any person who willfully violates the terms of any court order issued pursuant to the Kansas restraint of trade act shall forfeit and pay a civil penalty of not more than $10,000 per violation, in addition to other penalties that may be imposed by the court, as the court shall deem necessary and proper. For the purposes of this section, the district court issuing an order shall retain jurisdiction, and in such cases, the attorney general may petition for recovery of civil penalties.
History: L. 2000, ch. 136, § 3; July 1.
(a) As used in this section, the term "person" means any individual, corporation, partnership, firm, company or other association of persons, and such term shall include the state of Kansas and any of its political subdivisions.
(b) Except as provided in K.S.A. 12-205, and amendments thereto, any person who may be damaged or injured by any agreement, monopoly, trust, conspiracy or combination which is declared unlawful by the Kansas restraint of trade act shall have a cause of action against any person causing such damage or injury. Such action may be brought by any person who is injured in such person's business or property by reason of anything forbidden or declared unlawful by the Kansas restraint of trade act, regardless of whether such injured person dealt directly or indirectly with the defendant. The plaintiff in any action commenced hereunder in the district court of the county wherein such plaintiff resides, or the district court of the county of the defendant's principal place of business, may sue for and recover treble the actual damages sustained. In addition, any person who is threatened with injury or additional injury by reason of any person's violation of the Kansas restraint of trade act may commence an action in such district court to enjoin any such violation, and any damages suffered may be sued for and recovered in the same action in addition to injunctive relief. Any suit for injunctive relief against a municipality shall be subject to the provisions of K.S.A. 12-205, and amendments thereto.
(c) In any action commenced under this section, the plaintiff may be allowed reasonable attorney fees and costs. The remedies provided herein shall be alternative and in addition to any other remedies now provided by law.
History: L. 2000, ch. 136, § 24; L. 2013, ch. 102, § 5; April 18.
Whenever it appears to the attorney general that the state of Kansas or any city, town, political subdivision or other governmental agency, body or authority established under the laws of the state of Kansas has been so injured or damaged by any conspiracy, combination or agreement in restraint of trade or commerce or similar unlawful actions, as to entitle the state of Kansas, a city, a town, or political subdivision, or other such governmental agency, body or authority to a right to bring any action or proceeding for the recovery of damages under the provisions of any state or federal antitrust or other similar law, the attorney general shall have the authority to institute and prosecute any such actions or proceedings on behalf of the state of Kansas or of any city, town, or political subdivision, or other governmental agency, body or authority established under the law of the state of Kansas, and shall have the authority to intervene on behalf of the state of Kansas or any city, town, political subdivision or other governmental agency, body or authority in such actions or proceedings.
History: L. 2000, ch. 136, § 25; July 1.
(a) The purpose of this section, and the amendments to K.S.A. 50-101, 50-112, 50-158 and 50-161 by chapter 102 of the 2013 Session Laws of Kansas, is to clarify and reduce any uncertainty or ambiguity as to the application of the Kansas restraint of trade act and applicable evidentiary standards to certain types of business contracts, agreements and arrangements that are not intended to unreasonably restrain trade or commerce and do not contravene public welfare.
(b) Except as otherwise provided in subsections (d) and (e), the Kansas restraint of trade act shall be construed in harmony with ruling judicial interpretations of federal antitrust law by the United States supreme court. If such judicial interpretations are in conflict with or inconsistent with the express provisions of subsection (c), the provisions of subsection (c) shall control. If a covenant that is not presumed to be enforceable pursuant to subsection (c) is determined to be overbroad or otherwise not reasonably necessary to protect a business interest of the business entity seeking enforcement of the covenant, the court shall modify the covenant, enforce the covenant as modified and grant only the relief reasonably necessary to protect such interests.
(c) (1) An arrangement, contract, agreement, trust, understanding or combination shall not be deemed a trust pursuant to the Kansas restraint of trade act and shall not be deemed unlawful, void, prohibited or wrongful under any provision of the Kansas restraint of trade act if that arrangement, contract, agreement, trust, understanding or combination is a reasonable restraint of trade or commerce. An arrangement, contract, agreement, trust, understanding or combination is a reasonable restraint of trade or commerce if such restraint is reasonable in view of all of the facts and circumstances of the particular case and does not contravene public welfare.
(2) A covenant in writing in which an owner agrees to not solicit, recruit, induce, persuade, encourage, direct or otherwise interfere with, directly or indirectly, one or more employees or owners of a business entity for the purpose of interfering with the employment or ownership relationship of such employees or owners shall be conclusively presumed to be enforceable and not a restraint of trade if the covenant is between a business entity and an owner of the business entity and the covenant does not continue for more than four years following the end of the owner's business relationship with the business entity.
(3) A covenant in writing in which an owner agrees to not solicit, induce, persuade, encourage, service, direct or otherwise interfere with, directly or indirectly, a business entity's customers, including any reduction, termination, acceptance or transfer of any customer's business, in whole or in part, for the purpose of providing any product or service that is competitive with those provided by the business entity shall be conclusively presumed to be enforceable and not a restraint of trade if the covenant is limited to material contact customers and the covenant does not continue for more than four years following the end of the owner's business relationship with the business entity.
(4) A covenant in writing in which an employee of a business entity agrees to not solicit, recruit, induce, persuade, encourage, direct or otherwise interfere with, directly or indirectly, one or more employees or owners of a business entity for the purpose of interfering with the employment or ownership relationship of such employees or owners shall be conclusively presumed to be enforceable and not a restraint of trade if the covenant is between an employer and one or more employees and the covenant:
(A) Seeks, on the part of the employer, to protect confidential or trade secret business information or customer or supplier relationships, goodwill or loyalty; or
(B) does not continue for more than two years following the employee's employment.
(5) A covenant in writing in which an employee agrees not to solicit, recruit, induce, persuade, encourage, direct or otherwise interfere with, directly or indirectly, a business entity's customers, including any reduction, termination, acceptance or transfer of any customer's business, in whole or in part, for the purpose of providing any product or service that is competitive with those provided by the employer shall be conclusively presumed to be enforceable and not a restraint of trade if the covenant is limited to material contact customers and the covenant is between an employer and an employee and does not continue for more than two years following the end of the employee's employment with the employer.
(6) A provision in writing in which an owner agrees to provide prior notice of the owner's intent to terminate, sell or otherwise dispose of such owner's ownership interest in the business entity shall be conclusively presumed to be enforceable and not a restraint of trade.
(7) Notwithstanding the presumption of enforceability provided in subsections (c)(2) through (c)(5), an employee or owner shall be permitted to assert any applicable defense available at law or in equity for the court's consideration in a dispute regarding a written covenant.
(d) The Kansas restraint of trade act shall not be construed to prohibit:
(1) Actions or proceedings concerning intrastate commerce;
(2) actions or proceedings by indirect purchasers pursuant to K.S.A. 50-161, and amendments thereto;
(3) recovery of damages pursuant to K.S.A. 50-161, and amendments thereto;
(4) any remedy or penalty provided in the Kansas restraint of trade act, including, but not limited to, recovery of civil penalties pursuant to K.S.A. 50-160, and amendments thereto; and
(5) any action or proceeding brought by the attorney general pursuant to authority provided in the Kansas restraint of trade act, or any other power or duty of the attorney general provided in such act.
(e) The Kansas restraint of trade act shall not be construed to apply to:
(1) Any association that complies with the provisions and application of article 16 of chapter 17 of the Kansas Statutes Annotated, and amendments thereto, the cooperative marketing act;
(2) any association, trust, agreement or arrangement that is governed by the provisions and application of 7 U.S.C. § 291 et seq., the Capper-Volstead act;
(3) any corporation organized under the electric cooperative act, K.S.A. 17-4601 et seq., and amendments thereto, or which becomes subject to the electric cooperative act in any manner therein provided; or any limited liability company or corporation, or wholly owned subsidiary thereof, providing electric service at wholesale in the state of Kansas that is owned by four or more electric cooperatives that provide retail service in the state of Kansas; or any member-owned corporation formed prior to 2004;
(4) any association that is governed by the provisions and application of article 22 of chapter 17 of the Kansas Statutes Annotated, and amendments thereto, the credit union act;
(5) any association, trust, agreement or arrangement that is governed by the provisions and application of 7 U.S.C. § 181 et seq., the packers and stockyards act; and
(6) any franchise agreements or covenants not to compete.
(f) If any provision of this section or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this section which can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.
(g) As used in this section:
(1) "Employee" means a current or former employee that agreed to a covenant in writing described in subsection (c)(4) or (c)(5).
(2) "Material contact customer" means any customer or prospective customer that is solicited, produced or serviced, directly or indirectly, by the employee or owner at issue or any customer or prospective customer about whom the employee or owner, directly or indirectly, had confidential business or proprietary information or trade secrets in the course of the employee's or owner's relationship with the customer.
(3) "Owner" means a current or former owner or seller of all or any part of the assets of a business entity or any interest in a business entity, including, but not limited to, a partnership interest, a membership interest in a limited liability company or a series limited liability company or any other equity interest or ownership interest.
(h) This section shall be a part of and supplemental to the Kansas restraint of trade act.
History: L. 2013, ch. 102, § 1; L. 2025, ch. 74, § 1; July 1.
K.S.A. 50-163 and the amendments to K.S.A. 50-101 and 50-112 by this act* shall be applied retroactively to any choses in action or defenses premised on any provision of the Kansas restraint of trade act amended or repealed by this act, and any such choses in action or defenses that have accrued as of the effective date of this act* shall be abated, but causes of action that were pending in any court before the effective date of this act*, shall not be abated. All other non-remedial provisions of this section shall be applied prospectively.
History: L. 2013, ch. 102, § 6; April 18.
As used in this act:
(a) "Discount card" means a card or any other purchasing mechanism or device, which is not insurance, that purports to offer discounts or access to discounts in health-related purchases from health care providers.
(b) "Health care provider" means any person licensed to practice any branch of the healing arts by the state board of healing arts, any person who holds a temporary permit to practice any branch of the healing arts issued by the state board of healing arts, a medical care facility licensed by the department of health and environment, a podiatrist licensed by the state board of healing arts, an optometrist licensed by the board of examiners in optometry, a pharmacist licensed by the state board of pharmacy, a pharmacy registered with the state board of pharmacy, a dentist licensed by the Kansas dental board, a respiratory therapist, a professional corporation organized pursuant to the professional corporation law of Kansas by persons who are authorized by such law to form such a corporation and who are health care providers as defined by this subsection, a Kansas limited liability company organized for the purpose of rendering professional services by its members who are health care providers as defined by this subsection and who are legally authorized to render the professional services for which the limited liability company is organized, a partnership of persons who are health care providers under this subsection, a Kansas not-for-profit corporation organized for the purpose of rendering professional services by persons who are health care providers as defined by this subsection.
(c) "Network of health care providers" means two or more separate health care providers who have specifically authorized the network to enter into a discount card program and who are contractually obligated to honor the discount card contract entered into by the network of health care providers.
(d) "Date of transaction" means the date payment is processed by the supplier or the date the consumer is able to use the discount card, whichever occurs earlier.
(e) "Service area" means the area defined by the consumer's zip code. Service area shall also include all of the area located outside the area defined by the consumer's zip code but within 60 miles thereof.
History: L. 2000, ch. 170, § 1; L. 2002, ch. 182, § 1; July 1.
(a) Any supplier who markets, promotes, advertises or otherwise distributes any discount card in Kansas shall not make misleading, deceptive or fraudulent representations regarding the discount or range of discounts offered by such discount card or the access to any range of discounts offered by such discount card.
(b) Any supplier who sells any discount card in Kansas shall:
(1) File an annual notice with the secretary of state of the intention to sell the discount card on a form as prescribed by the secretary of state to be signed under penalty of perjury.
(2) State in bold and prominent type that such discount is not insurance on all advertisements and on all discount cards;
(3) have a separate contract with each health care provider or network of health care providers listed in conjunction with the discount card;
(4) not make misleading, deceptive or fraudulent representations regarding the discount or range of discounts offered by such discount card or the access to any range of discounts offered by such discount card; and
(5) (A) Except as provided in subparagraph (B), provide each prospective customer before purchase or at the time of the confirmation required by K.S.A. 50-672, and amendments thereto, a written list for each type of service offered in conjunction with the discount card containing the name, address, and phone number of the closest 25 health care providers in the prospective customer's service area that are contractually bound to honor the discount card. The written list of providers may be provided electronically if requested in that format by the prospective customer.
(B) Unless the supplier has complied with subparagraph (A), the supplier of the discount card must provide the customer a 30-day right to cancel and shall mail the written list required by subparagraph (A) of paragraph 4 within seven calendar days of the date of the transaction.
(6) Make available to each customer on an ongoing basis thereafter through a toll-free telephone number, the internet, or in writing upon request, the name, address and phone number of all health care providers in such customer's service area who are contractually bound to honor the discount card.
(7) Maintain a surety bond in the amount of $50,000. The surety bond shall be submitted to the secretary of state along with the annual notice. Each surety bond shall be approved by the attorney general prior to filing. Each surety bond shall be subject to the following:
(A) A copy of the bond, and thereafter proof of annual renewal of the bond, shall be filed with the secretary of state with the annual notice. Each such filing shall be accompanied by a filing fee of no more than $250 to cover the cost of filing and administration. Fees received under this act by the secretary of state shall be deposited in the state treasury to the credit of the information services fee fund.
(B) No surety on a discount card company bond shall cancel such bond without giving written notice thereof to the secretary of state and discount card company. Unless such discount card company files another $50,000 surety bond with the secretary of state on or before the cancellation date of such discount card company's surety bond, then such discount card company will no longer be authorized to do business in this state as a discount card company.
(C) The bond shall be in favor of any person and the attorney general for the benefit of any person who is damaged by any violation of this act, including any violation by the supplier or by any other person which markets, promotes, advertises or otherwise distributes a discount card on behalf of the supplier. The bond shall cover any violation occurring during the time period during which the bond is in effect.
(D) Any person claiming against the bond for a violation of this act may maintain an action at law against the discount card company.
(c) The month in which the supplier files its first annual notice with the secretary of state is the month in which its filings are due annually thereafter.
History: L. 2000, ch. 170, § 2; L. 2002, ch. 182, § 2; L. 2010, ch. 30, § 1; July 1.
History: L. 2000, ch. 170, § 3; Repealed, L. 2002, ch. 182, § 6; July 1.
(a) Any supplier who sells, markets, promotes, advertises or otherwise distributes any discount card in Kansas shall designate a resident agent, who is a resident of Kansas, and a registered office in Kansas for service of process.
(1) The supplier who sells any discount card shall file annually with the secretary of state the resident agent's name and registered office's address, which shall be a street address, on the annual notice form prescribed by the secretary of state to be signed under penalty of perjury.
(2) Any supplier who markets, promotes, advertises or otherwise distributes any discount card in Kansas shall designate a resident agent who is a resident of Kansas for service of process and such resident agent shall register with the secretary of state pursuant to K.S.A. 60-306, and amendments thereto, on forms that are prescribed by the secretary of state.
(b) An appointment shall be amended in writing and filed with the secretary of state whenever the resident agent's name or registered office's address is no longer accurate on a form as prescribed by the secretary of state. Each such filing shall be accompanied by a filing fee of no more than $75 to cover the cost of filing and administration. Fees received under this act by the secretary of state shall be deposited in the state treasury to the credit of the information services fee fund.
History: L. 2000, ch. 170, § 4; L. 2002, ch. 182, § 3; L. 2010, ch. 30, § 2; July 1.
If any provision of K.S.A. 50-1,100 through 50-1,105 or the application thereof to any person or circumstances is held invalid, the validity of such provision to other persons and circumstances shall not be affected thereby.
History: L. 2000, ch. 170, § 5; July 1.
(a) K.S.A. 50-1,100 through 50-1,105 shall be known as the Kansas discount card act.
(b) This act shall be part of and supplemental to the Kansas consumer protection act.
(c) Any violation of this act shall constitute an unconscionable act and practice under the Kansas consumer protection act and amendments thereto and shall be subject to any and all of the remedies and enforcement provisions of the Kansas consumer protection act.
(d) Any person alleging a violation of this act may bring a private action to seek relief pursuant to K.S.A. 50-634, 50-636 and this act, and amendments thereto, and such person shall be considered a consumer pursuant to K.S.A. 50-624, and amendments thereto, for the purposes of such private action.
(e) The requirements and remedies of this act are in addition to and not in substitution for any other requirements and remedies provided by law.
History: L. 2000, ch. 170, § 6; L. 2002, ch. 182, § 4; July 1.
Every person, firm, corporation or association engaged in the business of gathering, collecting, selling and transmitting news and news reports for newspaper use shall furnish and sell such news and news reports to every person, firm or corporation publishing a newspaper in the state of Kansas, upon demand and proffer of payment, upon the same terms as to every other newspaper for the same service, without discrimination.
History: L. 1907, ch. 254, § 1; March 12; R.S. 1923, 50-201.
It shall be unlawful for any person, firm, corporation or association engaged in the business of gathering and collecting news and news reports to refuse to furnish the regular system of news reports as established by such press association or news agency to any daily newspaper or the publisher thereof, upon demand and proffer of the usual charge for like service.
History: L. 1907, ch. 254, § 2; March 12; R.S. 1923, 50-202.
No person, firm, corporation or association that violates any of the provisions of this act shall be permitted by any telegraph or telephone company in the state of Kansas to use its wires or facilities for the transmission of news and news reports within the state of Kansas.
History: L. 1907, ch. 254, § 3; March 12; R.S. 1923, 50-203.
If any person, firm, corporation or association engaged in the business of gathering news as aforesaid, shall violate the provisions of this act, upon complaint thereof by any person, firm, or corporation, so as aforesaid refused news reports or discriminated against, to the attorney general, setting forth the violation of this act complained of, under oath, it shall be the duty of the attorney general to immediately notify in writing the telegraph and telephone companies over which the said offending press association or news-gathering association transmits its news and news reports of the violation by said company of this act, and further notifying such telegraph and telephone company to discontinue all service for such press association or news-gathering company.
History: L. 1907, ch. 254, § 4; March 12; R.S. 1923, 50-204.
If such telegraph and telephone companies fail to discontinue service under the terms of said notice within thirty days from the receipt of said notice, it shall be the duty of the attorney general to commence injunction proceedings in the name of the state of Kansas against such telephone and telegraph companies for the purpose of carrying out the purpose of this act.
History: L. 1907, ch. 254, § 5; March 12; R.S. 1923, 50-205.
Any telegraph or telephone company doing business in this state, or any person, firm, or corporation or association which shall violate the terms of this act, shall upon conviction thereof be fined not less than one hundred dollars nor more than one thousand dollars for each offense, and, if a corporation, shall forfeit its charter or permit to do business in this state.
History: L. 1907, ch. 254, § 6; March 12; R.S. 1923, 50-206.
History: L. 1937, ch. 165, §§ 1 to 10; Repealed, L. 1963, ch. 291, § 1; June 30.
History: L. 1941, ch. 277, § 1; L. 1949, ch. 304, § 1; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 2; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 3; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 4; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 5; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 6; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 7; Repealed, L. 1961, ch. 263, § 1; June 30.
History: L. 1941, ch. 277, § 8; Repealed, L. 1961, ch. 263, § 1; June 30.
The practices being conducted by many dairy processors, wholesalers, and distributors in Kansas of selling below cost and in the subsidization of retail dealers through secret discounts, gifts, loans and other means and the furnishing of equipment, adversely affect the stable economy of Kansas. Such trade conduct causes unfair price discrimination, destructive and predatory trade practices, tends to reduce the price paid to the dairy farmer, increases the price paid by the consumer, and misleads the public as to the true value of dairy products, and is detrimental to the public health and welfare.
History: L. 1957, ch. 309, § 1; July 1.
(a) The term "dairy products" shall include milk, milk without butterfat, cream, combinations of milk and cream, evaporated milk, condensed milk, flavored milk, milk drinks, buttermilk, cottage cheese, butter, ice milk as defined in K.S.A. 65-771, and amendments thereto, and ice cream.
(b) The term "distributor" means any person engaged in the business of distributing dairy products for resale.
(c) The term "person" shall include individuals, partnerships, associations, firms and corporations.
(d) The term "processor" means any person engaged in the business of processing or manufacturing dairy products.
(e) The term "retail dealer" shall mean any person who sells or distributes dairy products at retail to the consumer: Except, That the term "retail dealer" shall not include any person who is engaged in the distribution of dairy products direct to consumers on army, navy, or air force bases, or United States government reservations or hospitals, schools, and other government agencies or any school, college or university in this state whether public, private or parochial. Wholesalers, processors, or distributors who are also engaged in making home deliveries of dairy products shall not, for the purpose of this act, be deemed retail dealers.
(f) The term "wholesaler" means any person engaged in the business of selling dairy products for resale.
History: L. 1957, ch. 309, § 2; L. 1958, ch. 17, § 1 (Special Session); L. 2001, ch. 32, § 22; July 1.
It shall be unlawful for any person engaged in business as a wholesaler, processor, or distributor, individually or through or by affiliates, subsidiaries, associates, agents or stockholders, directly or indirectly, to do or cause to be done any of the following acts:
(a) Except as provided further, furnish, give, rent, lease, or lend to a retail dealer any money, equipment, fixtures, ice cream cabinets or bulk milk dispensers, supplies, or other things having a real or substantial value, or any expendable supplies commonly provided in connection with sales of dairy products to the consumer, except that such person may sell dairy products. It shall be lawful to lend or rent ice cream cabinets, milk dispensers or milk coolers for periods of not to exceed 10 days in any one period of six consecutive months. The prohibition against leasing of equipment herein shall not apply to leases of retail outlets entirely owned by such wholesaler, processor, or distributor. This subsection shall not be construed to prohibit the furnishing of normal point-of-purchase advertising matter to retail dealers, but no outside advertising furnished shall advertise items other than dairy products of such wholesaler, processor, or distributor.
(b) Sell to any retail dealer or consumer any fixtures or equipment other than ice cream cabinets or bulk milk dispensers, or sell to any retail dealer or consumer any ice cream cabinets or bulk milk dispensers, except at a price not less than the manufacturer's original net list price after deducting an allowance for depreciation computed on a basis of 15% annually of such manufacturer's list price from the date of manufacture, and adding thereto as a proportionate cost of doing business a markup of 5% of the net price after such deduction for depreciation. If such deductions for depreciation after adding such 5% of the net, exceeds 90% of such manufacturer's list price, then in no event shall such sale price be less than 10% of such manufacturer's list price. Such sales shall be made either for cash or shall be evidenced by a valid conditional sales contract or note and mortgage specifically describing such equipment and reciting the indebtedness secured, and which contract or chattel mortgage shall be duly filed in the office of the appropriate register of deeds. The indebtedness secured thereby shall be payable and paid in monthly installments, each of which shall be not less than 1/30 of such total indebtedness, and the last payment shall mature on a date not later than 30 months from the date of such sale. All deferred payments shall carry interest of not less than 6% per annum. The recorded evidence of such indebtedness shall also recite the true amount of the cash payment, if any, made by the retail dealer or consumer, and the amount allowed for any fixture or equipment accepted by the wholesaler, processor or distributor as part payment. In no event shall such trade-in or exchange credit exceed the minimum amount for which such exchanged or traded-in equipment or fixture could be sold by a wholesaler, processor or distributor to a retail dealer or consumer under the terms of this act. The recorded evidence of such indebtedness shall also contain a provision accelerating, at the option of the seller, the entire unpaid balance, in the event of default in the payment of any monthly installment for a period of 30 days.
(c) Furnish or provide for the mechanical or electrical servicing of any fixtures or equipment used in connection with the sale or consumption of dairy products by a retail dealer or consumer.
(d) Fail, neglect, or refuse to remove, repossess or institute an appropriate replevin action to recover any fixture or equipment sold to any retail dealer or consumer under a conditional sales contract or secured by chattel mortgage as authorized by the provisions of this act, if such retail dealer or consumer has been in default of any payment for more than 90 days.
(e) Pay to or credit a retail dealer or pay for or on behalf of or for the benefit of a retail dealer for any advertising, display or distribution service, except that payment may be made for the actual newspaper space used to advertise the product of the manufacturer, wholesaler or distributor by the retailer on the basis of the actual cost of such space to the retail dealer.
(f) Pay or credit a retail dealer for the use of any floor space, shelf space or equipment within or at such person's place of business.
(g) Make, guarantee or procure another to guarantee any loan or the payment of any financial obligation of a retail dealer.
(h) Extend credit to a retail dealer beyond the normal periods of payment commonly prevailing in the business territory of the sale.
(i) Offer or give any bonus, premium, or compensation to a retail dealer, directly or indirectly, through or to an officer, employee, associate, relative or representative of a retail dealer.
(j) Sell, offer for sale, or contract to sell dairy products to any retail dealer on consignment, or with the privilege of return, or on any basis other than a bona fide sale, but this provision shall not preclude the practice of replacing dairy products which have become over-aged, spoiled or damaged.
(k) Use or employ any device or scheme to subsidize in any manner any retail dealer.
(l) Sell any products, unit or combination thereof, for less than cost to the wholesaler, processor or distributor at the point of delivery; or sell to any retail dealer any expendable supplies for less than cost to any such wholesaler, processor or distributor at the point of delivery plus a markup of 6% of such cost as a proportionate share of the cost of doing business; except a person may sell either such dairy products or expendable supplies at prices made in good faith to meet existing lawful competition. Competent evidence of the prevailing cost to other such wholesalers, processors, or distributors engaged in selling dairy products on the same market shall constitute prima facie evidence of the cost to any person charged with violation of this provision.
(m) Grant, either directly or indirectly, to any retail dealer any secret discount, make any rebate, or permit any deviation from the price at which such person furnishes dairy products of the same quality, brand and quantity to other retail dealers in the same city, unincorporated town, or immediate vicinity thereof, except that deviations from such prices may be given when made in good faith to meet existing lawful competition. Bids, deviating from such prices, made pursuant to invitations issued by federal institutions or installations, may be filed, and contracts entered into, and fulfilled, without being deemed in violation of the provisions of this subsection. The terms "made in good faith" and "lawful" as used in this and the preceding subsection means in conformity with and not in conflict with nor contrary to, any law of this state or of the United States of America.
(n) Permit any retail dealer to do for or on behalf of such wholesaler, processor or distributor any of the acts hereby made unlawful to be done.
History: L. 1957, ch. 309, § 3; L. 1991, ch. 157, § 1; July 1.
Any person who shall violate any of the provisions of this act shall be guilty of a misdemeanor. Each day during which, and each point at which a violation exists or continues shall constitute a separate offense. Upon conviction a person violating the terms of this act shall be punished by a fine of not more than five hundred dollars ($500) for each violation, and not more than five thousand dollars ($5,000) for any consecutive series of violations by the same person at the same point. All prosecutions under this act shall be governed by the provisions of K.S.A. 50-151.
History: L. 1957, ch. 309, § 4; July 1.
In addition to the penalties provided in this act, violations or threatened violations hereof may be enjoined. It shall be the duty of the attorney general or the appropriate county attorney to, and any person who shall suffer injury from or be threatened with injury from any existing or threatened violation of this act may, maintain an action in a court of equitable jurisdiction to prevent, restrain, or enjoin any violation or threatened violation. Upon the granting of such relief, the court shall assess in favor of the plaintiff and against the defendant the costs, including reasonable attorney's fees for plaintiff. Any damages suffered may be sued for and recovered in the same action and in addition to injunctive relief.
History: L. 1957, ch. 309, § 5; July 1.
Any duly organized and existing trade association whether incorporated or not, is hereby authorized to institute and prosecute a suit or suits for injunctive relief and costs, provided by this act, as the real party in interest for and on behalf of one or more of the members of such association, when violation of this act directly or indirectly affects or threatens to affect or injure such member or members, or where violation of this act threatens or otherwise affects such member as provided therein.
History: L. 1957, ch. 309, § 6; July 1.
Any defendant or any witness in any civil action brought under the provisions of this act may be required to testify, and any defendant or any witness may, upon proper process, be compelled to produce his or her books, records, invoices and all other documents of any such defendant or witness in court and the same may be introduced as evidence, but no defendant or witness in such civil action shall be prosecuted for or on account of any transaction, matter or thing concerning which such person may thus be required to testify or produce evidence, documentary or otherwise, and no testimony thus given or produced shall be received against that person upon any criminal proceeding or investigation.
History: L. 1957, ch. 309, § 7; July 1.
Violations of this act are hereby declared to be included in the term "unfair trade" as used in K.S.A. 50-153.
History: L. 1957, ch. 309, § 8; July 1.
Nothing in this act shall be construed as repealing any other laws in force in this state and the prohibitions and remedies provided in this act shall be cumulative to all other prohibitions and remedies now provided by law.
History: L. 1957, ch. 309, § 9; July 1.
The provisions of this act shall apply to the business of dealing in dairy products only, and if any section, sentence, subdivision or clause herein shall for any reason be held to be invalid or unconstitutional, such decisions shall not affect the validity of the remaining portions of this act.
History: L. 1957, ch. 309, § 10; July 1.
History: L. 1968, ch. 341, § 1; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 2; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 3; Repealed, L. 1973, ch. 217, § 22; L. 1973, ch. 85, § 158; January 1, 1974.
History: L. 1968, ch. 341, § 4; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 5; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 6; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 7; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 8; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, §§ 9, 10; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 11; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, §§ 12, 13; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, § 14; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
History: L. 1968, ch. 341, §§ 15, 16; Repealed, L. 1973, ch. 217, § 22; January 1, 1974.
(a) Whenever any supplier shall, in any manner, or by any means, deliver property or services not affirmatively ordered or requested by the recipient, the receipt of any such unordered property or services shall for all purposes be deemed an unconditional gift to the recipient who may use or dispose of the same in any manner the recipient sees fit without any obligation on the recipient's part to the supplier. Property or services are considered to be unordered unless the recipient specifically requested, in an affirmative manner, the receipt of the property or services according to the terms under which they are being offered. Property or services are not considered to have been affirmatively ordered or requested if a person fails to respond to a negative option invitation or announcement to purchase the property or services, and the property or services are provided notwithstanding. In any action for the return of such property or for payment of the purchase price of such property or services or any other consideration, it shall be a complete defense that the property or services were delivered to the recipient voluntarily and that the recipient did not affirmatively order or request the same.
(b) As used in this section, "negative option invitation or announcement" means any material sent by a supplier which identifies property or services which such supplier proposes to send or sends to recipients, and the recipients are thereafter billed for the property or services identified in the material, unless by a date or within a time specified by the supplier, the recipients, in conformity with the supplier's terms set forth in the material, instruct the supplier not to send the identified property or services.
(c) Any attempt to collect or bill for unordered property or services under this section is a deceptive act or practice under the Kansas consumer protection act.
(d) The provisions of this act do not apply to plans and arrangements regulated by and in compliance with 16 C.F.R. 425 or to contractual plans or arrangements such as continuity plans, subscription arrangements, standing order arrangements and series arrangements under which the supplier periodically ships property to a consumer who has affirmatively ordered or requested in advance to receive such property on a periodic basis.
(e) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 1969, ch. 272, § 1; L. 1991, ch. 158, § 1; L. 1992, ch. 252, § 4; L. 1999, ch. 82, § 1; July 1.
Whenever any person, firm, partnership, association, corporation or other business organization, or any agent thereof, shall voluntarily issue or cause to be issued a financial card, as defined in K.S.A. 21-5828, and amendments thereto, where the person to whom the card is issued has not requested or solicited such issuance, and has neither signed nor used such card, the person to whom the card is issued shall not be liable for any use or misuse of such card if it shall be lost or stolen. In any action for the return of such card, or for the return of any goods, wares or merchandise acquired through use of such card subsequent to it being lost by or stolen from the recipient thereof, or for the payment of the purchase price of said goods, wares or merchandise, it shall be a complete defense by such recipient that the card was issued, sent or delivered, or caused to be issued, sent or delivered, to the recipient unsolicited or that the recipient did not actually order or request the same and that the recipient neither signed nor used such card. Where any person has requested or solicited the issuance of a financial card from any person, firm, partnership, association, corporation or other business organization, or any agent thereof or such person has signed or used such card, the reissuance or renewal of such card, regardless of any specific request or solicitation therefor by the holder of such card, shall not be deemed to be the receipt of an unsolicited financial card within the meaning of this act.
History: L. 1970, ch. 212, § 1; L. 2011, ch. 30, § 199; July 1.
As used in this act, unless the context otherwise requires, the following words and phrases shall have the meanings respectively ascribed to them herein:
(a) "Junk dealer" means any person engaged in the business of buying, selling and dealing in junk, or any person purchasing, gathering, collecting, soliciting or traveling about from place to place procuring junk or any person operating, carrying on, conducting or maintaining a junk yard or place where junk is gathered together and stored or kept for shipment, sale or transfer, but shall not include antique dealers, or automotive salvage dealers dealing in wrecked vehicles as defined in this act;
(b) "Junk yard" means any yard, plot, space, enclosure, building or any other place where junk is collected, stored, gathered together and kept;
(c) "Junk" shall mean and include, in addition to items or goods commonly referred to as junk, such other used or secondhand goods as rope, scrap iron, brass, lead, copper or aluminum wire or tubing and other scrap metals, but shall not include antiques, or wrecked vehicles as defined in this act, or aluminum in food or beverage containers;
(d) "Antique" means any furniture, object of art, or other object, item or article made or manufactured at an earlier period of time, but shall not include junk;
(e) "Antique dealer" means any person conducting a business of buying and selling antiques;
(f) "Wrecked vehicle" means any wrecked, ruined, dismantled or inoperative motor passenger vehicle or motor truck, and any part or accessory therefrom, for which an original or assigned certificate of title is transferred for such vehicle or truck to an automotive salvage dealer and later surrendered and reported to the division of vehicles of the state department of revenue as required by law;
(g) "Automotive salvage dealer" means any person holding a valid license under the provisions of K.S.A. 68-2201 to 68-2215, inclusive, and any acts amendatory thereof or supplemental thereto, designated as the junkyard and salvage control act.
History: L. 1971, ch. 225, § 1; L. 1975, ch. 427, § 66; L. 2008, ch. 82, § 1; July 1.
It shall be unlawful for any person to sell any item or items of junk to a junk dealer in this state unless such person shall present to said junk dealer, at the time of sale, information as to the ownership of such item or items of junk. Such information shall include the seller's name, address and place of business, if any. Every junk dealer shall keep a register in which the dealer shall at the time of purchase or receipt of any item, excepting rags and paper, enter the name, residence and place of business, if any, of the person from whom the junk dealer purchased or received the item, description of items purchased and the price paid for such item or items.
History: L. 1971, ch. 225, § 2; July 1.
It shall be unlawful for any such junk dealer to purchase any item or items of junk after the effective date of this act without demanding and receiving from the seller thereof information as to ownership. Every junk dealer shall file and maintain a record of ownership of items purchased pursuant to any transaction described in K.S.A. 50-620. All records kept in accordance with the provisions of this act shall be open at all times to peace and police officers, except as otherwise prescribed by the city ordinances regulating the activities of junk dealers and shall be kept for two (2) years.
History: L. 1971, ch. 225, § 3; July 1.
Any person violating the provisions of this act shall be guilty of a Class C misdemeanor.
History: L. 1971, ch. 225, § 4; July 1.
This act shall be construed liberally to promote the following policies:
(a) To simplify, clarify and modernize the law governing consumer transactions;
(b) to protect consumers from suppliers who commit deceptive and unconscionable practices;
(c) to protect consumers from unbargained for warranty disclaimers; and
(d) to provide consumers with a three-day cancellation period for door-to-door sales.
History: L. 1973, ch. 217, § 1; L. 1974, ch. 230, § 1; L. 1976, ch. 236, § 1; July 1.
As used in this act:
(a) "Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing or manufacture of agricultural products by a consumer who cultivates, plants, propagates or nurtures the agricultural products. "Agricultural products" includes agricultural, horticultural, viticultural, and dairy products, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured products thereof.
(b) "Consumer" means an individual, husband and wife, sole proprietor, or family partnership who seeks or acquires property or services for personal, family, household, business or agricultural purposes.
(c) "Consumer transaction" means a sale, lease, assignment or other disposition for value of property or services within this state, except insurance contracts regulated under state law, to a consumer; or a solicitation by a supplier with respect to any of these dispositions. "Consumer transaction" does not include the disposition of repossessed collateral by any supplier that is subject to and compliant with any state or federal law or rules and regulations with regard to disposition of such repossessed collateral.
(d) "Family partnership" means a partnership in which all of the partners are natural persons related to each other, all of whom have a common ancestor within the third degree of relationship, by blood or by adoption, or the spouses or the stepchildren of any such persons, or persons acting in a fiduciary capacity for persons so related.
(e) "Final judgment" means a judgment, including any supporting opinion, that determines the rights of the parties and concerning which appellate remedies have been exhausted or the time for appeal has expired.
(f) "Lender" means a bank, savings and loan association, savings bank, credit union, finance company, mortgage bank, mortgage broker and any affiliate.
(g) "Merchantable" means, in addition to the qualities prescribed in K.S.A. 84-2-314, and amendments thereto, in conformity in all material respects with applicable state and federal statutes and regulations establishing standards of quality and safety.
(h) "Mortgage trigger lead" means a consumer report obtained pursuant to section 604(c)(1)(B) of the federal fair credit reporting act, 15 U.S.C. § 1681b, where the issuance of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit. Any consumer report on an applicant obtained by a lender with whom the applicant has initially applied for credit or who holds or services an existing extension of credit of the applicant who is the subject of the report is not considered a mortgage trigger lead.
(i) "Person" means any individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, cooperative or other legal entity.
(j) "Property" includes real estate, goods and intangible personal property.
(k) "Services" includes:
(1) Work, labor and other personal services;
(2) privileges with respect to transportation, hotel and restaurant accommodations, education, entertainment, recreation, physical culture, hospital accommodations, funerals and cemetery accommodations; and
(3) any other act performed for a consumer by a supplier.
(l) "Supplier" means a manufacturer, distributor, dealer, seller, lessor, assignor, or other person who, in the ordinary course of business, solicits, engages in or enforces consumer transactions, whether or not dealing directly with the consumer.
History: L. 1973, ch. 217, § 2; L. 1974, ch. 230, § 2; L. 1976, ch. 236, § 2; L. 1983, ch. 179, § 1; L. 1991, ch. 159, § 1; L. 2001, ch. 49, § 1; L. 2005, ch. 22, § 1; L. 2009, ch. 67, § 1; L. 2019, ch. 66, § 14; July 1.
(a) Except as otherwise provided in this act, a consumer may not waive or agree to forego rights or benefits under this act.
(b) A claim, whether or not disputed, by or against a consumer may be settled for less value than the amount claimed.
(c) A settlement in which the consumer waives or agrees to forego rights or benefits under this act is invalid if the court finds the settlement to have been unconscionable at the time it was made. The competence of the consumer, any deception or coercion practiced upon the consumer, the nature and extent of the legal advice received by the consumer, and the value of the consideration are relevant to the issue of unconscionability.
History: L. 1973, ch. 217, § 3; January 1, 1974.
(a) No supplier shall engage in any deceptive act or practice in connection with a consumer transaction.
(b) Deceptive acts and practices include, but are not limited to, the following, each of which is hereby declared to be a violation of this act, whether or not any consumer has in fact been misled:
(1) Representations made knowingly or with reason to know that:
(A) Property or services have sponsorship, approval, accessories, characteristics, ingredients, uses, benefits or quantities that they do not have;
(B) the supplier has a sponsorship, approval, status, affiliation or connection that the supplier does not have;
(C) property is original or new, if such property has been deteriorated, altered, reconditioned, repossessed or is second-hand or otherwise used to an extent that is materially different from the representation;
(D) property or services are of particular standard, quality, grade, style or model, if they are of another which differs materially from the representation;
(E) the consumer will receive a rebate, discount or other benefit as an inducement for entering into a consumer transaction in return for giving the supplier the names of prospective consumers or otherwise helping the supplier to enter into other consumer transactions, if receipt of benefit is contingent on an event occurring after the consumer enters into the transaction;
(F) property or services has uses, benefits or characteristics unless the supplier relied upon and possesses a reasonable basis for making such representation; or
(G) use, benefit or characteristic of property or services has been proven or otherwise substantiated unless the supplier relied upon and possesses the type and amount of proof or substantiation represented to exist;
(2) the willful use, in any oral or written representation, of exaggeration, falsehood, innuendo or ambiguity as to a material fact;
(3) the willful failure to state a material fact, or the willful concealment, suppression or omission of a material fact;
(4) disparaging the property, services or business of another by making, knowingly or with reason to know, false or misleading representations of material facts;
(5) offering property or services without intent to sell them;
(6) offering property or services without intent to supply reasonable, expectable public demand, unless the offer discloses the limitation;
(7) making false or misleading representations, knowingly or with reason to know, of fact concerning the reason for, existence of or amounts of price reductions, or the price in comparison to prices of competitors or one's own price at a past or future time;
(8) falsely stating, knowingly or with reason to know, that a consumer transaction involves consumer rights, remedies or obligations;
(9) falsely stating, knowingly or with reason to know, that services, replacements or repairs are needed;
(10) falsely stating, knowingly or with reason to know, the reasons for offering or supplying property or services at sale or discount prices;
(11) sending or delivering a solicitation for goods or services which could reasonably be interpreted or construed as a bill, invoice or statement of account due, unless:
(A) Such solicitation contains the following notice, on its face, in conspicuous and legible type in contrast by typography, layout or color with other printing on its face:
"THIS IS A SOLICITATION FOR THE PURCHASE OF GOODS OR SERVICES AND NOT A BILL, INVOICE OR STATEMENT OF ACCOUNT DUE. YOU ARE UNDER NO OBLIGATION TO MAKE ANY PAYMENTS UNLESS YOU ACCEPT THIS OFFER"; and
(B) such solicitation, if made by any classified telephone directory service not affiliated with a local telephone service in the area of service, contains the following notice, on its face, in a prominent and conspicuous manner:
"_____________________________ IS NOT
(name of telephone directory service)
AFFILIATED WITH ANY LOCAL TELEPHONE COMPANY";
(12) using, in any printed advertisement, an assumed or fictitious name for the conduct of such person's business that includes the name of any municipality, community or region or other description of the municipality, community or region in this state in such a manner as to suggest that such person's business is located in such municipality, community or region unless: (A) Such person's business is, in fact, located in such municipality, community or region; or (B) such person includes in any such printed advertisement the complete street and city address of the location from which such person's business is actually conducted. If located outside of Kansas, the state in which such person's business is located also shall be included. The provisions of this subsection shall not apply to the use of any trademark or service mark registered under the laws of this state or under federal law; any such name that, when applied to the goods or services of such person's business, is merely descriptive of them; or any such name that is merely a surname. Nothing in this subsection shall be construed to impose any liability on any publisher when such publisher had no knowledge the business was not, in fact, located in such municipality, community or region;
(13) (A) making an oral solicitation for products or services based on a mortgage trigger lead unless the solicitation clearly and conspicuously states in the initial phase of the solicitation that the solicitor is not affiliated with the lender or broker with which the consumer initially applied and that the solicitation is based on personal information about the consumer that was purchased, directly or indirectly, from a consumer reporting agency without the knowledge or permission of the lender or broker with which the consumer initially applied;
(B) making a written solicitation for products or services based on a mortgage trigger lead unless the solicitation clearly and conspicuously states on the first page of the solicitation that the solicitor is not affiliated with the lender or broker with which the consumer initially applied and that the solicitation is based on personal information about the consumer that was purchased, directly or indirectly, from a consumer reporting agency without the knowledge or permission of the lender or broker with which the consumer initially applied. Clear and conspicuous shall include legible type in contrast by typography, layout or color with other printing on the first page of the correspondence; and
(C) any solicitor under clause (A) or (B) shall be in compliance with the provisions of the Kansas mortgage business act, unless otherwise exempted from such act, and any other law or regulation; and
(14) failing to release funds representing an insurance settlement payment for damage to real property subject to a mortgage by the mortgage holder to the mortgagor within 30 days after receiving written proof that the damaged property is replaced or otherwise repaired to the satisfaction of the mortgagor and the mortgage holder. Any person who submits false information regarding the condition of the property shall be liable in damages to the mortgage holder or the mortgage holder's assignee for the amount of the funds together with interest thereon, attorney fees, and any additional damages that the mortgage holder or the mortgage holder's assignee has incurred.
History: L. 1973, ch. 217, § 4; L. 1976, ch. 236, § 3; L. 1991, ch. 159, § 2; L. 1993, ch. 177, § 1; L. 2000, ch. 167, § 1; L. 2009, ch. 67, § 2; L. 2010, ch. 103, § 3; July 1.
(a) No supplier shall engage in any unconscionable act or practice in connection with a consumer transaction. An unconscionable act or practice violates this act whether it occurs before, during or after the transaction.
(b) The unconscionability of an act or practice is a question for the court. In determining whether an act or practice is unconscionable, the court shall consider circumstances of which the supplier knew or had reason to know, such as, but not limited to the following that:
(1) The supplier took advantage of the inability of the consumer reasonably to protect the consumer's interests because of the consumer's physical infirmity, ignorance, illiteracy, inability to understand the language of an agreement or similar factor;
(2) when the consumer transaction was entered into, the price grossly exceeded the price at which similar property or services were readily obtainable in similar transactions by similar consumers;
(3) the consumer was unable to receive a material benefit from the subject of the transaction;
(4) when the consumer transaction was entered into, there was no reasonable probability of payment of the obligation in full by the consumer;
(5) the transaction the supplier induced the consumer to enter into was excessively onesided in favor of the supplier;
(6) the supplier made a misleading statement of opinion on which the consumer was likely to rely to the consumer's detriment; and
(7) except as provided by K.S.A. 50-639, and amendments thereto, the supplier excluded, modified or otherwise attempted to limit either the implied warranties of merchantability and fitness for a particular purpose or any remedy provided by law for a breach of those warranties.
History: L. 1973, ch. 217, § 5; L. 1976, ch. 236, § 4; L. 1983, ch. 180, § 1; L. 1991, ch. 159, § 3; L. 1998, ch. 99, § 1; April 16.
(a) The attorney general shall:
(1) Enforce this act throughout the state;
(2) cooperate with state and local officials, officials of other states and officials of the federal government in the administration of comparable statutes;
(3) mail information concerning final judgments to persons who request it, for which the attorney general may charge a reasonable fee to cover the expense;
(4) receive and act on complaints;
(5) maintain a public file of:
(A) Final judgments rendered under this act that have been either reported officially or made available for public dissemination under subsection (a)(3) of K.S.A. 50-630 and amendments thereto; and
(B) consent judgments; and
(6) report annually on or before January 1 to the governor and legislature on the operations of the attorney general's office and on the acts or practices occurring in this state that violate this act.
(b) The attorney general's report shall include a statement of the investigatory and enforcement procedures and policies of the attorney general's office, of the number of investigations and enforcement proceedings instituted and of their disposition, and of the other activities of the office and of other persons to carry out the purposes of this act.
History: L. 1973, ch. 217, § 6; L. 1991, ch. 159, § 4; July 1.
The attorney general may conduct research, hold public hearings, make inquiries and publish studies relating to consumer sales acts or practices.
History: L. 1973, ch. 217, § 7; January 1, 1974.
(a) The attorney general may:
(1) Adopt as a rule a description of the organization of his or her office stating the general course and method of operation of the office and methods whereby the public may obtain information or make submissions or requests;
(2) adopt rules of practice setting forth the nature and requirements of all formal and informal procedures available, including a description of the forms and instructions used by the attorney general or his or her office; and
(3) make available for public inspection all rules, written statements of policy, and interpretations formulated, adopted or used by the attorney general in discharging functions.
(b) Rules and regulations adopted by the attorney general pursuant to this section shall be governed by the provisions of article 4 of chapter 77 of the Kansas Statutes Annotated.
History: L. 1973, ch. 217, § 8; January 1, 1974.
(a) If, by the attorney general's own inquiries or as a result of complaints, the attorney general has reason to believe that a supplier has engaged in, is engaging in or is about to engage in an act or practice that violates this act, the attorney general, or any deputy attorney general or assistant attorney general, may administer oaths and affirmations, subpoena witnesses or matter and collect evidence.
(b) If matter that the attorney general subpoenas is located outside this state, the person subpoenaed may either make it available to the attorney general at a convenient location within the state or pay the reasonable and necessary expenses for the attorney general or the attorney general's representative to examine the matter at the place where it is located. The attorney general may designate representatives, including officials of the state in which the matter is located, to inspect the matter on the attorney general's behalf, and the attorney general may respond to similar requests from officials of other states.
(c) Service by the attorney general of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made by:
(1) the mailing thereof by certified mail to the last known place of business, residence or abode within or without this state; or
(2) in the manner provided in the code of civil procedure as if a petition had been filed.
(d) The attorney general may request that an individual who refuses to comply with a subpoena, on the ground that testimony or matter may incriminate the individual, be ordered by the court to provide the testimony or matter. Except in a prosecution for perjury, an individual who complies with a court order to provide testimony or matter after asserting a privilege against self-incrimination to which the individual is entitled by law, may not be subjected to a criminal proceeding or to a civil penalty to the transaction concerning which the individual is required to testify or produce relevant matter.
(e) If any person willfully fails or refuses to file any statement or report required by this act, or obey any subpoena issued by the attorney general, the attorney general may, after notice, apply to the district court and, after a hearing thereon, the district court may issue an order:
(1) Granting injunctive relief restraining the sale or advertisement of any merchandise by such persons; or
(2) vacating, annulling or suspending the corporate charter of a corporation created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to the supplier which are used to further the allegedly unlawful practice; or
(3) granting such other relief as may be required, until the person files the statement or report, or obeys the subpoena.
History: L. 1973, ch. 217, § 9; L. 1989, ch. 159, § 2; L. 1991, ch. 159, § 5; July 1.
(a) The attorney general or any county or district attorney may bring an action:
(1) To obtain a declaratory judgment that an act or practice violates this act;
(2) to enjoin, or to obtain a restraining order against a supplier who has violated, is violating, or is otherwise likely to violate this act; or
(3) to recover damages on behalf of consumers by reason of violations of this act; and
(4) to recover reasonable expenses and investigation fees.
(b) In lieu of instigating or continuing an action or proceeding, the attorney general may accept a consent judgment with respect to any act or practice declared to be a violation of this act. Such a consent judgment shall provide for the discontinuance by the supplier entering the same of any act or practice declared to be a violation of this act, and it may include a stipulation for the payment by such supplier of reasonable expenses and investigation fees incurred by the attorney general. The consent judgment also may include a stipulation for restitution to be made by such supplier to consumers of money, property or other things received from such consumers in connection with a violation of this act and also may include a stipulation for specific performance. Any consent judgment entered into pursuant to this section shall not be deemed to admit the violation, unless it does so by its terms. Before any consent judgment entered into pursuant to this section shall be effective, it must be approved by the district court and an entry made thereof in the manner required for making an entry of judgment. Once such approval is received, any breach of the conditions of such consent judgment shall be treated as a violation of a court order, and shall be subject to all the penalties provided by law therefor.
(c) In any action brought by the attorney general or the county or district attorney, the court may, without requiring bond of the attorney general or the county or district attorney:
(1) Make such orders or judgments as may be necessary to prevent the use or employment by a supplier of any practices declared to be a violation of this act;
(2) make such orders or judgments as may be necessary to compensate any consumer for damages sustained;
(3) make such orders or judgments as may be necessary to carry out a transaction in accordance with consumers' reasonable expectations;
(4) appoint a master or receiver or order sequestration of property whenever it shall appear that the supplier threatens or is about to remove, conceal or dispose of property to the damage of consumers to whom restoration would be made under this subsection or whenever it shall appear that the property was derived or is commingled with other property derived from transactions involving violations of the act, the court shall assess the expenses of a master or receiver against the supplier;
(5) revoke any license or certificate authorizing that supplier to engage in business in this state;
(6) issue a temporary restraining order or enjoin any supplier from engaging in business in this state;
(7) award reasonable expenses and investigation fees, civil penalties and costs; and
(8) grant other appropriate relief.
(d) If an order of sequestration is issued pursuant to paragraph (4) of subsection (c):
(1) Application for such order shall be by motion verified by an affidavit setting forth facts in support thereof and the court may hear such motion ex parte;
(2) such order shall operate as a lien on the sequestered property and may contain other provisions as the court deems appropriate;
(3) if such order of sequestration was issued ex parte, such order shall be served upon the supplier whose property is sequestered not later than five days after such order is issued. Service shall be by any manner permitted by the code of civil procedure or by ordinary first class mail to the last known address of the supplier;
(4) a supplier whose property is sequestered may file a motion to dissolve the sequestration, verified by affidavit, putting in issue the sufficiency of the proceedings, the supplier's claim of exemption as to any property which has been sequestered, or the truth of the facts alleged in the affidavit on which the sequestration was ordered. The court shall hold a hearing on the motion within five days after the filing; and
(5) upon a finding that the party which obtained an ex parte order of sequestration knew or should have known that grounds for sequestration did not exist, the court, upon a motion to dissolve, may allow actual damages for the wrongful sequestration.
History: L. 1973, ch. 217, § 10; L. 1991, ch. 159, § 6; L. 1993, ch. 177, § 2; L. 2001, ch. 187, § 1; July 1.
(a) If the attorney general receives a complaint or other information relating to noncompliance with this act by a supplier who is subject to other supervision in this state, the attorney general shall inform the official or agency having that supervision. The attorney general may request information about suppliers from the official or agency.
(b) The attorney general and any other official or agency in this state having supervisory authority over a supplier shall consult and assist each other in maintaining compliance with this act. Within the scope of their authority, they may jointly or separately make investigations, prosecute suits and take other official action they consider appropriate.
(c) The county attorney or district attorney may investigate, institute and commence actions under this act in the same manner as provided for the attorney general. It shall be the duty of the county attorney or district attorney to lend to the attorney general such assistance as the attorney general may request in the investigation, commencement and prosecution of actions in the district court of his or her county pursuant to this act, or the county attorney or district attorney may institute and prosecute actions hereunder in the same manner as provided for the attorney general.
History: L. 1973, ch. 217, § 11; January 1, 1974.
(a) Whether a consumer seeks or is entitled to damages or otherwise has an adequate remedy at law or in equity, a consumer aggrieved by an alleged violation of this act may bring an action to:
(1) Obtain a declaratory judgment that an act or practice violates this act; or
(2) enjoin or obtain a restraining order against a supplier who has violated, is violating or is likely to violate this act.
(b) A consumer who is aggrieved by a violation of this act may recover, but not in a class action, damages or a civil penalty as provided in subsection (a) of K.S.A. 50-636 and amendments thereto, whichever is greater.
(c) Whether a consumer seeks or is entitled to recover damages or has an adequate remedy at law, a consumer may bring a class action for declaratory judgment, an injunction and appropriate ancillary relief, except damages, against an act or practice that violates this act.
(d) A consumer who suffers loss as a result of a violation of this act may bring a class action for the damages caused by an act or practice:
(1) Violating any of the acts or practices specifically proscribed in K.S.A. 50-626, 50-627 and 50-640, and amendments thereto, or
(2) declared to violate K.S.A. 50-626 or 50-627, and amendments thereto, by a final judgment of any district court or the supreme court of this state that was either officially reported or made available for public dissemination under subsection (a)(3) of K.S.A. 50-630 and amendments thereto by the attorney general 10 days before the consumer transactions on which the action is based, or
(3) with respect to a supplier who agreed to it, was prohibited specifically by the terms of a consent judgment which became final before the consumer transactions on which the action is based.
(e) Except for services performed by the office of the attorney general or the office of a county or district attorney, the court may award to the prevailing party reasonable attorney fees, including those on appeal, limited to the work reasonably performed if:
(1) The consumer complaining of the act or practice that violates this act has brought or maintained an action the consumer knew to be groundless and the prevailing party is the supplier; or a supplier has committed an act or practice that violates this act and the prevailing party is the consumer; and
(2) an action under this section has been terminated by a judgment, or settled.
(f) Except for consent judgments, a final judgment in favor of the attorney general under K.S.A. 50-632 and amendments thereto is admissible as prima facie evidence of the facts on which it is based in later proceedings under this section against the same supplier or a supplier in privity.
(g) Notice of an action commenced pursuant to subsection (b) or (c), or an appeal of such action, shall be given to the attorney general, but failure to do so shall not provide a defendant a defense in such action.
History: L. 1973, ch. 217, § 12; L. 1974, ch. 230, § 3; L. 1976, ch. 236, § 5; L. 1978, ch. 210, § 1; L. 1991, ch. 159, § 7; July 1.
(a) The Kansas consumer protection act does not apply to a publisher, broadcaster, printer or other person engaged in the dissemination of information or the reproduction of printed or pictorial matter so far as the information or matter has been disseminated or reproduced on behalf of others without actual knowledge that it violated the Kansas consumer protection act.
(b) The Kansas consumer protection act does not allow for a private cause of action or remedy against a licensed health care provider for causes of action for personal injury or death resulting, or alleged to have resulted, from medical negligence. For purposes of this subsection, "health care provider" shall have the same meaning as provided in subsection (a)(1) of K.S.A. 65-4915, and amendments thereto.
(c) A supplier alleged to have violated this act has the burden of showing the applicability of this section.
History: L. 1973, ch. 217, § 13; L. 1988, ch. 193, § 1; L. 1991, ch. 159, § 8; L. 2007, ch. 194, § 1; May 24.
(a) The commission of any act or practice declared to be a violation of this act shall render the violator liable to the aggrieved consumer, or the state or a county as provided in subsection (c), for the payment of a civil penalty, recoverable in an individual action, including an action brought by the attorney general or county attorney or district attorney, in a sum set by the court of not more than $10,000 for each violation. An aggrieved consumer is not a required party in actions brought by the attorney general or a county or district attorney pursuant to this section.
(b) Any supplier who willfully violates the terms of any court order issued pursuant to this act shall forfeit and pay a civil penalty of not more than $20,000 per violation, in addition to other penalties that may be imposed by the court, as the court shall deem necessary and proper. For the purposes of this section, the district court issuing an order shall retain jurisdiction, and in such cases, the attorney general, acting in the name of the state, or the appropriate county attorney or district attorney may petition for recovery of civil penalties.
(c) In administering and pursuing actions under this act, the attorney general and the county attorney or district attorney are authorized to sue for and collect reasonable expenses and investigation fees as determined by the court. Civil penalties or contempt penalties sued for and recovered by the attorney general shall be paid into the general fund of the state. Civil penalties and contempt penalties sued for and recovered by the county attorney or district attorney shall be paid into the general fund of the county where the proceedings were instigated.
(d) Any act or practice declared to be a violation of this act not identified to be in connection with a specific identifiable consumer transaction but which is continuing in nature shall be deemed a separate violation each day such act or practice exists.
History: L. 1973, ch. 217, § 14; L. 1974, ch. 230, § 4; L. 1976, ch. 236, § 6; L. 1978, ch. 210, § 2; L. 1991, ch. 159, § 9; L. 1993, ch. 177, § 3; L. 2001, ch. 105, § 2; July 1.
(a) When a receiver is appointed by the court pursuant to this act, the receiver shall have the power to sue for, collect, receive and take into the receiver's possession all the property and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes and property of every description, including property with which such property has been commingled, if it cannot be identified in kind because of such commingling, and to sell, convey and assign the same and hold and dispose of the proceeds thereof under the direction of the court. Any person who has suffered damages as a result of the use or employment of any practice declared to be a violation of this act and submits proof to the satisfaction of the court that the person has in fact been damaged, may participate in the distribution of the assets.
(b) Subject to an order of the court terminating the business affairs of any supplier who is the subject of receivership proceedings held pursuant to this act, the provisions of this act shall not bar any claim by a consumer against any person who has acquired any money or property, real or personal, or anything of value by means of any practice herein declared to be a violation of this act.
History: L. 1973, ch. 217, § 15; L. 1976, ch. 236, § 7; L. 1991, ch. 159, § 10; July 1.
(a)
Jurisdiction. Any supplier, whether or not a resident or citizen of this state, who in person or through an agent or an instrumentality, engages in a consumer transaction in this state, thereby submits the supplier to the jurisdiction of the courts of this state as to any cause of action arising from such consumer transaction.
(b) Venue. Every action pursuant to this act shall be brought in the district court of any county in which there occurred an act or practice declared to be a violation of this act, or in which the defendant resides or the defendant's principal place of business is located. If the defendant is a nonresident and has no principal place of business within this state, then the nonresident defendant can be sued either in the district court of Shawnee county or in the district court of any county in which there occurred an act or practice declared to be a violation of this act.
History: L. 1973, ch. 217, § 16; L. 1993, ch. 177, § 4; July 1.
(a) Notwithstanding any other provisions of law, with respect to property which is the subject of or is intended to become the subject of a consumer transaction in this state, no supplier shall:
(1) Exclude, modify or otherwise attempt to limit the implied warranties of merchantability as defined in K.S.A. 84-2-314, and amendments thereto, and fitness for a particular purpose, as defined in K.S.A. 84-2-315, and amendments thereto; or
(2) exclude, modify or attempt to limit any remedy provided by law, including the measure of damages available, for a breach of implied warranty of merchantability and fitness for a particular purpose.
(b) Notwithstanding any provision of law, no action for breach of warranty with respect to property subject to a consumer transaction shall fail because of a lack of privity between the claimant and the party against whom the claim is made. An action against any supplier for breach of warranty with respect to property subject to a consumer transaction shall not, of itself, constitute a bar to the bringing of an action against another person.
(c) A supplier may limit the supplier's implied warranty of merchantability and fitness for a particular purpose with respect to a defect or defects in the property only if the supplier establishes that the consumer had knowledge of the defect or defects, which became the basis of the bargain between the parties. In neither case shall such limitation apply to liability for personal injury or property damage.
(d) Nothing in this section shall be construed to expand the implied warranty of merchantability as defined in K.S.A. 84-2-314, and amendments thereto, to involve obligations in excess of those which are appropriate to the property.
(e) A disclaimer or limitation in violation of this section is void. If a consumer prevails in an action based upon breach of warranty, and the supplier has violated this section, the court may, in addition to any damages recovered, award reasonable attorney fees and a civil penalty under K.S.A. 50-636, and amendments thereto, to be paid by the supplier who gave the improper disclaimer.
(f) The making of a limited express warranty is not in itself a violation of this section.
(g) This section shall not apply to seed for planting.
(h) This section shall not apply to sales of livestock for agricultural purposes, other than sales of livestock for immediate slaughter, except in cases where the supplier knowingly sells livestock which is diseased.
(i) This section shall not apply to the disposal of surplus property by any governmental entity if the governmental entity has given conspicuous written notice of the warranty limitation, exclusion or disclaimer. In the case of surplus property which is a motor vehicle, a notice of such limitation, exclusion or disclaimer shall be affixed to a side window of the motor vehicle. Such notice shall comply with the buyers guide required by 16 C.F.R. 455.2 and 16 C.F.R. 455.3 (as in effect on the effective date of this act).
History: L. 1973, ch. 217, § 17; L. 1974, ch. 230, § 5; L. 1976, ch. 236, § 8; L. 1981, ch. 215, § 1; L. 1988, ch. 193, § 2; L. 1991, ch. 159, § 11; L. 1998, ch. 99, § 2; April 16.
(a) Except as provided in subsection (c)(1)(C), in addition to any right otherwise to revoke, a consumer has the right to cancel a door-to-door sale made within this state until midnight of the third business day after the day on which the consumer signs an agreement or offer to purchase which includes the disclosures required by this section.
(b) In connection with any door-to-door sale made within this state, it constitutes an unfair and deceptive act or practice within the meaning of K.S.A. 50-626, and amendments thereto, for any supplier to:
(1) Fail to furnish the consumer with a fully completed receipt or copy of any contract pertaining to such sale at the time of its execution, which is in the same language, Spanish for example, as that principally used in the oral sales presentation and which shows the date of the transaction and contains the name and address of the supplier, and in immediate proximity to the space reserved in the contract for the signature of the consumer or on the front page of the receipt if a contract is not used and in boldface type of a minimum size of 10 points, a statement in substantially the following form:
"YOU THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF THIS RIGHT." For purposes of the required notices under this section, the term "buyer" shall have the same meaning as the term "consumer."
(2) Fail to furnish each consumer, at the time the consumer signs the door-to-door sales contract or otherwise agrees to buy consumer property or services from the supplier, a completed form in duplicate, captioned "NOTICE OF CANCELLATION," which shall be attached to the contract or receipt and be easily detachable, and which shall contain in 10-point boldface type the following information and statements in the same language, Spanish for example, as that used in the contract:
NOTICE OF CANCELLATION
(Enter date of transaction)
YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.
IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELED.
IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY PROPERTY DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY, IF YOU WISH, COMPLY WITH THE INSTRUCTIONS OF THE SELLER REGARDING THE RETURN SHIPMENT OF THE PROPERTY AT THE SELLER'S EXPENSE AND RISK.
IF YOU DO MAKE THE PROPERTY AVAILABLE TO THE SELLER, AND IF THE SELLER DOES NOT PICK SUCH PROPERTY UP WITHIN 20 DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE PROPERTY WITHOUT ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE PROPERTY AVAILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE PROPERTY TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL OBLIGATIONS UNDER THE CONTRACT.
TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM,
TO ______________________________________________________
(Name of Seller)
AT _______________________________________________________
(Address of Seller's Place of Business)
NOT LATER THAN MIDNIGHT OF __________________.
(Date)
I HEREBY CANCEL THIS TRANSACTION.
(Date)
(Buyer's Signature)
(3) Fail, before furnishing copies of the "notice of cancellation" to the consumer, to complete both copies by entering the name of the supplier, the address of the supplier's place of business, the date of the transaction, and the date, not earlier than the third business day following the date of the transaction, by which the consumer may give notice of cancellation.
(4) Include in any door-to-door sale contract or receipt any confession of judgment or any waiver of any of the rights to which the consumer is entitled under this section including specifically such consumer's right to cancel the sale in accordance with the provisions of this section.
(5) Fail to inform each consumer orally, at the time such consumer signs the contract or purchases the property or services, of such consumer's right to cancel.
(6) Misrepresent in any manner the consumer's right to cancel.
(7) Fail or refuse to honor any valid notice of cancellation by a consumer and within 10 business days after the receipt of such notice, to (i) refund all payments made under the contract or sale; (ii) return any property traded in, in substantially as good condition as when received by the supplier; (iii) cancel and return any negotiable instrument executed by the consumer in connection with the contract or sale and take any action necessary or appropriate to terminate promptly any security interest created in the transaction.
(8) Negotiate, transfer, sell, or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the fifth business day following the day the contract was signed or the property or services were purchased.
(9) Fail, within 10 business days of receipt of the consumer's notice of cancellation, to notify the consumer whether the supplier intends to repossess or to abandon any shipped or delivered property.
(c) For the purposes of this section the following definitions shall apply:
(1) "Door-to-door sale" means a sale, lease or rental of consumer property or services with a purchase price of $25 or more, whether under single or multiple consumer transactions, in which the supplier or the supplier's representative personally solicits the sale, including those in response to or following an invitation by the consumer, and the consumer's agreement or offer to purchase is made at a place other than the place of business of the supplier. The term "door-to-door sale" does not include a transaction:
(A) Made pursuant to prior negotiations in the course of a visit by the consumer to a retail business establishment having a fixed permanent location where the property is exhibited or the services are offered for sale on a continuing basis; or
(B) in which the consumer is accorded the right of rescission by the provisions of the consumer credit protection act (15 USCS 1635) or regulations issued pursuant thereto; or
(C) in which the consumer has initiated the consumer transaction and the property or services are needed to meet a bona fide immediate personal emergency of the consumer, and the consumer furnishes the supplier with a separate dated and signed personal statement in the consumer's handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the sale within three business days; or
(D) conducted and consummated entirely by mail or telephone; and without any other contact between the consumer and the supplier or its representative prior to delivery of the property or performance of the services; or
(E) in which the consumer has initiated the transaction and specifically requested the supplier to visit the consumer's home for the purpose of repairing or performing maintenance upon the consumer's real or personal property. If in the course of such a visit, the supplier sells the consumer the right to receive additional services or property other than replacement parts necessarily used in performing the maintenance or in making the repairs, the sale of the additional property or services would not fall within this exclusion; or
(F) pertaining to the sale or rental of real property, to the sale of insurance or to the sale of securities or commodities by a broker-dealer registered with the securities and exchange commission; or
(G) that occurs on the state fairgrounds during the annual Kansas state fair between a consumer and a vendor who has been authorized by the state fair management to do business on the state fairgrounds.
(2) "Place of business" means the main or permanent branch office of a supplier.
(3) "Purchase price" means the total price paid or to be paid for the consumer property or services, including all interest and service charges.
(4) "Business day" means any calendar day except Sunday, or any legal holiday as defined by K.S.A. 60-206 and amendments thereto.
History: L. 1973, ch. 217, § 18; L. 1974, ch. 230, § 6; L. 1976, ch. 236, § 9; L. 1991, ch. 159, § 12; L. 1998, ch. 156, § 1; July 1.
The attorney general may post conspicuously on an official and publicly available website of the office of the attorney general any judgment or order that restrains, enjoins or otherwise prohibits a person from engaging in door-to-door sales, as defined in K.S.A. 21-6423(c), and amendments thereto.
History: L. 2016, ch. 103, § 5; July 1.
History: L. 1973, ch. 217, § 19; Repealed, L. 1974, ch. 230, § 7; July 1.
This act may be cited as the Kansas consumer protection act.
History: L. 1973, ch. 217, § 20; January 1, 1974.
If any provision of this act or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
History: L. 1973, ch. 217, § 21; January 1, 1974.
(a) No person shall manufacture, distribute, offer for sale, sell or install any thermal insulation in this state unless such insulation has been tested in accordance with the American Society for Testing and Materials Standard E 84, Standard Method of Test for Surface Burning Characteristics of Building Materials, and certified, by an independent testing laboratory approved by the state fire marshal, as having a flame spread rating of 75 or less, or as having a classification representing a flame spread rating not in excess thereof, and is clearly labeled to that effect on the package or, if not contained in a package, is accompanied by a written statement to that effect.
(b) Nothing in this section shall be construed to prevent a city or county from requiring a lower maximum flame spread rating than required in this section for thermal insulation which is manufactured, distributed, offered for sale, sold or installed within the jurisdiction of the city or county.
(c) As used in this section, "thermal insulation" means any material designed for installation in the walls, floors or ceilings of a structure for the specific purpose of reducing loss or gain of energy by such structure but shall not include any backing or vapor barrier attached to such material.
(d) Any violation of this section is an unconscionable act or practice under the Kansas consumer protection act.
(e) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 1978, ch. 209, § 1; L. 1992, ch. 252, § 5; July 1.
(a) As used in this act:
(1) "Consumer" means the original purchaser or lessee, other than for purposes of resale, of a motor vehicle; and
(2) "motor vehicle" means a new motor vehicle which is sold or leased in this state, and which is registered for a gross weight of 12,000 pounds or less, and does not include the customized parts of motor vehicles which have been added or modified by second stage manufacturers, first stage converters or second stage converters as defined in K.S.A. 8-2401, and amendments thereto.
(b) If a motor vehicle does not conform to all applicable warranties, and the consumer reports the nonconformity to the manufacturer, its agent or its authorized dealer during the term of any warranties or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such warranties, notwithstanding the fact that such repairs are made after the expiration of any such term or such one-year period.
(c) If the manufacturer, or its agents or authorized dealers, are unable to conform the motor vehicle to any applicable warranty after a reasonable number of attempts, the manufacturer shall replace the motor vehicle with a comparable motor vehicle under warranty or accept return of the vehicle from the consumer and refund to the consumer the full purchase or lease price including all collateral charges, less a reasonable allowance for the consumer's use of the vehicle as calculated from the most recent edition of
Your Driving Costs, published by the American automobile association. Refunds shall be made to the consumer, and lienholder if any, as their interests may appear. A reasonable allowance for use shall be that amount directly attributable to use by the consumer and any previous consumer prior to the first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service by reason of repair. It shall be an affirmative defense to any claim under this act that:
(1) An alleged nonconformity does not substantially impair such use and value; or
(2) a nonconformity is the result of abuse, neglect or unauthorized modifications or alterations of a motor vehicle by a consumer.
(d) If the manufacturer receives actual notice of the nonconformity, it shall be presumed that a reasonable number of attempts have been undertaken to conform a motor vehicle to the applicable warranties, if:
(1) The same nonconformity which substantially impairs the use and value of the motor vehicle to the consumer has been subject to repair four or more times by the manufacturer or its agents or authorized dealers within the term of any warranty or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, but such nonconformity continues to exist;
(2) the vehicle is out of service by reason of repair for a cumulative total of 30 or more calendar days during such term or period, whichever is the earlier date; or
(3) there have been 10 or more attempts to repair any nonconformities which substantially impair the use and value of the motor vehicle to the consumer and such attempts to repair have been attempts by the manufacturer or its agents or authorized dealers.
The term of any warranty, such one-year period and such thirty-day period shall be extended by any period of time during which repair services are not available to the consumer because of war, invasion, strike, fire, flood or other natural disaster.
(e) If a manufacturer has established an informal dispute settlement procedure which complies in all respects with the provisions of title 16, code of federal regulations, part 703, as from time to time amended, the provisions of subsection (c) concerning refunds or replacement shall not apply to any consumer who has not first resorted to such procedure.
(f) The attorney general shall have jurisdiction to enforce this section.
History: L. 1985, ch. 39, § 1; L. 1989, ch. 160, § 1; L. 1996, ch. 50, § 1; July 1.
Nothing in this act shall in any way limit or affect the rights or remedies which are otherwise available to a consumer under the uniform consumer credit code, or to any person under the uniform commercial code, or to any person under this or any other law statutory or otherwise.
History: L. 1985, ch. 39, § 2; L. 1989, ch. 160, § 2; July 1.
As used in K.S.A. 50-647 through 50-653:
(a) "Supplier" means: (1) A licensed motor vehicle dealer; (2) any person or business which purchases, sells or exchanges five or more motor vehicles in any one calendar year; or (3) any person or business which in the ordinary course of business purchases, sells or exchanges motor vehicles, but supplier does not include any bank, trust company, trustee or lending company or institution which is subject to state or federal regulation as such, with regard to its disposition of repossessed vehicles.
(b) "Consumer" means an individual or sole proprietor.
(c) "Set off" means a reasonable allowance for the consumer's use of the motor vehicle as calculated from the most recent edition of the United States department of transportation's cost of owning and operating automobiles and vans.
History: L. 1988, ch. 211, § 2; July 1.
(a) Any consumer who has purchased a motor vehicle from a supplier and who proves: (1) That any of the acts declared to be a violation of K.S.A. 21-5835, and amendments thereto, have taken place; and (2) that the mileage or use of the motor vehicle is materially different from that shown on the vehicle's odometer shall be entitled to a declaration from the court that the purchase of the motor vehicle is voidable at the consumer's request.
(b) If the purchase of a motor vehicle is voided under subsection (a), the consumer shall recover the greater of the following but recovery shall not exceed the actual purchase price of the vehicle:
(1) Purchase price before trade-in allowance less set off;
(2) purchase price before trade-in allowance plus verified repairs less set off; or
(3) the civil penalties in K.S.A. 50-651, and amendments thereto.
(c) The consumer may recover reasonable attorney fees, if the consumer prevails in an action against the supplier under this section.
History: L. 1988, ch. 211, § 3; L. 2011, ch. 30, § 200; July 1.
The attorney general shall enforce K.S.A. 50-647 through 50-653 throughout the state.
History: L. 1988, ch. 211, § 4; July 1.
(a) If the purchase of a motor vehicle is not voided under subsection (a) of K.S.A. 50-648, the consumer may recover in a private right of action the civil penalties in K.S.A. 50-651.
(b) The consumer may recover reasonable attorney fees if the consumer prevails in an action against the supplier under this section.
History: L. 1988, ch. 211, § 5; July 1.
(a) The commission of any act or practice declared to be a violation of K.S.A. 21-5835, and amendments thereto, or K.S.A. 50-653, and amendments thereto, shall make the violator liable to the aggrieved consumer, or to the state, for the payment of a civil penalty, recoverable in an individual action or in an action brought by the attorney general in a sum set by the court of not more than $2,000 per violation of K.S.A. 50-653, and amendments thereto, and not more than $10,000 per violation of K.S.A. 21-5835, and amendments thereto.
(b) The remedies provided in subsection (a) are in addition to any remedies available under federal odometer law.
History: L. 1988, ch. 211, § 6; L. 1998, ch. 184, § 1; L. 2011, ch. 30, § 201; July 1.
A completed odometer statement shall be a required document for application for a title for a motor vehicle, except for motor vehicles which are 10 model years or older and trucks with a gross vehicle weight of more than 16,000 pounds.
History: L. 1988, ch. 211, § 7; L. 1992, ch. 63, § 2; July 1.
A supplier as defined herein shall disclose in writing to the purchaser of a motor vehicle at or before the time of entering into the purchase agreement whether the supplier has or has not performed a title search for such motor vehicle and such disclosure statement shall be signed by the purchaser acknowledging such disclosure was made to the purchaser. A supplier who makes the foregoing disclosure shall have no liability under K.S.A. 50-648, 50-650 and 50-651, and amendments thereto, to a purchaser of the vehicle in the event the mileage shown for the motor vehicle is inaccurate or untrue, unless such supplier violated the provisions of subsection (a)(4) of K.S.A. 21-5835, and amendments thereto.
History: L. 1988, ch. 211, § 8; L. 2011, ch. 30, § 202; July 1.
(a) If, by the attorney general's own inquiries or as a result of complaints, the attorney general has reason to believe that a person has engaged in, is engaging in or is about to engage in an act or practice that violates this act, the attorney general, or any deputy attorney general or assistant attorney general, may administer oaths and affirmations, subpoena witnesses or matter and collect evidence.
(b) If matter that the attorney general subpoenas is located outside this state, the person subpoenaed may either make it available to the attorney general at a convenient location within the state or pay the reasonable and necessary expenses for the attorney general or the attorney general's representative to examine the matter at the place where it is located. The attorney general may designate representatives, including officials of the state in which the matter is located, to inspect the matter on the attorney general's behalf, and the attorney general may respond to similar requests from officials of other states.
(c) Service by the attorney general of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made personally within this state, but if such cannot be obtained, substituted service therefor may be made in the following manner:
(1) Personal service thereof without this state; or
(2) the mailing thereof by certified mail to the last known place of business, residence or abode within or without this state of such person for whom the same is intended; or
(3) in the manner provided in the code of civil procedure as if a petition had been filed; or
(4) such service as the district court may direct in lieu of personal service within this state.
(d) The attorney general may request that an individual who refuses to comply with a subpoena, on the ground that testimony or matter may incriminate the individual, be ordered by the court to provide the testimony or matter. Except in a prosecution for perjury, an individual who complies with a court order to provide testimony or matter after asserting a privilege against self-incrimination to which the individual is entitled by law, may not be subjected to a criminal proceeding or to a civil penalty to the transaction concerning which the individual is required to testify or produce relevant matter. This subsection does not apply to civil sanctions imposed under K.S.A. 50-651, and amendments thereto.
(e) If any person willfully fails or refuses to file any statement or report required by this act, or obey any subpoena issued by the attorney general, the attorney general may, after notice, apply to the district court and, after a hearing thereon, the district court may issue an order:
(1) Granting injunctive relief restraining the sale or advertisement of any merchandise by such persons; or
(2) vacating, annulling or suspending the corporate charter of a corporation created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to such person which are used to further the allegedly unlawful practice; or
(3) granting such other relief as may be required, until the person files the statement or report, or obeys the subpoena.
(f) The county attorney or district attorney may investigate, institute and commence actions under this act pursuant to the odometer fraud statutes in K.S.A. 50-647 through 50-653, and amendments thereto, in the same manner as provided for the attorney general. It shall be the duty of the county attorney or district attorney to lend to the attorney general such assistance as the attorney general may request in the investigation, commencement and prosecution of actions in the district court of the county or district attorney's county pursuant to this act, or the county attorney or district attorney may institute and prosecute actions hereunder in the same manner as provided for the attorney general.
(g) This section shall be part of and supplemental to the odometer fraud statutes in K.S.A. 50-647 through 50-653, and amendments thereto.
History: L. 1991, ch. 155, § 1; July 1.
K.S.A. 50-654 through 50-658, inclusive, shall be known and may be cited as the Kansas collision damage waiver act.
History: L. 1988, ch. 193, § 3; January 1, 1989.
K.S.A. 50-654 through 50-658, inclusive, shall apply to all persons in the business of leasing rental motor vehicles for a period of 60 days or less from locations in this state under an agreement which imposes upon the lessee an obligation to pay for any damages caused to the leased vehicle. The provisions of K.S.A. 50-654 through 50-658, inclusive, apply solely to the collision damage waiver portion of the rental agreement.
History: L. 1988, ch. 193, § 4; January 1, 1989.
(a) "Authorized driver" means:
(1) The lessee;
(2) the lessee's spouse if such spouse is a licensed driver and satisfies the lessor's minimum age requirement;
(3) any person who operates the vehicle during an emergency situation; or
(4) any person listed by the lessor on such lessee's contract as an authorized driver.
(b) "Collision damage waiver" means any contract or contractual provision, whether separate from or a part of a motor vehicle rental agreement, whereby the lessor agrees for a charge, to waive any and all claims against the lessee for any damage to the rental motor vehicle during the term of the rental agreement.
(c) "Lessor" means any person or organization in the business of providing rental motor vehicles to the public. "Lessor" does not include a peer-to-peer vehicle sharing program, as defined in K.S.A. 8-2802, and amendments thereto, or a shared vehicle owner, as defined in K.S.A. 8-2802, and amendments thereto.
(d) "Lessee" means any person or organization obtaining the use of a rental motor vehicle from a lessor under the terms of a rental agreement. "Lessee" does not include a "shared vehicle driver" as defined in K.S.A. 8-2802, and amendments thereto.
(e) "Rental agreement" means any written agreement setting forth the terms and conditions governing the use of the rental motor vehicle by the lessee for a period of 60 days or less. "Rental agreement" does not include a vehicle sharing program agreement, as defined in K.S.A. 8-2802, and amendments thereto.
(f) "Rental motor vehicle" means a private passenger type vehicle or commercial type vehicle which, upon execution of a rental agreement, is made available to a lessee for the lessee's use. "Rental motor vehicle" does not include a shared vehicle, as defined in K.S.A. 8-2802, and amendments thereto.
History: L. 1988, ch. 193, § 5; L. 2006, ch. 82, § 1; L. 2021, ch. 55, § 14; January 1, 2022.
No lessor shall deliver or issue for delivery in this state a rental agreement containing a collision damage waiver unless:
(a) It is written in simple and readable words with common meanings and is understandable;
(b) the terms of the collision damage waiver are prominently displayed including, but not limited to, any conditions and exclusions applicable to the collision damage waiver. The collision damage waiver may exclude the following:
(1) Damages caused intentionally by an authorized driver or as a result of an authorized driver's willful or wanton misconduct;
(2) damages caused by an authorized driver of the rental motor vehicle driving while intoxicated or under the influence of any illegal or unauthorized drug, or the combined influence of alcohol and any illegal or unauthorized drug;
(3) damages caused while engaging in any speed contest;
(4) the rental transaction is based on fraudulent information supplied by the renter;
(5) the damage arises out of the use of the vehicle while committing or otherwise engaged in a criminal act which would be a felony in which the automobile usage is substantially related to the nature of the criminal activity;
(6) the damage arises out of the use of the vehicle to carry persons or property for hire;
(7) the damage occurs while the vehicle is operated by a person other than an authorized driver;
(8) the damage arises out of the use of the vehicle outside of the United States unless such use is specifically authorized by the rental agreement;
(9) towing or pushing anything or if operation of the vehicle is off road; and
(10) loss due to the theft of the rental vehicle. However, the lessee shall be presumed to have no liability for any loss due to theft if:
(A) An authorized driver has possession of the ignition key furnished by the lessor, proof that the keys to the rental motor vehicle were taken by duress or an authorized driver establishes that the ignition key furnished by the lessor was not in the vehicle at the time of the theft; and
(B) an authorized driver files an official report of the theft with the police or other law enforcement agency within 24 hours of learning of the theft and reasonably cooperates with the lessor and the police or other law enforcement agency in providing information concerning the theft.
The presumption set forth in this paragraph is a presumption affecting the burden of proof which the lessor may rebut by establishing that an authorized driver committed, or aided and abetted the commission of, the theft.
(c) All restrictions, conditions or provisions in or endorsed on a collision damage waiver shall be printed in type as large as ten point type, or be written in pen and ink or typewritten in or on such agreement; but nothing contained in this section shall relate or apply to photographic copies of applications or parts thereof, attached to or made part of such agreement;
(d) the collision damage waiver includes a statement of the total charge for the waiver period; and
(e) the agreement containing the collision damage waiver displays the following notice on the face of the agreement, set apart and in boldface type and in no smaller print than 10 point type: NOTICE: THIS CONTRACT OFFERS, FOR AN ADDITIONAL CHARGE, A COLLISION DAMAGE WAIVER TO COVER YOUR RESPONSIBILITY FOR DAMAGE TO THE VEHICLE. BEFORE DECIDING WHETHER TO PURCHASE THE COLLISION DAMAGE WAIVER, YOU MAY WISH TO DETERMINE WHETHER YOUR OWN AUTOMOBILE INSURANCE AFFORDS YOU COVERAGE FOR DAMAGE TO THE RENTAL VEHICLE AND THE AMOUNT OF THE DEDUCTIBLE UNDER YOUR OWN INSURANCE COVERAGE. THE PURCHASE OF THIS COLLISION DAMAGE WAIVER IS NOT MANDATORY AND MAY BE WAIVED.
History: L. 1988, ch. 193, § 6; L. 2006, ch. 82, § 2; July 1.
The commission of any deceptive act or practice in the advertisement or sales of collision damage waivers is prohibited. The following are deceptive acts or practices when conducted by a lessor or its officials or representatives:
(a) The making of any false or misleading statements either orally or in writing, in connection with the sale, offer to sell, or advertisement of a collision damage waiver;
(b) the omission of any material statement in connection with the sale, offer to sell, or advertisement of a collision damage waiver, which under the circumstances should have been made in order to make the statements that were made not misleading;
(c) the making of any statement that the purchase of a collision damage waiver is mandatory;
(d) at the time of the sale, the failure to provide proper disclosure that the purchase of a collision damage waiver may be duplicative of the lessee's automobile insurance contract; and
(e) any deceptive act or practice as defined in K.S.A. 50-626 and amendments thereto.
History: L. 1988, ch. 193, § 7; January 1, 1989.
(a) A vehicle dealer, as defined in K.S.A. 8-2401, and amendments thereto, shall not knowingly or intentionally fail to disclose in writing to the consumer of a motor vehicle the following:
(1) The fact that a motor vehicle was used as a driver training motor vehicle, as defined in K.S.A. 72-4005, and amendments thereto;
(2) the fact that a motor vehicle was used as a leased or rented motor vehicle; or
(3) the fact that a motor vehicle was a factory buyback motor vehicle or returned to a vehicle dealer under the provisions of K.S.A. 50-645, and amendments thereto.
Failure of the vehicle dealer to disclose in writing the information in paragraphs (1), (2) and (3) shall create a rebuttable presumption of intent not to disclose such information.
(b) For the purposes of this section:
(1) "Motor vehicle" means a motor vehicle which is registered for a gross weight of 12,000 pounds or less, or a farm truck registered for a gross weight of 16,000 pounds or less;
(2) "consumer" means the first individual to take title to a motor vehicle, for purposes other than resale, after such vehicle was:
(A) Used as a leased or rented motor vehicle;
(B) a driver training motor vehicle;
(C) repurchased or reacquired by the manufacturer or distributor as a factory buyback motor vehicle; or
(D) returned to a vehicle dealer under the provisions of K.S.A. 50-645, and amendments thereto;
(3) "leased or rented motor vehicle" does not include a motor vehicle which is leased, loaned or rented by a vehicle dealer to a customer of such dealer while the customer's motor vehicle is being serviced or repaired by such dealer;
(4) "factory buyback motor vehicle" means a motor vehicle repurchased or reacquired by the manufacturer or distributor due to an order or judgment by a court of law or formal, informal or mandatory arbitration procedure, and placed for sale through any dealer, auction or agent.
(c) Any violation of this section is a deceptive act or practice under the Kansas consumer protection act.
(d) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 1988, ch. 54, § 1; L. 1992, ch. 252, § 6; L. 1993, ch. 123, § 1; July 1.
As used in this act:
(a) "After market part" means replacement sheet metal or plastic parts which are not made by or for the original equipment manufacturer and which generally constitute the exterior or provide support for the exterior of a motor vehicle, including inner and outer panels;
(b) "insurer" includes any person authorized to represent the insurer with respect to a claim who is acting within the scope of the person's authority.
History: L. 1989, ch. 34, § 1; July 1.
(a) No insurer shall require the use of after market parts in the repair of a motor vehicle without disclosing to the owner the intent to use such parts;
(b) violations of subsection (a) and K.S.A. 50-662 by insurers shall be enforced under the provisions of K.S.A. 40-2401 et seq., and amendments thereto.
History: L. 1989, ch. 34, § 2; July 1.
No person who prepares an estimate of repair shall specify the use of after market parts in the repair of a motor vehicle without disclosing the intended use of such parts to the owner. In all instances where after market parts are intended for use, the written estimate shall clearly identify each such part as being an after market part, and a disclosure document containing the following information in 10-point or larger type shall appear on or be attached to the owner's copy of the estimate:
"THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF ONE OR MORE AFTER MARKET PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE PARTS ARE PROVIDED BY THE PARTS MANUFACTURER OR DISTRIBUTOR RATHER THAN BY THE MANUFACTURER OF YOUR VEHICLE."
All after market parts installed on the motor vehicle shall be clearly identified on the estimate of such repair and are subject to the provisions provided by the disclosure. The installer of the after market parts shall be responsible for the negligent installation of such after market parts.
History: L. 1989, ch. 34, § 3; July 1.
The jurisdiction to enforce the provisions of K.S.A. 50-662 and amendments thereto shall be under the provisions of the consumer protection act, except as it applies to an insurer. Failure to provide the disclosures required by K.S.A. 50-662 and amendments thereto is a deceptive act or practice under the Kansas consumer protection act.
History: L. 1989, ch. 34, § 4; L. 1992, ch. 252, § 7; July 1.
The requirements of this act shall not apply to vehicles more than 10 model years of age or older.
History: L. 1989, ch. 34, § 5; July 1.
(a) A vehicle dealer, as defined in K.S.A. 8-2401, and amendments thereto, shall not knowingly or intentionally fail to disclose in any solicitation or advertisement offering a motor vehicle for sale, lease or rental, the fact that such motor vehicle is being offered for sale, lease or rental by a vehicle dealer.
(b) Violation of this section shall be deemed a deceptive act and practice as defined by K.S.A. 50-626, and amendments thereto.
(c) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 1990, ch. 31, § 1; July 1.
As used in this act:
(a) "Contract for invention promotion services" means a contract by which an invention promoter undertakes to develop or promote an invention for a consumer.
(b) "Invention" means a process, machine, manufacture, composition of matter, or an improvement upon any of the foregoing.
(c) "Fee" means any payment made by a consumer to an invention promoter, including reimbursements for expenditures made or costs incurred.
(d) "Invention promoter" means any person, and the agents, employees or representatives of the person, who develops or promotes or offers to develop or promote an invention for a consumer. The following are not invention promoters for purposes of this act:
(1) A person licensed to practice before the United States patent and trademark office as a patent attorney;
(2) a department or agency of federal, state or local government; or
(3) a person who accepts technology from institutions of higher education or other state or federal research institutions for evaluation and the providing of marketing services.
(e) "Invention promotion services" means acts to be performed or promised to be performed, or both, by an invention promoter.
(f) "Person" means an individual, partnership, corporation or other legal entity. Such term does not include a department or agency of any governmental unit.
History: L. 1990, ch. 181, § 1; April 19.
An invention promoter shall make the following disclosures:
(a) In any solicitation, whether a fee is charged for invention promotion services.
(b) In any contract between an invention promoter and consumer for invention promotion services:
(1) The fee to be charged and the specific services to be provided including:
(A) Whether the promoter will construct one or more prototypes, models or devices embodying the consumer's invention;
(B) whether the promoter undertakes to sell or distribute one or more prototypes, models or devices embodying the consumer's invention;
(C) the expected completion date of services; and
(D) the extent to which the invention promoter will acquire an interest in the title to the consumer's invention.
(2) Whichever of the following statements is applicable:
(A) That the invention promoter does not evaluate either:
(i) The commercial feasibility of inventions submitted to the invention promoter; or
(ii) the technical feasibility of inventions submitted to the invention promoter; or
(B) that the invention promoter does evaluate either:
(i) The commercial feasibility of inventions submitted to the invention promoter; or
(ii) the technical feasibility of inventions submitted to the invention promoter.
(3) That without an evaluation of commercial or technical feasibility, the consumer is at substantial risk that the invention may not be commercially or technically feasible.
(4) The following statement in 10 point boldface type:
"IF YOU ASSIGN EVEN A PARTIAL INTEREST IN THE INVENTION TO THE INVENTION PROMOTER, THE INVENTION PROMOTER MAY HAVE THE RIGHT TO ASSIGN OR LICENSE ITS INTEREST IN THE INVENTION, OR MAKE, USE, AND SELL THE INVENTION, WITHOUT YOUR CONSENT AND MAY NOT HAVE TO SHARE THE PROFITS WITH YOU.
YOU ARE ENCOURAGED TO CONSULT WITH A QUALIFIED ATTORNEY BEFORE SIGNING THIS CONTRACT. BY PROCEEDING WITHOUT THE ADVICE OF A QUALIFIED ATTORNEY YOU COULD LOSE ANY RIGHTS YOU MIGHT HAVE IN YOUR INVENTION.
THE PERFORMANCE OF THE SERVICES DETAILED IN THE CONTRACT PROVIDES NO GUARANTEE OR PROMISE OF PROFITS, OR THAT YOUR INVENTION WILL BE PURCHASED BY A MANUFACTURER.
THIS CONTRACT DOES NOT PROVIDE ANY PATENT, COPYRIGHT OR TRADEMARK PROTECTION FOR YOUR INVENTION. THE PATENT OFFICE DISCLOSURE PROGRAM IS NOT A PATENT APPLICATION PROCEEDING.
YOUR POTENTIAL PATENT RIGHTS MAY BE ADVERSELY AFFECTED BY ANY ATTEMPT TO COMMERCIALIZE YOUR INVENTION BEFORE A PATENT APPLICATION COVERING IT IS FILED. NONCONFIDENTIAL DISCLOSURES OF YOUR INVENTION MAY ALSO TRIGGER CERTAIN STATUTORY DEADLINES FOR FILING A PATENT APPLICATION IN THE UNITED STATES AND WOULD PREVENT YOU FROM OBTAINING VALID PATENT RIGHTS IN COUNTRIES WHOSE LAWS PROVIDE THAT PATENT APPLICATIONS MUST BE FILED BEFORE ANY PUBLIC DISCLOSURE."
History: L. 1990, ch. 181, § 2; April 19.
(a) Failure to provide the disclosures required by K.S.A. 50-667 and amendments thereto is a deceptive act or practice under the Kansas consumer protection act.
(b) This act shall be a part of and shall be supplemental to the Kansas consumer protection act.
History: L. 1990, ch. 181, § 3; L. 1992, ch. 252, § 8; July 1.
(a) A person shall not require as a condition or acceptance of a check or share draft, or as a means of identification, that the person presenting the check provide a credit card number or expiration date, or both, unless such credit is issued by the person requesting the information.
(b) This section does not prohibit a person from requesting a purchaser to display a credit card as indicia of credit worthiness and financial responsibility or as additional identification, but the only information concerning a credit card which may be recorded is the type of credit card so displayed and the issuer of the credit card.
(c) This section does not prohibit a person from requesting or receiving a credit card number or expiration date and recording the number or date, or both in lieu of a security deposit to assure payment in event of default, loss, damage, or other occurrence.
(d) This section does not prohibit a person from recording a credit card number and expiration date as a condition for cashing a check or share draft where that person has agreed with the card issuer to cash checks and share drafts as a service to the issuer's cardholders and the issuer guarantees cardholder checks and share drafts cashed by that person.
(e) Violation of this section shall be deemed an unconscionable act as defined by K.S.A. 50-627, and amendments thereto.
(f) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 1990, ch. 79, § 1; July 1.
(a) No person, firm, partnership, association or corporation which accepts credit cards for the transaction of business shall require the cardholder, as a condition to accepting the credit card, to:
(1) Write any personal identification information upon the credit card transaction form or otherwise; or
(2) provide personal identification information, which the person, firm, partnership, association or corporation accepting the credit card writes, causes to be written, or otherwise records upon the credit card transaction form or otherwise.
(b) For purposes of this section, "personal identification information" means information concerning the cardholder, other than information set forth on the credit card, and including, but not limited to, the cardholder's address and telephone number.
(c) Subsection (a) does not apply to personal identification information, required by the card issuer to complete the credit card transaction or for a special purpose incidental but related to the individual credit card transaction, including, but not limited to, information relating to shipping, delivery, servicing or installation of the purchased merchandise or for special orders.
(d) Violation of this section shall be deemed an unconscionable act as defined by K.S.A. 50-627, and amendments thereto.
(e) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 1992, ch. 144, § 1; July 1.
(a) No supplier which accepts credit cards or debit cards shall print more than the last five digits of the credit card or debit card account number or print the credit card or debit card expiration date on a credit card or debit card receipt issued to the cardholder.
(b) This section shall apply only to receipts that are electronically printed and shall not apply to transactions in which the sole means of recording the credit card or debit card number is by handwriting or by an imprint or copy of the credit card or debit card.
(c) This section applies on July 1, 2003, to any cash register or other machine or device that electronically prints receipts for credit card or debit card transactions and is placed into service on or after July 1, 2003, and on July 1, 2004, to any cash register or other machine or device that electronically prints receipts for credit card or debit card transactions and is placed into service prior to July 1, 2003.
(d) Violation of this section shall be deemed an unconscionable act as defined by K.S.A. 50-627, and amendments thereto.
(e) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2002, ch. 110, § 1; July 1.
(a) As used in this section and K.S.A. 50-670a, and amendments thereto:
(1) "Consumer telephone call" means a call made by a telephone solicitor to the residence or mobile telephone number of a consumer for the purpose of soliciting a sale of any property or services to the person called, or for the purpose of soliciting an extension of credit for property or services to the person called, or for the purpose of obtaining information that will or may be used for the direct solicitation of a sale of property or services to the person called or an extension of credit for such purposes.
(2) "Mobile telephone number" means a telephone number associated with a wireless telecommunications service as defined in K.S.A. 12-5363, and amendments thereto.
(3) "Unsolicited consumer telephone call" means a consumer telephone call other than a call made:
(A) In response to an express request or with the express written agreement of the person called;
(B) primarily in connection with an existing debt or contract, payment or performance of which has not been completed at the time of such call; or
(C) to any person with whom the telephone solicitor or the telephone solicitor's predecessor in interest has an established business relationship, unless the consumer has objected to such consumer telephone calls and requested that the telephone solicitor cease making consumer telephone calls. The telephone solicitor shall honor any such request for five years from the date of such request.
(4) "Telephone solicitor" means any natural person, firm, organization, partnership, association or corporation who makes or causes to be made a consumer telephone call, including, but not limited to, calls made by use of automatic dialing-announcing device.
(5) "Automatic dialing-announcing device" means any user terminal equipment which:
(A) When connected to a telephone line can dial, with or without manual assistance, telephone numbers which have been stored or programmed in the device or are produced or selected by a random or sequential number generator; or
(B) when connected to a telephone line can disseminate a recorded message to the telephone number called, either with or without manual assistance.
(6) "Negative response" means a statement from a consumer indicating the consumer does not wish to listen to the sales presentation or participate in the solicitation presented in the consumer telephone call.
(7) "Established business relationship" means a prior or existing relationship formed by a voluntary two-way communication between a person or entity and consumer with or without an exchange of consideration, on a basis of an application, purchase or transaction by the consumer, within the 18 months immediately preceding the date of the consumer telephone call, regarding products or services offered by such person or entity, which relationship has not been previously terminated by either party.
(b) Any telephone solicitor who makes an unsolicited consumer telephone call shall:
(1) Identify themselves;
(2) identify the business on whose behalf such person is soliciting;
(3) identify the purpose of the call immediately upon making contact by telephone with the person who is the object of the telephone solicitation;
(4) promptly discontinue the solicitation if the person being solicited gives a negative response at any time during the consumer telephone call;
(5) hang up the phone, or in the case of an automatic dialing-announcing device operator, disconnect the automatic dialing-announcing device from the telephone line within 25 seconds of the termination of the call by the person being called; and
(6) a live operator or an automated dialing-announcing device shall answer the line within five seconds of the beginning of the call. If answered by automated dialing-announcing device, the message provided shall include only the information required in subsection (b)(1) and (2), but shall not contain any unsolicited advertisement.
(c) A telephone solicitor shall not withhold the display of the telephone solicitor's telephone number from a caller identification service when that number is being used for telemarketing purposes.
(d) A telephone solicitor shall not transmit any written information by facsimile machine or computer to a consumer after the consumer requests orally or in writing that such transmissions cease.
(e) A telephone solicitor shall not obtain by use of any professional delivery, courier or other pickup service receipt or possession of a consumer's payment unless the goods are delivered with the opportunity to inspect before any payment is collected.
(f) Local exchange carriers and telecommunications carriers shall not be responsible for the enforcement of the provisions of this section.
(g) Any violation of this section is an unconscionable act or practice under the Kansas consumer protection act.
(h) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 1991, ch. 158, § 2; L. 1992, ch. 252, § 9; L. 1997, ch. 172, § 1; L. 1998, ch. 156, § 2; L. 2000, ch. 91, § 2; L. 2002, ch. 179, § 1; L. 2014, ch. 18, § 1; July 1.
(a) Prior to making unsolicited consumer telephone calls in this state and not less frequently than every 30 days thereafter, a telephone solicitor shall consult the no-call list provided for by this act, and shall delete from such telephone solicitor's calling list all telephone numbers of consumers appearing on such list. The attorney general shall direct consumers desiring to register their telephone number on the no-call list to contact the federal trade commission to register on the national no-call list.
(b) Telephone solicitors shall have a period of not more than 30 days from the time of registration of a consumer's telephone number on the no-call list to remove that telephone number from the telephone solicitor's calling lists.
(c) No telephone solicitor may make or cause to be made any unsolicited consumer telephone calls to any consumer if the consumer's telephone number or numbers appear on the no-call list. A telephone solicitor shall not use the no-call list for any other purpose than to remove consumers' telephone numbers from calling lists.
(d) A telephone solicitor shall be liable for violations of subsections (b) and (c) if such telephone solicitor makes or causes to be made an unsolicited telephone call to a consumer whose telephone number appears on the no-call list or uses the list for any unauthorized purpose.
(e) It shall be an affirmative defense to a violation of this section if the telephone solicitor can demonstrate, by clear and convincing evidence, that: (1) The telephone solicitor at the time of the alleged violation had: (A) Obtained a copy of the updated no-call list; (B) established and implemented, with due care, reasonable practices and procedures to effectively prevent unsolicited consumer telephone calls in violation of this section; (C) trained the telephone solicitor's personnel in the requirements of this section; and (D) maintained records demonstrating compliance with this section; and (2) the unsolicited consumer telephone call was the result of an error. Such defense shall not be exercised by a telephone solicitor more than once within the state of Kansas in any 12-month period. A telephone solicitor shall be deemed to have exercised such defense if asserted in response to any consumer complaint about a violation of this section, regardless of whether litigation has been initiated.
(f) It shall be an affirmative defense to a violation of this section if the telephone solicitor can demonstrate by clear and convincing evidence that: (1) The consumer affirmatively listed or held out to the public such consumer's residential or mobile telephone number as a business number; (2) the telephone solicitor had knowledge of and relied upon such consumer's actions as provided in subsection (f)(1) at the time of the telephone solicitor's alleged violation; and (3) the purpose of the call was directly related to the consumer's business.
(g) Any violation of this section is an unconscionable act or practice under the Kansas consumer protection act.
(h) The attorney general may request information from the federal trade commission for the purpose of enforcing the provisions of this section and may comply with requirements of the federal trade commission to receive such information.
(i) Penalties and fees recovered from prosecutions of violations of this section shall be paid to the attorney general to investigate and prosecute violations of this section.
(j) The attorney general may convene a meeting or meetings with consumer advocacy groups to collectively develop a method or methods to notify the consumer advocacy group's membership and educate and promote to consumers generally the availability of the no-call list, and of a telephone solicitor's obligations under this section.
(k) On or before the first day of each regular legislative session, the attorney general shall report to the standing committees of the house and senate which hear and act on legislation relating to telecommunications issues on the status of implementation of the provisions of this section, including, but not limited to, the number of consumers who have given notice of objection, the number of requests for the data base, state revenues received from the respective sources of revenue under this section, the number of complaints received alleging violations of this section and actions taken to enforce the provisions of this section.
(l) The national no-call list established and maintained by the federal trade commission shall be designated as the Kansas no-call list.
(m) The attorney general may promulgate rules and regulations to carry out the provisions of the Kansas no-call act. The attorney general is authorized to promulgate state rules and regulations adopting provisions of federal trade commission regulations implementing the national do not call law, including, but not limited to, the telemarketing sales rule, 16 C.F.R. part 310. Any violation of rules and regulations promulgated pursuant to this section shall be considered a violation of this section.
(n) The provisions of this section shall be a part of and supplemental to the Kansas consumer protection act.
(o) The provisions of this section and K.S.A. 50-670, and amendments thereto, shall be known and may be cited as the Kansas no-call act.
History: L. 2002, ch. 179, § 2; L. 2014, ch. 18, § 2; July 1.
As used in this act*:
(a) "Consumer" means an actual or prospective purchaser, lessee, or recipient of consumer goods or services bought primarily for use for personal, family, or household purposes.
(b) "Telemarketer" means any person or organization who, individually or through salespersons, initiates the sale, lease, or rental of consumer goods or services, or offers gifts or prizes with the intent to sell, lease or rent consumer goods or services by telephonic means or by postcard or other written notice sent through the mail in which the goods and services and all the material terms of the transaction, including price and any fees or handling, shipping or delivery charges, are not fully described and which requests that the consumer contact the seller to initiate the transaction. Such definition shall not be considered to include any not-for-profit or charitable organization exempt from federal income taxation pursuant to section 501(c)(3) of the internal revenue code of 1986.
(c) "Credit card issuer" means any person or organization who issues a credit card, or the agent of such person with respect to such card.
History: L. 1991, ch. 70, § 1; July 1.
(a) Any verbal agreement made by a consumer to purchase any goods or services from a telemarketer shall not be considered valid and legally binding unless the telemarketer receives from the consumer a signed confirmation that discloses in full the terms of the sale agreed upon.
(b) The confirmation shall include, but is not limited to, the following information:
(1) The name of the telemarketer;
(2) the address and telephone number at which personal or voice contact with an employee or agent of the telemarketer can be made during normal business hours;
(3) a list of all prices or fees being requested, including any handling, shipping, delivery, or other charges;
(4) the date of the transaction;
(5) a detailed description of the goods or services being sold;
(6) a duplicate copy with the complete information as presented in the original confirmation, to be retained by the consumer as proof of the terms of the agreement to purchase; and
(7) in a type size of a minimum of twelve points, in a space immediately preceding the space allotted for the consumer signature, the following statement:
"YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONFIRMATION AND RETURN IT TO THE SELLER."
(c) A telemarketer may not make or submit any charge to the consumer's credit card account until the telemarketer has received from the consumer an original copy of a confirmation, signed by the consumer, that complies with this section. Any merchandise sent or services provided without such written confirmation shall be considered as unsolicited goods subject to the provisions of K.S.A. 50-617 and amendments thereto.
(d) No consumer shall be held liable for payment for any good or service provided by a telemarketer unless such telemarketer has first received the written consent of the consumer in the form of a confirmation as defined in this section.
(e) In the event that the consumer sends payment to the telemarketer in the form of a personal check, cash money, or any other form of payment other than credit card without having included a signed copy of such confirmation, the consumer shall have the right to choose at any time to cancel the sale by notifying the telemarketer in writing, provided the consumer returns to the telemarketer the goods sold in substantially the same condition as when they were received by the consumer. A telemarketer that has received such notice to cancel from a consumer shall then, within 10 business days of the receipt of such notice:
(1) Refund all payments made, including any down payment made under the agreement;
(2) return any goods or property traded in to the seller on account of or in contemplation of the agreement, in substantially the same condition as when received by the telemarketer; and
(3) take any action necessary or appropriate to terminate promptly any security interest created in connection with the agreement.
History: L. 1991, ch. 70, § 2; L. 1992, ch. 252, § 1; July 1.
The provisions of K.S.A. 50-671 through 50-674 and amendments thereto do not apply to a transaction:
(a) That has been made in accordance with prior negotiations in the course of a visit by the consumer to a merchant operating a business establishment that has a fixed permanent location and where consumer goods or services are displayed or offered for sale on a continuing basis;
(b) in which the business establishment, or the establishment's predecessor in interest, making the solicitation has made a prior sale to the consumer, is establishing a business to business relationship or has a clear, preexisting business relationship with the consumer, provided that relationship resulted in the consumer becoming aware of the full name, business address and phone number of the establishment and is not a provider of telecommunications services;
(c) in which the consumer purchases goods or services pursuant to an examination of a television, radio, or print advertisement or a sample, brochure, catalogue, or other mailing material of the telemarketer that contains:
(1) The name, address, and telephone number of the telemarketer;
(2) a full description of the goods or services being sold along with a list of all prices or fees being requested, including any handling, shipping, or delivery charges; and
(3) any limitations or restrictions that apply to the offer; or
(d) in which the consumer may obtain a full refund for the return of undamaged and unused goods or a cancellation of services notice to the seller after the consumer has had at least seven days to review the goods or services, and the seller will process the refund within 30 days after receipt of the returned merchandise by the consumer or the refund for any services not performed or a pro rata refund for any services not yet performed for the consumer. The return and refund privilege shall be disclosed to the consumer orally by telephone or in writing with advertising, promotional material or with delivery of the product or service. The words "satisfaction guaranteed," "free inspection," "no risk guarantee" or similar words and phrases meet the requirements of this act.
(e) Any telemarketer who, pursuant to this section, is exempted from K.S.A. 50-671 through 50-674 and amendments thereto, impliedly warrants the goods or property to be satisfactory to the consumer to the extent that the consumer shall have the right to choose at any time within the seven-day refund period, to cancel the sale by notifying the telemarketer in writing, provided the consumer returns to the telemarketer the goods sold in substantially the same condition as when they were received by the consumer. A telemarketer that has received such notice to cancel from a consumer shall then, within 30 business days of the receipt of such notice:
(1) Refund all payments made, including any down payment made under the agreement;
(2) return any goods or property traded in to the seller on account of or in contemplation of the agreement, in substantially the same condition as when received by the telemarketer; and
(3) take any action necessary or appropriate to terminate promptly any security interest created in connection with the agreement.
History: L. 1991, ch. 70, § 3; L. 1992, ch. 252, § 2; L. 1998, ch. 156, § 3; July 1.
For the purposes of enforcement under K.S.A. 50-671 through 50-674, any telemarketing sale shall be considered to have taken place in the state where the consumer is located, regardless of the location of the telemarketer.
History: L. 1991, ch. 70, § 4; July 1.
(a) This act* shall be part of and supplemental to the Kansas consumer protection act.
(b) Any attempt to collect a fee, or enforce a credit card charge or transaction or any refusal to make a refund to the consumer in violation of this act is an unconscionable act within the meaning of K.S.A. 50-627 and amendments thereto.
History: L. 1991, ch. 70, § 5; L. 1992, ch. 252, § 3; July 1.
History: L. 2000, ch. 91, § 1; Repealed, L. 2006, ch. 35, § 1; July 1.
As used in K.S.A. 50-676 through 50-679, and amendments thereto:
(a) "Elder person" means a person who is 60 years of age or older.
(b) "Disabled person" means a person who has physical or mental impairment, or both, that substantially limits one or more of such person's major life activities.
(c) "Immediate family member" means parent, child, stepchild or spouse.
(d) "Major life activities" includes functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning and working.
(e) "Member of the armed forces" means a person performing active service in the army, navy, marine corps, air force, space force, coast guard or any component of the military reserves of the United States.
(f) "Physical or mental impairment" means the following:
(1) Any physiological disorder or condition, cosmetic disfigurement or anatomical loss substantially affecting one or more of the following body systems:
(A) Neurological;
(B) musculoskeletal;
(C) special sense organs;
(D) respiratory, including speech organs;
(E) cardiovascular;
(F) reproductive;
(G) digestive;
(H) genitourinary;
(I) hemic and lymphatic;
(J) skin; or
(K) endocrine; or
(2) any mental or psychological disorder, such as intellectual disability, organic brain syndrome, emotional or mental illness and specific learning disabilities.
The term "physical or mental impairment" includes, but is not limited to, orthopedic, visual, language and hearing disorders, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, intellectual disability and emotional illness.
(g) "Protected consumer" means:
(1) An elder person;
(2) a disabled person;
(3) a veteran;
(4) the surviving spouse of a veteran;
(5) a member of the armed forces; and
(6) an immediate family member of a member of the armed forces.
(h) "Substantially limits" means:
(1) Unable to perform a major life activity that the average person in the general population can perform; or
(2) significantly restricted as to the condition, manner or duration under which an individual can perform a particular major life activity as compared to the condition, manner or duration under which the average person in the general population can perform that same major life activity. Minor temporary ailments or injuries shall not be considered physical or mental impairments that substantially limit a person's major life activities. Minor temporary ailments include, but are not limited to, colds, influenza or sprains or minor injuries.
(i) "Veteran" means a person who served in the active military, naval, air or space service, including those groups and individuals listed under 38 C.F.R. § 3.7, and who was discharged or released therefrom under an honorable discharge or a general discharge under honorable conditions.
History: L. 1996, ch. 121, § 1; L. 2010, ch. 129, § 6; L. 2012, ch. 91, § 34; L. 2017, ch. 91, § 1; L. 2022, ch. 75, § 7; L. 2024, ch. 84, § 17; L. 2025, ch. 97, § 8; July 1.
If any person is found to have violated any provision of the Kansas consumer protection act, and such violation is committed against a protected consumer, in addition to any civil penalty otherwise provided by law, the court may impose an additional civil penalty not to exceed $10,000 for each such violation.
History: L. 1996, ch. 121, § 2; L. 2010, ch. 129, § 7; July 1.
In determining whether to impose a civil penalty as provided in K.S.A. 50-676 through 50-679, and amendments thereto, and the amount of such civil penalty, the court shall consider the extent to which one or more of the following factors are present:
(a) Whether the defendant's conduct was in disregard of the rights of the protected consumer;
(b) whether the defendant knew or should have known that the defendant's conduct was directed to a protected consumer;
(c) whether the protected consumer was more vulnerable to the defendant's conduct because of age, poor health, infirmity, impaired understanding, restricted mobility or disability than other persons and actually suffered substantial physical, emotional or economic damage resulting from the defendant's conduct;
(d) whether the defendant's conduct caused a protected consumer to suffer any of the following:
(1) Mental or emotional anguish;
(2) loss of or encumbrance upon a primary residence of the protected consumer;
(3) loss of or encumbrance upon the protected consumer's principal employment or principal source of income;
(4) loss of funds received under a pension or retirement plan or a government benefits program;
(5) loss of property set aside for retirement or for personal or family care and maintenance; or
(6) loss of assets essential to the health and welfare of the protected consumer; or
(e) any other factors the court deems appropriate.
History: L. 1996, ch. 121, § 3; L. 2010, ch. 129, § 8; July 1.
A protected consumer who suffers damage or injury as a result of a violation of the Kansas consumer protection act has a cause of action to recover actual damages, punitive damages, if appropriate, and reasonable attorney fees. Restitution ordered pursuant to this section has priority over a civil penalty imposed pursuant to K.S.A. 50-677, and amendments thereto.
History: L. 1996, ch. 121, § 4; L. 2010, ch. 129, § 9; July 1.
The provisions of K.S.A. 50-676 through 50-679, and amendments thereto, shall be part of and supplemental to the consumer protection act.
History: L. 1996, ch. 121, § 5; L. 2010, ch. 129, § 10; July 1.
This act shall be known and may be cited as the Kansas consumer lease-purchase agreement act.
History: L. 1991, ch. 71, § 1; July 1.
As used in this act:
(1) "Advertisement" means a commercial message in any medium that aids, promotes or assists, directly or indirectly, a lease-purchase agreement;
(2) "cash price" means the price at which the lessor would have sold the property to the consumer for cash on the date of the lease-purchase agreement;
(3) "consumer" means a natural person who rents personal property under a lease-purchase agreement to be used primarily for personal, family or household purposes;
(4) "consummation" means the time a consumer becomes contractually obligated on a lease-purchase agreement;
(5) "lessor" means a person who regularly provides the use of property through lease-purchase agreements and to whom lease payments are initially payable on the face of the lease-purchase agreement; and
(6) "lease-purchase agreement" means an agreement for the use of personal property by a natural person primarily for personal, family or household purposes, for an initial period of four months or less that is automatically renewable with each payment after the initial period, but does not obligate or require the consumer to continue leasing or using the property beyond the initial period, and that permits the consumer to become the owner of the property.
History: L. 1991, ch. 71, § 2; July 1.
(a) Lease-purchase agreements which comply with this act are not governed by the laws relating to:
(1) Door-to-door sales as defined in K.S.A. 50-640, and amendments thereto;
(2) a consumer credit transaction as defined in K.S.A. 16a-1-301, and amendments thereto;
(3) a security interest as defined in K.S.A. 2025 Supp. 84-1-201(b)(35), and amendments thereto; or
(4) an instrument as defined in K.S.A. 16-207, and amendments thereto.
(b) This act does not apply to the following:
(1) Lease-purchase agreements primarily for business, commercial or agricultural purposes, or those made with governmental agencies or instrumentalities or with organizations;
(2) a lease of a safe deposit box;
(3) a lease or bailment of personal property which is incidental to the lease of real property, and which provides that the consumer has no option to purchase the leased property; or
(4) a lease of an automobile.
History: L. 1991, ch. 71, § 3; L. 2007, ch. 89, § 28; July 1, 2008.
(a) The lessor shall disclose to the consumer the information required by this act. In a transaction involving more than one lessor, only one lessor need make the disclosures, but all lessors shall be bound by such disclosures.
(b) The disclosures shall be made at or before consummation of the lease-purchase agreement.
(c) The disclosures shall be made clearly and conspicuously in writing and a copy of the lease-purchase agreement provided to the consumer. The disclosures required under subsection (a) of K.S.A. 50-684 shall be made on the face of the contract above the line for the consumer's signature.
(d) If a disclosure becomes inaccurate as the result of any act, occurrence or agreement by the consumer after delivery of the required disclosures, the resulting inaccuracy is not a violation of this act.
History: L. 1991, ch. 71, § 4; July 1.
(a) For each lease-purchase agreement, the lessor shall disclose in the agreement the following items, as applicable:
(1) the total number, total amount and timing of all payments necessary to acquire ownership of the property;
(2) a statement that the consumer will not own the property until the consumer has made the total payment necessary to acquire ownership;
(3) a statement that the consumer is responsible for the fair market value of the property if, and as of the time, it is lost, stolen, damaged or destroyed;
(4) a brief description of the leased property, sufficient to identify the property to the consumer and the lessor, including an identification number, if applicable, and a statement indicating whether the property is new or used, but a statement that indicates new property is used is not a violation of this act;
(5) a brief description of any damages to the leased property;
(6) a statement of the cash price of the property. Where the agreement involves a lease of five or more items as a set, in one agreement, a statement of the aggregate cash price of all items shall satisfy this requirement;
(7) the total of initial payments paid or required at or before consummation of the agreement or delivery of the property, whichever is later;
(8) a statement that the total of payments does not include other charges, such as late payment, default, pickup and reinstatement fees, which fees shall be separately disclosed in the contract;
(9) a statement clearly summarizing the terms of the consumer's option to purchase, including a statement that the consumer has the right to exercise an early purchase option and the price, formula or method for determining the price at which the property may be so purchased;
(10) a statement identifying the party responsible for maintaining or servicing the property while it is being leased, together with a description of that responsibility, and a statement that if any part of a manufacturer's express warranty covers the leased property at the time the consumer acquires ownership of the property, it shall be transferred to the consumer, if allowed by the terms of the warranty;
(11) the date of the transaction and the identities of the lessor and consumer;
(12) a statement that the consumer may terminate the agreement without penalty by voluntarily surrendering or returning the property in good repair upon expiration of any lease term along with any past due rental payments; and
(13) notice of the right to reinstate an agreement as herein provided.
(b) With respect to matters specifically governed by the federal consumer credit protection act, compliance with such act satisfies the requirements of this section.
History: L. 1991, ch. 71, § 5; July 1.
A lease-purchase agreement may not contain:
(1) A confession of judgment;
(2) a negotiable instrument;
(3) a security interest or any other claim of a property interest in any goods except those goods delivered by the lessor pursuant to the lease-purchase agreement;
(4) a wage assignment;
(5) a waiver by the consumer of claims or defenses; or
(6) a provision authorizing the lessor or a person acting on the lessor's behalf to enter upon the consumer's premises or to commit any breach of the peace in the repossession of goods.
History: L. 1991, ch. 71, § 6; July 1.
(a) A consumer who fails to make a timely rental payment may reinstate the agreement, without losing any rights or options which exist under the agreement, by the payment, within five days of the renewal date if the consumer pays monthly, or within two days of the renewal date if the consumer pays more frequently than monthly, of:
(1) All past due rental charges;
(2) if the property has been picked up, the reasonable costs of pickup and redelivery; and
(3) any applicable late fee.
(b) In the case of a consumer who has paid less than ⅔ of the total of payments necessary to acquire ownership and where the consumer has returned or voluntarily surrendered the property, other than through judicial process, during the applicable reinstatement period set forth in subsection (a) of this section, the consumer may reinstate the agreement during a period of not less than 21 days after the date of the return of the property.
(c) In the case of a consumer who has paid ⅔ or more of the total of payments necessary to acquire ownership, and where the consumer has returned or voluntarily surrendered the property, other than through judicial process, during the applicable period set forth in subsection (a) of this section, the consumer may reinstate the agreement during a period of not less than 45 days after the date of the return of the property.
(d) Nothing in this section shall prevent a lessor from attempting to repossess property during the reinstatement period, but such a repossession shall not affect the consumer's right to reinstate. Upon reinstatement, the lessor shall provide the consumer with the same property or substitute property of comparable quality and condition.
History: L. 1991, ch. 71, § 7; July 1.
A lessor shall provide the consumer a written receipt for each payment made by cash or money order.
History: L. 1991, ch. 71, § 8; July 1.
(a) A renegotiation shall occur when an existing lease-purchase agreement is satisfied and replaced by a new agreement undertaken by the same lessor and consumer. A renegotiation shall be considered a new agreement requiring new disclosures. However, events such as the following shall not be treated as renegotiations:
(1) The addition or return of property in a multiple-item agreement or the substitution of the lease property, if in either case the average payment allocable to a payment period is not changed by more than 25%;
(2) a deferral or extension of one or more periodic payments, or portions of a periodic payment;
(3) a reduction in charges in the lease or agreement; and
(4) a lease or agreement involved in a court proceeding.
(b) No disclosures are required for any extension of a lease-purchase agreement.
History: L. 1991, ch. 71, § 9; July 1.
(a) If an advertisement for a lease-purchase agreement refers to or states the dollar amount of any payment and the right to acquire ownership for any one specific item, the advertisement shall also clearly and conspicuously state the following items, as applicable:
(1) That the transaction advertised is a lease-purchase agreement;
(2) the total of payments necessary to acquire ownership; and
(3) that the consumer acquires no ownership rights if the total amount necessary to acquire ownership is not paid.
(b) Any owner or personnel of any medium in which an advertisement appears or through which it is disseminated shall not be liable under this section.
(c) The provisions of subsection (a) of this section shall not apply to an advertisement which does not refer to or state the amount of any payment, or which is published in the yellow pages of a telephone directory or in any similar directory of business.
History: L. 1991, ch. 71, § 10; July 1.
Any violation of this act is an unconscionable act or practice under the provisions of the Kansas consumer protection act and shall be subject to any and all of the enforcement provisions of the Kansas consumer protection act.
History: L. 1991, ch. 71, § 11; L. 1992, ch. 252, § 10; July 1.
(a) As used in this section:
(1) "Prize" means a gift, award or other item or service of value.
(2) "Prize notice" means a notice given to an individual in this state that satisfies all of the following:
(A) Is or contains a representation that the individual has been selected or may be eligible to receive a prize.
(B) Conditions receipt of a prize on a payment from the individual or requires or invites the individual to make a contact to learn how to receive the prize or to obtain other information related to the notice.
(3) "Solicitor" means a person who represents to an individual that the individual has been selected or may be eligible to receive a prize.
(4) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.
(5) "Verifiable retail value" of a prize means:
(A) A price at which the solicitor or sponsor can demonstrate that a substantial number of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in which the prize notice is given.
(B) If the solicitor or sponsor is unable to satisfy paragraph (A), no more than 1.5 times the amount the solicitor or sponsor paid for the prize.
(b) If a solicitor represents to an individual, by oral or written communication, that the individual has been selected or may be eligible to receive a prize, the solicitor shall not request, and the solicitor or sponsor shall not accept, a payment from the individual in any form and the solicitor shall not create the reasonable impression that such payment is required before the individual receives a written prize notice that contains all of the information required under subsection (c)(1) presented in the manner required under subsection (c)(2) through (6).
(c) (1) A written prize notice shall contain all of the following information presented in the manner required under paragraphs (1) through (6):
(A) The name and address of the solicitor and sponsor.
(B) The verifiable retail value of each prize the individual has been selected or may be eligible to receive.
(C) If the notice lists more than one prize that the individual has been selected or may be eligible to receive, a statement of the odds the individual has of receiving each prize.
(D) Any requirement or invitation for the individual to view, hear or attend a sales presentation in order to claim a prize, the approximate length of the sales presentation and a description of the property or service that is the subject of the sales presentation.
(E) Any requirement that the individual pay shipping or handling fees or any other charges to obtain or use a prize.
(F) If a receipt of the prize is subject to a restriction, a statement that a restriction applies, a description of the restriction and a statement containing the location in the notice where the restriction is described.
(G) Any limitations on eligibility.
(2) (A) The verifiable retail value and the statement of odds required in a written prize notice under paragraphs (1)(B) and (C) shall be stated in immediate proximity to each listing of the prize in each place the prize appears on the written prize notice and shall be in the same size and boldness of type as the prize.
(B) The statement of odds shall include, for each prize, the total number of prizes to be given away and the total number of written prize notices to be delivered. The number of prizes and written prize notices shall be stated in Arabic numerals. The statement of odds shall be in the following form: "____
(number of prizes)
____ out of _________ written prize notices."
(C) The verifiable retail value shall be in the following form: "verifiable retail value: $______."
(3) If an individual is required to pay shipping or handling fees or any other charges to obtain or use a prize, the following statement shall appear in immediate proximity to each listing of the prize in each place the prize appears in the written prize notice and shall be in not less than 10-point boldface type: "YOU MUST PAY $_____ IN ORDER TO RECEIVE OR USE THIS ITEM."
(4) The information required in a written prize notice under paragraph (1)(D) shall be on the first page of the written prize notice in not less than 10-point boldface type. The information required under paragraph (1)(F) and (G) shall be in not less than 10-point boldface type.
(5) If a written prize notice is given by a solicitor on behalf of a sponsor, the name of the sponsor shall be more prominently and conspicuously displayed than the name of the promoter.
(6) A solicitor or sponsor shall not do any of the following:
(A) Place on an envelope containing a written prize notice any representation that the person to whom the envelope is addressed has been selected or may be eligible to receive a prize.
(B) Deliver a written prize notice that contains language, or is designed in a manner, that would lead a reasonable person to believe that it originates from a government agency, public utility, insurance company, consumer reporting agency, debt collector or law firm unless the written prize notice originates from that source.
(C) Represent directly or by implication that the number of individuals eligible for the prize is limited or that an individual has been selected to receive a particular prize unless the representation is true.
(d) If a prize notice requires or invites an individual to view, hear or attend a sales presentation in order to claim a prize, the sales presentation shall not begin until the solicitor does all of the following:
(1) Informs the individual of the prize, if any, that has been awarded to the individual.
(2) If the individual has been awarded a prize, delivers to the individual the prize or the item selected by the individual under subsection (e) if the prize is not available.
(e) (1) A solicitor who represents to an individual in a written prize notice that the individual has been awarded a prize shall provide the prize to the individual unless the prize is not available. If the prize is not available, the solicitor shall provide the individual with any one of the following items selected by the individual:
(A) Any other prize listed in the written prize notice that is available and that is of equal or greater value.
(B) The verifiable retail value of the prize in the form of cash, a money order or a certified check.
(C) A voucher, certificate or other evidence of obligation stating that the prize will be shipped to the individual within 30 days at no cost to the individual.
(2) If a voucher, certificate of other evidence of obligation delivered under paragraph (1)(C) is not honored within 30 days, the solicitor shall deliver to the individual the verifiable retail value of the prize in the form of cash, a money order or a certified check. The sponsor shall make the payment to the individual if the solicitor fails to do so.
(f) Nothing in this section shall be construed to permit an activity otherwise prohibited by law.
(g) Any violation of this section is an unconscionable act or practice under the Kansas consumer protection act.
(h) In addition to any other remedies, a person suffering pecuniary loss because of a violation by another person of this section may bring an action in any court of competent jurisdiction and shall recover all of the following:
(1) The greater of $500 or twice the amount of the pecuniary loss.
(2) Costs and reasonable attorney fees.
(i) The provisions of this section shall not apply to the sale or purchase, or solicitation or representation in connection therewith, of goods from a catalog or of books, recordings, videocassettes, periodicals and similar goods through a membership group or club which is regulated by the federal trade commission trade regulation rule concerning use of negative option plans by sellers in commerce or through a contractual plan or arrangement such as a continuity plan, subscription arrangement or a single sale or purchase series arrangement under which the seller ships goods to a consumer who has consented in advance to receive such goods and the recipient of such goods is given the opportunity, after examination of the goods, to receive a full refund of charges for the goods or unused portion thereof, upon return of the goods or unused portion thereof, undamaged.
(j) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 1994, ch. 277, § 1; July 1.
As used in this act:
(a) "Assistive device" means any device, including a demonstrator, that a consumer purchases or accepts transfer of in this state which is used for a major life activity which includes, but is not limited to, manual wheelchairs, motorized wheelchairs, motorized scooters and other aides that enhance the mobility of an individual; hearing aide, telephone communication devices for the deaf (TTY), assistive listening devices and other aides that enhance an individual's ability to hear; voice synthesized computer modules, optical scanners, talking software, braille printers and other devices that enhance a sight impaired individual's ability to communicate; and any other assistive device that enables a person with a disability to communicate, see, hear or maneuver.
(b) "Assistive device dealer" means a person who is in the business of selling assistive devices.
(c) "Assistive device lessor" means a person who leases an assistive device to a consumer, or who holds the lessor's rights, under a written lease.
(d) "Collateral costs" means expenses incurred by a consumer in connection with the repair of a nonconformity, including the costs of obtaining an alternative assistive device.
(e) "Consumer" means any of the following:
(1) The purchaser of an assistive device, if the assistive device was purchased from an assistive device dealer or manufacturer for purposes other than resale;
(2) a person to whom the assistive device is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the assistive device;
(3) a person who may enforce the warranty;
(4) a person who leases an assistive device from an assistive device lessor under a written lease.
(f) "Demonstrator" means an assistive device used primarily for the purpose of demonstration to the public.
(g) "Early termination cost" means any expense or obligation that an assistive device lessor incurs as a result of both the termination of a written lease before the termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination cost includes a penalty for prepayment under a finance arrangement.
(h) "Early termination saving" means any expense or obligation that an assistive device lessor avoids as a result of both the termination of a written lease before that termination date set forth in that lease and the return of an assistive device to a manufacturer pursuant to this section. Early termination saving includes an interest charge that the assistive device lessor would have paid to finance the assistive device or, if the assistive device lessor does not finance the assistive device, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.
(i) "Manufacturer" means a person who manufactures or assembles assistive devices and agents of that person, including an importer, a distributor, factory branch, distributor branch and any warrantors of the manufacturer's assistive device, but does not include an assistive device dealer.
(j) "Nonconformity" means a condition or defect that substantially impairs the use, value or safety of an assistive device, and that is covered by an express warranty applicable to the assistive device or to a component of the assistive device, but does not include a condition or defect that is the result of abuse, neglect or unauthorized modification or alteration of the assistive device by a consumer.
(k) "Reasonable attempt to repair" means within the terms of an express warranty applicable to a new assistive device:
(1) Any nonconformity within the warranty that is either subject to repair by the manufacturer, assistive device lessor or any of the manufacturer's authorized assistive device dealers, for at least four times and a nonconformity continues;
(2) the assistive device is out of service for an aggregate of at least 30 cumulative days because of warranty nonconformity.
History: L. 1996, ch. 18, § 1; July 1.
(a) A manufacturer who sells an assistive device to a consumer, either directly or through an assistive device dealer, shall furnish the consumer with an express warranty for the assistive device. The duration of the express warranty shall be not less than one year after first delivery of the assistive device to the consumer. In the absence of an express warranty from the manufacturer, the manufacturer shall be deemed to have expressly warranted to the consumer of an assistive device that, for a period of one year from the date of first delivery to the consumer, the assistive device will be free from any condition or defect which substantially impairs the use or the value, or both, of the assistive device to the consumer.
(b) If a new assistive device does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, the assistive device lessor or any of the manufacturer's authorized assistive device dealers and makes the assistive device available for repair before one year after return delivery of the assistive device to a consumer, the nonconformity shall be repaired at no charge to the consumer.
(c) If, after a reasonable attempt to repair, the nonconformity is not repaired, the manufacturer shall carry out the requirement set forth under subsection (d).
(d) If, after a reasonable attempt to repair, the nonconformity is not repaired, then at the direction of a consumer described under paragraph (1), (2), or (3) of subsection (e) of K.S.A. 50-696 and amendments thereto, the manufacturer shall do one of the following:
(1) Accept return of the assistive device and replace the assistive device with a comparable new assistive device and refund any collateral costs;
(2) accept return of the assistive device and refund to the consumer and to any holder of a perfected security interest in the consumer's assistive device, as their interest may appear, the full purchase price plus any finance charge amount paid by the consumer at the point of sale and collateral costs, less a reasonable allowance for use. A reasonable allowance for use may not exceed the amount obtained by multiplying the full purchase price of the assistive device by a fraction, the denominator of which * 1,825 and the numerator of which is the number of days that the assistive device was used before the consumer first reported the nonconformity to the assistive device dealer;
(3) with respect to a consumer described under paragraph (4) of subsection (e) of K.S.A. 50-696 and amendments thereto, accept return of the assistive device, refund to the assistive device lessor and to any holder of a perfected security interest in the assistive device, as their interest may appear, the current value of the written lease and refund to the consumer the amount that the consumer paid under the written lease plus any collateral costs, less a reasonable allowance for use.
(e) The current value of the written lease equals the total amount for which that lease obligates the consumer during the period of the lease remaining after its early termination, plus the assistive device dealer's early termination costs and the value of the assistive device at the lease expiration date if the lease sets forth that value, less the assistive device lessor's early termination savings.
(f) A reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a fraction, the denominator of which is 1,825 and the numerator of which is a number of days that the consumer used the assistive device before first reporting the nonconformity to the manufacturer, assistive device lessor or assistive device dealer.
History: L. 1996, ch. 18, § 2; July 1.
(a) To receive a comparable new assistive device or a refund due under subsection (d) of K.S.A. 50-697 and amendments thereto, a consumer shall offer to the manufacturer of the assistive device having the nonconformity to transfer possession of that assistive device to that manufacturer. No later than 30 days after that offer, the manufacturer shall provide the consumer with the comparable assistive device or refund. When the manufacturer provides the new assistive device or refund, the consumer shall return the assistive device having the nonconformity to the manufacturer, along with any endorsements necessary to transfer real possession to the manufacturer.
(b) To receive a refund due under paragraph (3) of subsection (d) of K.S.A. 50-697 and amendments thereto, a consumer described under paragraph (4) of subsection (e) of K.S.A. 50-696 and amendments thereto shall offer to return the assistive device having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the refund to the consumer. When the manufacturer provides the refund, the consumer shall return to the manufacturer the assistive device having the nonconformity.
(c) To receive a refund due under paragraph (3) of subsection (d) of K.S.A. 50-697 and amendments thereto, an assistive device lessor shall offer to transfer possession of the assistive device having the nonconformity to its manufacturer. No later than 30 days after that offer, the manufacturer shall provide the refund to the assistive device lessor. When the manufacturer provides the refund, the assistive device lessor shall provide to the manufacturer any endorsements necessary to transfer legal possession to the manufacturer.
History: L. 1996, ch. 18, § 3; July 1.
(a) No person shall enforce the lease against the consumer after the consumer receives a refund due under paragraph (3) of subsection (d) of K.S.A. 50-697 and amendments thereto.
(b) No assistive device returned by a consumer or assistive device lessor in this state, or by a consumer or assistive device lessor in another state under a similar law of that state, may be sold or leased again in this state unless full written disclosure of the reasons for return is made to any prospective buyer or lessee.
History: L. 1996, ch. 18, § 4; July 1.
(a) Each consumer shall have the option of submitting any dispute arising under this act to arbitration. Upon application of the consumer all manufacturers shall submit to such arbitration.
(b) Such arbitration shall be conducted in accordance with the provisions of the uniform arbitration act, K.S.A. 5-423 through 5-453, and amendments thereto. Any agreement to arbitrate entered into under this section shall ensure the personal objectivity of the arbitrators and the right of each party to present its case, to be in attendance during any presentation made by the other party and to rebut or refute such presentation.
History: L. 1996, ch. 18, § 5; L. 2018, ch. 90, § 33; July 1.
(a) This act shall not be construed to limit rights or remedies available to a consumer under any other law.
(b) Any waiver by a consumer of rights under this act is void.
(c) In addition to pursuing any other remedy, a consumer may bring an action to recover for any damages caused by a violation of this act. The court shall award a consumer who prevails in such an action twice the amount of any pecuniary loss, together with cost, disbursements and reasonable attorney fees and any equitable relief that the court determines is appropriate.
History: L. 1996, ch. 18, § 6; July 1.
(a) This act shall be part of and supplemental to the Kansas consumer protection act.
(b) Any failure to comply with the provisions or requirements, or both, of this act is a deceptive act or practice within the meaning of K.S.A. 50-626 and amendments thereto or an unconscionable act or practice within the meaning of K.S.A. 50-627 and amendments thereto.
(c) The attorney general shall have jurisdiction to enforce this section in the event the consumer elects not to pursue violations of this act through arbitration or private action.
(d) Nothing in this act shall in any way limit or affect the rights or remedies which are otherwise available to a consumer under the uniform consumer credit code, or to any person under the uniform commercial code or to any person under this or any other law, statutory or otherwise.
History: L. 1996, ch. 18, § 7; July 1.
(a) As used in this section:
(1) "Express authorization" means an express, affirmative act by a consumer clearly agreeing to a change in the consumer's telecommunications carrier or local exchange carrier to another carrier.
(2) "Supplemental telecommunication services" means any property or services for which any charge or assessment appears on a billing statement directed to a consumer by a local exchange carrier or telecommunications carrier, including but not limited to personal 800 number services, calling card plans, internet advertisement and website services, voice mail services, paging services, psychic services, psychic memberships, dating services or memberships, travel club memberships, internet access services and service maintenance plans. "Supplemental telecommunication services" does not include direct dial services to which a per use charge applies.
(3) "Telecommunications services" has the meaning provided by K.S.A. 66-1,187, and amendments thereto.
(b) No local exchange carrier or telecommunications carrier shall submit or cause to be submitted to a local exchange carrier an order to change a consumer's telecommunications carrier or local exchange carrier to another carrier without having obtained the express authorization of the consumer authorized to make the change. The local exchange carrier or telecommunications carrier requesting the change shall have the burden of proving the express authorization by a preponderance of the evidence. It shall not be a violation of this subsection for a local exchange carrier to assign a consumer to a telecommunications carrier for purposes of intraLATA services pursuant to order of the state corporation commission.
(c) No supplier shall:
(1) Engage in any activity, conduct or representation that has the capacity to mislead, deceive or confuse the consumer, while soliciting or verifying a change in a consumer's telecommunications carrier or local exchange carrier to another carrier;
(2) employ a box or container used to collect entries for sweepstakes, contests or drawings to gather letters of agency or other documents that constitute authorizations by consumers to change the consumers' telecommunications carrier or local exchange carrier to another carrier or to change or add to the consumers' accounts any supplemental telecommunications services;
(3) use any methods not approved by statute, regulations of the federal communications commission or federal trade commission (as in effect on the effective date of this act) or state corporation commission rules and regulations to change a consumer's telecommunications carrier or local exchange carrier to another carrier; or
(4) employ a check, draft or other negotiable instrument that constitutes authorization to change or add to the consumer's accounts any supplemental telecommunications services.
(d) Any supplier that violates subsection (b) or (c) shall be subject to a civil penalty of not less than $5,000 nor more than $20,000 for each such violation instead of the penalty provided for in subsection (a) of K.S.A. 50-636, and amendments thereto.
(e) Any violation of this section is a deceptive and unconscionable act or practice under the provisions of the Kansas consumer protection act and shall be subject to any and all of the enforcement provisions of the Kansas consumer protection act. Nothing in this section shall preclude the state corporation commission from exerting its authority as it pertains to intrastate services nor the attorney general from pursuing violations of any other provisions of the Kansas consumer protection act by a supplier.
(f) All local exchange carriers and electing carriers shall offer consumers the option of notifying the local exchange carrier in writing that they do not desire any change of telecommunications carrier regardless of any orders to the contrary submitted by any third party. The consumer shall be permitted to cancel such notification or to change its telecommunications carrier by notifying the consumer's local exchange carrier or electing carrier accordingly. For the purposes of this section, a letter of agency, as described in 47 C.F.R. § 64.1130, as in effect on the effective date of this act, that is signed by the consumer shall satisfy the notification requirement for purposes of making changes to the consumer's telecommunications carrier. All local exchange carriers and electing carriers shall annually notify the consumers of the carrier's telecommunications services of the availability of this option.
(g) Any person alleging a violation of this section may bring a private action to seek relief pursuant to K.S.A. 50-634, 50-636 and this section, and amendments thereto, and such person may be defined as a consumer pursuant to K.S.A. 50-624, and amendments thereto, for the purposes of such private action.
(h) The attorney general and the state corporation commission shall enter into a memorandum of understanding providing for the cooperation and sharing of information necessary to enforce this section against suppliers and to assist consumers under federal and state law.
(i) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 1998, ch. 138, § 5; L. 2001, ch. 115, § 1; L. 2011, ch. 54, § 1; July 1.
A violation of subsection (u), (v) or (w) of K.S.A. 79-3321 or K.S.A. 79-3395, and amendments thereto, shall constitute an unlawful trade practice as provided in K.S.A. 50-626, and amendments thereto. In addition to any remedies or penalties set forth in the Kansas cigarette and tobacco products act, any remedy or penalty available for a violation of K.S.A. 50-626, and amendments thereto, also may be imposed for such violation.
History: L. 2000, ch. 92, § 9; July 1.
(a) No supplier shall obtain or submit for payment, other than for the continuation of existing and recurrent services, services provided by a public utility as defined in K.S.A. 66-104, and amendments thereto, services provided by a wireless carrier as defined in K.S.A. 12-5301, and amendments thereto, or the collection of a preexisting debt, a check, draft or other form of negotiable instrument or payment order drawn on a person's checking, savings, share or similar account without the consumer's express authorization. The supplier obtaining or submitting the check, draft or other form of negotiable instrument or payment order for payment shall have the burden of proving the express authorization by a preponderance of the evidence.
(b) As used in this section, "express authorization" means an express affirmative act by a consumer clearly agreeing to the payment by check, draft or other form of negotiable instrument or payment order drawn on a person's checking, savings, share or similar account.
(c) Nothing in this section shall prohibit a consumer from personally directing the consumer's financial institution to make payment from the consumer's checking, savings, share or similar account via electronic or telephonic means in accordance with procedures set by the consumer's financial institution, nor shall this section affect the right of a consumer to transfer funds from one account to another.
(d) Notwithstanding the provisions of K.S.A. 84-4-402, and amendments thereto, financial institutions may decline to pay any check, draft or other form of negotiable instrument or payment order submitted without proof of the consumer's express authorization.
(e) A violation of subsection (a) is an unconscionable act within the meaning of K.S.A. 50-627, and amendments thereto.
(f) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2001, ch. 105, § 1; L. 2002, ch. 13, § 1; July 1.
(a) It shall be an unconscionable act within the meaning of K.S.A. 50-627, and amendments thereto, for any supplier to profiteer from a disaster.
(b) As used in this section:
(1) "Profiteer from a disaster" means unjustifiably increasing during a time of disaster the price at which any necessary property or service is offered for sale to consumers. Actual sales at the increased price shall not be required for the increase to be considered unconscionable. In determining whether the price increase described in this subsection is unjustified, the court shall consider all relevant circumstances including, but not limited to, the following: (A) Whether the price charged by the supplier during the time of disaster grossly exceeded the price charged by the supplier for similar property or services on the business day before the disaster, and an increase of more than 25% shall be prima facie evidence of gross excess;
(B) whether the amount charged by the supplier during the time of disaster grossly exceeded the price at which the same or similar property or services were readily obtainable by other consumers in the trade area, and a price difference of more than 25% shall be prima facie evidence of gross excess; and
(C) whether the increase in the amount charged by the supplier during the time of disaster was attributable to additional costs incurred by the supplier in connection with the sale of the product or service, and proof the supplier incurred such additional costs shall be prima facie evidence that the price increase was justified when such additional costs were actually incurred by the supplier during the period in which the substantially increased price was being charged;
(2) "time of disaster" means the period of time when a declaration of a state of emergency by the president of the United States or the governor is in effect; or 30 days after the occurrence of the event that constitutes the disaster, whichever is longer;
(3) "disaster" means natural or man-made events including, but not limited to, tornado or other severe storm, earthquake, flood, fire, riot, act of war, terrorism, civil disorder or other extraordinary adverse circumstance. The court shall find that an event constitutes a disaster if the event results in the declaration of a state of emergency by the president of the United States or the governor. The court may find that an event constitutes a disaster in the absence of a declared state of emergency; and
(4) "necessary property or service" means any necessary property or service for which consumer demand does, or is likely to, increase as a consequence of the disaster and includes, but is not limited to, consumer food items or property, property or services for emergency cleanup, emergency supplies, communication supplies and services, medical supplies and services, home heating fuel, building materials and services, freight, storage services, housing, lodging, transportation and motor fuels.
(c) The provisions of this section shall be part of and supplemental to the consumer protection act.
History: L. 2002, ch. 179, § 3; July 1.
(a) This act shall be known as the commercial electronic mail act.
(b) As used in this act:
(1) "Assist the transmission" means actions taken by a person to provide substantial assistance or support which enables any person to formulate, compose, send, originate, initiate or transmit a commercial electronic mail message when the person providing the assistance knows that the initiator of the commercial electronic mail message is engaged, or intends to engage, in any practice that violates the Kansas consumer protection act.
(2) "Commercial electronic mail message" means an electronic mail message sent for the purpose of promoting property or services for sale or lease, but shall not include electronic mail messages sent by a natural person volunteering to send such messages on behalf of a charitable organization as defined by K.S.A. 17-1760, and amendments thereto.
(3) "Electronic mail address" means a destination, commonly expressed as a string of characters, to which electronic mail may be sent or delivered.
(4) "Established business relationship" means a prior and existing relationship formed by a voluntary two-way communication between a sender and a recipient with or without an exchange of consideration, on the basis of an express authorization, application, purchase or transaction by the recipient regarding products or services offered by such sender, which relationship has not been previously terminated by either party.
(5) "Initiate the transmission" refers to the action by the original sender of an electronic mail message, not to the action by any intervening interactive computer service that may handle or retransmit the message, unless such intervening interactive computer service assists in the transmission of an electronic mail message when it knows, that the person initiating the transmission is engaged, or intends to engage, in any act or practice that violates the Kansas consumer protection act.
(6) "Interactive computer service" means any information service, system or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the internet and such systems operated or services offered by libraries or educational institutions.
(7) "Internet domain name" refers to a globally unique, hierarchical reference to an internet host or service, assigned through centralized internet naming authorities, comprising a series of character strings separated by periods, with the right-most string specifying the top of the hierarchy.
(8) "Express authorization" means an express affirmative act by a recipient clearly agreeing to receive commercial electronic messages from a specified and identifiable sender, or from multiple persons.
(c) No person shall:
(1) Initiate the transmission, conspire with another to initiate the transmission, or assist the transmission, of a commercial electronic mail message from a computer located in Kansas or to an electronic mail address that the sender knows, is held by a Kansas resident that:
(A) Uses a third party's internet domain name without permission of the third party, or otherwise misrepresents or obscures any information in identifying the point of origin or the transmission path of a commercial electronic mail message;
(B) contains false or misleading information in the subject line;
(C) does not contain as the first four characters of the subject line "ADV:"; Provided, however, the characters "ADV" shall not be required in the subject line if the recipient has an established business relationship or has given express authorization to receive commercial electronic mail messages or in electronic mail messages, other than messages of a sexually explicit or otherwise adult oriented nature, sent to less than 500 recipients per month. The sender claiming exemption under this subsection shall have the burden of proving the exemption by a preponderance of the evidence;
(D) does not contain instructions, in text at least as large as the majority of the text in the transmission, for the recipient to follow to notify the sender not to send any subsequent communications, with a valid sender operated return electronic mail address to which the recipient may reply to notify the sender not to send any further commercial electronic mail messages and the legal name of the person or entity initiating the transmission, including such person's or entity's (i) physical address for the receipt of the United States mail or (ii) a toll free telephone number that the recipient may call to notify the sender not to send any subsequent communications. It shall be prima facie evidence that the sender is in violation of this section if the recipient's reply electronic mail message is returned to the recipient as undeliverable, or is otherwise not accepted by the sender of the original commercial electronic mail message; or
(E) contains advertising material for viewing, use, consumption, sale, lease or rental only by persons over 18 years of age, including but not limited to content of sexual, sexually explicit or otherwise adult-oriented nature, unless the first eight characters of the subject line are "ADV:ADLT."
(2) Initiate the transmission, conspire with another to initiate the transmission, or assist the transmission, of a commercial electronic mail message from a computer located in Kansas or to an electronic mail address that the sender knows, is held by a Kansas resident that is made after the recipient thereof has notified the sender not to send any subsequent communications.
(3) Give, transfer, sell or otherwise share with another the electronic mail address of any recipient who has notified the sender not to send any subsequent communications for any use other than for the third party to place the address on a do not contact list.
(4) Assist in the transmission of a commercial electronic mail message, when the person providing the assistance knows, that the initiator of the commercial electronic mail message is engaged, or intends to engage, in any act or practice that violates the Kansas consumer protection act.
(5) Knowingly sell, give or otherwise distribute or possess with the intent to sell, give or distribute software that:
(A) Is primarily designed or produced for the purpose of facilitating or enabling the falsification of electronic mail transmission information or other routing information;
(B) has only limited commercially significant purpose or use other than to facilitate or enable the falsification of electronic mail transmission information or other routing information; or
(C) is marketed by that person or another acting in concert with that person with that person's knowledge for use in facilitating or enabling the falsification of electronic mail transmission information or other routing information.
(d) For purposes of this section, a person knows or has reason to know that the intended recipient of a commercial electronic mail message is a Kansas resident if that information is available, upon request, from the registrant of the internet domain name contained in the recipient's electronic mail address.
(e) An interactive computer service may, upon its own initiative, block the receipt or transmission through its service of any commercial electronic mail that it reasonably believes is, or will be, sent in violation of this chapter.
(f) No interactive computer service may be held liable for any action voluntarily taken in good faith to block the receipt or transmission through its service of any commercial electronic mail which it reasonably believes is, or will be, sent in violation of this act.
(g) Any violation of this section is an unconscionable act and practice under the Kansas consumer protection act.
(h) Any person alleging a violation of this section including an interactive computer service damaged by a violation, shall be deemed a consumer who has been aggrieved by a violation of the consumer protection act and to have suffered actual loss as referred to in K.S.A. 50-634 and 50-636 and amendments thereto.
(i) Any person alleging a violation of this section may bring a private action to seek relief pursuant to K.S.A. 50-634, 50-636 and this section, and amendments thereto, and such person shall be considered a consumer pursuant to K.S.A. 50-624, and amendments thereto, for the purposes of such private action.
(j) Any person that violates this section shall be subject to a civil penalty of not less than $500 nor more than $10,000 for each such violation instead of the penalty provided for in subsection (a) of K.S.A. 50-636, and amendments thereto.
(k) It shall be an affirmative defense to a violation of this section if the person can demonstrate, by clear and convincing evidence, (1) that the sender at the time of the alleged violation had: (A) Maintained a list of consumers who have notified the person not to send any subsequent commercial electronic messages; (B) established and implemented, with due care, reasonable practices and procedures to effectively prevent unsolicited commercial electronic mail messages in violation of this section; (C) trained the sender's personnel in the requirements of this section; and (D) maintained records demonstrating compliance with this section; and (2) the unsolicited commercial electronic message was the result of an error. Such defense shall not be exercised by any person more than once within the state of Kansas in any 12-month period. A person shall be deemed to have exercised such defense if asserted in response to any consumer complaint about a violation of this section, regardless of whether litigation has been initiated.
(l) The legislature finds that the practices covered by this section are matters vitally affecting the public interest for the purpose of applying the Kansas consumer protection act. A violation of this section is not reasonable or necessary for the development and preservation of commerce and is an unconscionable act in violation of the Kansas consumer protection act.
(m) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 2002, ch. 140, § 1; July 1.
(a) On and after January 1, 2007, no person, firm, partnership, association or corporation shall sell a gift certificate or gift card to a purchaser containing an expiration date which is less than five years from the date of purchase.
(b) A gift certificate or gift card sold without an expiration date is valid until redeemed or replaced. A merchant shall not be required to redeem a gift card or gift certificate for cash.
(c) No fees may be charged against the balance of a gift card or gift certificate within 12 months from the date of issuance of the card.
(d) This section shall not apply to any of the following gift certificates or gift cards issued on and after January 1, 2007, provided the expiration date appears on the front of the gift certificate or gift card:
(1) Gift certificates or gift cards that are distributed by the issuer to a consumer without any money or other thing of value being given in exchange for the gift certificate or gift card by the consumer; or
(2) gift certificates or gift cards that are sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fund-raising purposes.
(e) All conditions and limitations shall be disclosed to the purchaser of a gift certificate or gift card at the time of purchase. If such conditions or limitations are not complied with by the purchaser, the issuer shall not be required to, but may, redeem such gift certificate or gift card.
(f) As used in this section:
(1) "Gift card" means a tangible device, whereon is embedded or encoded in an electronic or other format a value issued in exchange for payment, which promises to provide to the bearer merchandise of equal value to the remaining balance of the device. "Gift card" does not include a prepaid bank card;
(2) "gift certificate" means a written promise given in exchange for full or discounted payment, or without any money or other thing of value being given in exchange, to provide merchandise in a specified amount or of equal value to the bearer of the certificate. "Gift certificate" does not include a prepaid bank card;
(3) "prepaid bank card" means a general use, prepaid card or other electronic payment device that is issued by a bank or other financial institution in a predenominated amount useable at multiple, unaffiliated merchants or at automated teller machines, or both.
(g) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2006, ch. 116, § 1; July 1.
(a) K.S.A. 50-6,109 through 50-6,112d, and amendments thereto, shall be known and may be cited as the scrap metal theft reduction act.
(b) As used in the scrap metal theft reduction act:
(1) "Scrap metal dealer" means any individual, firm, company, partnership, association or corporation that operates a business that is engaged in the business of buying, trading or dealing in regulated scrap metal for the purpose of sale for recycling.
(2) (A) "Regulated scrap metal" means any item, in any form, for which the purchase price described in K.S.A. 50-6,110 and 50-6,111, and amendments thereto, was primarily based on the content of:
(i) Aluminum, except that aluminum shall not include food or beverage containers;
(ii) copper;
(iii) brass;
(iv) bronze;
(v) stainless steel;
(vi) zinc;
(vii) titanium;
(viii) tungsten;
(ix) nickel;
(x) platinum;
(xi) palladium;
(xii) rhodium;
(xiii) magnesium;
(xiv) lead;
(xv) any other nonferrous metal; or
(xvi) any combination of nonferrous metals listed in this subparagraph.
(B) "Regulated scrap metal" includes catalytic converters.
(3) "Bales of regulated metal" means regulated scrap metal property processed with professional recycling equipment by compression, shearing or shredding, to a form in which it may be sold by a scrap metal dealer consistent with industry standards.
(4) "Junk vehicle" means a vehicle as defined in K.S.A. 8-126, and amendments thereto, not requiring a title as provided in chapter 8 of the Kansas Statutes Annotated, and amendments thereto, an aircraft or a boat which is being sold for scrap value.
(5) "Nonferrous metal" means a metal that does not contain iron or steel.
(6) "Vehicle part" means:
(A) The front clip consisting of the two front fenders, hood, grill and front bumper of an automobile assembled as one unit; or
(B) the rear clip consisting of those body parts behind the rear edge of the back doors, including both rear quarter panels, the rear window, trunk lid, trunk floor panel and rear bumper, assembled as one unit.
(7) "Person" means any individual, scrap metal dealer, manager or employee, owner, operator, corporation, partnership or association.
(8) "Attorney general" means the attorney general of the state of Kansas or the attorney general's designee.
(9) "Catalytic converters" means a device installed in the exhaust system of a motor vehicle that uses a catalyst to convert pollutant gases into less harmful gases.
History: L. 2007, ch. 128, § 1; L. 2008, ch. 82, § 2; L. 2009, ch. 88, § 2; L. 2011, ch. 86, § 5; L. 2015, ch. 96, § 12; L. 2023, ch. 31, § 1; July 1.
(a) (1) Except as provided in paragraph (2), the attorney general is hereby given jurisdiction and authority over all matters involving the implementation, administration and enforcement of the provisions of the scrap metal theft reduction act including to:
(A) Employ or appoint agents as necessary to implement, administer and enforce the act;
(B) contract;
(C) expend funds;
(D) license and discipline;
(E) investigate;
(F) issue subpoenas;
(G) keep statistics; and
(H) conduct education and outreach programs to promote compliance with the act.
(2) Kansas law enforcement officers are hereby authorized to conduct investigations of violations of the scrap metal theft reduction act. Upon conclusion of an investigation, investigative reports shall be submitted to the attorney general regardless of whether any local action was taken as a result of such investigation.
(b) In accordance with the rules and regulations filing act, the attorney general is hereby authorized to adopt rules and regulations necessary to implement the provisions of the scrap metal theft reduction act.
(c) There is hereby established in the state treasury the scrap metal theft reduction fee fund to be administered by the attorney general. All moneys received by the attorney general from fees, charges or penalties collected under the provisions of the scrap metal theft reduction act shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto, who shall deposit the entire amount thereof in the state treasury to the credit of the scrap metal theft reduction fee fund. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the attorney general or the attorney general's designee. All moneys credited to the scrap metal theft reduction fee fund shall be expended for the administration of the duties, functions and operating expenses incurred under the provisions of the scrap metal theft reduction act.
(d) There is hereby established in the state treasury the scrap metal data repository fund to be administered by the director of the Kansas bureau of investigation. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the director of the Kansas bureau of investigation or the director's designee. All moneys credited to the scrap metal data repository fund shall be expended for the administration of the duties, functions and operating expenses incurred under the provisions of the scrap metal theft reduction act.
(e) The attorney general may transfer any moneys from the scrap metal theft reduction fee fund to the scrap metal data repository fund. The attorney general shall certify each such transfer to the director of accounts and reports and shall transmit a copy of each such certification to the director of the budget and the director of legislative research.
(f) On July 1, 2020, the Kansas bureau of investigation shall establish and maintain a database which shall be a central repository for the information required to be provided under K.S.A. 50-6,110, and amendments thereto. The database shall be maintained for the purpose of providing information to law enforcement and for any other purpose deemed necessary by the attorney general to implement and enforce the provisions of the scrap metal theft reduction act.
(g) The information maintained in such database by the Kansas bureau of investigation, or by any entity contracting with the Kansas bureau of investigation, submitted to, maintained or stored as part of the system may be provided to the attorney general and shall:
(1) Be confidential, shall only be used for investigatory, evidentiary or analysis purposes related to criminal violations of city, state or federal law and shall only be released to law enforcement in response to an official investigation or as permitted in subsection (f); and
(2) not be a public record and shall not be subject to the Kansas open records act, K.S.A. 45-215 et seq., and amendments thereto.
(h) On or before February 1, 2021, and annually on or before February 1 thereafter, the attorney general shall submit a report to the president of the senate, the speaker of the house of representatives and the standing committees on judiciary in the senate and the house of representatives on the implementation, administration and enforcement of the provisions of the scrap metal theft reduction act.
(i) Any entity contracting with the attorney general or the Kansas bureau of investigation to provide or maintain the database required by this section shall not require a scrap metal dealer to contract with such entity for the authority to release proprietary or confidential data, including, but not limited to, customer information. Such entity shall not charge any fee to the scrap metal dealer as a condition of providing information to the database as required by the scrap metal theft reduction act, including, but not limited to, a fee for electronic submission of information.
(j) A scrap metal dealer providing information to the database as required by the scrap metal theft reduction act shall not be subject to civil liability for any claim arising from the negligence or omission by the state of Kansas or any contracting entity in the collection, storing or release of information provided by such scrap metal dealer to the database.
History: L. 2015, ch. 96, § 1; L. 2017, ch. 76, § 4; L. 2018, ch. 79, § 3; L. 2019, ch. 66, § 1; L. 2019, ch. 66, § 2; L. 2024, ch. 75, § 3; L. 2025, ch. 122, § 1; July 1.
(a) If, by the attorney general's own inquiries or as a result of complaints, the attorney general has reason to believe that a person has engaged in, is engaging in or is about to engage in an act or practice that violates the scrap metal theft reduction act, the attorney general, or any deputy attorney general or assistant attorney general may administer oaths and affirmations, subpoena witnesses or matter and collect evidence.
(b) If the matter that the attorney general subpoenas is located outside this state, the person subpoenaed may either make it available to the attorney general at a convenient location within the state or pay the reasonable and necessary expenses for the attorney general or the attorney general's designee to examine the matter at the place where it is located. The attorney general may designate representatives, including officials of the state in which the matter is located, to inspect the matter on the attorney general's behalf, and the attorney general may respond to similar requests from officials of other states.
(c) Service by the attorney general of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made by:
(1) The mailing thereof by certified mail to the last known place of business, residence or abode within or without this state; or
(2) in the manner provided in the code of civil procedure as if a petition had been filed.
(d) The attorney general may request that an individual who refuses to comply with a subpoena, on the ground that the testimony or matter may incriminate the individual, be ordered by the court to provide the testimony or matter. Except in a prosecution for perjury, an individual who complies with a court order to provide testimony or matter after asserting a privilege against self-incrimination to which the individual is entitled by law, may not be subjected to a criminal proceeding or to a civil penalty to the transaction concerning which the individual is required to testify or produce relevant matter.
(e) If any person willfully fails or refuses to file any statement or report required by the scrap metal theft reduction act, or obey any subpoena issued by the attorney general, the attorney general may, after notice, apply to the district court and, after a hearing thereon, the district court may issue an order:
(1) Granting injunctive relief restraining the sale or advertisement of any services or merchandise by such persons;
(2) vacating, annulling or suspending the corporate charter of a corporation created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to the person, which are used to further the allegedly unlawful practice; or
(3) granting such other relief as may be required, until the person files the statement or report, or obeys the subpoena.
History: L. 2015, ch. 96, § 2; July 1.
(a) Any scrap metal dealer who violates any of the provisions of the scrap metal theft reduction act, in addition to any other penalty provided by law, may incur a civil penalty imposed pursuant to subsection (b) in an amount not less than $100 nor more than $5,000 for each violation.
(b) The attorney general, upon a finding that a scrap metal dealer or any employee or agent thereof or any person or entity required to be registered as a scrap metal dealer has violated any of the provisions of the scrap metal theft reduction act may impose a civil penalty as provided in this subsection upon such scrap metal dealer.
(c) A civil penalty shall not be imposed pursuant to this section except upon the written order of the attorney general to the scrap metal dealer who is responsible for the violation. Such order is a final order for purposes of judicial review and shall state the violation, the penalty to be imposed and the right of such dealer to appeal as provided in the Kansas judicial review act.
History: L. 2015, ch. 96, § 3; L. 2017, ch. 76, § 5; L. 2018, ch. 79, § 4; L. 2019, ch. 66, § 3; L. 2019, ch. 66, § 4; July 1, 2020.
(a) The attorney general may bring a civil action to:
(1) Obtain a declaratory judgment that an act or practice violates the scrap metal theft reduction act;
(2) enjoin, or to obtain a restraining order against any person who has violated, is violating, or is otherwise likely to violate the scrap metal theft reduction act;
(3) recover reasonable expenses and investigation fees; or
(4) impose any civil penalty authorized by the scrap metal theft reduction act.
(b) In lieu of investigating or continuing an action or proceeding, the attorney general may accept a consent judgment with respect to any act or practice declared to be a violation of the scrap metal theft reduction act. Before any consent judgment entered into pursuant to this section shall be effective, it must be approved by the district court and an entry made thereof in the manner required for making an entry of judgment. Once such approval is received, any breach of the conditions of such consent judgment shall be treated as a violation of a court order, and shall be subject to all the penalties provided by law.
(c) In any action brought by the attorney general, the court may, without requiring bond of the attorney general:
(1) Make such orders or judgments as may be necessary to prevent the use or employment by a person of any practice declared to be a violation of the scrap metal theft reduction act;
(2) issue a temporary restraining order or enjoin any person from violating the scrap metal theft reduction act;
(3) award reasonable expenses and investigation fees, civil penalties and costs; and
(4) grant other appropriate relief.
(d) The commission of any act or practice declared to be a violation of the scrap metal theft reduction act shall render the violator liable to the state for the payment of a civil penalty, recoverable in an action brought by the attorney general, in a sum of not more than $5,000 for each violation.
(e) Any person who willfully violates the terms of any court order issued pursuant to the scrap metal theft reduction act shall forfeit and pay a civil penalty of not more than $10,000 per violation, in addition to other penalties that may be imposed by the court, as the court shall deem necessary and proper. For the purposes of this section, the district court issuing an order shall retain jurisdiction, and in such cases, the attorney general, acting in the name of the state may petition for recovery of civil penalties.
(f) Any act or practice declared to be a violation of the scrap metal theft reduction act which is continuing in nature shall be deemed a separate violation each day such act or practice exists.
(g) This section shall take effect on and after January 1, 2016.
History: L. 2015, ch. 96, § 4; July 1.
(a) Any person, whether or not a resident or citizen of this state, who in person or through an agent or an instrumentality, engages in business as a scrap metal dealer as defined in the scrap metal theft reduction act, thereby submits the person to the jurisdiction of the courts of this state as to any cause of action arising from such business.
(b) Every administrative or civil action pursuant to the scrap metal theft reduction act shall be brought in the district court of Shawnee county or in any other district where venue is otherwise authorized by law.
History: L. 2015, ch. 96, § 5; July 1.
(a) A municipality shall not enact or enforce any ordinance, resolution or regulation relating to the implementation, administration and enforcement of the provisions of the scrap metal theft reduction act.
(b) Any ordinance, resolution or regulation prohibited by subsection (a) that was adopted prior to July 1, 2015, shall be null and void.
(c) No action shall be commenced or prosecuted against any individual for a violation of any ordinance, resolution or regulation that is prohibited by subsection (a) and which was adopted prior to July 1, 2015, if such violation occurred on or after July 1, 2014.
(d) As used in this section, "municipality" has the same meaning as defined in K.S.A. 75-6102, and amendments thereto.
History: L. 2015, ch. 96, § 6; July 1.
(a) It shall be unlawful for any person to sell any item or items of regulated scrap metal to a scrap metal dealer, or employee or agent of a dealer, in this state unless such person meets the requirements of this subsection.
(1) Such person shall present to such scrap metal dealer, or employee or agent of such dealer, at or before the time of sale, the following: The seller's name, address, sex, date of birth and the seller's driver's license, military identification card, passport or personal identification license. An official governmental document for a country other than the United States may be used to meet this requirement.
(2) Such person shall complete and sign the statement provided for in subsection (b)(10).
(b) Every scrap metal dealer shall keep a register in which the dealer, or employee or agent of the dealer, shall, at the time of purchase or receipt of any item for which such information is required to be presented, cross-reference to previously received information, or accurately and legibly record at the time of sale the following information:
(1) The time, date and place of transaction;
(2) the seller's name, address, sex, date of birth and:
(A) The identifying number from the seller's driver's license, military identification card, passport or personal identification license; or
(B) the identifying number from the seller's official governmental document for a country other than the United States;
(3) a copy of the identification card or document containing such identifying number, unless the dealer has a copy of the card or document in the dealer's register from a prior transaction;
(4) the license number, color and style or make of any motor vehicle in which the junk vehicle or other regulated scrap metal property is delivered in a purchase transaction;
(5) a general description, made in accordance with the custom of the trade, of the predominant types of junk vehicle or other regulated scrap metal property purchased in the transaction;
(6) the weight, quantity or volume, made in accordance with the custom of the trade, of the regulated scrap metal property purchased;
(7) if a junk vehicle or vehicle part is being bought or sold, a description of the junk vehicle or vehicle part, including the make, model, color, vehicle identification number and serial number, if applicable;
(8) the price paid for, traded for or dealt for in a transaction for the junk vehicle or other regulated scrap metal property;
(9) the full name of the individual acting on behalf of the regulated scrap metal dealer in making the purchase; and
(10) a signed statement from the seller indicating from where the property was obtained and that: (A) Each item is the seller's own personal property, is free of encumbrances and is not stolen; or (B) the seller is acting for the owner and has permission to sell each item. If the seller is not the owner, such statement shall include the name and address of the owner of the property.
(c) Every scrap metal dealer shall take one photograph of the item or lot of items being sold at the time of purchase or receipt of any item for which such information is required to be presented. Such photographs shall be kept with the record of the transaction and the scrap metal dealer's register of information required by subsection (b).
(d) The scrap metal dealer's register of information required by subsection (b), including copies of identification cards and signed statements by sellers, and photographs required by subsection (c) may be kept in electronic format.
(e) Every scrap metal dealer shall forward information required by the Kansas bureau of investigation for each transaction to the database described in K.S.A. 50-6,109a, and amendments thereto, in the manner prescribed by the bureau within 72 hours after the transaction occurs. The Kansas bureau of investigation shall promulgate rules and regulations providing which information and photographs required to be collected by scrap metal dealers by subsections (b) and (c) shall be entered into the database and prescribing the manner for submitting such information and photographs to the bureau.
(f) Notwithstanding any other provision to the contrary, this section shall not apply to transactions in which the seller is a:
(1) Registered scrap metal dealer;
(2) vehicle dealer licensed under chapter 8 of the Kansas Statutes Annotated, and amendments thereto; or
(3) scrap metal dealer or vehicle dealer registered or licensed in another state.
(g) (1) Except as provided in subsection (g)(2), this section shall not apply to transactions in which the seller is known to the purchasing scrap metal dealer to be a licensed business that operates out of a fixed business location and that can reasonably be expected to generate regulated scrap metal.
(2) The attorney general may determine, by rules and regulations, which of the requirements of this section shall apply to transactions described in subsection (g)(1).
History: L. 2007, ch. 128, § 2; L. 2009, ch. 88, § 3; L. 2011, ch. 86, § 6; L. 2015, ch. 96, § 13; L. 2017, ch. 76, § 6; L. 2018, ch. 79, § 5; L. 2019, ch. 66, § 5; L. 2019, ch. 66, § 6; L. 2020, ch. 12, § 4; July 1.
(a) It shall be unlawful for any such scrap metal dealer, or employee or agent of the dealer, to purchase any item or items of regulated scrap metal in a transaction for which K.S.A. 50-6,110, and amendments thereto, requires information to be presented by the seller, without demanding and receiving from the seller that information. Every scrap metal dealer shall file and maintain a record of information obtained in compliance with the requirements in K.S.A. 50-6,110, and amendments thereto. All records kept in accordance with the provisions of the scrap metal theft reduction act shall be open at all times to law enforcement officers and shall be kept for two years. If the required information is maintained in electronic format, the scrap metal dealer shall provide a printout of the information to law enforcement officers upon request.
(b) It shall be unlawful for any scrap metal dealer, or employee or agent of the dealer, to purchase any junk vehicle in a transaction for which K.S.A. 50-6,110, and amendments thereto, requires information to be presented by the seller, without:
(1) Inspecting the vehicle offered for sale and recording the vehicle identification number; and
(2) obtaining an appropriate bill of sale issued by a governmentally operated vehicle impound facility if the vehicle purchased has been impounded by such facility or agency.
(c) It shall be unlawful for any scrap metal dealer, or employee or agent of the dealer, to purchase or receive any regulated scrap metal from a minor unless such minor is accompanied by a parent or guardian or such minor is a licensed scrap metal dealer.
(d) It shall be unlawful for any scrap metal dealer, or employee or agent of the dealer, to purchase any of the following items without obtaining proof that the seller is an employee, agent or person who is authorized to sell the item on behalf of the governmental entity; utility provider; railroad; cemetery; civic organization; manufacturing, industrial or other commercial vendor that generates or sells such items in the regular course of business; or scrap metal dealer:
(1) Utility access cover;
(2) street light poles or fixtures;
(3) road or bridge guard rails;
(4) highway or street sign;
(5) water meter cover;
(6) traffic directional or traffic control signs;
(7) traffic light signals;
(8) any metal marked with any form of the name or initials of a governmental entity;
(9) property owned and marked by a telephone, cable, electric, water or other utility provider;
(10) property owned and marked by a railroad;
(11) funeral markers or vases;
(12) historical markers;
(13) bales of regulated metal;
(14) beer kegs;
(15) manhole covers;
(16) fire hydrants or fire hydrant caps;
(17) junk vehicles with missing or altered vehicle identification numbers;
(18) real estate signs;
(19) bleachers or risers, in whole or in part;
(20) twisted pair copper telecommunications wiring of 25 pair or greater existing in 19, 22, 24 or 26 gauge;
(21) burnt wire;
(22) any catalytic converter that has:
(A) A defaced identification mark or owner-applied paint or identification number; or
(B) been intentionally altered by removing or obliterating the make, model or manufacturer's number; and
(23) any by-product or dust containing platinum, palladium or rhodium.
(e) It shall be unlawful for any scrap metal dealer, or employee or agent of the dealer, to sell, trade, melt or crush, or in any way dispose of, alter or destroy any regulated scrap metal, junk vehicle or vehicle part upon notice from any law enforcement agency, or any of their agents or employees, that they have cause to believe an item has been stolen. A scrap metal dealer shall hold any of the items that are designated by or on behalf of the law enforcement agency for 30 days, exclusive of weekends and holidays.
History: L. 2007, ch. 128, § 3; L. 2009, ch. 88, § 4; L. 2011, ch. 86, § 7; L. 2012, ch. 38, § 1; L. 2015, ch. 96, § 14; L. 2017, ch. 76, § 7; L. 2018, ch. 79, § 6; L. 2019, ch. 66, § 7; L. 2019, ch. 66, § 8; L. 2023, ch. 31, § 2; July 1.
History: L. 2007, ch. 128, § 4; L. 2009, ch. 88, § 5; Repealed, L. 2015, ch. 96, § 19; July 1.
(a) A scrap metal dealer shall not purchase any regulated scrap metal without having first registered each place of business with the attorney general as herein provided.
(b) The attorney general shall establish a system for the public to confirm scrap metal dealer registration certificates. Such system shall include a listing of valid registration certificates and such other information collected pursuant to the scrap metal theft reduction act, as the attorney general may determine is appropriate. Disclosure of any information through use of the system established by the attorney general shall not be deemed to be an endorsement of any scrap metal dealer or determination of any facts, qualifications, information or reputation of any scrap metal dealer by the attorney general, the state, or any of their respective agents, officers, employees or assigns.
(c) A registration for a scrap metal dealer shall be verified and upon a form approved by the attorney general and contain:
(1) (A) The name and residence of the applicant, including all previous names and aliases; or
(B) if the applicant is a: Corporation, the name and address of each manager, officer or director thereof, and each stockholder owning in the aggregate more than 25% of the stock of such corporation; or partnership or limited liability company, the name and address of each partner or member;
(2) the length of time that the applicant has resided within the state of Kansas and a list of all residences outside the state of Kansas during the previous 10 years;
(3) the particular place of business for which a registration is desired, the name of the business, the address where the business is to be conducted, the hours of operation and the days of the week during which the applicant proposes to engage in business;
(4) the name of the owner of the premises upon which the place of business is located; and
(5) the applicant shall disclose any prior convictions within 10 years immediately preceding the date of making the registration for: A violation of article 37 of chapter 21 of the Kansas Statutes Annotated, prior to their repeal, or K.S.A. 21-5801 through 21-5839 or 21-6412(a)(6), and amendments thereto; perjury, K.S.A. 21-3805, prior to its repeal, or K.S.A. 21-5903, and amendments thereto; compounding a crime, K.S.A. 21-3807, prior to its repeal; obstructing legal process or official duty, K.S.A. 21-3808, prior to its repeal; falsely reporting a crime, K.S.A. 21-3818, prior to its repeal; interference with law enforcement, K.S.A. 21-5904, and amendments thereto; interference with judicial process, K.S.A. 21-5905, and amendments thereto; or any crime involving dishonesty or false statement or any substantially similar offense pursuant to the laws of any city, state or of the United States.
(d) On and after July 1, 2020, each registration for a scrap metal dealer to purchase regulated scrap metal shall be accompanied by a fee of not more than $500, as prescribed by the attorney general, for each particular place of business for which a registration is desired.
(e) The attorney general shall accept a registration for a scrap metal dealer as otherwise provided for herein, from any scrap metal dealer qualified to file such registration, to purchase regulated scrap metals. Such registration shall be issued for a period of one year.
(f) On and after July 1, 2020, if an original registration is accepted, the attorney general shall grant and issue renewals thereof upon application of the registration holder, if the registration holder is qualified to receive the same and the registration has not been revoked as provided by law. The renewal fee shall be not more than $500, as prescribed by the attorney general.
(g) Any registration issued under the scrap metal theft reduction act shall not be transferable.
(h) This section shall not apply to a business licensed under the provisions of K.S.A. 8-2404, and amendments thereto, unless such business buys or recycles regulated scrap metal that are not motor vehicle components.
History: L. 2011, ch. 86, § 1; L. 2012, ch. 38, § 2; L. 2015, ch. 96, § 15; L. 2017, ch. 76, § 8; L. 2018, ch. 79, § 7; L. 2019, ch. 66, § 9; L. 2019, ch. 66, § 10; July 1, 2020.
(a) After examining the information contained in a filing for a scrap metal dealer registration and determining the registration meets the statutory requirements for such registration, the attorney general shall accept such filing and the scrap metal dealer shall be deemed to be properly registered.
(b) No scrap metal registration shall be accepted for:
(1) A person who is not a citizen or legal permanent resident of the United States.
(2) A person who is under 18 years of age and whose parents or legal guardians have been convicted of a felony or other crime that would disqualify a person from registration under this section and such crime was committed during the time that such parents or legal guardians held a registration under the scrap metal theft reduction act.
(3) A person who, within 10 years immediately preceding the date of filing, has pled guilty to, entered into a diversion agreement for, been convicted of, released from incarceration for or released from probation or parole for committing, attempting to commit, or conspiring to commit a violation of: Article 37 of chapter 21 of the Kansas Statutes Annotated, prior to their repeal, or K.S.A. 21-5801 through 21-5839 or 21-6412(a)(6), and amendments thereto; perjury, K.S.A. 21-3805, prior to its repeal, or K.S.A. 21-5903, and amendments thereto; compounding a crime, K.S.A. 21-3807, prior to its repeal; obstructing legal process or official duty, K.S.A. 21-3808, prior to its repeal; falsely reporting a crime, K.S.A. 21-3818, prior to its repeal; interference with law enforcement, K.S.A. 21-5904, and amendments thereto; interference with judicial process, K.S.A. 21-5905, and amendments thereto; or any crime involving dishonesty or false statement or any substantially similar offense pursuant to the laws of any city, state or of the United States.
(4) A person who within the 10 years immediately preceding the date of registration held a scrap metal dealer registration that was revoked, or managed a facility for a scrap metal dealer whose registration was revoked, or was an employee whose conduct led to or contributed to the revocation of such registration.
(5) A person who makes a materially false statement on the registration application or has made a materially false statement on a registration or similar filing within the last 10 years.
(6) A partnership or limited liability company, unless all partners or members of the partnership or limited liability company are otherwise qualified to file a registration.
(7) A corporation, if any manager, officer or director thereof, or any stockholder owning in the aggregate more than 25% of the stock of such corporation, would be ineligible to receive a license hereunder for any reason.
(8) A person whose place of business is conducted by a manager or agent unless the manager or agent possesses all of the qualifications for registration.
(9) A person whose spouse has been convicted of a felony or other crime that would disqualify a person from registration under this section and such crime was committed during the time that the spouse held a registration under the scrap metal theft reduction act.
(10) A person who does not own the premises upon which the place of business is located for which a license is sought, unless the person has a written lease for at least 3/4 of the period for which the license is to be issued.
History: L. 2011, ch. 86, § 2; L. 2015, ch. 96, § 16; L. 2017, ch. 76, § 9; L. 2018, ch. 79, § 8; L. 2019, ch. 66, § 11; L. 2019, ch. 66, § 12; July 1, 2020.
(a) The attorney general, upon five days notice to the persons holding a registration, may suspend the scrap metal dealer's registration for up to 30 days for any one of the following reasons:
(1) The registrant has been found to have violated any of the provisions of the scrap metal theft reduction act, or any similar ordinance, resolution or rules or regulations;
(2) the employment or continuation in employment of a person if the registered scrap metal dealer knows such person has, within the 24 months prior to the notice of suspension or revocation action, been found to have violated any of the provisions of the scrap metal theft reduction act, or the laws of another state comparable to such provisions, or any city or county ordinance or resolution, or regulation controlling scrap metal sale or purchase in Kansas or any other state; or
(3) permitting any criminal activity under the Kansas criminal code, or similar ordinance, resolution or rules or regulations made by the board or city, as the case may be, in or upon the registrant's place of business.
(b) The attorney general may revoke the registration of a scrap metal dealer who has had its registration suspended three or more times within a 24-month period.
(c) The attorney general, upon five days' notice to the person holding the registration, shall revoke or suspend the registration for any one of the following reasons:
(1) The registrant has fraudulently registered by knowingly giving materially false information on the registration form;
(2) the registrant has become ineligible to obtain a registration under the scrap metal theft reduction act;
(3) the nonpayment of any registration fees after receiving written notice that such registration fees are more than 30 days past due; or
(4) the nonpayment of any civil penalty after receiving written notice that such penalty is more than 30 days past due.
(d) Any action brought under this section shall be brought individually against a single registrant's place of business and not against any other place of business registered by the same individual, company or business entity.
(e) Any person aggrieved by the decision of the attorney general to suspend or revoke a registration under this section may appeal such decision in accordance with rules and regulations promulgated by the attorney general to implement the scrap metal theft reduction act.
History: L. 2011, ch. 86, § 3; L. 2015, ch. 96, § 17; January 1, 2016.
The provisions of the scrap metal theft reduction act shall expire on July 1, 2028.
History: L. 2019, ch. 66, § 13; L. 2023, ch. 31, § 3; July 1.
(a) Any person performing inspections for evidence of wood destroying insects, at the request of a buyer, seller, real estate broker, real estate salesperson, relocation company or financial institution, in connection with a real estate transaction or a loan secured by an interest in real estate shall hold, at the time of inspection, a valid certification, issued pursuant to the Kansas pesticide law, which authorizes the person to use or supervise the use of restricted use pesticides in the control of wood destroying insects.
(b) Any person who performs an inspection specified in subsection (a) and who fails to comply with the requirements of subsection (a), shall be guilty of a deceptive act or practice in violation of K.S.A. 50-626, and amendments thereto.
(c) The provisions of this section shall not apply to any employee of the Kansas department of agriculture who performs an inspection for evidence of wood destroying insects as a part of such employee's duties pursuant to the Kansas pesticide law.
(d) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 2007, ch. 64, § 1; July 1.
(a) As used in this section:
(1) "Vehicle protection product" means a vehicle protection device, system or service that is:
(A) Installed on or applied to a vehicle;
(B) is designed to prevent loss or damage to a vehicle from a specific cause; and
(C) includes a written warranty.
For purposes of this section, the term vehicle protection product shall include, without limitation, alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches and electronic, radio and satellite tracking devices;
(2) "vehicle protection product warranty" or "warranty" means a written agreement by a warrantor that provides if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, that the warrantor will pay to or on behalf of the warranty holder specified incidental costs as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty;
(3) "incidental costs" means expenses specified in the warranty incurred by the warranty holder related to the failure of the vehicle protection product to perform as provided in the warranty. Incidental costs may include, without limitation, insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees and mechanical inspection fees; and
(4) "warrantor" means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. Warrantor does not include an authorized insurer providing a warranty reimbursement insurance policy.
(b) Vehicle protection products are not required to comply with and are not subject to any provisions of chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
(c) The adoption of this section does not imply that a vehicle protection product warranty was insurance prior to July 1, 2008.
History: L. 2008, ch. 79, § 1; July 1.
(a) Incidental costs may be reimbursed under the provisions of the vehicle protection product warranty in either a fixed amount specified in the warranty or sales agreement or by the use of a formula itemizing specific incidental costs incurred by the vehicle protection product warranty holder.
(b) A vehicle protection product seller or warrantor may not require as a condition of financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.
(c) The failure of any person to comply with this section prior to July 1, 2008, shall not be admissible in any court proceeding, administrative proceeding, arbitration or alternative dispute resolution proceeding and may not otherwise be used to prove that the action of any person or the affected vehicle protection product was unlawful or otherwise improper.
History: L. 2008, ch. 79, § 2; July 1.
K.S.A. 50-6,116 through 50-6,120, and amendments thereto, shall be known and may be cited as the truth in musical performance advertising act. K.S.A. 50-6,116 through 50-6,120, and amendments thereto, shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2010, ch. 129, § 1; July 1.
The following words and phrases when used in the truth in musical performance advertising act, shall have the meanings given to them in this section unless the context clearly indicates otherwise:
(a) "Performing group" means a vocal or instrumental group seeking to use the name of another group that has previously released a commercial sound recording under that name.
(b) "Recording group" means a vocal or instrumental group at least one of whose members has previously released a commercial sound recording under that group's name and in which the member or members have a legal right by virtue of use or operation under the group name without having abandoned the name or affiliation with the group.
(c) "Sound recording" means a work that results from the fixation on a material object of a series of musical, spoken or other sounds regardless of the nature of the material object, such as a disk, tape or other phono-record, in which the sounds are embodied.
History: L. 2010, ch. 129, § 2; July 1.
It shall be unlawful for any person to advertise or conduct a live musical performance or production in this state through the use of a false, deceptive or misleading affiliation, connection or association between a performing group and a recording group. This section does not apply if any of the following apply:
(a) The performing group is the authorized registrant and owner of a federal service mark for that group registered in the United States patent and trademark office.
(b) At least one member of the performing group was a member of the recording group and has a legal right by virtue of use or operation under the group name without having abandoned the name or affiliation with the group.
(c) The live musical performance or production is identified in all advertising and promotion as a salute or tribute.
(d) The advertising does not relate to a live musical performance or production taking place in this state.
(e) The performance or production is expressly authorized by the recording group.
(f) The newspaper, magazine, news wire service, television station or radio station which advertises or promotes the live musical performance or production and is not aware that such performance or production is using a false, deceptive or misleading affiliation, connection or association with another group.
History: L. 2010, ch. 129, § 3; July 1.
(a) Whenever the attorney general or a county or district attorney has reason to believe that any person is advertising or conducting or is about to advertise or conduct a live musical performance or production in violation of K.S.A. 50-6,118, and amendments thereto, and that proceedings would be in the public interest, the attorney general or county or district attorney may bring an action against the person to restrain by temporary or permanent injunction that practice.
(b) Whenever any court issues a permanent injunction to restrain and prevent violations of the truth in musical performance advertising act as authorized in subsection (a), the court may direct that the defendant restore to any person in interest any moneys or property, real or personal, which may have been acquired by means of any violation of the truth in musical performance advertising act, under terms and conditions to be established by the court.
(c) Any person who violates the truth in musical performance advertising act shall be liable for a civil penalty as provided in subsection (a) of K.S.A. 50-636, and amendments thereto, which civil penalty shall be in addition to any other relief which may be granted. Each performance or production declared unlawful shall constitute a separate violation.
History: L. 2010, ch. 129, § 4; July 1.
It shall be an affirmative defense to a violation of the truth in musical performance advertising act if the person described in K.S.A. 50-6,118, and amendments thereto, has a written contract with the performing or recording group, that states that:
(a) The performing group is an authorized registrant pursuant to subsection (a) of K.S.A. 50-6,118, and amendments thereto; or
(b) at least one member of the performing group was a member of the recording group pursuant to subsection (b) of K.S.A. 50-6,118, and amendments thereto.
History: L. 2010, ch. 129, § 5; July 1.
K.S.A. 50-6,121 through 50-6,138, and amendments thereto, shall be known and may be cited as the Kansas roofing registration act.
History: L. 2013, ch. 115, § 1; July 1.
As used in K.S.A. 50-6,121 through 50-6,138, and amendments thereto:
(a) (1) "Roofing contractor" means any person, including a subcontractor and nonresident contractor, who in the ordinary course of business:
(A) Engages in the business of commercial or residential roofing services for a fee; or
(B) offers to engage in or solicits roofing-related services, including construction, installation, renovation, repair, maintenance, alteration and waterproofing.
(2) Roofing contractor shall not mean:
(A) A person engaged in the demolition of a structure or the cleanup of construction waste and debris that contains roofing material;
(B) a person working under the direct supervision of the roofing contractor and who is hired by such roofing contractor as an employee or day laborer; or
(C) an exempt general contractor.
(b) "Nonresident contractor" means any contractor who:
(1) Has not established and maintained a place of business as a roofing contractor in this state within the preceding year;
(2) claims residency in another state; or
(3) has not submitted an income tax return as a resident of this state within the preceding year.
(c) "Person" means any individual, firm, partnership, association, corporation, limited liability company, or other group or combination thereof acting as a unit, unless the intent to give a more limited meaning is disclosed clearly by this act.
(d) "Attorney general" means the attorney general of the state of Kansas or the attorney general's designee.
(e) "Exempt general contractor" means a "general contractor," as defined in K.S.A. 12-1540(d), and amendments thereto, who meets the following conditions:
(1) The general contractor, upon request of the attorney general, demonstrates by a preponderance of the evidence all of the following:
(A) The general contractor is in compliance with all requirements to do business in the state of Kansas, including any municipality or county requirements applicable to the location in which the general contractor intends to do business that involves roofing services;
(B) the general contractor engages in roofing services in addition to construction, installation, renovation, repair, maintenance, alteration or waterproofing services on the project, and the roofing services do not constitute more than 50% of the total project cost; and
(C) the general contractor or its agents, employees or representatives do not engage in "door-to-door sales," as defined in K.S.A. 50-640(c)(1), and amendments thereto; or
(2) the general contractor contracts for the performance of roofing services and upon request of the attorney general, demonstrates by a preponderance of the evidence all of the following:
(A) The general contractor does not directly supervise the roofing contractor's employees or agents and the roofing contractor is a separate legal business entity;
(B) neither the general contractor nor any of its agents or employees engages in roofing services;
(C) the roofing contractor used by the general contractor holds an active, valid roofing contractor registration certificate in good standing and the general contractor secures a copy of the roofing contractor's registration certificate and has it available for inspection during business hours at the location where roofing services are being provided;
(D) the contract between the general contractor and the roofing contractor specifies that the roofing contractor shall perform and be responsible for all roofing services, maintain direct supervision of any agent of such roofing contractor or person hired by such roofing contractor to perform roofing services, and notify the general contractor immediately if the roofing contractor's roofing registration certificate is suspended or otherwise becomes invalid under the provisions of this act or the roofing contractor is no longer in compliance with any of the requirements of this act;
(E) the general contractor is in compliance with all other requirements to do business in the state of Kansas, including any municipality or county requirements applicable to the location in which the general contractor intends to do business that involves roofing services; and
(F) the general contractor or its agents, employees or representatives do not engage in "door-to-door sales," as defined in K.S.A. 50-640(c)(1), and amendments thereto.
History: L. 2013, ch. 115, § 2; L. 2015, ch. 31, § 1; July 1.
(a) (1) No person shall engage in the business of or act in the capacity of a roofing contractor within this state without having a valid registration certificate as required by this act.
(2) No person may bring or maintain any claim, action, suit, or proceeding in any court of this state related to such person's business or capacity as a roofing contractor without having a valid registration certificate as required by this act.
(b) (1) Any person who fails to obtain a valid registration certificate prior to acting as a roofing contractor as defined in this act, shall be liable for a civil penalty as provided in subsection (a) of K.S.A. 50-636, and amendments thereto, which civil penalty shall be in addition to any other relief which may be granted or other penalty prescribed by law. The grant of powers to the attorney general in this act does not affect remedies available to consumers under other principles of law or equity.
(2) Any person who acts as a roofing contractor while such person's registration certificate as a roofing contractor is suspended or revoked shall be liable for a civil penalty as provided in subsection (a) of K.S.A. 50-636, and amendments thereto, which civil penalty shall be in addition to any other relief which may be granted or other penalty prescribed by law.
History: L. 2013, ch. 115, § 3; July 1.
(a) Subject to appropriations for this act, the attorney general is authorized to administer and implement the provisions of this act. The attorney general may administer and implement any provision of this act through use of the internet or other technology as deemed necessary or appropriate.
(b) The attorney general may create any forms necessary for the administration of this act.
(c) In accordance with the rules and regulations filing act, the attorney general is hereby authorized to adopt rules and regulations necessary to implement the provisions of this act. Such rules and regulations may include, but are not limited to, provisions concerning:
(1) Fees necessary to fund the expenses and operating costs incurred in the administration and enforcement of the provisions of this act.
(2) The acquisition of insurance, indemnity coverage or surety bonds in amounts determined by the attorney general.
(3) Any other matter deemed necessary by the attorney general to carry out, implement and enforce the provisions of this act.
History: L. 2013, ch. 115, § 4; July 1.
(a) (1) To obtain a roofing contractor registration certificate under this act, an applicant who is at least 18 years of age shall submit an application under oath containing:
(A) A statement of the applicant's experience and qualifications as a roofing contractor, if any.
(B) The applicant's name, physical address, business name and address, information on any other person who will be authorized to act as the business entity, and the applicant's phone number.
(C) A copy of the roofing contractor's certificate of liability insurance shall be filed with the application and shall be not less than $500,000. Any insurance company issuing a liability policy to a roofing contractor pursuant to the provisions of this act shall be required to notify the attorney general in the event such liability policy is canceled for any reason or lapses for any reason.
(D) Proof satisfactory to the attorney general that the applicant has secured either workers' compensation coverage satisfactory under the workers' compensation act or an affidavit of exemption or self-insurance as authorized pursuant to the workers' compensation act.
(E) Any other information deemed necessary in assisting the attorney general to register the person as a roofing contractor.
(2) The application shall contain statements that the applicant:
(A) Desires the issuance of a roofing contractor registration certificate.
(B) Will comply with the provisions of this act.
(C) Will comply with all federal and state laws and local ordinances.
(D) (i) Has or has not been registered or licensed as a roofing contractor in another state; and
(ii) whether any disciplinary action was taken against such registration or license or whether such registration or license is currently in good standing.
(3) If the applicant is not a resident of this state, then the nonresident applicant will appoint the secretary of state as legal agent for service of process or as otherwise provided in this act.
(b) The attorney general shall refuse to register any person if the attorney general determines:
(1) The application contains false, misleading, or incomplete information.
(2) The applicant fails or refuses to provide any information requested by the attorney general.
(3) The applicant fails or refuses to pay the required fees.
(4) The applicant is ineligible for registration due to a suspended or revoked registration in this state.
(5) The nonresident applicant has a revoked or suspended registration or license for roofing contractors required by law in another state.
(6) The applicant has failed to provide a current tax clearance certificate or letter from the Kansas department of revenue along with the filing of any application.
(c) (1) The attorney general shall notify the applicant in writing if the attorney general denies an application for a registration or renewal of a certificate, and shall provide the applicant an opportunity to respond to or cure any defect in the written application or renewal for a period of 10 days from the date of the written notification.
(2) Notification shall be deemed sufficient if mailed, via first class mail, to the address listed in the last application for registration or for renewal filed by the applicant.
(3) An applicant aggrieved by a decision of the attorney general denying a registration or renewal may appeal the decision as provided in the Kansas administrative procedure act. In the alternative, the applicant may reapply after the expiration of a 90-day waiting period, if the applicant is otherwise eligible under the provisions of this act.
(4) All application, renewal and reapplication fees shall not be refundable.
(d) The attorney general shall classify as not in good standing the registration certificate of any roofing contractor who fails to do any of the following:
(1) Maintain liability insurance coverage;
(2) maintain workers' compensation coverage satisfactory under the workers' compensation act, or provide an affidavit of exemption or self-insurance as authorized pursuant to the workers' compensation act;
(3) maintain an active status of a corporation or registration as a foreign corporation, a limited liability company or registration as a foreign limited liability company, a limited liability partnership registration or foreign limited liability partnership registration, or a limited partnership certificate or limited partnership or foreign limited partnership certificate of authority, with the office of the secretary of state;
(4) maintain or renew a roofing contractor registration as provided in this act;
(5) notify the attorney general for any act or omission specified in subsection (a) of K.S.A. 50-6,133, and amendments thereto, or any other violation of this act;
(6) maintain any registration as required by law in another state while registered in this state as a nonresident roofing contractor; or
(7) file and pay all taxes when due in this state.
(e) The attorney general shall send a written notice to the person when such person's registration is not in good standing. Notification shall be deemed sufficient if mailed, via first class mail, to the address listed in the last registration or renewal form filed by the applicant. Any roofing contractor who has been notified by the attorney general that such person's registration is not in good standing shall cease soliciting or entering new roofing services and projects as of the date of such notification. The roofing contractor shall be allowed to complete roofing projects where actual physical work has begun prior to the date of issuance of the notice that such person's registration is not in good standing. If the roofing contractor fails to correct the deficiency specified in the notice by evidence satisfactory to the attorney general within 30 days of the date of the notice, or if the roofing contractor solicits or enters into new roofing services contracts or projects while the roofing contractor's registration certificate is not in good standing, or while such registration certificate is suspended or revoked, the roofing contractor shall be in violation of the provisions of this act. Any registration certificate that is not in good standing shall be revoked 30 days from the date of notification to the roofing contractor that the registration is not in good standing. Notice of revocation shall be deemed sufficient if mailed, via first class mail, to the address listed in the last application, registration or renewal form filed by the applicant. The roofing contractor may reinstate such roofing contractor's registration certificate to good standing by paying the required fees provided in K.S.A. 50-6,132, and amendments thereto, and complying with all other requirements for issuance of a registration in good standing.
Any person aggrieved by the decision of the attorney general to suspend or revoke a registration certificate pursuant to this section may appeal such decision as provided in the administrative procedure act.
History: L. 2013, ch. 115, § 5; July 1.
(a) There shall be a question on all application and renewal forms requiring the applicant to answer under oath whether or not the applicant has been convicted of a felony offense in this state, another state, or any other place, and the nature of that offense upon which a conviction was imposed.
(b) Conviction of an offense shall not disqualify a person from registration as a roofing contractor under this act, provided the applicant has truthfully disclosed the conviction and nature of the offense.
(c) When deemed appropriate, the attorney general may conduct a criminal history records search or background check in accordance with K.S.A. 2025 Supp. 22-4715, and amendments thereto, on any applicant or registered roofing contractor and may investigate the information submitted on a roofing contractor application or renewal form, provided no adverse action may be taken against the person until the person has been notified and given an opportunity to respond in writing.
History: L. 2013, ch. 115, § 6; L. 2024, ch. 15, § 36; July 1.
The holder of a roofing contractor registration certificate may engage in the roofing business within this state pursuant to the provisions of this act, and subject to the following limitations:
(a) A roofing contractor's registration certificate number shall be valid and in good standing at the time of soliciting a project and during subsequent job performance;
(b) a roofing contractor's registration certificate number shall be submitted when applying for any permit issued by the state, or any of its political subdivisions, for commercial or residential roofing services or projects, if a permit is required by such authority, and shall be written upon each permit issued;
(c) a roofing contractor's registration certificate cannot be shared or used by any other individual or business entity, except that a business firm, partnership, association, corporation, limited liability company or other group or combination thereof acting as a unit may be granted a single roofing registration certificate number for use by designated roofing contractors acting as agents for the business entity when the application for registration certificate contained sufficient information on each member, partner, officer and agent, and the attorney general issued a single certificate number to such persons as a business unit;
(d) upon any change to the name, address, business entity or resident agent of a roofing contractor or upon adjudication by a court of competent jurisdiction for a violation of this act or an act or omission specified in subsection (a) of K.S.A. 50-6,133, and amendments thereto, the attorney general shall be notified in writing;
(e) a roofing contractor shall comply with all state laws and local ordinances; and
(f) a roofing contractor must pay taxes due in this state.
History: L. 2013, ch. 115, § 7; July 1.
(a) At the time of making application for a roofing contractor registration certificate pursuant to this act, the applicant shall pay to the attorney general a fee to be set by the attorney general, which shall not exceed $500 for the annual registration certificate.
(b) There is hereby established in the state treasury the roofing contractor registration fund to be administered by the attorney general. All moneys received by the attorney general from fees, charges or penalties shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto, who shall deposit the entire amount thereof in the state treasury to the credit of the roofing contractor registration fee fund. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the attorney general and the director of accounts and reports issued pursuant to vouchers approved by the attorney general or the attorney general's designee. All moneys credited to the roofing contractor registration fee fund shall be expended for the administration of the duties, functions and operating expenses of the roofing contractor registration act.
(c) On or before the 10th of each month, the director of accounts and reports shall transfer from the state general fund to the roofing contractor registration fee fund established in subsection (a) interest earnings based on:
(1) The average daily balance of money in the roofing contractor registration fee fund for the preceding month; and
(2) the net earnings rate of the pooled money investment fund portfolio for the preceding month.
(d) The fee to be submitted with an application for a roofing contractor registration certificate may be prorated as set by the attorney general. Unless prorated at the time of initial registration, fees shall be paid in full at the time an application for a registration certificate is filed and such registration certificate shall expire on June 30 of each year.
(e) An annual renewal fee for renewal of a roofing contractor registration certificate shall be set by the attorney general. Such renewal fee shall not exceed $500.
History: L. 2013, ch. 115, § 8; July 1.
(a) The roofing contractor registration act shall not apply to:
(1) An actual owner of commercial, residential or farm property who physically performs, or has employees who perform, roofing services including, construction, installation, renovation, repair, maintenance, alteration, waterproofing or removal of materials or structures on such owner's own dwelling or another structure located on the residential or farm property owned by such person without the assistance of any registered roofing contractor;
(2) any authorized employee, representative or representatives of the United States government, the state of Kansas, or any county, municipality, or other political subdivision of this state;
(3) any person who furnishes any fabricated or finished product, material, or article of merchandise which is not incorporated into or attached to real property by such person so as to become affixed thereto;
(4) any person employed by a manufactured home and modular home manufacturer while performing services and work for the manufactured home and modular home manufacturer;
(5) any person registered as a home inspector pursuant to K.S.A. 58-4501 et seq., and amendments thereto, while performing functions pursuant to that act;
(6) any person employed by a manufactured home dealer while acting within the scope of that license;
(7) any person employed as a manufactured home installer while acting within the scope of that license; and
(8) any person who engages in providing roofing services that on each and every undertaking or project during any fiscal year bear an aggregate price, including labor, materials and all other items, that is quoted, bid, offered, agreed, contracted, billed, collected and paid at less than $2,000. This exemption does not apply to a person who advertises or puts out any sign or card or other device which might indicate to the public that the person is a roofing contractor or that the person is qualified to engage in the business of a roofing contractor.
(b) Any administrative or governing body with authority to enter into public contracts shall require individual roofing contractor registration for purposes of such persons submitting or entering into any bid or contract.
History: L. 2013, ch. 115, § 9; July 1.
Within 60 calendar days from the date of application, the attorney general shall either issue or deny the roofing contractor registration certificate. No registration certificate shall be issued to an applicant until the attorney general receives all documentation and fees necessary to obtain a registration certificate. The registration certificate issued on an original application entitles the person to act as a roofing contractor within this state, subject to the limitations of this act, until the expiration of the then current fiscal year ending June 30, except that an initial registration certificate issued in May or June is valid until June 30 of the subsequent year.
History: L. 2013, ch. 115, § 10; July 1.
Not later than 10 days after the date of a change in a roofing contractor's name, address or legal service agent, or upon a registered roofing contractor's ceasing business as a roofing contractor, the person shall notify the attorney general of the change on a form provided by the attorney general. A change of name or address shall be accompanied by a fee set by the attorney general not to exceed $25. No person shall change such person's name under an active registration certificate if the change is associated with a change in the legal status of the business entity other than a change in marital status. Doing business under a new business name or a change in legal status of a business requires issuance of a new registration certificate. When a registered roofing contractor ceases to be active as a roofing contractor, the contractor shall notify the attorney general within 10 days and the attorney general shall suspend the registration certificate of such contractor as soon as practical after receiving the notification.
History: L. 2013, ch. 115, § 11; July 1.
(a) (1) Any roofing contractor registration certificate issued under this act may be renewed for each successive fiscal year by obtaining from the attorney general a certificate of renewal. To obtain a certificate of renewal, the person shall file with the attorney general a renewal application by June 30 and pay the renewal fee. The application for renewal shall require statements under oath that the applicant has or has not been convicted of any felony offense, and the nature of such offense, since issuance of the prior registration certificate, and whether or not the applicant has been adjudicated by a court of competent jurisdiction for any violation of this act or any act or omission specified in subsection (a) of K.S.A. 50-6,133, and amendments thereto.
(2) The applicant shall include with the renewal application a copy of the certificate of liability insurance, proof of workers' compensation coverage, unless exempt or self-insured under the workers' compensation act, and, if applicable, a copy of the current registration certificate required by law for roofing contractors and a current tax clearance certificate or letter from the Kansas department of revenue.
(b) The attorney general shall refuse to renew a roofing contractor's registration certificate for any reason stated in subsection (b) of K.S.A. 50-6,125, and amendments thereto. The attorney general shall notify the applicant in writing if the attorney general denies the renewal as provided in subsection (c) of K.S.A. 50-6,125, and amendments thereto.
(c) If any roofing contractor fails to file a renewal application by the June 30 deadline, that contractor's registration certificate shall be deemed not to be in good standing. A roofing contractor has a 30-day grace period after June 30 to renew such registration certificate without a late fee. The late fee shall be set by the attorney general but shall not exceed $300. If the certificate is not renewed before July 31, the certificate shall be revoked.
(d) (1) A roofing contractor desiring to renew a registration certificate that has been suspended for any cause provided in this act prior to the June 30 annual renewal date shall be assessed a fee equal to twice the amount of the fee established by subsection (c) of K.S.A. 50-6,128, and amendments thereto.
(2) The attorney general shall assess a reinstatement fee in an amount to be set by the attorney general not to exceed $500 plus the fee established by K.S.A. 50-6,128, and amendments thereto, for any registration certificate that has been revoked for any cause provided in this act.
(3) A roofing contractor submitting an application for a registration certificate after suspension or revocation of that contractor's registration certificate must be otherwise eligible for registration under this act.
(e) The attorney general shall include a registration status notation in a roofing contractor's record if the status of registration changes from active and valid to not in good standing, denied, suspended or revoked.
History: L. 2013, ch. 115, § 12; July 1.
(a) No roofing contractor or any person providing services as a roofing contractor shall:
(1) Abandon a roofing contract without legal grounds after a deposit of money or other consideration has been paid;
(2) divert any funds or property entrusted to a roofing contractor;
(3) engage in any fraudulent or deceptive acts or practices or misrepresentation of products, services or qualifications as a roofing contractor;
(4) make a false or misleading statement in an application for a roofing contractor registration certificate or renewal application or in soliciting a contract for roofing services;
(5) violate any judgment or order by a court of competent jurisdiction against the roofing contractor for a violation of the provisions of this act;
(6) engage in work without a valid registration certificate as required for roofing contractors pursuant to this act or performing roofing services during any period when the roofing contractor's registration certificate is denied, suspended or revoked;
(7) engage in roofing services without obtaining a proper permit as may be required by any state or local authority;
(8) fail to comply with any tax laws authorized by the state or any of its political subdivisions;
(9) damage or injure any person or property while performing roofing services under a valid roofing contractor registration certificate for which the roofing contractor's liability insurance or workers' compensation coverage was inadequate; or
(10) fail to comply with any provision of this act or any rule and regulation adopted thereunder.
(b) Any person may file a duly verified complaint with the attorney general alleging one or more violations of subsection (a). The complaint shall be on a form approved by the attorney general and shall set forth the alleged act or omission stated in subsection (a), and a statement of sufficient facts upon which a reasonable person could conclude that the act or omission specified in subsection (a) has been committed. Nothing in this section shall be construed to require the complainant to first file a complaint with the attorney general before seeking relief or remedies allowed by law.
(c) A complaint received by the attorney general as provided in this section may be investigated by the attorney general or referred to any county or district attorney for appropriate disposition or investigation. The attorney general is hereby authorized to:
(1) Make investigations and examinations of the registrant's operations, books and records as the attorney general deems necessary for the protection of the public and control access to any documents and records of the licensee or registrant under examination or investigation;
(2) charge reasonable costs of investigation, examination and administration of this act, to be paid by the applicant, licensee or registrant;
(3) exchange any information regarding the administration of this act with any agency of the United States or any state or political subdivision thereof which regulates the licensee or registrant or administers statutes, rules and regulations or programs related to the roofing business, and to enter into information-sharing arrangements with other governmental agencies or associations representing governmental agencies which are deemed necessary or beneficial to the administration of this act;
(4) disclose to any person or entity that an applicant's, licensee's or registrant's application, license or registration certificate has been denied, suspended, revoked or refused renewal;
(5) require or permit any person to file a written statement, under oath or otherwise as the attorney general may direct, setting forth all the facts and circumstances concerning any apparent violation of this act, or any rule and regulation promulgated thereunder or any order issued pursuant to this act;
(6) receive, as a condition in settlement of any investigation or examination, a payment designated for the roofing contractor registration fee fund as directed by the attorney general;
(7) refer such evidence as may be available concerning any violation of this act or of any rule and regulation or order hereunder to the proper county or district attorney, who may in the attorney general's discretion, with or without such a referral, institute the appropriate criminal proceedings under this act;
(8) establish relationships or contracts with any other government programs which require the licensing or registration of roofing contractors or other entities to collect and maintain records and process transaction fees or other fees related to applicants, licensees, registrants or other persons subject to this act and to take such other actions as may be reasonably necessary to facilitate cooperation between such governmental entities or agencies and industry trade associations. The attorney general shall regularly report violations of law, as well as enforcement actions and other relevant information to any multi-state or nationwide licensing system and registry; and
(9) require any registrant to file with any such roofing contractor licensing system or registry in the form prescribed by the attorney general or the attorney general's designee.
(d) For the purpose of any examination, investigation or proceeding under this act, the attorney general or any officer designated by the attorney general may administer oaths and affirmations, subpoena witnesses, compel such witnesses' attendance, adduce evidence and require the production of any matter which is relevant to the examination or investigation, including the existence, description, nature, custody, condition and location of any books, documents or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of relevant information or items.
(e) In case of refusal to obey a subpoena or court order issued to any person, any court of competent jurisdiction, upon application by the attorney general, may issue to that person an order requiring the person to appear before the attorney general, or the officer designated by the attorney general, to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question. Any failure to obey the order of the court may be punished by the court as a contempt of court.
(f) No person is excused from attending and testifying or from producing any document or record before the attorney general or in obedience to the subpoena of the attorney general or in any proceeding instituted by the attorney general, on the ground that the testimony or evidence, documentary or otherwise, required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture. No individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction or matter concerning which such person is compelled, after claiming privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that the individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.
History: L. 2013, ch. 115, § 13; July 1.
(a) (1) Every applicant for a roofing contractor's registration certificate who is a nonresident contractor, may apply for a registration certificate by signing and filing the application, appointing the secretary of state as the applicant's true and lawful agent upon whom may be served all lawful process in any action or proceeding against such nonresident contractor for construction projects performed in this state. Such appointment shall be evidence of the roofing contractor's consent that any process against the contractor which is served upon the secretary of state shall be of the same legal force and effect as if served upon the contractor personally within this state.
(2) Registered foreign corporations, registered foreign limited liability companies, foreign limited liability partnerships and foreign limited partnerships which are authorized to do business in this state and which have a current registered agent and registered address on file in the office of the secretary of state shall not be required to appoint the secretary of state as agent for service of process under this section.
(b) Within 10 days after service of the summons upon the secretary of state, notice of such service with the summons and complaint in the action shall be sent to the defendant roofing contractor at the defendant contractor's last known address by registered or certified mail with return receipt requested and proof of such mailing shall be attached to the summons.
(c) The secretary of state shall keep a record of all process served upon the secretary of state under this section, showing the day and hour of service. Whenever service of process was made under this section, the court, before entering a default judgment, or at any stage of the proceeding, may order such continuance as may be necessary to afford the defendant contractor reasonable opportunity to defend any action pending against the defendant contractor.
History: L. 2013, ch. 115, § 14; July 1.
(a) When applying for any permit required by the state or any of its political subdivisions for roofing services or jobs, a roofing contractor shall supply the permit-issuing official the roofing contractor's registration certificate number issued pursuant to this act. That official shall enter a roofing contractor's registration certificate number on the permit.
(b) Although exempt from the registration requirements of this act, any person performing as a roofing contractor on such person's own property shall, when applying for a permit required for the project, supply the permit-issuing official any roofing contractor registration certificate number, as soon as available, of each roofing subcontractor engaged in roofing services and doing work covered by the permit, if any. That official shall enter each roofing contractor registration certificate number so supplied before inspection of the job.
(c) A roofing contractor shall display such contractor's roofing contractor registration certificate number issued pursuant to this act on each commercial vehicle used for roofing services and upon every business sign, card, correspondence and contract used to solicit and conduct roofing services in this state.
History: L. 2013, ch. 115, § 15; July 1.
(a) Upon request, the attorney general shall verify a roofing contractor registration certificate number to city, county and state enforcement officials and to the public.
(b) The attorney general shall establish a system for the public to confirm roofing contractor registration certificates. Such system shall include a listing of valid registration certificates and such other information collected pursuant to this act, and amendments thereto, as the attorney general may determine is appropriate. In addition, the system may include a notation for any conviction of a criminal violation in this state, another state, or the United States when disclosed by a criminal history records search on the individual roofing contractor. Disclosure of any information through use of the roofing contractor registration certificate system or information maintained by the attorney general shall not be deemed to be an endorsement of any roofing contractor or determination of any facts, qualifications, information or reputation of any roofing contractor by the attorney general, the state, or any of their respective agents, officers, employees or assigns.
History: L. 2013, ch. 115, § 16; July 1.
This act shall be construed to be in addition to, and not in lieu of, any required licensure of persons for certain professions and trades in this state, and further, this act shall not be deemed to conflict with or affect the authority of any state or local agency, board or commission whose duty and authority is to administer or enforce any law or ordinance or to establish, administer or enforce any policy, rule, qualification or standard for any trade or profession.
History: L. 2013, ch. 115, § 17; July 1.
(a) Any violation of this act shall be deemed to be a deceptive or unconscionable act or practice under the provisions of the Kansas consumer protection act.
(b) This act shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2013, ch. 115, § 18; July 1.
In the event a general contractor is notified or becomes aware that a roofing contractor used by the general contractor has violated or is no longer in compliance with any of the requirements of this act, the general contractor shall immediately inform the attorney general.
History: L. 2015, ch. 31, § 2; July 1.
The attorney general may, upon request of a general contractor, issue a letter of exemption stating that the general contractor is an exempt general contractor, as defined by this act.
History: L. 2015, ch. 31, § 3; July 1.
(a) The conduct prohibited by K.S.A. 21-6107, and amendments thereto, constitutes an unconscionable act or practice in violation of K.S.A. 50-627, and amendments thereto, and any person who engages in such conduct shall be subject to the remedies and penalties provided by the Kansas consumer protection act.
(b) For the purposes of the remedies and penalties provided by the Kansas consumer protection act:
(1) The person committing the conduct prohibited by K.S.A. 21-6107, and amendments thereto, shall be deemed the supplier, and the person who is the victim of such conduct shall be deemed the consumer; and
(2) proof of a consumer transaction shall not be required.
(c) This section shall be part of and supplemental to the Kansas consumer protection act.
(d) The provisions of this section and K.S.A. 50-6,139a and
50-6,139b, and amendments thereto, shall be known and may be cited as the Wayne Owen act.
History: L. 2013, ch. 123, § 6; L. 2016, ch. 103, § 3; July 1.
(a) Within the limits of available resources, the attorney general may assist victims of identity theft, identity fraud and related crimes and violations in obtaining refunds in relation to fraudulent or unauthorized charges or debits, canceling fraudulent accounts, correcting false information in consumer reports caused by identity theft or identity fraud, correcting false information in personnel files and court records, obtaining security freezes, completing identity theft affidavits, filing complaints and related matters.
(b) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2016, ch. 103, § 1; July 1.
(a) As used in this section:
(1) "Holder of personal information" or "holder" means a person who, in the ordinary course of business, collects, maintains or possesses, or causes to be collected, maintained or possessed, the personal information of any other person.
(2) "Person" means any individual, partnership, corporation, trust, estate, cooperative, association, government, governmental subdivision or agency or other entity.
(3) "Personal information" means personal information as defined by K.S.A.
50-7a01(g), and amendments thereto, and any other information which identifies an individual for which an information security obligation is imposed by federal or state statute or regulation.
(4) "Record" has the meaning provided by K.S.A.
84-1-201, and amendments thereto.
(b) A holder of personal information shall:
(1) Implement and maintain reasonable procedures and practices appropriate to the nature of the information, and exercise reasonable care to protect the personal information from unauthorized access, use, modification or disclosure. If federal or state law or regulation governs the procedures and practices of the holder of personal information for such protection of personal information, then compliance with such federal or state law or regulation shall be deemed compliance with this paragraph and failure to comply with such federal or state law or regulation shall be prima facie evidence of a violation of this paragraph; and
(2) unless otherwise required by federal law or regulation, take reasonable steps to destroy or arrange for the destruction of any records within such holder's custody or control containing any person's personal information when such holder no longer intends to maintain or possess such records. Such destruction shall be by shredding, erasing or otherwise modifying the personal identifying information in the records to make it unreadable or undecipherable through any means.
(c) A holder of personal information shall have an affirmative defense to a violation of subsection (b)(2) if such holder proves by clear and convincing evidence that:
(1) The violation resulted from a failure of the method of destruction of records to make personal information contained in such records unreadable or undecipherable through any means, and such failure could not reasonably have been foreseen despite the holder's exercise of reasonable care in selecting and employing a method of destruction; or
(2) the holder of personal information had in effect at the time of the violation a bona fide written or electronic records management policy, including practices and procedures reasonably designed, maintained, and expected to prevent a violation of subsection (b)(2), and that the records involved in the violation of subsection (b)(2) were destroyed or disposed of in violation of such policy. No affirmative defense under this paragraph shall be available unless such holder proves:
(A) The employees or other persons involved in the violation received training in the holder's written or electronic records management policy;
(B) the violation resulted from a good faith error; and
(C) no reasonable likelihood exists that the violation may cause, enable or contribute to identity theft or identity fraud as defined by K.S.A. 21-6107, and amendments thereto, or to a violation of an information security obligation imposed by federal or state statute or regulation.
(d) Each violation of this section shall be an unconscionable act or practice in violation of K.S.A. 50-627, and amendments thereto. Each record that is not destroyed in compliance with subsection (b)(2) shall constitute a separate unconscionable act within the meaning of K.S.A. 50-627, and amendments thereto.
(e) Notwithstanding any other provision of law to the contrary, the exclusive authority to bring an action for any violation of this section shall be with the attorney general. Nothing in this section shall be construed to create or permit a private cause of action for any violation of this section.
(f) Nothing in this section relieves a holder of personal information from any duty to comply with other requirements of state and federal law regarding the protection of such information.
(g) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2016, ch. 103, § 2; July 1.
(a) As used in this section:
(1) "Person" means an individual, corporation, limited liability company, general partnership, limited partnership, firm, company, voluntary association and other association or business entity existing under or authorized by the state of Kansas, or the laws of any other state, territory or foreign country.
(2) "Affiliated person" means a person affiliated with the intended recipient of a written or electronic communication.
(3) "Intended recipient" means a person who purchases, rents, leases or otherwise obtains a product or service in the commercial market that is not for resale in the commercial market and that is, or later becomes, the subject of a patent infringement allegation.
(b) It is an unconscionable act or practice for any person to make a bad faith assertion of patent infringement whereby the person sends or causes to be sent any electronic or written communication that states that the intended recipient or affiliated person is infringing or has infringed on a patent if:
(1) The communication asserting or claiming patent infringement does not contain the following information and, upon the request of the intended recipient or affiliated person, the person fails to provide that information within a reasonable period of time:
(A) The name of the person asserting or claiming a right to license the patent to or enforce the patent against the intended recipient or affiliated person;
(B) the number of the patent issued by the United States patent and trademark office that is alleged or claimed to have been infringed; and
(C) the factual allegations concerning the specific areas in which the intended recipient or affiliated person's products, services or technology infringed the patent or are covered by the claims in the patent;
(2) prior to sending the communication, the person asserting or claiming patent infringement:
(A) Fails to compare the scope of the patent to the intended recipient or affiliated person's products, services or technology, to the extent commercially reasonable and identifiable from public information; or
(B) performs such comparison, but fails to identify in the communication the specific areas in which the intended recipient or affiliated person's products, services or technology are within the scope of the patent;
(3) the communication falsely states that litigation has been filed against the intended recipient or affiliated person; or
(4) the assertions or claims contained in the communication lack a reasonable basis because the demand letter seeks compensation:
(A) For a patent that has been held to be invalid or unenforceable in a final judicial or administrative decision; or
(B) regarding actions alleged to have been undertaken after the patent has expired.
(c) Nothing in this section shall be construed to be an unconscionable act or practice where any person:
(1) Has made a substantial investment in the use of the patent or in the production or sale of a product or item covered by the patent;
(2) has engaged in a good faith effort to establish that the intended recipient or affiliated person has infringed the patent;
(3) has, as the owner of the patent and in good faith, sought compensation or other remedy from the intended recipient or affiliated person by reason of infringement of its patent;
(4) is an inventor or joint inventor of the patent or, in the case of a patent filed by and awarded to an assignee of the original inventor or joint inventor, is the original assignee;
(5) has demonstrated good faith business practices in previous efforts to enforce the patent or a substantially similar patent;
(6) has successfully enforced the patent or a substantially similar patent through litigation; or
(7) has, as the owner of a patent and in good faith, communicated to any person that its patent is available for license or sale.
(d) (1) The conduct prohibited by this section constitutes an unconscionable act or practice in violation of K.S.A. 50-627, and amendments thereto, and any person who engages in such conduct shall be subject to the remedies and penalties provided by the Kansas consumer protection act and the investigatory and enforcement procedures and policies of the attorney general's office adopted pursuant to the Kansas consumer protection act.
(2) For the purposes of the remedies and penalties provided by the Kansas consumer protection act:
(A) The person committing the conduct prohibited by this section shall be deemed the supplier, and the intended recipient or affiliated person who is the victim of such conduct shall be deemed the consumer; and
(B) proof of a consumer transaction shall not be required.
(3) Notwithstanding any provision of the Kansas consumer protection act to the contrary, a county or district attorney shall not have authority to file any civil action alleging a violation of the Kansas consumer protection act pursuant to this section.
(e) Nothing in this section shall apply to an assertion of patent infringement that includes a claim for relief arising under 35 U.S.C. § 271(e)(2) or 42 U.S.C. § 262.
(f) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2015, ch. 67, § 1; July 1.
(a) The unlicensed conduct as a bail enforcement agent prohibited by this act* and K.S.A. 22-2809a, and amendments thereto, constitutes an unconscionable act or practice in violation of K.S.A. 50-627, and amendments thereto, and any person who engages in unlicensed conduct as a bail enforcement agent shall be subject to the remedies and penalties provided by the Kansas consumer protection act.
(b) For the purposes of the remedies and penalties provided by the Kansas consumer protection act:
(1) The person committing unlicensed conduct as a bail enforcement agent shall be deemed the supplier, and the person who is the victim of such conduct shall be deemed the consumer; and
(2) proof of a consumer transaction shall not be required.
(c) Notwithstanding any provision of the Kansas consumer protection act to the contrary, only the attorney general, or the attorney general's designee, may bring a civil action alleging a violation of the Kansas consumer protection act pursuant to this section. This section shall not be construed as creating or allowing a private right of action under the Kansas consumer protection act.
(d) In addition to any civil penalties provided by this section, a person who violates any provision of this section and K.S.A. 75-7e01 through
75-7e09, and amendments thereto, may be prosecuted for, convicted of, and punished for an offense under K.S.A.
22-2809a, and amendments thereto.
(e) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2016, ch. 85, § 10; July 1.
(a) A person who is not licensed or otherwise authorized by the Kansas supreme court to practice law in this state shall not do any of the following:
(1) Commit any act or omission that is prohibited by the Kansas supreme court, either by court rule or by common law, as being the unauthorized practice of law;
(2) hold out to the public or otherwise represent, expressly or by implication, that such person is admitted to practice law in this state;
(3) solicit payment or other consideration, whether in cash or in-kind, for services that would constitute the unauthorized practice of law in this state if performed at or about the time of such solicitation; or
(4) offer or attempt to do any act prohibited by this subsection.
(b) A violation of subsection (a) constitutes an unconscionable act or practice in violation of K.S.A. 50-627, and amendments thereto, whether or not it involves a consumer, a consumer transaction or a supplier, as defined in K.S.A. 50-624, and amendments thereto.
(c) For the purposes of this section:
(1) "Person" means an individual who, or any corporation, agency, partnership, association or other legal entity that, knowingly commits acts or omissions that violate this section or aids or abets a person to commit acts or omissions that violate this section;
(2) a person described in subsection (a) shall be deemed a supplier within the meaning of K.S.A. 50-624, and amendments thereto; and
(3) an individual, sole proprietor, partnership, corporation, limited liability company, the state or a subdivision or agency of the state aggrieved by a violation of subsection (a) shall be deemed a consumer within the meaning of K.S.A. 50-624, and amendments thereto.
(d) Any remedies or penalties imposed pursuant to this section shall be in addition to, and not instead of, any remedies or penalties available under the contempt power of any court.
(e) The provisions of this section shall not apply to statewide, judicial district or municipal court-supervised public assistance offices and programs, victims assistance programs operated by a county or district attorney, court clerk, county law library, legal aid services providers, legal outreach programs operated by a state or local bar association or an employee of any such entity acting within the scope of employment.
(f) This section shall be part of and supplemental to the Kansas consumer protection act.
History: L. 2017, ch. 53, § 1; April 27.
(a) As used in this section:
(1) "Assignment" means a post-loss assignment of rights or benefits to a residential contractor under a property and casualty insurance policy insuring residential real estate;
(2) "residential contractor" means a person in the business of contracting or offering to contract with an owner or possessor of residential real estate to:
(A) Repair or replace a roof system or perform any other exterior repair, replacement, construction or reconstruction work on residential real estate;
(B) perform interior or exterior repair and cleanup services on residential real estate;
(C) arrange for, manage or process the work referred to in subparagraph (A) or (B); or
(D) serve as a representative, agent or assignee of the owner or possessor of residential real estate;
(3) "residential real estate" means a new or existing building constructed for habitation by at least one but no more than four families and any related detached structures; and
(4) "roof system" means and includes roof coverings, roof deck, roof ventilation, roof weatherproofing and insulation.
(b) (1) An assignment may authorize a residential contractor to be named as a copayee for the payment of benefits under a property and casualty insurance policy insuring residential real estate.
(2) An assignment shall include the following notice in capitalized 14-point type:
"AN ASSIGNMENT OF RIGHTS OR BENEFITS IS VOLUNTARY. YOU ARE AGREEING TO ASSIGN CERTAIN RIGHTS THAT YOU HAVE UNDER YOUR INSURANCE POLICY. WITH AN ASSIGNMENT, THE RESIDENTIAL CONTRACTOR SHALL BE ENTITLED TO PURSUE ANY RIGHTS OR REMEDIES THAT YOU, THE INSURED POLICY HOLDER, HAVE UNDER YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING.
THE INSURER MAY ONLY PAY FOR THE COST TO REPAIR OR REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL, SUBJECT TO THE TERMS OF THE POLICY."
(3) The residential contractor shall provide a copy of the assignment to the insurer of the residential real estate within three business days after the assignment is signed.
(4) An assignment shall provide that, in addition to any other right to revoke, the named insured has the right to cancel the assignment within five business days after execution.
(5) An assignment shall not:
(A) Impair the interest of a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the assignment; or
(B) prevent or inhibit an insurer from communicating with the named insured or mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the assignment.
(c) The commissioner of insurance shall strictly enforce the provisions of K.S.A. 40-2404(9)(n), and amendments thereto, which requires insurers to promptly provide a named insured a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement.
(d) An assignment is void if the residential contractor:
(1) Violates any provision of this section; or
(2) is not in compliance with any of the requirements of the Kansas roofing registration act.
(e) Any violation of this section is a deceptive act or practice under the Kansas consumer protection act.
(f) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 2019, ch. 56, § 1; July 1.
(a) A person engaging in legal advertisement within this state shall:
(1) Disclose the following at the outset of the advertisement: "This is a paid advertisement for legal services.";
(2) not present an advertisement as a "medical alert," "health alert," "consumer alert," "public service announcement" or similar terms;
(3) not display the logo of a federal or state governmental agency in a manner that suggests affiliation with or the sponsorship of that agency;
(4) not use the word "recall" when referring to a product that has not been recalled by a governmental agency or through an agreement between a manufacturer and governmental agency;
(5) identify the sponsor of the advertisement;
(6) indicate the identity of the attorney or law firm that will represent clients, or how cases will be referred to attorneys or law firms that will represent clients;
(7) if the advertisement is soliciting clients who may allege an injury from a prescription drug approved by the federal food and drug administration, include the following warning: "Do not stop taking a prescribed medication without first consulting with your doctor. Discontinuing a prescribed medication without your doctor's advice can result in injury."; and
(8) if the advertisement for a lawsuit soliciting clients who may allege an injury from a prescription drug or medical device approved by the federal food and drug administration or from a medical device substantially equivalent to an approved medical device, disclose that the drug or medical device remains approved by the federal food and drug administration, unless the product has been recalled or withdrawn.
(b) (1) Any words or statements required by this section to appear in an advertisement shall be presented clearly and conspicuously.
(2) Written disclosures shall be clearly legible and, if televised or displayed electronically, shall be displayed for a sufficient time to enable the viewer to easily see and fully read the disclosure or disclaimer.
(3) Spoken disclosures shall be plainly audible and clearly intelligible.
(c) Any violation of this section shall constitute an unlawful and deceptive trade practice as provided in K.S.A. 50-626, and amendments thereto, and shall be subject to the penalties provided for in K.S.A. 50-623 et seq., and amendments thereto.
(d) As used in this section:
(1) "Legal advertisement" means a solicitation for legal services, other than legal services performed by a bona fide nonprofit provider of pro bono legal services, through television, radio, internet, including a domain name, newspaper or other periodical, outdoor display or any other written, electronic or recorded communication; and
(2) "person" means an individual or an entity that is not an attorney or law firm and that advertises legal services or identifies potential clients for attorneys or law firms.
(e) Nothing in this section shall be construed to limit or otherwise affect the authority of the Kansas supreme court to regulate the practice of law or enforce the rules of the Kansas supreme court relating to attorneys.
History: L. 2022, ch. 72, § 1; July 1.
(a) A person shall not use, cause to be used, obtain, sell, transfer or disclose to another person without written authorization protected health information for the purpose of soliciting an individual for legal services.
(b) (1) Any violation of this section shall constitute an unlawful and deceptive trade practice as provided in K.S.A. 50-626, and amendments thereto, and shall be subject to the penalties provided for in K.S.A. 50-623 et seq., and amendments thereto.
(2) In addition to any other remedy provided by law, a person who knowingly violates this section shall be guilty of a class A nonperson misdemeanor.
(c) As used in this section:
(1) "Person" means an individual or an entity that is not an attorney or law firm and that advertises legal services or identifies potential clients for attorneys or law firms;
(2) "protected health information" means any information, including genetic information, whether oral or recorded in any form or medium that relates to the past, present or future physical or mental health or condition of an individual or the past, present or future payment for the provision of healthcare to an individual; and
(3) "soliciting" means offering to provide legal services, to be provided by an identified attorney or law firm, by written, recorded or electronic communication, or in-person, telephone or real-time electronic contact.
(d) Nothing in this section shall be construed to:
(1) Apply to the use or disclosure of protected health information to an individual's legal representative, in the course of any judicial or administrative proceeding, or as otherwise permitted or required by law; or
(2) limit or otherwise affect the authority of the Kansas supreme court to regulate the practice of law or enforce the rules of the Kansas supreme court relating to attorneys.
History: L. 2022, ch. 72, § 2; July 1.
(a) Any commercial entity that knowingly shares or distributes material that is harmful to minors on a website and such material appears on 25% or more of the webpages viewed on such website in any calendar month, or that knowingly hosts such website shall verify that any person attempting to access such website, who is a resident of this state or who is located in this state at the time of such attempted access, is 18 years of age or older. It shall be a violation of this section to allow a person to access such website without verifying such person is 18 years of age or older. Such age verification shall be conducted through the use of:
(1) A commercially available database that is regularly used by businesses or governmental entities for the purpose of age and identity verification; or
(2) any other commercially reasonable method of age and identity verification.
(b) Any person who was able to access a website without verifying such person's age in violation of this section may report such violation to the attorney general. Upon receipt of any such report, the attorney general shall investigate and may bring an action for injunctive relief to enjoin any continuing violation. In addition to any injunctive relief, such action may also seek to impose a civil penalty on the commercial entity of not less than $500 and not more than $10,000 for each such violation instead of the penalty provided for in K.S.A. 50-636(a), and amendments thereto. Each instance in which a website is accessed in violation of this section shall constitute a separate violation.
(c) Any violation of this section is an unconscionable act and practice under the Kansas consumer protection act.
(d) For purposes of the remedies and penalties provided by the Kansas consumer protection act:
(1) The person alleging a violation of this section shall be deemed a consumer, and the commercial entity that violates this section shall be deemed the supplier; and
(2) proof of a consumer transaction shall not be required.
(e) The parent or legal guardian of a minor, who was able to access a website without verifying such minor's age in violation of this section, may bring a private action against the commercial entity that violates the provisions of this section. Notwithstanding the provisions of K.S.A. 50-634 and 50-636, and amendments thereto, a person bringing such action may seek the following relief:
(1) Actual damages resulting from a minor's access to material that is harmful to a minor;
(2) statutory damages in an amount not less than $50,000; and
(3) reasonable attorney fees and costs.
(f) (1) A commercial entity or third party that performs the required age verification shall not retain any identifying information of the individual after access has been granted to the website.
(2) If a commercial entity is found to have knowingly retained identifying information of an individual after access to a website has been granted to such individual, then such commercial entity shall be liable to such individual for damages resulting from such retention, including reasonable attorney fees and costs as ordered by the court.
(g) Nothing in this section shall be construed to impose an obligation or liability on an internet service provider or the user of an interactive computer service.
(h) As used in this section:
(1) "Commercial entity" means a corporation, partnership, limited liability company, limited liability partnership, limited partnership, sole proprietorship or any other for profit organization.
(2) "Commercially reasonable method of age verification" means:
(A) Any method expressly approved by the attorney general; or
(B) any method that is certified in documented international standards for age verification as specified by the attorney general.
(3) "Harmful to minors" means the same as defined in K.S.A. 21-6402, and amendments thereto.
(4) "Host" means to provide the technology and resources necessary to store and maintain the electronic files and applications associated with a website on a computer server in order for such website to be accessible via the internet. The term "host" does not include an internet service provider.
(5) "Identifying information" means information that personally identifies an individual or that is linked to information that personally identifies an individual, including, but not limited to: (A) First and last name; (B) home address; (C) home telephone or cellphone number; (D) electronic mail address; (E) any other information that allows physical or online contact with the individual; (F) criminal records; (G) medical or other health records; (H) social security number; (I) biometric information; (J) disabilities; (K) socioeconomic information; (L) food purchases; (M) political affiliations; (N) religious information; (O) text messages; (P) documents; (Q) employment identifiers; (R) search activity; (S) photos; (T) voice recordings; or (U) geolocation information.
(6) "Interactive computer service" means any information service, system or access software provider that provides or enables computer access by multiple users to a computer server, including a service or system that provides access to the internet and such systems operated or services offered by libraries or educational institutions.
(7) "Material" means any book, magazine, newspaper, pamphlet, poster, print, picture, figure, image, description, motion picture film, record, recording tape or video tape.
(8) "Shares or distributes" means to display or present material or make such material available for download, with or without consideration.
(i) The provisions of this section are declared severable. If any provision, clause or subsection of this section or the application thereof to any person shall be held invalid, such invalidity shall not affect the validity of the remainder of this section.
History: L. 2024, ch. 28, § 1; July 1.
(a) As used in K.S.A. 50-6,147 through 50-6,149, and amendments thereto:
(1) "Distributed energy customer" means a property owner of a single-family dwelling or multifamily dwelling of two units or fewer and who is offered a contract from a distributed energy retailer for the construction, installation or operation of a distributed energy system that is primarily intended to offset the energy consumption of such single family or multifamily dwelling.
(2) "Distributed energy retailer" means any person or entity that sells, markets, solicits, advertises, finances, installs or otherwise makes available for purchase a distributed energy system in the state of Kansas.
(3) "Distributed energy system" means any device or assembly of devices and supporting facilities that is capable of feeding excess electrical power generated by a customer's energy producing system into the utility's system, such that all energy output and all other services will be fully consumed by the distributed energy customer or the utility, and that is or will be subject to an agreement under K.S.A. 66-1,184, 66-1263 et seq., and amendments thereto, or a net metering tariff that was voluntarily established by a utility.
(4) "Permission to operate" means the same as defined in K.S.A. 66-1,184, and amendments thereto.
(5) "Utility" means an electric public utility, as defined by K.S.A. 66-101a, and amendments thereto, any cooperative, as defined by K.S.A. 17-4603, and amendments thereto, an electric utility owned by one or more such cooperatives, a nonstock member-owned electric cooperative corporation incorporated in this state or a municipally owned or operated electric utility.
(b) No person or entity required to be registered with the secretary of state pursuant to the business entity standard treatment act, K.S.A. 17-1901 et seq., and amendments thereto, shall engage in the business or act in the capacity of a distributed energy retailer within this state unless such person or entity is registered with the secretary of state, in good standing and authorized to conduct business in the state.
(c) Prior to entering into a contract with a distributed energy customer for a distributed energy system, a distributed energy retailer shall provide such customer a separate disclosure document that:
(1) Is written in at least 10-point font;
(2) is written in the language that the distributed energy retailer used to speak to the distributed energy customer during the sales process or the language requested by such customer;
(3) includes a description of the make and model of the distributed energy system's major components and the expected useful life of the distributed energy system;
(4) includes a guarantee concerning the quantity of energy that the distributed energy system will generate on a measurable interval and a remedy if such system does not comply with such guarantee within one year following the date the system received permission to operate;
(5) does not contain blank spaces that may be subsequently filled in with terms or conditions that materially affect the timing, value or obligation of the contract unless such terms and conditions are separately acknowledged in writing by the distributed energy customer;
(6) includes, in bold font and highlighted type, the total aggregate cost to the distributed energy customer that will be incurred over the entirety of the contract. Such total aggregate cost shall be separately acknowledged in writing by the distributed energy customer;
(7) includes a description of the ownership and transferability of any tax credits, rebates, incentives or renewable energy certificates in connection with the distributed energy system;
(8) includes the name and certification number of the individual certified by the north American board of certified energy practitioners who will oversee the permitting and installation of the distributed energy system or the name and license number of the master electrician or electrical contractor who will oversee the permitting and installation of the distributed energy system;
(9) provides a description of the process and all associated fees for transferring any financing, warranty or other agreements relating to the distributed energy system to a new owner;
(10) includes the name, phone number, email and mailing address of the person or entity that the distributed energy customer may contact for questions regarding performance, maintenance or repair of the distributed energy system;
(11) includes a description of the assumptions used for any savings estimates that were provided to the distributed energy customer and provides a description of the applicable utility billing structure that pertains to the distributed energy system. Such descriptions and assumptions shall include the same provisions as outlined in the standard form published by the attorney general pursuant to K.S.A. 50-6,149, and amendments thereto;
(12) includes a statement that the distributed energy retailer shall provide the distributed energy customer proof that, within 30 days of completion of installation:
(A) All permits required for the installation of the distributed energy system were obtained prior to installation, if applicable;
(B) the distributed energy system was inspected and approved by a qualified individual pursuant to the requirements of any local municipal ordinance or county resolution;
(C) the necessary interconnection applications and documentation were submitted to and approved by the affected utility; and
(D) the distributed energy system received permission to operate;
(13) includes a statement that any recurring payments for a distributed energy system shall pause and not be due if such system does not receive permission to operate within 90 days of the date that the first recurring payment is due. Such recurring payments may resume at the time that such system receives permission to operate. Any payments due during any such pause shall either be forgiven or added to the end of the financing term and shall not incur any penalties for nonpayment during such term;
(14) includes a statement describing any rate escalation, balloon payment or potential reconfiguration of payment structure;
(15) includes a statement as to whether operations or maintenance services are included as part of the original contract price and whether the costs to remove, reinstall and repair the distributed energy system are included as part of the original contract price should the distributed energy system need to be removed, reinstalled or repaired due to natural causes or due to any exterior repair, replacement, construction or reconstruction work on the premises;
(16) includes a statement describing the expected start and completion dates for the installation of the distributed energy system;
(17) includes a statement indicating whether any warranty or maintenance obligations related to the distributed energy system may be transferred by the distributed energy retailer to a third party and, if so, a statement that provides: "The maintenance and repair obligations under your contract may be assigned or transferred without your consent to a third party who, if required pursuant to state law, shall be registered with the secretary of state, in good standing and authorized to conduct business in the state and bound to all the terms of the contract. If a transfer occurs, you will be notified in writing of any change to the name, mailing address, email or phone number to use for questions and payments or to request system maintenance or repair";
(18) includes a statement indicating whether the distributed energy retailer shall place a lien, notice or other filing on or against real property as a result of the contract;
(19) includes a statement, in bold font and highlighted type, indicating whether the distributed energy retailer will impose any fees or other costs upon the distributed energy customer. If any such fees or other costs will be charged to the distributed energy customer, the aggregate total of such fees and other costs shall be provided and separately acknowledged in writing by the distributed energy customer;
(20) includes a statement in capital letters and bold font and highlighted type that states: "[name of distributed energy retailer] is not affiliated with any utility company or governmental agency and shall not claim any such affiliation"; and
(21) may include any additional information that the distributed energy retailer considers appropriate, only if such additional information is not intended to conceal or obscure the disclosures required pursuant to this section.
(d) The disclosure statement required pursuant to this section shall be signed and dated by the distributed energy customer at least one calendar day after the date that the contract for the distributed energy system was executed.
(e) (1) Any person or entity that violates the provisions of subsection (b) or any distributed energy retailer that fails to provide and perform the disclosures in the form and manner required pursuant to this section or that makes a materially misleading statement as a part of or when presenting such disclosures shall be liable for a civil penalty in an amount not to exceed $10,000 for each such violation. Such violator shall be liable to the aggrieved person or distributed energy customer, or to the state, for the payment of such civil penalty. Such civil penalty shall be recoverable in an action brought by the aggrieved person or customer or the attorney general, county attorney or district attorney. Any such civil penalty shall be in addition to any other relief that may be granted pursuant to any other remedy available in law or equity.
(2) If a distributed energy retailer fails to comply with this section, any contract entered into between the distributed energy retailer and the distributed energy customer that pertains to the distributed energy system shall be deemed null and void.
(f) This section shall not apply to a transaction of real property on which a distributed energy system is already located.
(g) The provisions of this section shall take effect and be in force from and after July 1, 2025.
History: L. 2025, ch. 66, § 1; May 1.
(a) To allow a distributed energy retailer to provide informed and accurate information to a distributed energy customer pursuant to K.S.A. 50-6,147, and amendments thereto, upon request of any distributed energy retailer, a utility shall disclose all applications, rules, service standards, forms or other documents required for interconnection of a distributed energy system pursuant to K.S.A. 66-1,184 or 66-1263 et seq., and amendments thereto, or a net metering tariff that was voluntarily established by a utility, including the utility's historic amount of compensation per kilowatt hour for interconnected systems and the current compensation amount for such systems. Such historic amount of compensation shall be provided in a dollar amount and shown on a monthly or similar billing period basis for not less than the preceding five years.
(b) The provisions of this section shall take effect and be in force from and after July 1, 2025.
History: L. 2025, ch. 66, § 2; May 1.
(a) The attorney general shall appoint and convene an advisory group to collectively develop, approve and periodically revise a standard form that may be used by distributed energy retailers to perform and provide the the* disclosures required pursuant to K.S.A. 50-6,147, and amendments thereto. Such advisory group shall consist of the attorney general or the attorney general's designee, representatives from interested groups, including representatives of distributed energy retailers and utilities, one or more members of the general public who owns residential real property in this state, one or more assistant attorneys general and any other members that the attorney general considers necessary or appropriate.
(b) On or before July 1, 2025, the attorney general shall publish on the attorney general's website the most current version of the standard form that is developed and approved by the advisory group pursuant to this section.
History: L. 2025, ch. 66, § 3; May 1.
(a) This section applies to any person other than the federal government, the state, a state agency or a local government who solicits a fee for filing a document with, or retrieving a copy or certified copy of a certificate or public record from, the federal government, the state, a state agency or a local government.
(b) A person who solicits as described in subsection (a) shall include in each solicitation:
(1) A statement in the solicitation, in the same language as the solicitation, that is identical or substantially similar to the following: "This is an advertisement. This offer is not being made by, or on behalf of, any government agency. You are not required to make any payment or take any other action in response to this offer." If the solicitation is in writing, the statement shall be in at least 24-point type and located at the top of the physical document or the beginning of the electronic communication;
(2) the name of the person making the solicitation and the person's physical address, which shall not be a post office box;
(3) information on where the consumer can file a document directly with the secretary of state or retrieve a copy or certified copy of a certificate or public record; and
(4) if the solicitation is mailed, the words "THIS IS NOT A GOVERNMENT DOCUMENT" in 24-point type and all capital letters on the envelope, outside cover or wrapper in which the solicitation is mailed.
(c) A solicitation described in subsection (a) shall not be in a form or use deadline dates or other language that makes the document appear to be issued by the federal government, the state, a state agency or a local government, or that appears to impose a legal duty on the person being solicited.
(d) A violation of this section shall constitute a deceptive act or practice as provided in K.S.A. 50-626, and amendments thereto. For the purposes of the remedies and penalties provided by the Kansas consumer protection act, the person committing the conduct prohibited by this section shall be deemed the supplier and the person who is the victim of such conduct shall be deemed the consumer. Proof of a consumer transaction shall not be required.
(e) As used in this section, "solicit" or "solicitation" means to directly advertise to a person. "Solicit" and "solicitation" do not include:
(1) Communication initiated by a consumer; or
(2) advertising or marketing to a consumer with whom the solicitor has a current or former commercial relationship.
(f) This section shall be a part of and supplemental to the Kansas consumer protection act.
History: L. 2025, ch. 56, § 1; July 1.
(a) Cigarette smoking presents serious public health concerns to the state and to the citizens of the state. The surgeon general has determined that smoking causes lung cancer, heart disease and other serious diseases, and that there are hundreds of thousands of tobacco-related deaths in the United States each year. These diseases most often do not appear until many years after the person in question begins smoking.
(b) Cigarette smoking also presents serious financial concerns for the state. Under certain health-care programs, the state may have a legal obligation to provide medical assistance to eligible persons for health conditions associated with cigarette smoking, and those persons may have a legal entitlement to receive such medical assistance.
(c) Under these programs, the state pays millions of dollars each year to provide medical assistance for these persons for health conditions associated with cigarette smoking.
(d) It is the policy of the state that financial burdens imposed on the state by cigarette smoking be borne by tobacco product manufacturers rather than by the state to the extent that such manufacturers either determine to enter into a settlement with the state or are found culpable by the courts.
(e) On November 23, 1998, leading United States tobacco product manufacturers entered into a settlement agreement, entitled the "master settlement agreement," with the state. The master settlement agreement obligates these manufacturers, in return for a release of past, present and certain future claims against them as described therein, to pay substantial sums to the state (tied in part to their volume of sales); to fund a national foundation devoted to the interests of public health; and to make substantial changes in their advertising and marketing practices and corporate culture, with the intention of reducing underage smoking.
(f) It would be contrary to the policy of the state if tobacco product manufacturers who determine not to enter into such a settlement could use a resulting cost advantage to derive large, short-term profits in the years before liability may arise without ensuring that the state will have an eventual source of recovery from them if they are proven to have acted culpably. It is thus in the interest of the state to require that such manufacturers establish a reserve fund to guarantee a source of compensation and to prevent such manufacturers from deriving large, short-term profits and then becoming judgment-proof before liability may arise.
History: L. 1999, ch. 136, § 1; May 20.
As used in this act:
(a) "Adjusted for inflation" means increased in accordance with the formula for inflation adjustment set forth in exhibit C to the master settlement agreement.
(b) "Affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. Solely for purposes of this definition, the terms "owns," "is owned" and "ownership" mean ownership of an equity interest, or the equivalent thereof, of 10% or more, and the term "person" means an individual, partnership, committee, association, corporation or any other organization or group of persons.
(c) "Allocable share" means allocable share as that term is defined in the master settlement agreement.
(d) "Cigarette" means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use and consists of or contains: (1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco; (2) tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or (3) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in subsection (d)(1). The term "cigarette" includes "roll-your-own" (i.e., any tobacco which, because of its appearance, type, packaging or labeling is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes). For purposes of this definition of "cigarette," 0.09 ounces of "roll-your-own" tobacco shall constitute one individual "cigarette."
(e) "Master settlement agreement" means the settlement agreement (and related documents) entered into on November 23, 1998, by the state and leading United States tobacco product manufacturers.
(f) "Qualified escrow fund" means an escrow arrangement with a federally or state chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least $1,000,000,000 where such arrangement requires that such financial institution hold the escrowed funds' principal for the benefit of releasing parties and prohibits the tobacco product manufacturer placing the funds into escrow from using, accessing or directing the use of the funds' principal except as consistent with K.S.A. 50-6a03(b)(2), and amendments thereto.
(g) "Released claims" means released claims as that term is defined in the master settlement agreement.
(h) "Releasing parties" means releasing parties as that term is defined in the master settlement agreement.
(i) "Tobacco product manufacturer" means an entity that after the date of enactment of this act directly (and not exclusively through any affiliate):
(1) Manufactures cigarettes anywhere that such manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States through an importer (except where such importer is an original participating manufacturer, as that term is defined in the master settlement agreement, that will be responsible for the payments under the master settlement agreement with respect to such cigarettes as a result of the provisions of subsections II(mm) of the master settlement agreement and that pays the taxes specified in subsection II(z) of the master settlement agreement, and provided that the manufacturer of such cigarettes does not market or advertise such cigarettes in the United States);
(2) is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or
(3) becomes a successor of an entity described in paragraph (1) or (2). The term "tobacco product manufacturer" shall not include an affiliate of a tobacco product manufacturer unless such affiliate itself falls within any of subsection (i)(1) through (3) above.
(j) "Units sold" means, with respect to a particular tobacco product manufacturer for a particular year, the number of individual cigarettes sold in the state, including, without limitation, any cigarettes sold on any qualified tribal land within the state, by the applicable tobacco product manufacturer, whether directly or through a distributor, retailer or similar intermediary or intermediaries, during the year in question, for which the state has the authority under federal law to impose excise or a similar tax or to collect escrow deposits, regardless of whether such taxes were imposed or collected by the state. The department of revenue and the attorney general shall promulgate such rules and regulations as are necessary to ascertain the number of units sold of such tobacco product manufacturer for each year.
History: L. 1999, ch. 136, § 2; L. 2001, ch. 20, § 1; L. 2015, ch. 79, § 2; June 4.
Any tobacco product manufacturer selling cigarettes to consumers within the state (whether directly or through a distributor, retailer or similar intermediary or intermediaries) after the effective date of this act shall do one of the following:
(a) Become a participating manufacturer (as that term is defined in section II(jj) of the master settlement agreement) and generally perform its financial obligations under the master settlement agreement; or
(b) (1) place into a qualified escrow fund by April 15 of the year following the year in question the following amounts (as such amounts are adjusted for inflation):
(A) 1999: $.0094241 per unit sold after the effective date of this act;
(B) 2000: $.0104712 per unit sold;
(C) for each of 2001 and 2002: $.0136125 per unit sold;
(D) for each of 2003 through 2006: $.0167539 per unit sold;
(E) for each of 2007 and each year thereafter: $.0188482 per unit sold.
(2) A tobacco product manufacturer that places funds into escrow pursuant to paragraph (1) of subsection (b) shall receive the interest or other appreciation on such funds as earned. Such funds themselves shall be released from escrow only under the following circumstances:
(A) To pay a judgment or settlement on any released claim brought against such tobacco product manufacturer by the state or any releasing party located or residing in the state. Funds shall be released from escrow under this subparagraph (i) in the order in which they were placed into escrow and (ii) only to the extent and at the time necessary to make payments required under such judgment or settlement;
(B) to the extent that a tobacco product manufacturer establishes that the amount it was required to place into escrow, based on units sold in the state of Kansas in a particular year, was greater than the master settlement agreement payments, as determined pursuant to section IX(i) of that agreement including, after final determination of all adjustments, that such manufacturer would have been required to make based on such units sold had it been a participating manufacturer, the excess shall be released from escrow and revert back to such tobacco product manufacturer; or
(C) to the extent not released from escrow under subparagraphs (A) or (B) of paragraph (2) of subsection (b), funds shall be released from escrow and revert back to such tobacco product manufacturer 25 years after the date on which they were placed into escrow.
(3) Each tobacco product manufacturer that elects to place funds into escrow pursuant to this subsection shall annually certify to the attorney general that it is in compliance with this subsection. The attorney general may bring a civil action on behalf of the state against any tobacco product manufacturer that fails to place into escrow the funds required under this section. Any tobacco product manufacturer that fails in any year to place into escrow the funds required under this section shall:
(A) Be required within 15 days to place such funds into escrow as shall bring it into compliance with this section. The court, upon a finding of a violation of this subsection, may impose a civil penalty to be credited to the state general fund in an amount not to exceed 5% of the amount improperly withheld from escrow per day of the violation and in a total amount not to exceed 100% of the original amount improperly withheld from escrow;
(B) in the case of a knowing violation, be required within 15 days to place such funds into escrow as shall bring it into compliance with this section. The court, upon a finding of a knowing violation of this subsection, may impose a civil penalty to be paid to the state general fund in an amount not to exceed 15% of the amount improperly withheld from escrow per day of the violation and in a total amount not to exceed 300% of the original amount improperly withheld from escrow; and
(C) in the case of a second knowing violation, be prohibited from selling cigarettes to consumers within the state (whether directly or through a distributor, retailer or similar intermediary) for a period not to exceed two years.
Each failure to make an annual deposit required under this section shall constitute a separate violation. A tobacco product manufacturer who is found in violation of this section shall pay, in addition to other amounts assessed under this section and pursuant to law, the costs and attorney's fees incurred by the state during a successful presentation under this paragraph (3).
History: L. 1999, ch. 136, § 3; L. 2001, ch. 20, § 2; L. 2005, ch. 178, § 1; July 1.
(a) No person may:
(1) Affix, or cause to be affixed, tax indicia to a package of cigarettes, or otherwise pay the tax due upon such cigarettes, of a tobacco product manufacturer brand family not included in the directory; or
(2) sell, offer, possess for sale or import into this state, cigarettes of a tobacco product manufacturer brand family not included in the directory.
(b) (1) Not later than July 1, 2009, the attorney general shall develop a directory, to be posted on the attorney general's website. Except as otherwise provided, the directory shall list all tobacco product manufacturers and brand families of such tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of subsection (c).
(2) The attorney general shall not include or retain in the directory any non-participating manufacturer, or non-participating manufacturer's brand family, that has failed to provide the required certification, or whose certification the attorney general determines is not in compliance with subsection (c), unless such failure or noncompliance has been cured to the satisfaction of the attorney general.
(3) In the case of a non-participating manufacturer, neither the tobacco product manufacturer nor a brand family shall be included or retained in the directory if the attorney general concludes:
(A) That an escrow payment required pursuant to K.S.A. 50-6a03, and amendments thereto, for any period for any brand family, whether or not listed by such non-participating manufacturer, has not been fully paid into a qualified escrow fund governed by an escrow agreement that has been approved by the attorney general;
(B) that an outstanding final judgment, including interest thereon, for a violation of K.S.A. 50-6a03, and amendments thereto, has not been fully satisfied for such tobacco product manufacturer; or
(C) that, within three calendar years prior to the date of submission or approval of the most recent certification, such tobacco product manufacturer has defaulted on escrow payments in any other state or jurisdiction that is a party to the master settlement agreement and the default has not been cured within 90 calendar days of such default.
(4) The attorney general shall update the directory as necessary in order to correct mistakes and to add or remove a tobacco product manufacturer or brand family so as to keep the directory in conformity with the requirements of this act.
(5) The attorney general shall promptly post in the directory and transmit by electronic mail to each stamping agent that has provided an electronic mail address, notice of removal from the directory of a tobacco product manufacturer or brand family.
(6) Unless otherwise provided by agreement between a stamping agent and a tobacco product manufacturer, the stamping agent shall be entitled to a refund from a tobacco product manufacturer for any money paid by the stamping agent to the tobacco product manufacturer for any cigarettes of the tobacco product manufacturer in the possession of the stamping agent on the effective date of removal from the directory of that tobacco product manufacturer or brand family.
(7) Unless otherwise provided by agreement between a retail dealer or a vending machine operator and a tobacco product manufacturer, a retail dealer or a vending machine operator shall be entitled to a refund from a tobacco product manufacturer for any money paid by the retail dealer or vending machine operator to a stamping agent for any cigarettes of the tobacco product manufacturer still in the possession of the retail dealer or vending machine operator on the effective date of removal from the directory of that tobacco product manufacturer or brand family.
(8) The attorney general may remove from the state directory a tobacco product manufacturer or brand family if the attorney general concludes that:
(A) (i) The tobacco product manufacturer or any of the tobacco product manufacturer's affiliates, sales entity affiliates, officers or directors had pleaded guilty or nolo contendere to or been found guilty of a felony crime relating to the sale or taxation of cigarettes or tobacco products; or
(ii) the tobacco product manufacturer and the tobacco product manufacturer's brand families have been removed from the directory of another state based on acts or omissions that would, if done in this state, serve as a basis for removal from the directory maintained by the attorney general under this section, unless the manufacturer demonstrates that its removal from the other state's directory was effected without due process.
(B) (i) A tobacco product manufacturer that is removed from the state directory under this subsection (b) shall be eligible for relisting in the directory described in this subsection (b) on the earlier of the date on which the tobacco product manufacturer cures the violation or the date on which the tobacco product manufacturer is reinstated to the directory in the other state; or
(ii) in the case of a non-participating manufacturer deemed an elevated risk pursuant to K.S.A. 50-6a09, and amendments thereto, the attorney general may require such non-participating manufacturer to post a bond in accordance with that section.
(c) (1) On or before April 30 of each year, every tobacco product manufacturer whose cigarettes are sold in this state, whether directly or through a stamping agent or similar intermediary or intermediaries, shall execute and deliver in the manner prescribed by the attorney general a certification to the attorney general certifying under penalty of perjury that, as of the date of such certification, such tobacco product manufacturer either is:
(A) A participating manufacturer; or
(B) in full compliance with K.S.A. 50-6a03, and amendments thereto, including payment of all quarterly installment payments as may be required by subsection (d).
(2) A participating manufacturer shall include in its certification a list of its brand families. The participating manufacturer shall update such list 30 calendar days prior to any addition to, or modification of its brand families by executing and delivering a supplemental certification to the attorney general.
(3) A non-participating manufacturer shall include in its certification:
(A) The number of units sold for each brand family sold in the state during the preceding calendar year;
(B) a list of all of its brand families sold in the state at any time during the current calendar year, including any brand family sold in the state during the preceding calendar year that is no longer being sold in the state as of the date of such certification;
(C) the identity, by name and address, of any other tobacco product manufacturer who manufactured such brand families in the preceding or current calendar year;
(D) a declaration that such non-participating manufacturer is registered to do business in the state, or has appointed a resident agent for service of process, and provided notice thereof as required by K.S.A. 50-6a08, and amendments thereto;
(E) a declaration that such non-participating manufacturer:
(i) Has established and continues to maintain a qualified escrow fund; and
(ii) has executed an escrow agreement that governs the qualified escrow fund and that such escrow agreement has been reviewed and approved by the attorney general;
(F) a declaration that such non-participating manufacturer consents to the jurisdiction of the district court of the third judicial district, Shawnee county, Kansas, for purposes of enforcing this act, or rules or regulations promulgated pursuant thereto, as required by K.S.A. 50-6a08(c), and amendments thereto;
(G) a declaration that such non-participating manufacturer is in full compliance with K.S.A. 50-6a03(b), and amendments thereto, and any rules or regulations promulgated pursuant to this act;
(H) (i) the name, address and telephone number of the financial institution where the non-participating manufacturer has established such qualified escrow fund required pursuant to K.S.A. 50-6a03(b), and amendments thereto;
(ii) the account number of such qualified escrow fund and any sub-account number for the state of Kansas;
(iii) the amount such non-participating manufacturer placed in such qualified escrow fund for cigarettes sold in this state during the preceding calendar year, the date and amount of each such deposit and such evidence or verification as may be deemed necessary by the attorney general to confirm the foregoing; and
(iv) the amount and date of any withdrawal or transfer of funds the non-participating manufacturer made at any time from such qualified escrow fund or from any other qualified escrow fund into which it ever made escrow payments pursuant to K.S.A. 50-6a03(b), and amendments thereto;
(I) in the case of a non-participating manufacturer located outside of the United States, a declaration from each of its importers to the United States of any of its brand families to be sold in Kansas that such importer accepts joint and several liability with the non-participating manufacturer for:
(i) All escrow deposits due under K.S.A. 50-6a03(b), and amendments thereto;
(ii) all penalties assessed under K.S.A. 50-6a03(b), and amendments thereto; and
(iii) payment of all costs and attorney fees pursuant to any successful action under this act against such manufacturer.
Such declarations by importers of a non-participating manufacturer shall appoint for the declarant a resident agent for service of process in Kansas in accordance with K.S.A. 50-6a08, and amendments thereto, and consent to jurisdiction in accordance with K.S.A. 50-6a08, and amendments thereto;
(J) the identity of all stamping agents, wholesalers and distributors, by name and address, to whom the non-participating manufacturer or its importer sold cigarettes to or that the manufacturer or importer believes or has reason to believe purchased or received any of the manufacturer's cigarettes from another source during the preceding calendar year, and those for which the manufacturer or its importer plan to sell to or believe or has reason to believe will purchase or receive any of the manufacturer's cigarettes from another source during the certifying calendar year; and
(K) a declaration that all sales or shipments made by the non-participating manufacturer or its affiliates, including, but not limited to, its importers and stamping agents provided for certification under this section, within or into this state are made to a stamping agent, wholesaler, distributor or retailer that is licensed in this state.
(4) A tobacco product manufacturer may not include a brand family in its certification unless:
(A) In the case of a participating manufacturer, said participating manufacturer affirms that the brand family shall be deemed to be its cigarettes for purposes of calculating its payments under the master settlement agreement for the relevant year in the volume and shares determined pursuant to the master settlement agreement; or
(B) in the case of a non-participating manufacturer, said non-participating manufacturer affirms that the brand family shall be deemed to be its cigarettes for purposes of K.S.A. 50-6a03(b), and amendments thereto.
Nothing in this paragraph shall be construed as limiting or otherwise affecting the state's right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the master settlement agreement or K.S.A. 50-6a03(b), and amendments thereto.
(5) Invoices and documentation of sales and other such information relied upon for such certification shall be maintained by tobacco product manufacturers for a period of at least five years.
(6) As a condition to being listed and having its brand families listed in the directory, a tobacco product manufacturer shall also:
(A) Certify annually that such manufacturer or its importer holds a valid permit under 26 U.S.C. § 5713 and provide a copy of such permit to the attorney general;
(B) certify annually that it is in compliance with all reporting and registration requirements of 15 U.S.C. § 375 et seq. and provide monthly to the director and the attorney general, regardless of sales or shipments, a copy of all reports required pursuant to 15 U.S.C. §§ 376 and 376a, to be filed electronically in a manner prescribed by the director and attorney general; and
(C) pay annually a $500 directory fee to the attorney general which shall be deposited in the tobacco master settlement agreement compliance fund.
(d) The attorney general may require a tobacco product manufacturer subject to the requirements of subsection (c) to make the escrow deposits required by K.S.A. 50-6a03(b), and amendments thereto, in quarterly installments during the calendar year in which the sales covered by such deposits are made. The attorney general may require production of information sufficient to enable the attorney general to determine the adequacy of the amount of the installment deposit.
History: L. 2002, ch. 74, § 1; L. 2009, ch. 110, § 16; L. 2015, ch. 79, § 3; June 4.
(a) In civil litigation under any legal theory involving a signatory or a successor to a signatory of the master settlement agreement, as defined in K.S.A. 50-6a02, and amendments thereto, the maximum appeal bond that any appellant in the litigation may be required to post to stay execution on a judgment during an appeal or discretionary review shall be set in accordance with existing law and court rules, except that in no case shall an appeal bond for any individual appellant and its successors, individually or collectively, exceed $25,000,000, regardless of the total value of the judgment.
(b) If it is proved by a preponderance of the evidence that the appellant for whom the bond has been limited pursuant to this section is intentionally dissipating or diverting assets outside of the ordinary course of its business for the purpose of avoiding payment of the judgment, the court shall enter such orders as are necessary to prevent the dissipation or diversion of assets.
(c) The amendment to this section shall apply to all cases pending or filed on and after July 1, 2005.
History: L. 2003, ch. 110, § 1; L. 2005, ch. 79, § 1; July 1.
If any portion of the amendment to subsection (b)(2)(B) of K.S.A. 50-6a03 made by this act, is adjudged by any court of competent jurisdiction to be unconstitutional or invalid, then such subsection (b)(2)(B) of K.S.A. 50-6a03 shall be deemed to be repealed in its entirety. If subsection (b)(2) of K.S.A. 50-6a03 is adjudged by any court of competent jurisdiction to be unconstitutional or invalid, then this act shall be deemed repealed, and subsection (b)(2)(B) of K.S.A. 50-6a03 shall be restored as if no such amendment had been made. Neither any holding of unconstitutionality nor the repeal of subsection (b)(2)(B) of K.S.A. 50-6a03 shall affect, impair or invalidate the remainder thereof, or the application thereof to any other person or circumstance, and such remaining portions of K.S.A. 50-6a03 shall continue in full force and effect.
History: L. 2005, ch. 178, § 2; July 1.
As used in this act:
(a) "Act" means the provisions of K.S.A. 50-6a01 through 50-6a06, and amendments thereto, and the provisions of K.S.A. 50-6a07 through 50-6a21, and amendments thereto.
(b) "Brand family" means all styles of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers or descriptors, including, but not limited to, "menthol," "lights," "kings," and "100s," and includes any brand name (alone or in conjunction with any other word), trademark, logo, symbol, motto, selling message, recognizable pattern of colors or any other indicia of product identification identical, similar to or identifiable with a previously known brand of cigarettes.
(c) "Cigarette" has the same meaning given that term in K.S.A. 50-6a02(d), and amendments thereto.
(d) "Director" means the director of taxation.
(e) "Indian tribe" means any Indian tribe, band, nation or other organized group or community that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians under the laws of the United States.
(f) "Master settlement agreement" has the same meaning given that term in K.S.A. 50-6a02(e), and amendments thereto.
(g) "Non-participating manufacturer" means any tobacco product manufacturer that is not a participating manufacturer.
(h) "Participating manufacturer" has the meaning given that term in K.S.A. 50-6a02(i)(1), and amendments thereto.
(i) "Qualified escrow fund" has the same meaning given that term in K.S.A. 50-6a02(f), and amendments thereto.
(j) "Resident agent" means a domestic corporation, a domestic limited partnership, a domestic limited liability company or a domestic business trust or a foreign corporation, a foreign limited partnership, a foreign limited liability company or a foreign business trust authorized to transact business in this state, and which is generally open during regular business hours to accept service of process on behalf of a non-participating manufacturer.
(k) "Retail dealer" has the same meaning given that term in K.S.A. 79-3301, and amendments thereto.
(l) "Stamping agent" means a person who is authorized to affix tax indicia to packages of cigarettes pursuant to K.S.A. 79-3311, and amendments thereto, or any person who is required to pay the tax on the privilege of selling or dealing in roll-your-own tobacco products pursuant to K.S.A. 79-3371, and amendments thereto.
(m) "Tax indicia" has the same meaning given that term in K.S.A. 79-3301, and amendments thereto.
(n) "Tobacco product manufacturer" has the same meaning given that term in K.S.A. 50-6a02(i), and amendments thereto.
(o) "Qualified tribal land" means:
(1) All land within the borders of this state that is within the limits of any Indian reservation under the jurisdiction of the United States, notwithstanding the issuance of any patent, including rights-of-way running through the reservation;
(2) all dependent Indian communities within the borders of this state;
(3) all Indian allotments within the borders of this state, the Indian titles to which have not been extinguished, including rights-of-way running through such allotments; and
(4) any lands within the borders of this state, the title to which is either held in trust by the United States for the benefit of any Indian tribe or individual, or held by any Indian tribe or individual subject to restriction by the United States against alienation, and over which an Indian tribe exercises governmental power.
(p) "Units sold" has the same meaning given that term in K.S.A. 50-6a02(j), and amendments thereto.
(q) "Vending machine operator" has the same meaning given that term in K.S.A. 79-3301, and amendments thereto.
History: L. 2009, ch. 110, § 1; L. 2015, ch. 79, § 4; L. 2017, ch. 96, § 23; June 22.
(a) Any non-participating manufacturer that has not registered with the secretary of state to do business in the state as a foreign corporation or business entity shall, as a condition precedent to having its brand families included or retained in the directory, appoint and continually engage without interruption the services of an agent in this state to act as agent for the service of process on whom all process, and any action or proceeding against it concerning or arising out of the enforcement of this act may be served in any manner authorized by law. Such service shall constitute legal and valid service of process on the non-participating manufacturer. The non-participating manufacturer shall provide to the attorney general the name, address, phone number, proof of the appointment and availability of such resident agent, and such information shall be provided to the satisfaction of the attorney general.
(b) (1) A non-participating manufacturer may substitute its resident agent for another by notifying, in writing sent via certified or registered mail, the attorney general of such termination of the authority of the current agent and providing proof to the satisfaction of the attorney general of the appointment of a new agent. Such substitution shall not become effective until 30 days after receipt of such notification by the attorney general.
(2) A resident agent of a non-participating manufacturer that wishes to resign shall notify the attorney general, in writing via certified or registered mail, and provide to the attorney general the name and address of the successor agent. There shall be attached to the notification a statement of each affected non-participating manufacturer ratifying such change of resident agent. Upon receipt of such notification by the attorney general, the successor resident agent shall become the resident agent of such non-participating manufacturers that have ratified and approved the substitution.
(3) (A) A resident agent of a non-participating manufacturer may resign without appointing a successor by notifying, in writing sent via certified or registered mail, the attorney general. Such resignation shall not become effective until 60 days after receipt of such notification by the attorney general. There shall be attached to the notification an affidavit by the resident agent, if an individual, or by the authorized officer, if a corporation or other business entity, attesting that at least 30 days prior to the expiration of the 60-day period, notice was sent via certified or registered mail to the designated contact of the non-participating manufacturer for which such resident agent was acting that such agent was resigning its position.
(B) After receipt of the notice of resignation of its resident agent, the non-participating manufacturer for which such resident agent was acting shall obtain and designate a new resident agent to take the place of the resigning resident agent. If such non-participating manufacturer fails to obtain and designate a new resident agent and provide notice thereof, in writing via certified or registered mail, to the attorney general prior to the expiration of the 60-day period provided in subparagraph (A), such non-participating manufacturer shall be removed from the directory.
(4) If a resident agent of a non-participating manufacturer dies, the non-participating manufacturer shall have 30 days after the death of such resident agent to appoint and notify, in writing via certified or registered mail, the attorney general of the non-participating manufacturer's new resident agent. Service upon the non-participating manufacturer after the death of such agent but prior to the appointment of a new agent shall be had upon the secretary of state. Failure by the non-participating manufacturer to appoint a new resident agent, and provide proof of such appointment to the satisfaction of the attorney general prior to the expiration of the 30-day period shall result in removal from the directory.
(5) After the resignation of the resident agent becomes effective as provided in subparagraph (3)(A), or after the death of such resident agent as provided in paragraph (4), and if no new resident agent is obtained and notification is provided in the time and manner required in this section, then service of process against the non-participating manufacturer for which the previous resident agent had been acting shall thereafter be made upon the secretary of state in the manner prescribed by K.S.A. 60-304, and amendments thereto.
(c) A non-participating manufacturer shall provide irrevocable written consent that actions brought under this act may be commenced against it in the district court of the third judicial district, Shawnee county, Kansas, by service of process on the appointed service of process agent designated pursuant to this section.
(d) A resident agent may change the resident agent's address when appointed to accept service of process on behalf of a non-participating manufacturer for which such agent is a resident agent, to another address in this state by mailing a letter, via certified or registered mail, to the attorney general. The letter shall be on company letterhead and executed by the resident agent. The letter shall contain the following:
(1) The names of all non-participating manufacturers represented by the resident agent;
(2) the address at which the resident agent has maintained the resident agent's office for each manufacturer;
(3) a certification of the new address to which the resident agent's address will be changed to on a given day; and
(4) a certification at which the resident agent will thereafter maintain the resident agent's address for each of the non-participating manufacturers recited in the letter.
Upon the filing of the letter with the attorney general and thereafter, or until further change of address, as authorized by law, the office address of the resident agent recited in the letter shall be located at the new address of the resident agent as provided in the letter.
History: L. 2009, ch. 110, § 2; July 1.
(a) Notwithstanding any other provision of law, if a newly qualified non-participating manufacturer is to be listed in the directory, or if the attorney general reasonably determines that any non-participating manufacturer who has filed a certification pursuant to subsection (c) of K.S.A. 50-6a04, and amendments thereto, poses an elevated risk for noncompliance with this act neither such non-participating manufacturer nor any of its brand families shall be included or retained in the directory unless and until such non-participating manufacturer, or its United States importer that undertakes joint and several liability for the manufacturer's performance in accordance with subsection (c)(3)(I) of K.S.A. 50-6a04, and amendments thereto, has posted a bond in accordance with this section.
(b) The bond required by this section shall be posted by corporate surety located within the United States in an amount equal to the greater of $50,000 or the amount of escrow the non-participating manufacturer in either its current or predecessor form was required to deposit for sales of cigarettes in this state during the previous calendar year. The bond shall be written in favor of the state of Kansas and shall be conditioned on the performance by the non-participating manufacturer, or its United States importer that undertakes joint and several liability for the manufacturer's performance in accordance with subsection (c)(3)(I) of K.S.A. 50-6a04, and amendments thereto, of all of its duties and obligations under this act during the year in which the certification is filed and the next succeeding calendar year.
(c) A non-participating manufacturer may be deemed to pose an elevated risk for noncompliance with this act if:
(1) The non-participating manufacturer, or any affiliate thereof, has underpaid an escrow obligation with respect to any other state or jurisdiction that is a party to the master settlement agreement at any time within the three calendar years prior to the date of submission or approval of the most recent certification, unless:
(A) The non-participating manufacturer did not make the underpayment knowingly or recklessly and the non-participating manufacturer promptly cured the underpayment within 180 calendar days of notice of the underpayment; or
(B) the underpayment or lack of payment is the subject of a good faith dispute as documented to the satisfaction of the attorney general and the underpayment is cured within 90 calendar days of entry of a final order establishing the amount of the required escrow payment;
(2) any state or jurisdiction that is party to the master settlement agreement has removed the non-participating manufacturer, or its brands or brand families, or an affiliate, or such affiliate's brands or brand families, from the state's directory for noncompliance with the corresponding laws of such other state or jurisdiction at any time within three calendar years prior to the date of submission or approval of the most recent certification; or
(3) any state or jurisdiction that is party to the master settlement agreement has pending litigation, or an unsatisfied judgment against the non-participating manufacturer, or any affiliate thereof, for unpaid escrow obligations, or associated penalties, costs or attorney fees.
(d) As used in this section, "newly qualified non-participating manufacturer" means a non-participating manufacturer that has not previously been listed in the directory. Such non-participating manufacturer may be required to post a bond in accordance with this section for the first five years of its listing, or longer, if they have been deemed to pose an elevated risk for noncompliance.
History: L. 2009, ch. 110, § 5; July 1.
(a) (1) No later than 10 calendar days after the end of each calendar month, and more frequently if so directed by the attorney general or director, each stamping agent authorized to affix tax indicia to packages of cigarettes pursuant to K.S.A. 79-3311, and amendments thereto, shall submit such information as the attorney general or director requires. No later than 20 calendar days after the end of each calendar month, and more frequently if so directed by the attorney general or director, each stamping agent who is required to pay the tax on the privilege of selling or dealing in roll-your-own tobacco products pursuant to K.S.A. 79-3371, and amendments thereto, shall submit such information as the attorney general or director requires.
(2) Invoices and documentation of sales of all non-participating manufacturer cigarettes, and any other information relied upon in reporting to the director shall, upon request, be made available to the director or the attorney general. Such invoices and documents shall be maintained for a period of at least three years.
(b) At any time, the attorney general may request from the non-participating manufacturer or the financial institution at which such manufacturer has established a qualified escrow fund for the purpose of compliance with K.S.A. 50-6a03(b), and amendments thereto, proof of the amount of money in such fund, exclusive of interest, the amount and date of each deposit to such fund and the amount and date of each withdrawal from such fund.
(c) In addition to the information required to be submitted pursuant to subsections (a) and (b) and K.S.A. 50-6a04(c), and amendments thereto, the attorney general or the director may require a stamping agent or tobacco product manufacturer to submit any additional information including, but not limited to, samples of the packaging or labeling of each brand family as is necessary to enable the attorney general to determine whether a tobacco product manufacturer is in compliance with this act.
(d) A stamping agent or non-participating manufacturer receiving a request pursuant to this section shall provide the requested information within 30 calendar days from receipt of the request.
History: L. 2009, ch. 110, § 3; L. 2015, ch. 79, § 5; June 4.
(a) The director is authorized to disclose to the attorney general any information received under this act, as requested by the attorney general for purposes of determining compliance with or enforcing the provisions of this act. The director and attorney general shall share with each other information received under this act and the director and the attorney general may share such information with federal agencies, attorneys general of other states or directors of taxation or their equivalents of other states, for purposes of enforcement of this act, the corresponding federal laws or the corresponding laws of other states. The director and attorney general may share the information specified under this subsection with any of the following:
(1) Federal, state or local agencies for the purposes of enforcement of corresponding laws of other states.
(2) A court, arbitrator, data clearinghouse or similar entity for the purpose of assessing compliance with or making calculations required by the master settlement agreement or agreements regarding disputes under the master settlement agreement, and with counsel for the parties or expert witnesses in any such proceeding, if the information otherwise remains confidential.
(b) Except as otherwise provided, any information provided to the attorney general or director for purposes of enforcement of this act may be shared between the attorney general and the director and shall not be disclosed publicly by the attorney general or the director except when necessary to facilitate compliance with and enforcement of this act.
(c) On a quarterly basis, and upon request made in writing by a tobacco product manufacturer, the attorney general or the director may provide the name of any stamping agent who reports selling the tobacco product manufacturer's products.
(d) On a quarterly basis, and upon request made in writing by a tobacco product manufacturer, a stamping agent shall provide to the requesting tobacco product manufacturer the total number of cigarettes, by brand family, which the stamping agent reported to the attorney general or director pursuant to K.S.A. 50-6a10, and amendments thereto, provided that such information provided by the stamping agent to a tobacco product manufacturer shall be limited to the brand families of that manufacturer as listed in the directory established in K.S.A. 50-6a04(b), and amendments thereto.
(e) Unless disclosure is authorized under this section, all information obtained by the director and disclosed to the attorney general or shared with federal agencies, attorneys general of other states or directors of taxation or their equivalents of other states for purposes of enforcement of this act, the corresponding federal laws or the corresponding laws of other states, shall be confidential. The penalties provided under K.S.A. 75-5133, and amendments thereto, shall not apply when information is lawfully disclosed pursuant to this section.
(f) Any tobacco sales data provided to the director, attorney general or data clearinghouse for the purpose of assessing compliance with or making calculations required by the master settlement agreement or related agreements, shall be confidential.
History: L. 2009, ch. 110, § 4; L. 2015, ch. 79, § 6; L. 2020, ch. 12, § 5; July 1.
No wholesale dealer, as defined in K.S.A. 79-3301, and amendments thereto, or distributor, as defined in K.S.A. 79-3301, and amendments thereto, of cigarettes shall be issued a license or granted a renewal of a license by the Kansas department of revenue unless such wholesale dealer or distributor has provided to the director reasonable assurances, in writing and under penalty of perjury, that such person will comply fully with the stamping agent requirements in this act.
History: L. 2009, ch. 110, § 6; July 1.
(a) The following shall be deemed contraband under K.S.A. 79-3323, and amendments thereto:
(1) Any cigarettes that have been sold, offered for sale or possessed for sale in this state in violation of subsection (a) of K.S.A. 50-6a04, and amendments thereto; and
(2) any cigarettes to which tax indicia has been affixed, was caused to be affixed or the tax paid thereupon as required by K.S.A. 79-3311 or 79-3371, and amendments thereto, in violation of subsection (a) of K.S.A. 50-6a04, and amendments thereto.
(b) Any cigarettes constituting contraband may be seized by the attorney general or attorney general's authorized agent, the director or director's authorized agent or any law enforcement officer. All such cigarettes shall be subject to seizure, with or without process or warrant, and forfeiture, as provided herein and in K.S.A. 79-3324a, and amendments thereto, and shall be destroyed and not resold. Such cigarettes shall be deemed contraband whether the violation of subsection (a) of K.S.A. 50-6a04, and amendments thereto, is knowing or otherwise.
(c) (1) Any stamping agent that distributes cigarettes in a state other than Kansas may store in its Kansas warehouse cigarettes made contraband pursuant to this section if such stamping agent has affixed the tax indicia of such other state to each package of cigarettes or can provide evidence that it has paid the required tax thereupon.
(2) Cigarettes made contraband pursuant to this section, without being subject to seizure or forfeiture, may be transported in, into or through the state either:
(A) On a commercial carrier with a proper bill of lading with an out-of-state destination;
(B) when the tax indicia of another state is affixed to each package of cigarettes; or
(C) on a commercial carrier with a proper bill of lading to a licensed Kansas stamping agent who affixes tax indicia to cigarettes for sale in a state other than Kansas if the packing slip accompanying the shipment indicates the shipment is for sale in a state other than Kansas and identifies the state in which the shipment is to be sold. The time of delivery of the shipments shall be indicated on the bill of lading of the common carrier when delivery is completed. The receiving Kansas stamping agent must, within 24 hours of receiving the delivery, affix or caused to be affixed to each package of cigarettes the stamp of the state in which they are to be sold.
History: L. 2009, ch. 110, § 8; July 1.
(a) In addition to or in lieu of any other civil or criminal remedy provided by law, the director or the director's designee, upon a finding that a stamping agent has violated subsection (a) of K.S.A. 50-6a04, and amendments thereto, or any rules or regulations adopted pursuant to this act, may revoke or suspend the license of any licensee in the manner provided by K.S.A. 79-3309, and amendments thereto. Each package of cigarettes to which tax indicia is affixed, is caused to be affixed or tax is paid thereupon, and each sale or offer to sell cigarettes in violation of subsection (a) of K.S.A. 50-6a04, and amendments thereto, shall constitute a separate violation. The director may also impose a civil penalty in an amount not to exceed the greater of 500% of the retail value of the cigarettes involved or $5,000 upon a finding of violation of subsection (a) of K.S.A. 50-6a04, and amendments thereto, or a violation of any rules or regulations adopted pursuant to this act. Such fine shall be imposed in the manner provided by K.S.A. 79-3391, and amendments thereto. Any fine collected pursuant to this subsection shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the cigarette and tobacco products regulation fund created pursuant to subsection (e) of K.S.A. 79-3391, and amendments thereto. The moneys credited to this fund shall be used for the purposes of enforcement of this act, or K.S.A. 79-3301 et seq., and amendments thereto.
(b) The attorney general or the attorney general's duly authorized designee shall, when requested by the director, assist the director in a hearing to suspend or revoke a stamping agent's license for a violation of this act.
History: L. 2009, ch. 110, § 7; July 1.
The attorney general, on behalf of the director, may seek an injunction to restrain a threatened or actual violation of this act by a stamping agent and to compel the stamping agent to comply with this act.
History: L. 2009, ch. 110, § 9; July 1.
(a) It shall be unlawful for a person to sell or distribute cigarettes, or acquire, hold, own, possess, transport, import or cause to be imported cigarettes that the person knows or should know are intended for distribution or sale in this state in violation of K.S.A. 50-6a04(a) or 50-6a13(a), and amendments thereto.
(1) Upon a first conviction for a violation of subsection (a), a person shall be guilty of a class A nonperson misdemeanor and sentenced to no more than one year in confinement and fined not less than $1,000, nor more than $2,500.
(2) On a second conviction for a violation of subsection (a), a person shall be guilty of a severity level 9 nonperson felony and fined a sum of not less than $10,000, nor more than $100,000, and sentenced according to the provisions of K.S.A. 21-6804, and amendments thereto.
(3) On a third or subsequent conviction for a violation of subsection (a), a person shall be guilty of a severity level 9 nonperson felony and fined a sum of no less than $50,000, nor more than $100,000, and sentenced according to the provisions of K.S.A. 21-6804, and amendments thereto.
(4) The penalties provided hereunder are cumulative to the remedies or penalties, including all civil penalties, under all other laws of this state.
(b) It shall be unlawful for a non-participating manufacturer, directly or indirectly, to falsely represent to any person in Kansas:
(1) Any information about a brand family listed on the directory;
(2) that it is a participating manufacturer;
(3) that it has made all required escrow payments; or
(4) that it has satisfied any other requirements imposed pursuant to this act.
A violation of this subsection is a class A nonperson misdemeanor.
(c) The attorney general shall have concurrent authority with any county or district attorney to prosecute any violation of this section.
History: L. 2009, ch. 110, § 10; L. 2015, ch. 79, § 7; June 4.
(a) Any violation of this act involving the sale or attempted sale of cigarettes by a stamping agent to a retail dealer, vending machine operator or consumer, or by a retail dealer or vending machine operator to a consumer, shall constitute an unlawful and deceptive trade practice as provided in K.S.A. 50-626, and amendments thereto, and shall be subject to the penalties provided for in K.S.A. 50-623 et seq., and amendments thereto, in lieu of or in addition to any penalties provided in this act.
(b) For purposes of this section, a stamping agent shall be deemed a "supplier" for purposes of a consumer transaction, as defined in subsection (c) of K.S.A. 50-624, and amendments thereto, regardless of whether the stamping agent sells to a retail dealer or consumer.
(c) If a court determines that a person has violated this act, the court shall order any profits, gains, gross receipts or other benefit from the violation be surrendered. Any profits, gains, gross receipts or other benefit surrendered from the violation shall be collected pursuant to this subsection and shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the cigarette and tobacco products regulation fund created pursuant to subsection (e) of K.S.A. 79-3391, and amendments thereto.
(d) Unless otherwise expressly provided, the remedies or penalties provided by this act are cumulative to each other and to the remedies or penalties under all other laws of this state.
History: L. 2009, ch. 110, § 11; July 1.
In any action brought by the state to enforce the provisions of this act the state shall be entitled to recover the costs of investigation, expert witness fees, costs of the action and reasonable attorney fees. Recovery of such costs and fees shall be remitted to the state agency or agencies who initiated and brought such action.
History: L. 2009, ch. 110, § 12; July 1.
In any action under K.S.A. 50-6a03, and amendments thereto, reports of the numbers of non-participating manufacturers' cigarettes submitted to the attorney general or director pursuant to subsection (a) of K.S.A. 50-6a10, and amendments thereto, shall be admissible in evidence. These reports shall be presumed to accurately account for the number of cigarettes on which state taxes were paid during the time period by the stamping agent that submitted the report absent a contrary showing by the non-participating manufacturer or importer. Nothing in this section shall be construed as limiting or otherwise affecting the state's right to maintain that such reports are incorrect or do not accurately reflect a non-participating manufacturer's sales in the state during the time period in question, and the presumption shall not apply in the event the state does so maintain.
History: L. 2009, ch. 110, § 13; July 1.
Notwithstanding subsection (j) of K.S.A. 50-6a02, and amendments thereto, the attorney general may promulgate rules and regulations necessary to effect the purposes of this act for the regulation of tobacco product manufacturers. The director may promulgate rules and regulations necessary to effect the purposes of this act for the regulation of stamping agents, retail dealers and vending machine operators.
History: L. 2009, ch. 110, § 14; July 1.
If a court of competent jurisdiction finds that the provisions of K.S.A. 50-6a01 through 50-6a03, and amendments thereto, conflict with and cannot be reconciled with any other provisions of this act, then such provisions of K.S.A. 50-6a01 through 50-6a03, and amendments thereto, shall control. If any provision of this act causes K.S.A. 50-6a01 through 50-6a03, and amendments thereto, to no longer constitute a qualifying or model statute as those terms are defined in the master settlement agreement, then that portion of this act shall not be valid. If any provision of this act is for any reason held to be invalid, unlawful or unconstitutional, such decision shall not affect the validity of the remaining portions of this act or any part thereof.
History: L. 2009, ch. 110, § 15; July 1.
(a) The legislature of the state of Kansas hereby finds and determines that:
(1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.
(2) An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers.
(3) Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.
(4) There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer's right to privacy.
(b) It is the purpose of K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of such sections of this act.
History: L. 1973, ch. 85, § 136; January 1, 1974.
The following words and phrases when used in the fair credit reporting act shall have the meanings ascribed to them in this section:
(a) The term "person" means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.
(b) The term "consumer" means an individual.
(c) The term "consumer report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for credit or insurance to be used primarily for personal, family, or household purposes, or employment purposes, or other purposes authorized under K.S.A.
50-703, and amendments thereto. The term does not include:
(1) Any report containing information solely as to transactions or experiences between the consumer and the person making the report;
(2) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device; or
(3) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys that decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made and such person makes the disclosures to the consumer required under K.S.A.
50-714, and amendments thereto.
(d) The term "investigative consumer report" means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom the consumer is acquainted or who may have knowledge concerning any such items of information. However, such information shall not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.
(e) The term "consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
(f) The term "file," when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.
(g) The term "employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.
(h) The term "medical information" means information or records obtained, with the consent of the individual to whom it relates, from licensed physicians or medical practitioners, hospitals, clinics, or other medical or medically related facilities.
(i) The term "clear and proper identification" means information generally deemed sufficient to identify a person.
(j) The term "security freeze" means a notice placed on a consumer report, at the request of the consumer and subject to certain exceptions, that prohibits a consumer reporting agency from releasing the consumer's consumer report or credit score relating to the extension of credit.
(k) The term "protected consumer" means an individual who is:
(1) Under the age of 16 years at the time a request for the placement of a security freeze is made under K.S.A. 50-725, and amendments thereto; or
(2) an individual for whom a guardian or conservator has been appointed.
(l) The term "record" means a compilation of information about a protected consumer that satisfies all of the following:
(1) The compilation identifies the protected consumer; and
(2) the compilation is created by a consumer reporting agency solely for the purpose of complying with K.S.A. 50-725, and amendments thereto.
(m) The term "security freeze for a protected consumer" means one of the following:
(1) If a consumer reporting agency does not have a file pertaining to a protected consumer, a restriction placed on the protected consumer's record that prohibits the consumer reporting agency from releasing the protected consumer's record; or
(2) if a consumer reporting agency has a file pertaining to the protected consumer, a restriction placed on the protected consumer's consumer report that prohibits the consumer reporting agency from releasing the protected consumer's consumer report or any information derived from the protected consumer's consumer report.
(n) The term "sufficient proof of authority" means documentation that shows a representative has authority to act on behalf of a protected consumer, including any of the following:
(1) An order issued by a court;
(2) a lawfully executed and valid power of attorney; or
(3) a written, notarized statement signed by a representative that expressly describes the authority of the representative to act on behalf of a protected consumer.
(o) The term "sufficient proof of identification" means information or documentation that identifies a protected consumer or a representative of a protected consumer, including any of the following:
(1) A social security number or a copy of a social security card issued by the social security administration; or
(2) a certified or official copy of a birth certificate issued by the entity authorized to issue the birth certificate.
History: L. 1973, ch. 85, § 137; L. 2006, ch. 149, § 11; L. 2009, ch. 112, § 1; L. 2016, ch. 37, § 2; January 1, 2017.
A consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(a) In response to the order of a court having jurisdiction to issue such an order;
(b) in accordance with the written instructions of the consumer to whom it relates; and
(c) to a person which it has reason to believe
(1) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
(2) intends to use the information for employment purposes; or
(3) intends to use the information in connection with the underwriting of insurance involving the consumer; or
(4) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(5) otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.
History: L. 1973, ch. 85, § 138; January 1, 1974.
(a) Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
(1) Bankruptcies which, from date of adjudication of the most recent bankruptcy, antedate the report by more than fourteen (14) years;
(2) suits and judgments which, from date of entry, antedate the report by more than seven (7) years or until the governing statute of limitations has expired, whichever is the longer period;
(3) paid tax liens which, from date of payment, antedate the report by more than seven (7) years;
(4) accounts placed for collection or charged to profit and loss which antedate the report by more than seven (7) years;
(5) records of arrest, indictment, or conviction of crime which, from date of disposition, release, or parole, antedate the report by more than seven (7) years; and
(6) any other adverse item of information which antedates the report by more than seven (7) years.
(b) The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with
(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of fifty thousand dollars ($50,000) or more;
(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of fifty thousand dollars ($50,000) or more; or
(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal twenty thousand dollars ($20,000), or more.
History: L. 1973, ch. 85, § 139; January 1, 1974.
(a) A person may not procure or cause to be prepared an investigative consumer report on any consumer unless
(1) it is clearly and accurately disclosed to the consumer that an investigative consumer report including information as to the consumer's character, general reputation, personal characteristics, and mode of living, whichever are applicable, may be made, and such disclosure (A) is made in a writing mailed, or otherwise delivered, to the consumer, not later than three days after the date on which the report was first requested, and (B) includes a statement informing the consumer of the right to request the additional disclosures provided for under subsection (b) of this section; or
(2) the report is to be used for employment purposes for which the consumer has not specifically applied.
(b) Any person who procures or causes to be prepared an investigative consumer report on any consumer shall, upon written request made by the consumer within a reasonable period of time after the receipt by him or her of the disclosure required by subsection (a) (1) of this section, make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not later than five (5) days after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the later.
(c) No person may be held liable for any violation of subsection (a) or (b) of this section if that person shows by a preponderance of the evidence that at the time of the violation the person maintained reasonable procedures to assure compliance with subsection (a) or (b).
History: L. 1973, ch. 85, § 140; January 1, 1974.
(a) Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of K.S.A. 50-704 and to limit the furnishing of consumer reports to the purposes listed under K.S.A. 50-703. These procedures shall require that prospective users of the information identify themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose. Every consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user a consumer report. No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing that the consumer report will not be used for a purpose listed in K.S.A. 50-703.
(b) Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.
History: L. 1973, ch. 85, § 141; January 1, 1974.
Notwithstanding the provisions of K.S.A. 50-703, a consumer reporting agency may furnish identifying information respecting any consumer, limited to name, address, former addresses, places of employment, or former places of employment, to a governmental agency.
History: L. 1973, ch. 85, § 142; January 1, 1974.
(a) Every consumer reporting agency shall, upon request and proper identification of any consumer, clearly and accurately disclose to the consumer:
(1) The nature and substance of all information (except medical information) in its files on the consumer at the time of the request.
(2) The sources of the information; except that the sources of information acquired solely for use in preparing an investigative consumer report and actually used for no other purpose need not be disclosed: Provided, That in the event an action is brought under the provisions of K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, such sources shall be available to the plaintiff under appropriate discovery procedures in the court in which the action is brought.
(3) The recipients of any consumer report on the consumer which it has furnished
(A) for employment purposes within the two-year period preceding the request, and
(B) for any other purpose within the six-month period preceding the request.
(b) The requirements of subsection (a) respecting the disclosure of sources of information and the recipients of consumer reports do not apply to information received or consumer reports furnished prior to the effective date of this act except to the extent that the matter involved is contained in the files of the consumer reporting agency on that date.
History: L. 1973, ch. 85, § 143; January 1, 1974.
(a) A consumer reporting agency shall make the disclosures required under K.S.A. 50-708 during normal business hours and on reasonable notice.
(b) The disclosures required under K.S.A. 50-708 shall be made to the consumer
(1) in person if the consumer appears in person and furnishes proper identification; or
(2) by telephone if the consumer has made a written request, with proper identification, for telephone disclosure and the toll charge, if any, for the telephone call is prepaid by or charged directly to the consumer.
(c) Any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him or her pursuant to K.S.A. 50-708.
(d) The consumer shall be permitted to be accompanied by one other person of his or her choosing, who shall furnish reasonable identification. A consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer's file in such person's presence.
(e) Except as provided in K.S.A. 50-715 and 50-716, no consumer may bring any action or proceeding in the nature of defamation, invasion of privacy, or negligence with respect to the reporting of information against any consumer reporting agency, any user of information, or any person who furnishes information to a consumer reporting agency, based on information disclosed pursuant to K.S.A. 50-708, 50-709 or 50-714, except as to false information furnished with malice or willful intent to injure such consumer.
History: L. 1973, ch. 85, § 144; January 1, 1974.
(a) If the completeness or accuracy of any item of information contained in his or her file is disputed by a consumer, and such dispute is directly conveyed to the consumer reporting agency by the consumer, the consumer reporting agency shall within a reasonable period of time reinvestigate and record the current status of that information unless it has reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant. If after such reinvestigation such information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information. The presence of contradictory information in the consumer's file does not in and of itself constitute reasonable grounds for believing the dispute is frivolous or irrelevant.
(b) If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute. The consumer reporting agency may limit such statements to not more than one hundred words if it provides the consumer with assistance in writing a clear summary of the dispute.
(c) Whenever a statement of dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer's statement or a clear and accurate codification or summary thereof.
(d) Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (b) or (c) of this section to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto received a consumer report for any other purpose, which contained the deleted or disputed information. The consumer reporting agency shall clearly and conspicuously disclose to the consumer his or her rights to make such a request. Such disclosure shall be made at or prior to the time the information is deleted or the consumer's statement regarding the disputed information is received.
History: L. 1973, ch. 85, § 145; January 1, 1974.
A consumer reporting agency shall make all disclosures pursuant to K.S.A. 50-708 and furnish all consumer reports pursuant to K.S.A. 50-710(d) without charge to the consumer if, within thirty (30) days after receipt by such consumer of a notification pursuant to K.S.A. 50-714 or notification from a debt collection agency affiliated with such consumer reporting agency stating that the consumer's credit rating may be or has been adversely affected, the consumer makes a request under K.S.A. 50-708 or 50-710(d). Otherwise, the consumer reporting agency may impose a reasonable charge on the consumer for making disclosure to such consumer pursuant to K.S.A. 50-708, the charge for which shall be indicated to the consumer prior to making disclosure; and for furnishing notifications, statements, summaries, or codifications to persons designated by the consumer pursuant to K.S.A. 50-710(d), the charge for which shall be indicated to the consumer prior to furnishing such information and shall not exceed the charge that the consumer reporting agency would impose on each designated recipient for a consumer report except that no charge may be made for notifying such persons of the deletion of information which is found to be inaccurate or which can no longer be verified.
History: L. 1973, ch. 85, § 146; January 1, 1974.
A consumer reporting agency which furnishes a consumer report for employment purposes and which for that purpose compiles and reports items of information on consumers which are matters of public record and are likely to have an adverse effect upon a consumer's ability to obtain employment shall
(a) at the time such public record information is reported to the user of such consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom such information is being reported; or
(b) maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer's ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.
History: L. 1973, ch. 85, § 147; January 1, 1974.
Whenever a consumer reporting agency prepares an investigative consumer report, no adverse information in the consumer report (other than information which is a matter of public record) may be included in a subsequent consumer report unless such adverse information has been verified in the process of making such subsequent consumer report, or the adverse information was received within the three-month period preceding the date the subsequent report is furnished.
History: L. 1973, ch. 85, § 148; January 1, 1974.
(a) Whenever credit or insurance for personal, family or household purposes, or employment involving a consumer is denied or the charge for such credit or insurance is increased either wholly or partly because of information contained in a consumer report from a consumer reporting agency, the user of the consumer report shall so advise the consumer against whom such adverse action has been taken and supply the name and address of the consumer reporting agency making the report.
(b) Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for such credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of such information shall, within a reasonable period of time, upon the consumer's written request for the reasons for such adverse action received within sixty (60) days after learning of such adverse action, disclose the nature of the information to the consumer. The user of such information shall clearly and accurately disclose to the consumer the right to make such written request at the time such adverse action is communicated to the consumer.
(c) No person shall be held liable for any violation of this section if the person shows by a preponderance of the evidence that at the time of the alleged violation he or she maintained reasonable procedures to assure compliance with the provisions of subsections (a) and (b).
History: L. 1973, ch. 85, § 149; January 1, 1974.
Any consumer reporting agency or user of information which willfully fails to comply with any requirement imposed under K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, with respect to any consumer is liable to that consumer in an amount equal to the sum of
(a) any actual damages sustained by the consumer as a result of the failure;
(b) such amount of punitive damages as the court may allow; and
(c) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
History: L. 1973, ch. 85, § 150; January 1, 1974.
Any consumer reporting agency or user of information which is negligent in failing to comply with any requirement imposed under K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, with respect to any consumer is liable to that consumer in an amount equal to the sum of
(a) any actual damages sustained by the consumer as a result of the failure;
(b) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
History: L. 1973, ch. 85, § 151; January 1, 1974.
An action to enforce any liability created under the provisions of K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, may be brought in the district court of the county in which the controversy arose, within two years from the date on which the liability arises, except that where a defendant has materially and willfully misrepresented any information required under the provisions of such sections of this act to be disclosed to an individual and the information so misrepresented is material to the establishment of the defendant's liability to that individual under such provisions of this act, the action may be brought at any time within two years after discovery by the individual of the misrepresentation.
History: L. 1973, ch. 85, § 152; January 1, 1974.
Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses is guilty of a severity level 7, person felony and upon conviction shall be punished in the manner provided by law.
History: L. 1973, ch. 85, § 153; L. 2000, ch. 181, § 12; July 1.
Any officer or employee of a consumer reporting agency who knowingly and willfully provides information concerning an individual from the agency's files to a person not authorized to receive that information is guilty of a severity level 7, person felony and upon conviction shall be punished in the manner provided by law.
History: L. 1973, ch. 85, § 154; L. 2000, ch. 181, § 13; July 1.
Any person violating any of the provisions of K.S.A. 50-701 to 50-719, inclusive, and amendments thereto, for which penalties are not otherwise hereinbefore provided shall be deemed guilty of a class C misdemeanor and upon conviction thereof shall be punished in the manner provided by law.
History: L. 1973, ch. 85, § 155; January 1, 1974.
The consumer credit commissioner is hereby authorized to enforce the provisions of K.S.A. 50-701 to 50-720, inclusive, and amendments thereto, and for such purpose is hereby authorized to adopt such rules and regulations as may be necessary for the proper administration and enforcement of the provisions of such sections of this act.
History: L. 1973, ch. 85, § 156; January 1, 1974.
K.S.A. 50-701 through 50-725, and amendments thereto, may be cited as the fair credit reporting act.
History: L. 1973, ch. 85, § 157; L. 2018, ch. 44, § 1; July 1.
(a) A consumer may elect to place a security freeze on the consumer's consumer report by written request, sent by certified mail or regular mail, through a secure website if made available by a consumer reporting agency, or by telephone, if the consumer reporting agency does not have an available secure website. A consumer reporting agency shall place a security freeze on a consumer's consumer report no later than five business days after receiving:
(1) A request provided by this subsection; and
(2) proper identification.
(b) When a security freeze is in place, information from a consumer report shall not be released to a third party without prior express authorization from the consumer. This subsection shall not prevent a consumer reporting agency from advising a third party that a security freeze is in effect with respect to a consumer report.
(c) The consumer reporting agency, no later than 10 business days after the date the agency places a security freeze, shall provide the consumer with a unique personal identification number, password or similar device to be used by the consumer when providing authorization for the access to the consumer's consumer report for a specific period of time. In addition, the consumer reporting agency shall simultaneously provide to the consumer in writing the process of placing, removing and temporarily lifting a security freeze and the process for allowing access to information from the consumer's consumer report for a specific period while the security freeze is in effect.
(d) If, in connection with an application for credit or any other use, a third party requests access to a consumer report on which a security freeze is in effect, the third party may treat the application as incomplete if the consumer does not allow the consumer's consumer report to be accessed for that specific period of time.
(e) If the consumer wishes to allow the consumer's consumer report or score to be accessed for a specific period of time while a freeze is in place, the consumer shall contact the consumer reporting agency, request that the freeze be temporarily lifted and provide the following:
(1) Clear and proper identification;
(2) the unique personal identification number or password provided by the consumer reporting agency in accordance with subsection (c); and
(3) the proper information regarding the time period for which the report shall be available to users of the consumer report.
(f) (1) A consumer reporting agency that receives a request from a consumer to temporarily lift a freeze on a consumer report pursuant to subsection (e) shall comply with the request:
(A) No later than three business days after receiving the request if the request is made at a postal address designated by the agency to receive such requests; or
(B) fifteen minutes after the request is received by the consumer reporting agency through the electronic contact method chosen by the consumer reporting agency in accordance with this section and such request is received between 6:00 a.m. and 9:30 p.m. in the central time zone.
(2) A consumer reporting agency is not required to temporarily lift a security freeze within the time provided in subsection (f)(1)(B) if the consumer fails to meet the requirements of subsection (e) or the consumer reporting agency's ability to temporarily lift the security freeze within 15 minutes is prevented by:
(A) An act of God, including, but not limited to, fire, earthquake, hurricane, storm or similar natural disaster or phenomena;
(B) unauthorized or illegal acts by a third party, including, but not limited to, terrorism, sabotage, riot, vandalism, labor strikes or disputes disrupting operations or similar occurrence;
(C) operational interruption, including, but not limited to, electrical failure, unanticipated delay in equipment or replacement part delivery, computer hardware or software failures inhibiting response time or similar disruption;
(D) governmental action, including, but not limited to, emergency orders or regulations, judicial or law enforcement action or similar directives;
(E) regularly scheduled maintenance, other than during normal business hours, of or updates to the consumer reporting agency's systems; or
(F) commercially reasonable maintenance of or repair to the consumer reporting agency's systems that is unexpected or unscheduled.
(g) A consumer reporting agency shall remove or temporarily lift a freeze placed on a consumer's consumer report only in the following cases:
(1) Upon consumer request as provided in this section; or
(2) if the consumer's consumer report was frozen due to a material misrepresentation of fact by the consumer, in which case, if a consumer reporting agency intends to remove a freeze upon the consumer's consumer report, the consumer reporting agency shall notify the consumer in writing prior to removing the freeze on the consumer's consumer report.
(h) A security freeze shall remain in place until the consumer requests that the security freeze be removed. A consumer reporting agency shall remove a security freeze within three business days after receiving a request for removal from the consumer, who shall be required to provide:
(1) Clear and proper identification; and
(2) the unique personal identification number or password provided by the consumer reporting agency in accordance with subsection (c).
(i) A security freeze does not apply to a consumer report provided to:
(1) A federal, state or local governmental entity, including a law enforcement agency or court, or agents or assigns thereof;
(2) a private collection agency for the sole purpose of assisting in the collection of an existing debt of the consumer who is the subject of the consumer report requested;
(3) a person or entity, or a subsidiary, affiliate or agent of such person or entity, or an assignee of a financial obligation owing by the consumer to such person or entity, or a prospective assignee of a financial obligation owing by the consumer to such person or entity in conjunction with the proposed purchase of the financial obligation, with which the consumer has or had prior to assignment of an account or contract, including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owing for the account, contract, or negotiable instrument. For purposes of this paragraph, "reviewing the account" includes activities related to account maintenance, monitoring, credit line increases and account upgrades and enhancements;
(4) a subsidiary, affiliate, agent, assignee or prospective assignee of a person to whom access has been granted under subsection (e) for the purposes of facilitating the extension of credit;
(5) a person providing a credit report for the purposes permitted under 15 U.S.C. § 1681b(c);
(6) any person providing a consumer with a copy of the consumer's own report at such consumer's request;
(7) a child support enforcement agency;
(8) a consumer reporting agency that acts only as a reseller of credit information by assembling and merging information contained in the database of another consumer reporting agency or multiple consumer reporting agencies and does not maintain a permanent database of credit information from which new consumer reports are produced; however, a consumer reporting agency acting as a reseller shall honor any security freeze placed on a consumer report by another consumer reporting agency;
(9) a check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers or similar methods of payments;
(10) a deposit account information service company which issues to inquiring banks or other financial institutions, for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution, reports regarding account closures due to fraud, substantial overdrafts, ATM abuse or similar negative information regarding a consumer;
(11) an employer in connection with any application for employment with the employer;
(12) any person administering a credit file monitoring subscription service to which the consumer has subscribed; or
(13) any person or entity for use in setting or adjusting a rate, adjusting a claim or underwriting for insurance purposes.
(j) A consumer reporting agency shall not charge a fee for placing, temporarily lifting or removing each freeze or for replacing a previously requested personal identification number.
(1) A person who has learned or reasonably suspects that the person has been a victim of identity theft may contact the local law enforcement agency that has jurisdiction over the person's actual residence, which shall take a police report of the matter, and provide the complainant with a copy of that report. Notwithstanding the fact the jurisdiction may be elsewhere for investigation and prosecution of a crime of identity theft, any local or state law enforcement agency shall take the complaint and provide the complainant with a copy of the complaint and may refer the complainant to a law enforcement agency in a different jurisdiction.
(2) Nothing in this section shall be construed to interfere with the discretion of a law enforcement agency to allocate resources for investigation of crimes. A complaint filed under this section is not required to be counted as an open case for statistical reporting purposes.
(k) If a security freeze is in place, a consumer reporting agency shall not change any of the following official information in the consumer report without sending a written confirmation of the change to the consumer within 30 days after the change is posted to the consumer's file: Name, date of birth, social security number and address. Written confirmation is not required for technical modifications of a consumer's official information, including name and street abbreviations, complete spellings or transposition of numbers or letters. In the case of an address change, the written confirmation shall be sent to both the new address and to the former address.
(l) Any person who willfully fails to comply with any requirement imposed under this subchapter* with respect to any consumer is liable to that consumer in an amount equal to the sum of:
(1) Actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; or
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(m) Any person who obtains a consumer report, requests a security freeze, requests the temporary lift of a freeze, or the removal of a security freeze from a consumer reporting agency under false pretenses or in an attempt to violate federal or state law shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or $1,000, whichever is greater.
(n) Any person who is negligent in failing to comply with any requirement imposed under this section with respect to any consumer, is liable to that consumer in an amount equal to the sum of:
(1) Any actual damages sustained by the consumer as a result of the failure; and
(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(o) Upon a finding by the court that an unsuccessful pleading, motion or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion or other paper.
(p) This section shall be part of and supplemental to the fair credit reporting act.
(q) This section shall take effect and be in force on and after January 1, 2007.
(r) Notwithstanding any other provision of law to the contrary, the exclusive authority to bring an action for any violation of subsection (f)(1)(B) shall be with the attorney general.
History: L. 2006, ch. 149, § 12; L. 2009, ch. 112, § 2; L. 2018, ch. 44, § 2; July 1.
(a) Nothing in K.S.A. 50-723, and amendments thereto, shall be construed to require the following to place a security freeze on a consumer report:
(1) A check services or fraud prevention services company, which issues reports on incidents of fraud or authorizations for the purpose of approving or processing negotiable instruments, electronic funds transfers, or similar methods of payments;
(2) a deposit account information service company which issues to inquiring banks or other financial institutions, for use only in reviewing a consumer request for a deposit account at the inquiring bank or financial institution, reports regarding account closures due to fraud, substantial overdrafts, ATM abuse or similar negative information regarding a consumer;
(3) a consumer reporting agency that acts as a reseller of credit information that assembles or merges information contained in the database of another consumer reporting agency or multiple consumer reporting agencies and does not maintain a permanent database of credit information from which new consumer reports are produced;
(4) any database or file which consists solely of any information adverse to the interests of the consumer, including, but not limited to, criminal record information, which is used for fraud prevention or detection, tenant screening, employment screening or any purpose permitted by the federal fair credit reporting act, 15 U.S.C. § 1681b;
(5) a person to the extent such person offers fraud prevention services that issues reports on incidents of fraud or reports used primarily in the detection or prevention of fraud; or
(6) any bank, savings bank, trust company, savings and loan association, credit union or any other financial institution regulated by the state of Kansas or any agency of the United States.
(b) This section shall be part of and supplemental to the fair credit reporting act.
(c) This section shall take effect and be in force on and after January 1, 2007.
History: L. 2006, ch. 149, § 13; July 1.
(a) A consumer reporting agency shall place a security freeze for a protected consumer if the consumer reporting agency receives a request from the protected consumer's representative for the placement of the security freeze and the protected consumer's representative:
(1) Submits the request to the consumer reporting agency at the address or other point of contact and in the manner specified by the consumer reporting agency;
(2) provides to the consumer reporting agency sufficient proof of identification of the protected consumer and the representative; and
(3) provides to the consumer reporting agency sufficient proof of authority to act on behalf of the protected consumer.
(b) If a consumer reporting agency does not have a record pertaining to a protected consumer when the consumer reporting agency receives a request under subsection (a), the consumer reporting agency shall create a record for the protected consumer.
(c) Within 30 days after receiving a request that meets the requirements of subsection (a), a consumer reporting agency shall place a security freeze for the protected consumer.
(d) Unless a security freeze for a protected consumer is removed in accordance with subsection (f) or (i), a consumer reporting agency shall not release the protected consumer's consumer report, any information derived from the protected consumer's consumer report, or any record created for the protected consumer.
(e) A security freeze for a protected consumer placed under subsection (c) shall remain in effect until:
(1) The protected consumer or the protected consumer's representative requests the consumer reporting agency to remove the security freeze in accordance with subsection (f); or
(2) the security freeze is removed in accordance with subsection (i).
(f) If a protected consumer or a protected consumer's representative wishes to remove a security freeze for a protected consumer, the protected consumer or the protected consumer's representative shall:
(1) Submit a request for the removal of the security freeze to the consumer reporting agency at the address or other point of contact and in the manner specified by the consumer reporting agency; and
(2) provide to the consumer reporting agency sufficient proof of identification of the protected consumer and:
(A) For a request by the protected consumer, proof that the sufficient proof of authority for the protected consumer's representative to act on behalf of the protected consumer is no longer valid; or
(B) for a request by the representative of a protected consumer, sufficient proof of identification of the representative and sufficient proof of authority to act on behalf of the protected consumer.
(g) A consumer reporting agency shall not charge a fee for any service performed under this section.
(h) This section shall not apply to:
(1) A person administering a credit file monitoring subscription service to which the protected consumer has subscribed or the representative of the protected consumer has subscribed on behalf of the protected consumer;
(2) a person providing the protected consumer or the protected consumer's representative with a copy of the protected consumer's consumer report on request of the protected consumer or the protected consumer's representative; or
(3) a person or entity listed in K.S.A. 50-723(i)(1) and (6) through (12) or 50-724(a)(1) through (5), and amendments thereto.
(i) A consumer reporting agency may remove a security freeze for a protected consumer or delete a record of a protected consumer if such security freeze was placed or the record was created based on a material misrepresentation of a fact by the protected consumer or the protected consumer's representative.
(j) Any person who fails to comply with any requirement imposed under this section with respect to any protected consumer shall be liable pursuant to the provisions of the fair credit reporting act.
(k) This section shall be part of and supplemental to the fair credit reporting act.
History: L. 2016, ch. 37, § 1; L. 2018, ch. 44, § 3; July 1.
As used in K.S.A. 50-7a01 and 50-7a02, and amendments thereto:
(a) "Consumer" means an individual who is a resident of this state.
(b) "Encrypted" means transformation of data through the use of algorithmic process into a form in which there is a low probability of assigning meaning without the use of a confidential process or key, or securing the information by another method that renders the data elements unreadable or unusable.
(c) "Notice" means:
(1) Written notice;
(2) electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in 15 U.S.C. § 7001; or
(3) substitute notice, if the individual or the commercial entity required to provide notice demonstrates that the cost of providing notice will exceed $100,000, or that the affected class of consumers to be notified exceeds 5,000, or that the individual or the commercial entity does not have sufficient contact information to provide notice.
(d) "Redact" means alteration or truncation of data such that no more than the following are accessible as part of the personal information:
(1) Five digits of a social security number; or
(2) the last four digits of a driver's license number, state identification card number or account number.
(e) "Substitute notice" means:
(1) E-mail notice if the individual or the commercial entity has e-mail addresses for the affected class of consumers;
(2) conspicuous posting of the notice on the web site page of the individual or the commercial entity if the individual or the commercial entity maintains a web site; and
(3) notification to major statewide media.
(f) "Person" means any individual, partnership, corporation, trust, estate, cooperative, association, government, or governmental subdivision or agency or other entity.
(g) "Personal information" means a consumer's first name or first initial and last name linked to any one or more of the following data elements that relate to the consumer, when the data elements are neither encrypted nor redacted:
(1) Social security number;
(2) driver's license number or state identification card number; or
(3) financial account number, or credit or debit card number, alone or in combination with any required security code, access code or password that would permit access to a consumer's financial account. The term "personal information" does not include publicly available information that is lawfully made available to the general public from federal, state or local government records.
(h) "Security breach" means the unauthorized access and acquisition of unencrypted or unredacted computerized data that compromises the security, confidentiality or integrity of personal information maintained by an individual or a commercial entity and that causes, or such individual or entity reasonably believes has caused or will cause, identity theft to any consumer. Good faith acquisition of personal information by an employee or agent of an individual or a commercial entity for the purposes of the individual or the commercial entity is not a breach of the security of the system, provided that the personal information is not used for or is not subject to further unauthorized disclosure.
History: L. 2006, ch. 149, § 3; July 1.
(a) A person that conducts business in this state, or a government, governmental subdivision or agency that owns or licenses computerized data that includes personal information shall, when it becomes aware of any breach of the security of the system, conduct in good faith a reasonable and prompt investigation to determine the likelihood that personal information has been or will be misused. If the investigation determines that the misuse of information has occurred or is reasonably likely to occur, the person or government, governmental subdivision or agency shall give notice as soon as possible to the affected Kansas resident. Notice must be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement and consistent with any measures necessary to determine the scope of the breach and to restore the reasonable integrity of the computerized data system.
(b) An individual or a commercial entity that maintains computerized data that includes personal information that the individual or the commercial entity does not own or license shall give notice to the owner or licensee of the information of any breach of the security of the data following discovery of a breach, if the personal information was, or is reasonably believed to have been, accessed and acquired by an unauthorized person.
(c) Notice required by this section may be delayed if a law enforcement agency determines that the notice will impede a criminal investigation. Notice required by this section shall be made in good faith, without unreasonable delay and as soon as possible after the law enforcement agency determines that notification will no longer impede the investigation.
(d) Notwithstanding any other provision in this section, an individual or a commercial entity that maintains its own notification procedures as part of an information security policy for the treatment of personal information, and whose procedures are otherwise consistent with the timing requirements of this section, is deemed to be in compliance with the notice requirements of this section if the individual or the commercial entity notifies affected consumers in accordance with its policies in the event of a breach of security of the system.
(e) An individual or a commercial entity that is regulated by state or federal law and that maintains procedures for a breach of the security of the system pursuant to the laws, rules, regulations, guidances or guidelines established by its primary or functional state or federal regulator is deemed to be in compliance with this section. This section does not relieve an individual or a commercial entity from a duty to comply with other requirements of state and federal law regarding the protection and privacy of personal information.
(f) In the event that a person discovers circumstances requiring notification pursuant to this section of more than 1,000 consumers at one time, the person shall also notify, without unreasonable delay, all consumer reporting agencies that compile and maintain files on consumers on a nationwide basis, as defined by 15 U.S.C. § 1681a(p), of the timing, distribution and content of the notices.
(g) For violations of this section, except as to insurance companies licensed to do business in this state, the attorney general is empowered to bring an action in law or equity to address violations of this section and for other relief that may be appropriate. The provisions of this section are not exclusive and do not relieve an individual or a commercial entity subject to this section from compliance with all other applicable provisions of law.
(h) For violations of this section by an insurance company licensed to do business in this state, the insurance commissioner shall have the sole authority to enforce the provisions of this section.
History: L. 2006, ch. 149, § 4; July 1.
History: L. 2006, ch. 149, § 14; Repealed, L. 2016, ch. 103, § 7; July 1.
If any provision of this act or its application to any person or circumstance is held invalid, the invalidity shall not affect any other provision or application of the act which can be given effect without the invalid provision or application. To this end the provisions of this act are severable.
History: L. 2006, ch. 149, § 15; July 1.
History: L. 1973, ch. 216, § 1; L. 1985, ch. 181, § 4; Repealed, L. 2000, ch. 136, § 28; July 1.
(a) No person shall:
(1) Manufacture for sale any boat produced by use of a direct molding process, unless the person has first obtained the permission of the manufacturer of the original boat used as the pattern for the mold;
(2) knowingly sell any boat manufactured in violation of subsection (a)(1); or
(3) purchase any boat with intent to manufacture a reproduction of that boat in violation of subsection (a)(1).
(b) A person injured by a violation of subsection (a) may bring a civil action for injunctive relief, actual damages caused by the violation, reasonable attorney fees and costs of the action.
(c) As used in this section, "direct molding process" means any manufacturing process in which an original boat is used as a pattern for making a mold for use in manufacturing reproductions of that boat.
(d) This section shall not apply to any boat which is manufactured using a mold made before July 1, 1984.
History: L. 1984, ch. 378, § 1; July 1.
As used in this act:
(a) "Buyer" means both actual and prospective purchasers but does not include persons purchasing for resale.
(b) "Carcass" means any carcass of cattle, sheep, swine, domestic rabbits or goats.
(c) "Food plan" means any plan offering meat, poultry or seafood for sale or the offering of such product in combination with each other or with any other food or non-food product or service for a single price.
(d) "Misrepresent" means use any untrue, misleading or deceptive oral or written statement, advertisement, label, display, picture, illustration or sample.
(e) "Person" means individual, partnership, firm, corporation, association or other entity.
(f) "Represent" means use any form of oral or written statement, advertisement, label, display, picture, illustration or sample.
(g) "Seller" means any person, individual or business entity, corporation, league, franchise, franchisee, franchisor or any authorized representative or agent thereof who offers meat, poultry, seafood, or combinations of such items, for retail purchase to the public.
History: L. 1984, ch. 218, § 1; July 1.
No person shall advertise for sale, solicit, offer to sell or sell foods by newspapers, handbills, placards, radio, television or other medium unless the advertising is truthful and accurate. Such advertising shall not be misleading or deceiving in respect to grade, quality, quantity or price per pound or piece or in any other manner.
History: L. 1984, ch. 218, § 2; July 1.
No person advertising, offering for sale or selling all or part of a carcass or food plan shall engage in any misleading or deceptive practices, including, but not limited to, any one or more of the following:
(a)
Bait Selling.
(1) Disparaging or degrading any product advertised or offered for sale by the seller, displaying any product or depiction of a product to any buyer in order to induce the purchase of another product or representing that a product is for sale when the representation is used primarily to sell another product. Nothing in this subsection (a)(1) shall be construed to prohibit the enhancement of sales of any product by the use of a gift.
(2) Substituting any product for that ordered by the buyer without the buyer's written consent.
(3) Failing to have available a sufficient quantity of the product represented as being for sale to meet reasonable anticipated demands, unless the available amount is disclosed fully and conspicuously.
(b)
Price Representation.
(1) Using any price list or advertisement subject to changes without notice unless so stated, and which contains prices other than the seller's current billing prices, unless changes are subject to consumer's advance acceptance or rejection at or before the time of order or delivery.
(2) Misrepresenting the amount of money that the buyer will save on purchases of any products which are not of the same grade or quality.
(3) Failing to disclose fully and conspicuously in advertisement and invoice in at least ten-point type any charge for cutting, wrapping, freezing, delivery or other services.
(4) Representing the price of any product to be offered for sale in units larger than one pound in terms other than price per single pound. Nothing in paragraph (4) of this subsection (b) shall be construed to prevent the price of such units from also being represented by individual serving, by fluid measure or by other meaningful description.
(c)
Product Representation.
(1) Misrepresenting the cut, grade, brand or trade name, or weight or measure of any product.
(2) Using the abbreviation "U.S." in describing a product not graded by the United States department of agriculture, except that a product may be described as "U.S. Inspected" when true.
(3) Referring to a quality grade other than the United States department of agriculture quality grade, unless the grade name is preceded by the seller's name in type at least as large and conspicuous as the grade name.
(4) Misrepresenting a product through the use of any term similar to a government grade.
(5) Failing to disclose in uniform ten-point type, when a yield grade is advertised, a definition of the yield grade in the following terms:
Yield Grade 1 - Extra lean
Yield Grade 2 - Lean
Yield Grade 3 - Average waste
Yield Grade 4 - Wasty
Yield Grade 5 - Exceptionally wasty
(6) Comparing quality to a United States department of agriculture yield grade, unless it is fully and conspicuously disclosed that the quality is not a U.S.D.A. yield grade but only an opinion.
(7) Advertising or offering for sale carcasses, sides or primal cuts as such, while including disproportionate numbers or amounts of less expensive components of those cuts, or offering them in tandem with less expensive components from other carcasses, sides or primal cut parts.
(8) Failing to disclose fully and conspicuously the correct government grade for any product if the product is represented as having been graded.
(9) Failing to disclose fully and conspicuously that the yield of consumable meat from any carcass or part of a carcass will be less than the weight of the carcass or part of the carcass. The seller shall, for each carcass or part of carcass advertised, use separately and distinctly, in at least ten-point type, the following disclosure: "Sold gross weight subject to trim loss."
(10) Misrepresenting the amount or proportion of retail cuts that a carcass or part of carcass will yield.
(11) Failing to disclose fully and conspicuously whether a quarter of a carcass is the front or hind quarter, and quarters, sides or halves must consist of only anatomically natural proportions of cuts from front or hind quarters.
(12) Representing any part of a carcass as a "half" or "side" unless it consists exclusively of a front and hind quarter. Both quarters must be from the same side of the same animal unless the seller discloses fully and conspicuously that they are or may be from different sides or different animals, as the case may be. Any section advertised and offered for sale either as an individual unit or as an inclusion with the purchase of a quarter, side or half must be described and called by its commonly known name. Each quarter shall be of the same grade or quality as the other quarter comprising the half or side and the seller shall advise the buyer of the weight of each quarter prior to sale. In selling quarters individually or as part of a half or side, if actual weights are not known or cannot be determined prior to sale, approximate weights may be used if: (A) The buyer is informed that the weights are approximate; (B) the advertised weight ranges do not cover a spread of more than 10%; (C) the difference between advertised and sale weights does not exceed 5%; and (D) the seller agrees with the buyer, in writing, to make a cash refund or grant a credit on delivery for the difference between actual weight and the approximate weight on which the sale was made.
(13) Using the words "bundle," "sample order" or words of similar import to describe a quantity of meat or poultry unless the seller itemizes each type of cut and the weight of each type of cut which the buyer will receive.
(14) Advertising or offering a free, bonus or extra product or service combined with or conditioned on the purchase of any other product or service unless the additional product or service is accurately described, including, whenever applicable, grade, net weight or measure, type and brand or trade name. The words "free," "bonus" or other words of similar import shall not be used in any advertisement unless the advertisement clearly and conspicuously sets forth the total price or amount which must be purchased to entitle the buyer to the additional product or service.
(15) Misrepresenting the breed, origin or diet of slaughtered animals or parts of slaughtered animals offered for sale. Sellers making claims as to breed, origin or diet shall have written records available to substantiate the claims.
(d) Requiring the purchase of a food freezer or other food storage refrigeration unit from the seller or any specified supplier as a prerequisite to, or a necessary part of, any food plan.
History: L. 1984, ch. 218, § 3; July 1.
(a) Any person who violates any provision of this act is guilty of a class C misdemeanor for the first conviction, a class B misdemeanor for the second conviction and a class A misdemeanor for a third or subsequent conviction.
(b) In addition to or instead of the criminal penalties provided by subsection (a), a person who violates any provision of this act shall be subject to proceedings under the Kansas consumer protection act.
(c) An individual who violates any provision of this act while acting in the name of or on behalf of any person is liable to the same extent as if the individual were acting in the individual's own name or own behalf.
History: L. 1984, ch. 218, § 4; July 1.
(a) The secretary of agriculture shall provide, in conjunction with and in addition to the inspection program established under K.S.A. 65-6a30 and amendments thereto, for inspection of places of business of sellers who are subject to this act.
(b) Personnel of the Kansas department of agriculture designated by the secretary of agriculture shall have access to those places of business during regular business hours for the purpose of inspecting carcasses or parts of carcasses sold by the seller and observing the sales practices of the seller to determine whether there is compliance with the provisions of this act.
(c) The secretary of agriculture, or personnel designated by the secretary, shall report any suspected violations of this act to the county or district attorney of the county where the alleged violation occurred and to the attorney general.
History: L. 1984, ch. 218, § 5; L. 2004, ch. 101, § 87; July 1.
The remedies provided in this act are in addition to and not in substitution for any other remedies provided by law.
History: L. 1984, ch. 218, § 6; July 1.
As used in this act:
(a) "Commissioner" refers to the securities commissioner appointed under K.S.A. 75-6301, and amendments thereto.
(b) "Loan" means any agreement to advance money or property in return for the promise to make payments for the money or property.
(c) "Loan broker" means any person who, in return for a fee from any person, promises to procure a loan for any person or assist any person in procuring a loan from any third party, or who promises to consider whether or not to make a loan to any person. Loan broker does not include:
(1) Any bank, savings bank, trust company, savings and loan association, credit union or any other financial institution regulated by any agency of the United States or any state;
(2) any person authorized to sell and service loans for the federal national mortgage association or the federal home loan mortgage corporation, issue securities backed by the government national mortgage association, make loans insured by the department of housing and urban development, make loans guaranteed by the veterans administration, or act as a correspondent of loans insured by the department of housing and urban development or guaranteed by the veterans administration;
(3) any insurance company; or
(4) any person arranging financing for the sale of the person's product.
(d) "Creditor" means any person to whom a loan is initially payable on the face of the note or contract evidencing the loan.
History: L. 1988, ch. 328, § 1; July 1.
It shall be unlawful for any person to engage in the business of loan brokering unless registered under this act.
History: L. 1988, ch. 328, § 2; July 1.
(a) In order to be registered under this act a loan broker shall file an application for registration with the commissioner. The application for registration shall contain:
(1) The disclosure document required under subsection (b) of K.S.A. 50-1006, and amendments thereto, and the form of the disclosure statement proposed to be used under subsection (b)(1) of K.S.A. 50-1006, and amendments thereto;
(2) consent to service of process under subsection (e);
(3) evidence of the bond required in subsection (b); and
(4) a fee of $250.
(b) A loan broker must maintain a bond satisfactory to the commissioner in the amount of $25,000, which shall be in favor of the state.
(c) Whenever the provisions of this act have been complied with, the commissioner shall issue a certificate of registration to the applicant, authorizing the applicant to engage in the business of loan brokering.
(d) An application for registration becomes effective as of the date specified on the certificate of registration. Every registration is effective until January 1 of the year after it goes into effect.
(e) Every applicant for registration shall file with the commissioner, in such form as the commissioner prescribes, an irrevocable consent appointing the secretary of state to be the applicant's agent to receive service of any lawful process in any noncriminal suit, action or proceeding against the applicant arising from the violation of any provision of this act. Service shall be made in accordance with article 3 of chapter 60 of the Kansas Statutes Annotated.
History: L. 1988, ch. 328, § 3; L. 1992, ch. 226, § 8; July 1.
(a) A loan broker may not continue engaging in the business of loan brokering unless the broker's registration is renewed annually. A loan broker shall renew the registration by filing with the commissioner, at least 30 days before the expiration of the registration, an application containing any information the commissioner may require to indicate any material change from the information contained in the applicant's original application or any previous application.
(b) An application for renewal must be accompanied by a fee of $100.
History: L. 1988, ch. 328, § 4; July 1.
All fees and funds accruing from the administration of this act shall be accounted for by the commissioner and shall be remitted to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury to the credit of the state general fund.
History: L. 1988, ch. 328, § 5; L. 2001, ch. 5, § 188; July 1.
(a) At least seven days before the time any person signs a contract for the services of a loan broker, or seven days before the loan broker receives any consideration upon the contract, whichever occurs first, the loan broker must provide to the contracting person a written disclosure document that meets the requirements set forth in subsection (b).
(b) A written disclosure document shall contain the following information:
(1) A disclosure statement which shall be the cover sheet and shall be entitled in at least 10 point boldface capital letters "DISCLOSURES REQUIRED BY KANSAS LAW." Under this title shall appear the statement in at least 10 point type that "The Kansas securities commissioner has not reviewed and does not approve, recommend, endorse or sponsor any loan brokerage contract. The information contained in this disclosure has not been verified by the commissioner. If you have any questions see an attorney before you sign a contract or agreement." Nothing except the title and the required statement shall appear on the cover sheet;
(2) the name and form of organization of the broker, the names under which the broker has done, is doing, or intends to do business, and the name of any parent organization or affiliate of the broker;
(3) the names, addresses and titles of the broker's officers, directors, trustees, general partners, general managers, principal executives and any other person performing similar duties;
(4) the length of time the broker has conducted business as a loan broker;
(5) a full and detailed description of the actual services that the loan broker undertakes to perform for the prospective borrower;
(6) the number of loan brokerage contracts the broker has entered into within the past 12 months;
(7) the number of loan brokerage contracts in which the broker has successfully obtained a loan for the prospective borrower within the last 12 months and the dollar amount of the loans;
(8) financial statements for the loan broker's last fiscal year presented in accordance with generally accepted accounting principles, and reviewed by an independent accountant in accordance with standards established by the American institute of certified public accountants, except that for initial applications for registration, the financial statements shall include a balance sheet dated within four months of filing for registration;
(9) a specific statement of the circumstances under which the broker will be entitled to obtain or retain consideration from the party with whom the broker contracts; and
(10) any other information the commissioner may require.
(c) A loan broker shall amend the disclosure document required by subsection (b) whenever necessary to prevent it from containing any false or misleading statement of a material fact and shall deliver a copy of the amended disclosure document to the commissioner on or before the date of the amendment.
(d) A loan broker shall deliver to any person who proposes to become obligated for a loan an estimated disclosure document if the creditor would be required to deliver to the person a disclosure document under the Truth-in-Lending Act (15 U.S.C. 1601-1667e) for the transaction. The estimated disclosure document shall:
(1) Be delivered to the person before the person becomes contractually obligated on the loan; or
(2) be delivered or placed in the mail to the person not later than three business days after the person enters into an agreement with the loan broker whichever occurs first. The estimated disclosure document must contain all of the information and be in the form required by the Truth-in-Lending Act (15 U.S.C. 1601-1667e) and regulations under the act. However, the annual percentage rate, finance charge, total of payments and other matters required under the Truth-in-Lending Act (15 U.S.C. 1601-1667e) shall be adjusted to reflect the amount of all fees and charges of the loan broker that the creditor could exclude from an estimated disclosure document. The estimated disclosure document must state at the top in at least 10 point type: "The following is an estimated disclosure document showing your loan transaction as if the fees and charges you are scheduled to pay us were charged to you directly by the creditor." After the estimated disclosure document is delivered to any person, the loan broker shall deliver to the person an additional statement redisclosing all items if the actual annual percentage rate will vary from the annual percentage rate contained in the original estimated disclosure by more than 0.125%. Any required additional disclosure document shall be delivered or placed in the mail before consummation of the loan or after three days from when the information that requires redisclosure becomes available, whichever occurs first.
History: L. 1988, ch. 328, § 6; L. 1992, ch. 226, § 9; July 1.
To be enforceable, every contract for the services of a loan broker shall be in writing and signed by all contracting parties.
The borrowing party shall retain a copy of the signed contract at the time it is signed.
History: L. 1988, ch. 328, § 7; July 1.
(a) The commissioner may deny, suspend or revoke the registration of a loan broker if the loan broker:
(1) Fails to maintain the bond required under K.S.A. 50-1003;
(2) is insolvent;
(3) has violated any provision of this act;
(4) has filed with the commissioner any document or statement containing any false representation of a material fact or omitting to state a material fact; or
(5) has been convicted, within 10 years before the date of the application, renewal or review, of any crime involving fraud or deceit.
(b) The commissioner may not enter a final order denying, suspending or revoking the registration of a loan broker without prior notice to all interested parties, opportunity for a hearing and written findings of fact and conclusions of law. The commissioner may by summary order deny, suspend or revoke a registration pending final determination of any proceeding under this section. Upon the entry of a summary order, the commissioner shall promptly notify all interested parties that it has been entered, of the reasons for the summary order and, that upon receipt by the commissioner of a written request from a party, the matter will be set for hearing which shall be conducted in accordance with the provisions of the Kansas administrative procedure act. If no hearing is requested and none is ordered by the commissioner, the order remains in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice of the hearing has been given to all interested persons and the hearing has been held, may modify or vacate the order or extend it until final determination.
History: L. 1988, ch. 328, § 8; July 1.
(a) The commissioner may do the following:
(1) Adopt rules and regulations to implement this act;
(2) make investigations and examinations:
(A) In connection with any application for registration of any loan broker or any registration already granted; or
(B) whenever it appears to the commissioner, upon the basis of a complaint or information, that reasonable grounds exist for the belief that an investigation or examination is necessary or advisable for the more complete protection of the interests of the public;
(3) appoint special investigators to aid in investigations conducted pursuant to this act. Such special investigators shall have the same authority with respect to enforcement of this act as specified for special investigators appointed under subsection (a) of K.S.A. 17-12a602, and amendments thereto, in enforcing the Kansas uniform securities act;
(4) charge as costs of investigation or examination all reasonable expenses, including a per diem prorated upon the salary of the commissioner or employee and actual traveling and hotel expenses. All reasonable expenses are to be paid by the party or parties under investigation or examination;
(5) issue notices and orders, including cease and desist notices and orders, after making an investigation or examination under paragraph (2). The commissioner may also bring an action on behalf of the state to enjoin a person from violating this act. The commissioner shall notify the person that an order or notice has been issued, the reasons for it and that a hearing will be set in accordance with the provisions of the Kansas administrative procedures act after the commissioner receives a written request from the person requesting a hearing;
(6) sign all orders, official certifications, documents or papers issued under this act or delegate the authority to sign any of those items to a deputy;
(7) hold and conduct hearings;
(8) hear evidence;
(9) conduct inquiries with or without hearings;
(10) receive reports of investigators or other officers or employees of the state of Kansas or of any municipal corporation or governmental subdivision within the state;
(11) administer oaths or cause them to be administered;
(12) subpoena witnesses and compel them to attend and testify;
(13) compel the production of books, records and other documents; and
(14) order depositions to be taken of any witness residing within or without the state. The depositions shall be taken in the manner prescribed by law for depositions in civil actions and made returnable to the commissioner.
(b) If any person refuses to obey a subpoena issued under this act, the commissioner may make application to any court of competent jurisdiction to order the person to appear before the commissioner and produce documentary evidence or give evidence as directed in the subpoena. The failure to obey the order of the court shall be subject to punishment by the court as contempt of court.
(c) No person shall be excused from complying with a subpoena on the ground that the testimony or evidence required may tend to incriminate the person or subject the person to a penalty or forfeiture. No individual may be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter or thing which the individual is compelled to testify or produce evidence, after claiming the privilege against self-incrimination. However, the individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.
(d) In any prosecution, action, suit or proceeding based upon or arising out of this act, the commissioner may sign a certificate showing compliance or noncompliance with this act by any loan broker. This shall constitute prima facie evidence of compliance or noncompliance with this act and shall be admissible in evidence in any action at law or in equity to enforce this act.
History: L. 1988, ch. 328, § 9; L. 1992, ch. 226, § 10; L. 2004, ch. 154, § 60; July 1, 2005.
Copies of any statement or document filed with the commissioner, and copies of any records of the commissioner, certified to by the commissioner are admissible in any prosecution, action, suit or proceeding based upon, or arising out of or under, the provisions of this act to the same effect as the original of the statement, document or record would be if actually produced.
History: L. 1988, ch. 328, § 10; July 1.
(a) If the commissioner determines, after notice and opportunity for a hearing, that a person has violated this act, the commissioner may, in addition to all other remedies, impose a civil penalty upon the person in an amount not to exceed $5,000 for each violation.
(b) The commissioner may bring an action in the district court of Shawnee county to enforce payment of any penalty imposed under this section.
History: L. 1988, ch. 328, § 11; July 1.
Any person who violates this act, in connection with a contract for the services of a loan broker, is liable to any person damaged by the violation, for the amount of the actual damages suffered, interest at the legal rate, and attorney fees. If a loan broker violates any provision of this act, in connection with a contract for loan brokering services, the contract is void, and the prospective borrower is entitled to receive from the loan broker all sums paid to the loan broker.
History: L. 1988, ch. 328, § 12; July 1.
(a) Any person who willfully violates any provision of this act or knowingly violates any cease and desist order issued under this act commits a severity level 7, nonperson felony. Any violation of this act committed on or after July 1, 1993, resulting in a loss of $25,000 or more, regardless of its location on the sentencing grid block, shall have a presumptive sentence of imprisonment.
(b) Prosecution for any crime under this act must be commenced within five years after the alleged violation. A prosecution is commenced when a complaint or information is filed, or an indictment returned, and a warrant thereon is delivered to the sheriff or other officer for execution. No such prosecution shall be deemed to have been commenced if the warrant so issued is not executed without unreasonable delay.
(c) The commissioner shall prepare and refer such evidence as may be available concerning criminal violations of this act or of any rule and regulation or order hereunder to the attorney general, or in consultation with the attorney general to the proper county or district attorney, who may, in such prosecutor's discretion, with or without such a reference, institute the appropriate criminal proceedings under the laws of this state. The commissioner may pay extradition and witness expenses and other costs associated with the case. The commissioner and persons employed by the administrator shall assist in the prosecution of criminal cases as requested by the attorney general or county or district attorney.
History: L. 1988, ch. 328, § 13; L. 1992, ch. 226, § 11; L. 1993, ch. 291, § 227; L. 2017, ch. 81, § 10; July 1.
(a) If a transaction for which a loan broker has charged any fee or collected any costs is rescinded by any person under the provisions of the Truth-in-Lending Act (15 U.S.C. 1601-1667e) within 20 calendar days after a notice of the rescission has been delivered to the creditor, the loan broker shall return to the person any money or property that has been given to the loan broker, including property or money the loan broker delivered or directed to third parties.
(b) For purposes of calculating the time period during which a person may avoid a contract under K.S.A. 50-640, and amendments thereto, a contract with a loan broker shall be considered to be a sale of services that occurs on the date the person receives the disclosure document required by subsection (d) of K.S.A. 50-1006.
History: L. 1988, ch. 328, § 14; July 1.
(a) Each loan broker agreement shall be given an account number and all instruments taken in connection with that agreement must bear this number. Each loan broker shall keep and maintain the following records or their equivalent:
(1) A loan broker agreement register that consists of a chronological listing of all loan broker agreements that have been entered into. For each loan broker agreement the register shall contain the following:
(A) The account number;
(B) the date of the agreement;
(C) the name of the borrower or any proposed borrower;
(D) the amount of any fees charged; and
(E) the cost and type of any insurance required.
(2) A file for each borrower or proposed borrower shall contain the following:
(A) The name and address of the borrower or any proposed borrower;
(B) a copy of the signed loan broker agreement;
(C) a copy of any other papers or instruments used in connection with the loan broker agreement and signed by the borrower or any proposed borrower, including a copy of the disclosure document required by subsection (d) of K.S.A. 50-1006 that contains an acknowledged receipt by the borrower or any proposed borrower;
(D) if a loan was obtained for the borrower, the name and address of the creditor;
(E) if a loan is accepted by the borrower, a copy of the loan agreement; and
(F) the amount of the loan broker's fee that the borrower has paid. If there is an unpaid balance, the status of any collection efforts.
(3) All receipts from or for the account of borrowers or any proposed borrowers and all disbursements to or for the account of borrowers or any proposed borrowers, recorded so that the transactions are readily identifiable.
(4) A general ledger that shall be posted at least monthly, and a trial balance sheet and profit and loss statement prepared within 30 days of the commissioner's request for the information.
(5) A copy of:
(A) All advertisements, pamphlets, circulars, letters, articles or communications published in any newspaper, magazine or periodical;
(B) scripts of any recording, radio or television announcement; and
(C) any sales kits or literature to be used in solicitation of borrowers.
(b) The records listed in subsection (a) shall be kept for a period of six years in the loan broker's principal office and must be separate or readily identifiable from the records of any other business that is conducted in the office of the loan broker.
History: L. 1988, ch. 328, § 15; July 1.
(a) The following persons are exempt from the requirements of K.S.A. 50-1002, 50-1003, 50-1004, 50-1006, 50-1007, 50-1008, 50-1014 and 50-1015, and amendments thereto:
(1) Any attorney while engaging in the practice of law;
(2) any certified public accountant with a permit to practice under K.S.A. 1-310, and amendments thereto, while engaged in practice as a certified public accountant or any independent public accountant engaged in the practice of public accounting whose service in relation to procurement of a loan is incidental to their practice;
(3) any person licensed as a real estate broker or salesperson under K.S.A. 58-3039, and amendments thereto, while rendering services in the ordinary course of a transaction in which a license as a real estate broker or salesperson is required;
(4) any broker-dealer, agent, investment adviser or investment adviser representative registered under K.S.A. 17-12a401, 17-12a402, 17-12a403 or 17-12a404, and amendments thereto;
(5) any person whose fee is wholly contingent on the successful procurement of a loan from a third party and to whom no fee, other than a bona fide third party fee, is paid before the procurement;
(6) any person who is a creditor, or proposed to be a creditor, for any loan; and
(7) any feedlot operator licensed under K.S.A. 47-1503, and amendments thereto.
(b) As used in this section, "bona fide third party fee" includes fees for:
(1) Credit reports, appraisals and investigations; and
(2) if the loan is to be secured by real property, title examinations, an abstract of title, title insurance, a property survey and similar purposes.
(c) As used in this section, "successful procurement of a loan" means that a binding commitment from a creditor to advance money has been received and accepted by the borrower.
(d) The burden of proof of any exemption or classification provided in this act shall be on the party claiming the exemption or classification.
History: L. 1988, ch. 328, § 16; L. 2004, ch. 154, § 61; July 1, 2005.
A loan broker shall not, in connection with an offer of or a contract for the services of a loan broker, either directly or indirectly, do any of the following:
(1) Employ any device, scheme or artifice to defraud;
(2) make any untrue statements of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of circumstances under which they are made, not misleading; or
(3) engage in any act, practice or course of business that operates or would operate as a fraud or deceit upon any person.
History: L. 1988, ch. 328, § 17; L. 1992, ch. 226, § 12; July 1.
It is unlawful for any person to make or cause to be made, in any document filed with the commissioner or in any proceeding under this act, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.
History: L. 1992, ch. 226, § 7; July 1.
History: L. 1991, ch. 156, §§ 1 to 15; Repealed, L. 2004, ch. 22, § 23; July 1.
(a) K.S.A. 50-1116 through 50-1135, and amendments thereto, shall be known and may be cited as the Kansas credit services organization act.
(b) Any individual licensed to practice law in this state acting within the course and scope of such individual's practice as an attorney, and such individual's law firm, shall be exempt from the provisions of this act.
History: L. 2004, ch. 22, § 1; L. 2012, ch. 161, § 16; May 31.
Definitions as used in this act: (a) "Commissioner" means the state bank commissioner or designee, who shall be the deputy commissioner of the consumer and mortgage lending division of the office of the state bank commissioner.
(b) "Consumer" means an individual who is a resident of this state.
(c) "Credit services organization" means a person who engages in, or holds out to the public as willing to engage in, the business of debt management services for a fee, compensation or gain, or in the expectation of a fee, compensation or gain.
(d) "Debt management service" means:
(1) Receiving or offering to receive funds from a consumer for the purpose of distributing the funds among such consumer's creditors in full or partial payment of such consumer's debts;
(2) improving or offering to improve a consumer's credit record, history, rating or score; or
(3) negotiating or offering to negotiate to defer or reduce a consumer's obligations with respect to credit extended by others.
(e) "Insolvent" means a person whose debts exceed their assets.
(f) "Law firm" means a lawyer or lawyers in a law partnership, professional corporation, sole proprietorship or other association authorized to practice law; or lawyers employed in a legal services organization or the legal department of a corporation or other organization.
(g) "Licensee" means a person who is licensed by the commissioner as a credit services organization.
(h) "Nationwide mortgage licensing system and registry" means a mortgage licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the licensing and registration of licensed mortgage loan originators and other financial service providers.
(i) "Person" means any individual, corporation, partnership, association, unincorporated organization or other form of entity, however organized, including a nonprofit entity.
(j) "Trust account" means an account established by the applicant or licensee in a federally insured financial institution used to hold funds paid by consumers to a credit services organization for designation indicating the funds in the account are:
(1) Not funds of the applicant or licensee or its owners, officers or employees; and
(2) unavailable to creditors of the applicant or licensee.
History: L. 2004, ch. 22, § 2; L. 2012, ch. 161, § 17; L. 2017, ch. 52, § 13; July 1.
(a) No person shall engage in, or hold such person out as willing to engage in any credit services organization business with a resident of this state without first obtaining licensing from the commissioner. Any person required to be licensed as a credit services organization shall submit to the commissioner an application for licensing on forms prescribed and provided by the commissioner. The application for licensing shall include:
(1) The applicant's name, business address, telephone number and website address, if any;
(2) the name and address of each owner, officer, director, member or partner of the applicant;
(3) a description of the ownership interest of any officer, director, member, partner, agent or employee of the applicant in any affiliate or subsidiary of the applicant or in any other entity that provides any service to the applicant or any consumer relating to the applicant's credit services organization business;
(4) a description of the applicant's consumer education program; and
(5) any other information the commissioner may deem necessary to evaluate the financial responsibility and condition, character, qualifications and fitness of the applicant.
(b) Each application for licensing shall be accompanied by a nonrefundable fee which shall be established by the commissioner through the adoption of rules and regulations.
(c) The application shall be approved and a nontransferable and non-assignable license shall be issued to the applicant provided:
(1) The commissioner has received the complete application and fee required by this section; and
(2) the commissioner determines the financial responsibility and condition, character, qualifications and fitness of the applicant warrants a belief the business of the applicant will be conducted competently, honestly, fairly and in accordance with all applicable state and federal laws.
(d) Each credit services organization license issued under this section shall expire on April 30 of each year. A license shall be renewed by filing with the commissioner, at least 30 days prior to the expiration of the license, a complete renewal application, containing information the commissioner requires to determine the existence and effect of any material changes from the information contained in the applicant's original application, annual reports or prior renewal applications. Each renewal shall be accompanied by a nonrefundable renewal fee which shall be established by rules and regulations of the commissioner.
(e) If the commissioner fails to issue a license within 60 days after a filed application is deemed complete by the commissioner, the applicant may make written request for hearing. The commissioner shall conduct a hearing in accordance with the Kansas administrative procedure act.
History: L. 2004, ch. 22, § 3; L. 2017, ch. 52, § 14; July 1.
Each applicant or licensee shall file with the commissioner a surety bond in a form acceptable to the commissioner. The surety bond shall be issued by a surety or insurance company authorized to conduct business in this state, securing the applicant's or licensee's faithful performance of all duties and obligations of a licensee. The surety bond shall:
(a) Be payable to the office of the state bank commissioner;
(b) provide that the bond may not be terminated without 30 days prior written notice to the commissioner, and that such termination shall not affect the surety's liability for violations of the Kansas credit services organization act occurring prior to the effective date of cancellation, and principal and surety shall be and remain liable for a period of two years from the date of any action or inaction of principal that gives rise to a claim under the bond;
(c) provide that the bond shall not expire for two years after the date of surrender, revocation or expiration of the applicant's or licensee's license, whichever shall first occur;
(d) be available for:
(1) The recovery of expenses, fines and fees levied by the commissioner under this act; and
(2) payment of losses or damages which are determined by the commissioner to have been incurred by any consumer as a result of the applicant's or licensee's failure to comply with the requirements of this act; and
(e) the amount of the bond shall be $25,000. The amount of the bond may be increased up to $1,000,000, as further defined by rules and regulations adopted by the commissioner.
History: L. 2004, ch. 22, § 4; L. 2017, ch. 52, § 15; July 1.
No person required to be licensed by this act shall engage in debt management services unless:
(a) The licensee has provided the consumer with a credit education program designed to improve the financial literacy of the consumer.
(b) The licensee has:
(1) (A) Taken reasonable steps to identify all creditors of a consumer; and
(B) prepared and provided to the consumer a written financial analysis of an initial budget plan for all of the consumer's debt obligations which indicates the consumer can reasonably meet the requirements set forth in the budget plan. For purposes of the initial budget plan, the licensee shall include all outstanding debt obligations as listed on the consumer's credit report as well as any debt obligations identified by the consumer; and
(2) provided to the consumer a list of each creditor the licensee reasonably expects:
(A) To participate in the debt management services agreement; and
(B) not to participate in the debt management services agreement.
(c) The licensee and the consumer have entered into a written debt management services agreement and a copy of the signed agreement has been provided to the consumer by the licensee. Such agreement shall be in at least 12 point type, signed and dated by the consumer and licensee and include:
(1) The full legal name, doing business as "dba" name, address and phone number of the licensee;
(2) the name, address and phone number of the consumer;
(3) a description of the debt management services to be provided to the consumer and an itemization of any fees to be charged to the consumer;
(4) a notice of the consumer's right to rescind the debt management services agreement at any time by giving written notice of rescission to the licensee;
(5) a schedule of payments, including the amount and due date of each payment, that the consumer must make to the licensee for disbursement to such consumer's creditors;
(6) a list of each participating creditor of the consumer to which payments will be made by the licensee under the debt management services agreement. The listing shall include the:
(A) Amount owed to each creditor;
(B) amount of each payment;
(C) date on which each payment will be made; and
(D) anticipated payoff date for each creditor;
(7) the name of each creditor that the licensee reasonably expects not to participate in the debt management services agreement;
(8) a disclosure that the licensee also may receive compensation from the consumer's creditors for providing debt management services to the consumer;
(9) a disclosure that the licensee may not, as a condition of entering into a debt management services agreement, require a consumer to purchase any other product or service, nor solicit or offer to sell any other product or service to the consumer during the term of the debt management services agreement;
(10) a disclosure that the licensee may not require a voluntary contribution from a consumer for any service provided by the licensee to the consumer;
(11) a disclosure that, by executing the debt management services agreement, the consumer authorizes any financial institution in which the licensee has established a trust account for the deposit of the consumer's funds to disclose to the commissioner any financial records relating to the trust account during the course of any investigation or examination by the commissioner; and
(12) a notice substantially similar to the following: "The Kansas Office of the State Bank Commissioner accepts questions and complaints from consumers regarding (name and license number of licensee) at 700 SW Jackson, Suite 300, Topeka, Kansas, 66603, or by calling toll-free 1-877-387-8523."
(d) All solicitations and published advertisements concerning a credit services organization directed at Kansas residents, including those on the internet or by other electronic means, shall contain the name and license number of the licensee on record with the commissioner. Each licensee shall maintain a record of all solicitations or advertisements for a period of 36 months. For purposes of this subsection, "advertising" does not include business cards or promotional items.
(e) No solicitation or advertisement shall contain false, misleading or deceptive information.
(f) No licensee shall conduct credit services organization business in this state using any name other than the name or names stated on its license.
History: L. 2004, ch. 22, § 5; L. 2017, ch. 52, § 16; July 1.
No person required to be licensed under this act shall: (a) Delay payment of a consumer's debt for the purpose of increasing interest, costs, fees or charges payable by the consumer.
(b) Make any misrepresentation of any material fact or false promise to:
(1) Influence, persuade or induce a consumer to enter into a debt management services agreement; or
(2) cause or contribute to any misrepresentation by any other person acting on such person's behalf.
(c) Make or use any false or misleading representation in the offer or sale of the services of a debt management services agreement or credit services organization business.
(d) Engage, directly or indirectly, in any fraudulent or deceptive act, practice or course of business in connection with the offer or sale of the services of a credit services organization.
(e) Make, or advise a consumer to make, any statement with respect to a consumer's credit worthiness, credit standing or credit capacity that is false or misleading, or that should be known by the exercise of reasonable care to be false or misleading, to a consumer reporting agency or to a person who has extended credit to a consumer or to whom a consumer is applying for an extension of credit.
(f) Advertise or cause to be advertised the services of a credit services organization to Kansas consumers without first obtaining proper licensure from the commissioner.
(g) Receive compensation for rendering debt management services where the person has otherwise acted as a creditor for the consumer.
(h) Transfer, assign or attempt to transfer or assign, a license to any other person.
(i) Conduct credit services organization activities using any name other than the name or names approved by the commissioner.
(j) Operate as a collection agency.
(k) Receive or charge any fee in the form of a promissory note or other promise to pay.
(l) Accept or receive any reward, bonus, premium, commission or any other consideration for referring a consumer to any person.
(m) Give a reward, bonus, premium, commission or any other consideration for the referral of a consumer to the licensee's credit services organization business and charge the consumer for the amount.
(n) Lend money or provide credit to a consumer.
(o) Obtain a mortgage or other security interest in real or personal property owned by a consumer.
(p) Structure a debt management services agreement in any manner that would result in a negative amortization of any of the consumer's debts.
(q) Charge for or provide credit insurance.
(r) Purchase any debt or obligation of a consumer.
(s) Use any communication which simulates in any manner a legal or judicial process, or which gives the false appearance of being authorized, issued or approved by a government, governmental agency or attorney-at-law.
(t) While operating as a licensee, or a director, manager or officer of such licensee, be a director, manager, officer or owner of any creditor or a subsidiary of any such creditor, that is receiving or will receive payments from the licensee on behalf of a consumer with whom the licensee has entered into a debt management services agreement.
(u) Attempt to cause a consumer to waive or agree to forego rights or benefits under this act.
History: L. 2004, ch. 22, § 6; L. 2017, ch. 52, § 17; July 1.
(a) Within four calendar days after receipt of any funds paid to the licensee by or on behalf of a consumer for disbursement to such consumer's creditors, a licensee shall deposit such funds in a trust account established for the benefit of consumers.
(b) A licensee shall:
(1) Maintain separate records of account for each consumer to whom the licensee provides debt management services;
(2) disburse any funds paid by or on behalf of a consumer to such consumer's creditors within 20 calendar days after receipt of such funds or the latest date before the consumer would incur any fee, charge or penalty due to delay in payment;
(3) correct any misdirected payments resulting from an error by the licensee;
(4) reimburse the consumer for any actual fees or other charges imposed by a creditor as a result of the misdirection; and
(5) disburse a consumer's funds from the trust account only to such consumer's creditors or back to the consumer.
(c) If a consumer rescinds the debt management services agreement, all funds held in the trust account on behalf of such consumer shall be refunded to the consumer within 10 calendar days from receipt of rescission by the licensee.
(d) A licensee shall not commingle any trust account established for the benefit of consumers with any operating accounts of the licensee.
History: L. 2004, ch. 22, § 7; L. 2017, ch. 52, § 18; July 1.
A licensee shall provide a report at least once every three months to each consumer who has entered into a debt management services agreement with the licensee. The report shall include the:
(a) Total amount received from the consumer to date;
(b) total amount paid to each creditor to date;
(c) total payoff amount or an estimated balance due to each creditor on any debt owed by the consumer;
(d) fees paid to the licensee by the consumer; and
(e) amount held in the trust account on behalf of the consumer, or statement that no amount is currently held.
History: L. 2004, ch. 22, § 8; L. 2017, ch. 52, § 19; July 1.
(a) (1) On or before April 1, of each year, each licensee shall file with the commissioner an annual report relating to credit services organization business conducted by the licensee during the preceding calendar year. The annual report shall be on a form prescribed by the commissioner.
(2) The information contained in the annual report shall be confidential and may be published only in composite form.
(b) Within 15 calendar days of any of the following events, a licensee shall file a written report with the commissioner describing the event and its expected impact on the licensee's business:
(1) The filing for bankruptcy or reorganization by the licensee;
(2) the institution of a revocation, suspension or other proceeding against the licensee by a governmental authority that is related to the licensee's credit services organization business in any state;
(3) a felony conviction of the licensee or any of its owners, officers, principals, directors, partners, members or debt management counselors;
(4) a change in the licensee's name or legal entity status; and
(5) the addition or loss of any owner, officer, partner or director.
(c) If a licensee fails to make any report required by this section to the commissioner, the commissioner may require the licensee to pay a late penalty of $100 for each day the report is overdue.
History: L. 2004, ch. 22, § 9; L. 2017, ch. 52, § 20; L. 2022, ch. 62, § 6; July 1.
(a) Each licensee shall maintain and preserve complete and adequate business records including a general ledger containing all assets, liabilities, capital, income and expense accounts for a period of five years.
(b) Each licensee shall maintain and preserve complete and adequate records of each debt management services agreement during the term of the agreement and for a period of five years from the date of cancellation or completion of the agreement with each consumer. Such records shall contain all consumer information including, but not limited to, the debt management services agreement and any extensions thereto, payments, disbursements, charges and correspondence.
(c) If the licensee's records are located outside this state, the licensee shall provide the records to the commissioner within three calendar days or, at the commissioner's discretion, pay reasonable and necessary expenses for the commissioner or commissioner's designee to examine them at the place where they are maintained.
History: L. 2004, ch. 22, § 10; L. 2017, ch. 52, § 21; July 1.
(a) No licensee shall impose any fees or other charges on a consumer, or receive any funds or other payments from a consumer or another person on behalf of a consumer:
(1) Except as provided in subsection (b)(5), until after the licensee and consumer have executed a debt management services agreement; and
(2) except as allowed under this section, or as permitted by rule and regulation adopted by the commissioner.
(b) A licensee may:
(1) Charge a one-time consultation fee not exceeding $75. The cost of a credit report on a consumer shall be paid from the consultation fee paid by the consumer;
(2) charge and collect monthly the lesser of a total maintenance fee of $40 per month, or $5 per month for each creditor of a consumer that is listed in the debt management services agreement between the licensee and the consumer;
(3) collect from or on behalf of a consumer the funds for disbursement to creditors that the consumer has agreed to pay to the licensee under the debt management services agreement;
(4) accept a voluntary contribution from a consumer for a debt management service provided by the licensee to the consumer if the aggregate amount of the voluntary contribution and any other fees received by the licensee from the consumer does not exceed the total amount the licensee is authorized to charge the consumer under paragraphs (1) and (2) of this subsection;
(5) charge the consumer a reasonable fee for providing reverse mortgage counseling, bankruptcy counseling, student loan counseling, other counseling services authorized by the commissioner, an educational program, or materials and supplies;
(6) accept fee payments from a consumer's creditors for debt management services rendered to a consumer, provided the consumer's creditor does not assess the fee to the consumer;
(7) charge the consumer up to $30 one time for each insufficient payment; and
(8) charge the consumer up to $5 to process a payment made by the consumer to the credit services organization through electronic means, if authorized by the consumer. No charge shall be assessed where the consumer has agreed to make all scheduled payments by electronic means.
(c) A licensee may waive any of the fees permitted in subsections (b)(1) through (b)(8) if the licensee determines that the consumer is unable to pay the fees.
(d) No licensee shall:
(1) Charge an additional fee to a consumer, if the consumer enters into a debt management services agreement with the licensee, to:
(A) Prepare a financial analysis or an initial budget plan for the consumer;
(B) counsel a consumer about debt management;
(C) provide a consumer with the consumer education program described in the licensee's application to engage in business as a credit services organization; or
(D) rescind a debt management services agreement.
(2) Require a voluntary contribution from a consumer for any service provided by the licensee to the consumer.
(3) As a condition of entering into a debt management services agreement, require a consumer to purchase for a fee a counseling session, an educational program or materials and supplies.
(e) If a licensee imposes any fee or other charge or receives any funds or other payments not authorized under this section, except as a result of an accidental and bona fide error:
(1) The debt management services agreement shall be void; and
(2) the licensee shall return the amount of the unauthorized fees, charges, funds or payments to the consumer.
History: L. 2004, ch. 22, § 11; L. 2017, ch. 52, § 22; July 1.
The commissioner may deny, suspend, revoke or refuse to renew a license issued pursuant to this act, and amendments thereto, if the commissioner finds, after notice and opportunity for a hearing conducted in accordance with the provisions of the Kansas administrative procedure act, that:
(a) The applicant or licensee has repeatedly or willfully violated any provision of this act, any rule and regulation promulgated thereunder or any order lawfully issued by the commissioner pursuant to this act;
(b) the applicant or licensee has failed to file and maintain the surety bond required under this act;
(c) the applicant or licensee is insolvent;
(d) the applicant or licensee has filed with the commissioner any document or statement containing any false representation of a material fact or omitting to state a material fact;
(e) the applicant, licensee or any officer, director, member, owner, partner, principal or debt management counselor thereof has been convicted of any crime;
(f) the applicant or licensee fails to keep and maintain sufficient records to permit an audit satisfactorily disclosing to the commissioner the applicant's or licensee's compliance with the provision of this act;
(g) the applicant, licensee or an employee of the applicant or licensee has been the subject of any disciplinary action by the commissioner or any other state or federal regulatory agency;
(h) a final judgment has been entered against the applicant or licensee in a civil action and the commissioner finds the conduct on which the judgment is based indicates that it would be contrary to the public interest to permit such person to be licensed;
(i) the applicant or licensee has engaged in any deceptive business practice;
(j) facts or conditions exist which would have justified the denial of the license or renewal had such facts or conditions existed or been known to exist at the time the application for license or renewal was made; or
(k) the applicant or licensee has refused to furnish information required by the commissioner within a reasonable period of time as established by the commissioner.
History: L. 2004, ch. 22, § 12; L. 2017, ch. 52, § 23; July 1.
This act shall be administered by the commissioner. In addition to other powers granted by this act, the commissioner, within the limitations provided by law, may exercise the following powers:
(a) Adopt, amend and revoke rules and regulations as necessary to carry out the intent and purpose of this act.
(b) Make any investigation and examination of the operations, books and records of a credit services organization, as the commissioner deems necessary to aid in the enforcement of this act.
(1) The commissioner, or the commissioner's designee, shall have free and reasonable access to the offices, places of business and all records of the licensee that relate to the debt management or credit services organization business. The commissioner may designate persons, including comparable officials of the state in which the records are located, to inspect the records on the commissioner's behalf.
(2) The commissioner may charge reasonable costs of investigation, examination and administration of this act, to be paid by the applicant or licensee, in such amounts as the commissioner may determine to be sufficient to meet the budget requirements of the commissioner for each fiscal year. The commissioner may maintain an action in any court to recover such costs.
(c) To order any licensee or person to cease any activity or practice which the commissioner deems to be deceptive, dishonest, or a violation of this act, or of other state or federal law, or unduly harmful to the interests of the public.
(d) (1) Exchange any information regarding the administration of this act with any agency of the United States or any state which regulates the applicant or licensee or administers statutes, rules and regulations or programs related to debt management or credit services organization laws.
(2) Examination reports and correspondence regarding such reports made by the commissioner or the commissioner's designees shall be confidential. The commissioner may release examination reports and correspondence regarding the reports in connection with a disciplinary proceeding conducted by the commissioner, a liquidation proceeding or a criminal investigation or proceeding. Additionally, the commissioner may furnish to federal or other state regulatory agencies or any officer or examiner thereof, a copy of any or all examination reports and correspondence regarding the reports made by the commissioner or the commissioner's designees.
(e) Disclose to any person or entity that an applicant's or licensee's application or license has been denied, suspended, revoked or refused renewal.
(f) Require or permit any person to file a written statement, under oath or otherwise as the commissioner may direct, setting forth all the facts and circumstances concerning any apparent violation of this act, any rule and regulation promulgated hereunder, or any order issued pursuant to this act.
(g) Receive, as a condition in settlement of any investigation or examination, a payment designated for consumer education to be expended for such purpose as directed by the commissioner.
(h) Delegate the authority to sign any orders, official documents or papers issued under or related to this act to the deputy of consumer and mortgage lending in the office of the state bank commissioner.
(i) Require fingerprinting of any licensee in accordance with K.S.A. 2025 Supp. 22-4714, and amendments thereto. For purposes of this section and in order to reduce the points of contact that the federal bureau of investigation may have to maintain with the individual states, the commissioner may use the nationwide mortgage licensing system and registry as a channeling agent for requesting information from and distributing information to the department of justice or any governmental agency.
(j) Use the nationwide mortgage licensing system and registry as a channeling agent for requesting and distributing information regarding credit services organization licensing to and from any source so directed by the commissioner.
(k) Establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities to collect and maintain records and process transaction fees or other fees related to applicants, licensees or other persons subject to this act, and to take other such actions as may be reasonably necessary to participate in the nationwide mortgage licensing system and registry.
(l) Charge, establish and collect from licensees such fees as are necessary and in such amounts as the commissioner may determine to be sufficient to meet the expense requirements of the commissioner in administering this act.
(m) Seize and distribute a licensee's trust account funds to protect consumers and the public interest.
(n) For the purpose of any examination, investigation or proceeding under this act, the commissioner or the commissioner's designee may administer oaths and affirmations, subpoena witnesses, compel such witnesses' attendance, adduce evidence and require the production of any matter which is relevant to the examination or investigation, including the existence, description, nature, custody, condition and location of any books, documents or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of relevant information or items.
(o) To enter into any informal agreement with any person for a plan of action to address violations of this act. The adoption of an informal agreement authorized by this subsection shall not be subject to the provisions of the Kansas administrative procedure act or the Kansas judicial review act. Any informal agreement authorized by this subsection shall not be considered an order or other agency action, and shall be considered confidential examination material pursuant to K.S.A. 50-1128(d), and amendments thereto. All such examination material shall be confidential by law and privileged, shall not be subject to the open records act, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action.
(p) Issue, amend and revoke written administrative guidance documents in accordance with the applicable provisions of the Kansas administrative procedure act.
History: L. 2004, ch. 22, § 13; L. 2017, ch. 52, § 24; L. 2022, ch. 62, § 7; L. 2024, ch. 15, § 37; July 1.
(a) If the commissioner determines after notice and opportunity for a hearing pursuant to the Kansas administrative procedure act that any person has engaged, is engaging or is about to engage in any act or practice constituting a violation of any provision of this act or any rule and regulation promulgated or order issued thereunder, the commissioner by order may require any or all of the following:
(1) That the person cease and desist from the unlawful act or practice;
(2) that the person pay a fine not to exceed $10,000 per incident for the unlawful act or practice;
(3) if any person is found to have violated any provision of this act and such violation is committed against elder or disabled persons as defined in K.S.A. 50-676, and amendments thereto, the commissioner may impose an additional penalty not to exceed $10,000 for each such violation, in addition to any civil penalty otherwise provided by law;
(4) issue an order requiring the person to pay restitution for any loss arising from the violation or requiring the person to disgorge any profits arising from the violation. Such order may include the assessment of interest not to exceed 8% per annum from the date of the violation;
(5) that the person take such affirmative action as in the judgment of the commissioner will carry out the purposes of this act; or
(6) that the person be barred from subsequently applying for licensure under this act.
(b) If the commissioner makes written findings of fact that the public interest will be irreparably harmed by delay in issuing an order under subsection (a), the commissioner may issue an emergency cease and desist order.
(1) Such emergency order, even when not an order within the meaning of K.S.A. 77-502, and amendments thereto, shall be subject to the same procedures as an emergency order issued under K.S.A. 77-536, and amendments thereto.
(2) Upon the entry of such an emergency order, the commissioner shall promptly notify the person subject to the order that it has been entered, of the reasons, and that a hearing will be held upon written request by the person.
(3) If the person requests a hearing, or in the absence of any request, if the commissioner determines that a hearing should be held, the matter will be set for a hearing which shall be conducted in accordance with the provisions of the Kansas administrative procedure act. Upon completion of the hearing the commissioner shall, by written findings of fact and conclusions of law vacate, modify or make permanent the emergency order.
(4) If no hearing is requested and none is ordered by the commissioner, the emergency order shall remain in effect until such order is modified or vacated by the commissioner.
History: L. 2004, ch. 22, § 14; L. 2017, ch. 52, § 25; July 1.
(a) In case of contumacy by, or refusal to obey a subpoena issued to any person, any court of competent jurisdiction, upon application by the commissioner, may issue to that person an order requiring the person to appear before the commissioner, or the officer designated by the commissioner, there, to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question. Any failure to obey the order of the court may be punished by the court as a contempt of court.
(b) No person shall be excused from attending and testifying or from producing any document or record before the commissioner or in obedience to the subpoena of the commissioner or the commissioner's designee, or in any proceeding instituted by the commissioner, on the ground that the testimony or evidence, documentary or otherwise, required of the person may tend to incriminate the person or subject the person to a penalty or forfeiture. No individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which such person is compelled, after claiming privilege against self-incrimination, to testify or produce evidence, documentary or otherwise, except that the individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.
History: L. 2004, ch. 22, § 15; July 1.
Any person violating the provisions of this act or any rule and regulation promulgated thereunder upon conviction shall be guilty of a class B nonperson misdemeanor.
History: L. 2004, ch. 22, § 16; July 1.
Any violation of this act or any rule and regulation promulgated thereunder is a deceptive act or practice under the Kansas consumer protection act. Any remedy provided by this act shall be construed to be in addition to other remedy provided by the Kansas consumer protection act.
History: L. 2004, ch. 22, § 17; July 1.
(a) Any consumer injured by a violation of this act or any rule and regulation promulgated thereunder may bring an action for recovery of damages. The damages awarded may not be less than the amount paid by the consumer to the credit services organization plus reasonable attorney fees and court costs.
(b) The consumer may also be awarded punitive damages.
History: L. 2004, ch. 22, § 18; July 1.
The commissioner, attorney general, county or district attorney or a consumer may bring an action in a district court to enjoin any violation of this act or any rule and regulation promulgated thereunder.
History: L. 2004, ch. 22, § 19; July 1.
All fees collected by the commissioner pursuant to this act shall be subject to the provisions of K.S.A. 75-1308 and amendments thereto.
History: L. 2004, ch. 22, § 20; July 1.
K.S.A. 50-1201 through 50-1211, and amendments thereto, may be cited as the second amendment protection act.
History: L. 2013, ch. 100, § 1; April 25.
The legislature declares that the authority for K.S.A. 50-1201 through 50-1211, and amendments thereto, is the following:
(a) The tenth amendment to the constitution of the United States guarantees to the states and their people all powers not granted to the federal government elsewhere in the constitution and reserves to the state and people of Kansas certain powers as they were understood at the time that Kansas was admitted to statehood in 1861. The guaranty of those powers is a matter of contract between the state and people of Kansas and the United States as of the time that the compact with the United States was agreed upon and adopted by Kansas in 1859 and the United States in 1861.
(b) The ninth amendment to the constitution of the United States guarantees to the people rights not granted in the constitution and reserves to the people of Kansas certain rights as they were understood at the time that Kansas was admitted to statehood in 1861. The guaranty of those rights is a matter of contract between the state and people of Kansas and the United States as of the time that the compact with the United States was agreed upon and adopted by Kansas in 1859 and the United States in 1861.
(c) The second amendment to the constitution of the United States reserves to the people, individually, the right to keep and bear arms as that right was understood at the time that Kansas was admitted to statehood in 1861, and the guaranty of that right is a matter of contract between the state and people of Kansas and the United States as of the time that the compact with the United States was agreed upon and adopted by Kansas in 1859 and the United States in 1861.
(d) Section 4 of the bill of rights of the constitution of the state of Kansas clearly secures to Kansas citizens, and prohibits government interference with, the right of individual Kansas citizens to keep and bear arms. This constitutional protection is unchanged from the constitution of the state of Kansas, which was approved by congress and the people of Kansas, and the right exists as it was understood at the time that the compact with the United States was agreed upon and adopted by Kansas in 1859 and the United States in 1861.
History: L. 2013, ch. 100, § 2; April 25.
As used in K.S.A. 50-1201 through 50-1211, and amendments thereto, the following definitions apply:
(a) "Borders of Kansas" means the boundaries of Kansas described in the act for admission of Kansas into the union, 12 stat. 126, ch. 20, § 1.
(b) "Firearms accessories" means items that are used in conjunction with or mounted upon a firearm but are not essential to the basic function of a firearm, including, but not limited to, telescopic or laser sights, magazines, flash or sound suppressors, collapsible or adjustable stocks and grips, pistol grips, thumbhole stocks, speedloaders, ammunition carriers and lights for target illumination.
(c) "Manufacture" means to assemble using multiple components to create a more useful finished product.
History: L. 2013, ch. 100, § 3; April 25.
(a) A personal firearm, a firearm accessory or ammunition that is manufactured commercially or privately and owned in Kansas and that remains within the borders of Kansas is not subject to any federal law, treaty, federal regulation, or federal executive action, including any federal firearm or ammunition registration program, under the authority of congress to regulate interstate commerce. It is declared by the legislature that those items have not traveled in interstate commerce. This section applies to a firearm, a firearm accessory or ammunition that is manufactured commercially or privately and owned in the state of Kansas.
(b) Component parts are not firearms, firearms accessories or ammunition, and their importation into Kansas and incorporation into a firearm, a firearm accessory or ammunition manufactured and owned in Kansas does not subject the firearm, firearm accessory or ammunition to federal regulation. It is declared by the legislature that such component parts are not firearms, firearms accessories or ammunition and are not subject to congressional authority to regulate firearms, firearms accessories and ammunition under interstate commerce as if they were actually firearms, firearms accessories or ammunition.
(c) Firearms accessories that are imported into Kansas from another state and that are subject to federal regulation as being in interstate commerce do not subject a firearm to federal regulation under interstate commerce because they are attached to or used in conjunction with a firearm in Kansas.
History: L. 2013, ch. 100, § 4; April 25.
A firearm manufactured in Kansas within the meaning of K.S.A. 50-1201 through 50-1211, and amendments thereto, must have the words "Made in Kansas" clearly stamped on a central metallic part, such as the receiver or frame.
History: L. 2013, ch. 100, § 5; April 25.
(a) Any act, law, treaty, order, rule or regulation of the government of the United States which violates the second amendment to the constitution of the United States is null, void and unenforceable in the state of Kansas.
(b) No official, agent or employee of the state of Kansas, or any political subdivision thereof, shall enforce or attempt to enforce any act, law, treaty, order, rule or regulation of the government of the United States regarding any personal firearm, firearm accessory or ammunition that is manufactured commercially or privately and owned in the state of Kansas and that remains within the borders of Kansas.
History: L. 2013, ch. 100, § 6; April 25.
It is unlawful for any official, agent or employee of the government of the United States, or employee of a corporation providing services to the government of the United States to enforce or attempt to enforce any act, law, treaty, order, rule or regulation of the government of the United States regarding a firearm, a firearm accessory, or ammunition that is manufactured commercially or privately and owned in the state of Kansas and that remains within the borders of Kansas. Violation of this section is a severity level 10 nonperson felony. Any criminal prosecution for a violation of this section shall be commenced by service of complaint and summons upon such official, agent or employee. Such official, agent or employee shall not be arrested or otherwise detained prior to, or during the pendency of, any trial for a violation of this section.
History: L. 2013, ch. 100, § 7; April 25.
A county or district attorney, or the attorney general, may seek injunctive relief in any court of competent jurisdiction to enjoin any official, agent or employee of the government of the United States or employee of a corporation providing services to the government of the United States from enforcing any act, law, treaty, order, rule or regulation of the government of the United States regarding a firearm, a firearm accessory, or ammunition that is manufactured commercially or privately and owned in the state of Kansas and that remains within the borders of Kansas.
History: L. 2013, ch. 100, § 8; April 25.
K.S.A. 50-1201 through 50-1211, and amendments thereto, do not apply to: (a) A firearm that cannot be carried and used by one person;
(b) ammunition with a projectile that explodes using an explosion of chemical energy after the projectile leaves the firearm; or
(c) other than shotguns, a firearm that discharges two or more projectiles with one activation of the trigger or other firing device.
History: L. 2013, ch. 100, § 9; April 25.
K.S.A. 50-1201 through 50-1211, and amendments thereto, apply to firearms, firearms accessories and ammunition that are manufactured, as defined in K.S.A. 50-1203, and amendments thereto, owned and remain within the borders of Kansas on and after October 1, 2009.
History: L. 2013, ch. 100, § 10; April 25.
If any provision of K.S.A. 50-1201 through 50-1210, and amendments thereto, or the application to any persons or circumstances is held to be invalid, such invalidity shall not affect the other provisions or application of K.S.A. 50-1201 through 50-1210, and amendments thereto, and to this end the provisions of K.S.A. 50-1201 through 50-1210, and amendments thereto, are declared to be severable.
History: L. 2013, ch. 100, § 11; April 25.
K.S.A. 50-1301 through 50-1307, and amendments thereto, shall be known and may be cited as the successor corporation asbestos-related liability fairness act.
History: L. 2014, ch. 45, § 1; July 1.
As used in the successor corporation asbestos-related liability fairness act:
(a) "Asbestos claim" means the same as in K.S.A. 60-4901, and amendments thereto. "Asbestos claim" also means any claim for damage or loss caused by the installation, presence or removal of asbestos.
(b) "Corporation" means a corporation for profit, including a domestic corporation organized under the laws of this state or a foreign corporation organized under laws other than the laws of this state.
(c) "Successor" means a corporation that assumes or incurs or has assumed or incurred successor asbestos-related liabilities that is a successor and became a successor before January 1, 1972, or is any of that successor corporation's successors.
(d) "Successor asbestos-related liabilities" means any liabilities, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due, which are related in any way to asbestos claims and were assumed or incurred by a corporation as a result of or in connection with a merger or consolidation, or the plan of merger or consolidation related to the merger or consolidation with or into another corporation, or that are related in any way to asbestos claims based on the exercise of control or the ownership of stock of the corporation before the merger or consolidation. The term includes liabilities that, after the time of the merger or consolidation for which the fair market value of total gross assets is determined under K.S.A. 50-1305, and amendments thereto, were or are paid or otherwise discharged, or committed to be paid or otherwise discharged, by or on behalf of the corporation, or by a successor of the corporation, or by or on behalf of a transferor, in connection with settlements, judgments or other discharges in this state or another jurisdiction.
(e) "Transferor" means a corporation from which successor asbestos-related liabilities are or were assumed or incurred.
History: L. 2014, ch. 45, § 2; July 1.
(a) The limitations in K.S.A. 50-1304, and amendments thereto, shall apply to any successor corporation. The limitations of K.S.A. 50-1304, and amendments thereto, shall not apply to:
(1) Workers' compensation benefits paid by or on behalf of an employer to an employee under the provisions of chapter 44 of the Kansas Statutes Annotated, and amendments thereto, or a comparable workers' compensation law of another jurisdiction;
(2) any claim against a corporation that does not constitute a successor asbestos-related liability;
(3) any obligation under the national labor relations act, 29 U.S.C. § 151 et seq., or under any collective bargaining agreement; or
(4) a successor that, after a merger or consolidation, continued in the business of mining asbestos or in the business of selling or distributing asbestos fibers or in the business of manufacturing, distributing, removing or installing asbestos-containing products which were the same or substantially the same as those products previously manufactured, distributed, removed, or installed by the transferor.
History: L. 2014, ch. 45, § 3; July 1.
(a) Except as further limited in subsection (b), the cumulative successor asbestos-related liabilities of a successor corporation are limited to the fair market value of the total gross assets of the transferor determined as of the time of the merger or consolidation. The successor corporation shall not have responsibility for successor asbestos-related liabilities in excess of this limitation.
(b) If the transferor had assumed or incurred successor asbestos-related liabilities in connection with a prior merger or consolidation with a prior transferor, then the fair market value of the total assets of the prior transferor determined as of the time of the earlier merger or consolidation shall be substituted for the limitation set forth in subsection (a) for purposes of determining the limitation of liability of a successor corporation.
History: L. 2014, ch. 45, § 4; July 1.
(a) A successor corporation may establish the fair market value of total gross assets for the purpose of the limitations under K.S.A. 50-1304, and amendments thereto, through any method reasonable under the circumstances, including, but not limited to:
(1) By reference to the going concern value of the assets or to the purchase price attributable to or paid for the assets in an arms-length transaction; or
(2) in the absence of other readily available information from which the fair market value can be determined, by reference to the value of the assets recorded on a balance sheet.
(b) Total gross assets include intangible assets.
(c) To the extent total gross assets include any liability insurance that was issued to the transferor whose assets are being valued for purposes of this section, the applicability, terms, conditions and limits of such insurance shall not be affected by this section, nor shall this section otherwise affect the rights and obligations of an insurer, transferor or successor under any insurance contract or any related agreements, including, without limitation, preenactment settlements resolving coverage-related disputes, and the rights of an insurer to seek payment for applicable deductibles, retrospective premiums or self-insured retentions or to seek contribution from a successor for uninsured or self-insured periods or periods where insurance is uncollectible or otherwise unavailable. Without limiting the foregoing, to the extent total gross assets include any such liability insurance, a settlement of a dispute concerning any such liability insurance coverage entered into by a transferor or successor with the insurers of the transferor before July 1, 2014, shall be determinative of the total coverage of such liability insurance to be included in the calculation of the transferor's total gross assets.
History: L. 2014, ch. 45, § 5; July 1.
(a) Except as provided in subsections (b), (c) and (d), the fair market value of total gross assets at the time of the merger or consolidation shall increase annually at a rate equal to the sum of:
(1) The prime rate as listed in the first edition of the wall street journal published for each calendar year since the merger or consolidation, unless the prime rate is not published in that edition of the wall street journal, in which case any reasonable determination of the prime rate on the first day of the year may be used; and
(2) one percent.
(b) The rate described in subsection (a) shall not be compounded.
(c) The adjustment of the fair market value of total gross assets shall continue as provided in subsection (a) until the date the adjusted value is first exceeded by the cumulative amounts of successor asbestos-related liabilities paid or committed to be paid by or on behalf of the successor corporation or a predecessor or by or on behalf of a transferor after the time of the merger or consolidation for which the fair market value of total gross assets is determined.
(d) No adjustment of the fair market value of total gross assets shall be applied to any liability insurance that may be included in the definition of total gross assets by subsection (c) of K.S.A. 50-1305, and amendments thereto.
History: L. 2014, ch. 45, § 6; July 1.
(a) The courts of this state shall construe the provisions of the successor corporation asbestos-related liability fairness act liberally with regard to successors.
(b) The successor corporation asbestos-related liability fairness act shall apply to all asbestos claims filed against a successor on or after July 1, 2014. The successor corporation asbestos-related liability fairness act shall also apply to any pending asbestos claims against a successor in which trial has not commenced as of July 1, 2014, except that any provisions of these sections that would be unconstitutional if applied retroactively shall be applied prospectively.
History: L. 2014, ch. 45, § 7; July 1.
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