Senate Judiciary Committee adopts amendment to transparency bill for consumer legal funding

Senate Judiciary Committee members adopted an amendment to Senate Bill 426 and recommended the bill favorably for passage. The bill, titled the Kansas Transparency and Consumer Legal Funding Act, would impose disclosure and contract requirements on consumer legal funding companies and set enforcement mechanisms.

The revision adopted narrowed the definition of "consumer" and removed a private right of action. Under the amendment, enforcement would be handled by the Kansas Attorney General through proceedings under the Kansas Administrative Procedure Act. If the AG finds a willful violation, the agency could seek civil penalties up to $10,000 per violation and the company would be barred from recovering the funded amount or contract charges; civil penalties would be deposited into the state general fund.

Senator Clay told the committee the amended language corrects drafting issues in model legislation used around the country and was intended to fix provisions that had not worked well in other states. The chair said proponents worked with the Attorney General’s office on the amendment and the committee approved it by voice vote. The committee then moved the bill, as amended, and the motion to recommend SB 426 favorably for passage carried by voice vote.

The committee did not record roll-call tallies in the transcript; votes were taken by voice. The reviser briefed members and committee discussion was limited to sponsor and procedural remarks before the amendment and final recommendation.

The committee is expected to move the bill to the next step in the legislative process after today's recommendation.