HOUSE BILL No. 2807
Section 1. K.S.A. 2001 Supp. 50-6,105 is hereby amended to read as
follows: 50-6,105. (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 submit-
ting the check, draft or other form of negotiable instrument or payment
order for payment shall have the burden of proving the express authori-
zation 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 amend-
ments thereto, financial institutions may decline to pay any check, draft
or other form of negotiable instrument or payment order submitted with-
out 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 con-
sumer protection act.
Sec. 2. K.S.A. 2001 Supp. 50-6,105 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
Approved March 27, 2002.
Date Composed: 10/10/2002 Date Modified: 10/10/2002