Session Law

Identifying Information:L. 2002 ch. 013
Other Identifying Information:2002 House Bill 2807
Tax Type:Other
Brief Description:An Act relating to consumer protection; concerning method of payment; authorization; amending K.S.A. 2001 Supp. 50-6,105 and repealing the existing section.
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Body:

CHAPTER 13

HOUSE BILL No. 2807


An Act relating to consumer protection; concerning method of payment; authorization;

amending K.S.A. 2001 Supp. 50-6,105 and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

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.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002