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Minutes for HB2162 - Committee on Judiciary

Short Title

Amending the definition of "consumer transaction" and "supplier" in the Kansas consumer protection act.

Minutes Content for Mon, Feb 11, 2019

Natalie Scott, Assistant Revisor, provided an overview of HB2162 and answered questions from the membership.(Attachment 10)

Donna Huffman stated she and several of other Kansans from multiple districts were appearing and urging the committee members to clarify the language in the Kansas Consumer Protection Act. They were all proponents of HB2162. This proposed edit provides continuity because some judges, not all, are reading a sentence in the Act to provide a blanket exception to financial institutions such as banks, mortgage companies, and servicers. The additional conferees testified to their individual experiences and this is included in the attachment. Ms. Huffman addressed questions from the membership. (Attachment 11)

Kathy Taylor provided neutral testimony for HB2162.  Ms. Taylor explained the intent of the amendment to the definition of “supplier” that the KBA supported and that was passed in the 2005 legislative session was carefully crafted to be a narrow exception to the definition for those occasional instances where repossessed property had to be sold.  The purpose was to prevent lenders from being held to the same standard as those entities that sell vehicles or real estate for a profit.  If there are instances where this language is being used on a broader basis, that was not the KBA’s intention.  The Kansas Banking Association is not certain that the proposed amendment to the definition of “consumer transaction” will curtail that activity while keeping intact the intent of the 2005 legislation.  Ms. Taylor addressed questions from the membership. (Attachment 12)

Chairperson closed the hearing on HB2162.

Chairperson Patton told the membership they would work bills HB2079, HB2104, HB2105, and HB2137 on Wednesday.  He adjourned the meeting at 5:31 pm.