As Amended by House Committee          

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Session of 2000
          HOUSE BILL No. 2685           By Special Committee on Judiciary           1-20          

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10             AN  ACT concerning the Kansas fair credit reporting act; amending
11             K.S.A. 50-701, 50-702, 50-703, 50-704, 50-705, 50-706, 50-708, 50-
12             709, 50-710, 50-711, 50-714, 50-715, 50-716, 50-717, 50-718, 50-719,
13             50-720, 50-721 and 50-722 and repealing the existing sections.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 50-701 is hereby amended to read as follows: 50-
17       701. (a) The legislature of the state of Kansas hereby finds and determines
18       that:
19             (1) The banking system is dependent upon fair and accurate credit
20       reporting. Inaccurate credit reports directly impair the efficiency of the
21       banking system, and unfair credit reporting methods undermine the pub-
22       lic confidence which is essential to the continued functioning of the bank-
23       ing system.
24             (2) An elaborate mechanism has been developed for investigating and
25       evaluating the credit worthiness, credit standing, credit capacity, char-
26       acter, and general reputation of consumers.
27             (3) Consumer reporting agencies have assumed a vital role in assem-
28       bling and evaluating consumer credit and other information on
29       consumers.
30             (4) There is a need to insure that consumer reporting agencies ex-
31       ercise their grave responsibilities with fairness, impartiality, and a respect
32       for the consumer's right to privacy.
33             (b) It is the purpose of K.S.A. 50-701 to 50-722, inclusive, and
34       amendments thereto, to require that consumer reporting agencies adopt
35       reasonable procedures for meeting the needs of commerce for consumer
36       credit, personnel, insurance, and other information in a manner which is
37       fair and equitable to the consumer, with regard to the confidentiality,
38       accuracy, relevancy, and proper utilization of such information in accord-
39       ance with the requirements of such sections of this act.
40             (c) The provisions of the fair credit reporting act, K.S.A. 50-701 et
41       seq., and amendments thereto, are not intended to burden interstate com-
42       merce but are intended to insure accurate and full disclosure of infor-
43       mation and to supplement the federal fair credit reporting act, 15 U.S.C.

2
  1       § 1681 et seq.
  2             Sec.  2. K.S.A. 50-702 is hereby amended to read as follows: 50-702.
  3       The following words and phrases when As used in K.S.A. 50-701 to 50-
  4       722, inclusive, and amendments thereto, shall have the meanings ascribed
  5       to them in this section.
  6             (a) The term ``person'' means any individual, partnership, corpora-
  7       tion, trust, estate, cooperative, association, government or governmental
  8       subdivision or agency, or other entity.
  9             (b) The term: (a) ``Adverse action'' means a denial or revocation of
10       credit, a change in the terms of an existing credit arrangement, or a refusal
11       to grant credit in substantially the amount or on substantially the terms
12       requested. The term ``adverse action'' includes: (1) A denial or cancellation
13       of, an increase in any charge for, or a reduction or other adverse or
14       unfavorable change in the terms of coverage or amount of, any insurance,
15       existing or applied for, in connection with the underwriting of insurance;
16             (2) a denial of employment or any other decision for employment
17       purposes that adversely affects any current or prospective employee;
18             (3) a denial or cancellation of, an increase in any charge for, or any
19       other adverse or unfavorable change in the terms of, any license or benefit
20       described in subsection (a)(3)(D) of K.S.A. 50-703, and amendments
21       thereto; and
22             (4) an action taken or determination that is: (A) Made in connection
23       with an application that was made by, or a transaction that was initiated
24       by, any consumer, or in connection with a review of an account pursuant
25       to subsection (a)(3)(F) of K.S.A. 50-703, and amendments thereto; and
26             (B) adverse to the interests of the consumer.; and
27             (5) the same meaning as prescribed by 15 U.S.C. §  1691(d)(6).
28             The term ``adverse action'' does not include a refusal to extend addi-
29       tional credit under an existing credit arrangement where the applicant is
30       delinquent or otherwise in default, or where such additional credit would
31       exceed a previously established credit limit;
32             (b) ``child support obligations'' means: (1) ``Overdue support'' which
33       has the meaning given to such term in section 666(e) of title 42, Social
34       Security Act, 42 U.S.C. § 666(e); and
35             (2) ``state or local child support enforcement agency'' which means a
36       state or local agency which administers a state or local program for es-
37       tablishing and enforcing child support obligations;
38             (c) ``consumer'' means an individual.;
39             (c) The term (d) ``consumer report'' means any written, oral, or
40       other communication of any information by a consumer reporting agency
41       bearing on a consumer's credit worthiness, credit standing, credit capac-
42       ity, character, general reputation, personal characteristics, or mode of
43       living which is used or expected to be used or collected in whole or in

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  1       part for the purpose of serving as a factor in establishing the consumer's
  2       eligibility for credit or insurance to be used primarily for personal, family,
  3       or household purposes, or employment purposes, or other purposes au-
  4       thorized under K.S.A. 50-703, and amendments thereto. The term does
  5       not include: (1) Any report containing information solely as to transactions
  6       or experiences between the consumer and the person making the report;
  7             (2) any communication of such information among persons related by
  8       common ownership or affiliated by corporate control;
  9             (3) any communication of other information among persons related
10       by common ownership or affiliated by corporate control, if it is clearly
11       and conspicuously disclosed to the consumer that the information may be
12       communicated among such persons and the consumer is given the oppor-
13       tunity before the time that the information is initially communicated, to
14       direct that such information not be communicated among such persons;
15             (4) any authorization or approval of a specific extension of credit di-
16       rectly or indirectly by the issuer of a credit card or similar device;
17             or (3) (5) any report in which a person who has been requested by a
18       third party to make a specific extension of credit directly or indirectly to
19       a consumer conveys that decision with respect to such request, if the third
20       party advises the consumer of the name and address of the person to
21       whom the request was made and such person makes the disclosures to
22       the consumer required under K.S.A. 50-714., and amendments thereto;
23       or
24             (6) a communication described in subsection (n) (i);
25             (d) The term ``investigative consumer report'' means a consumer re-
26       port or portion thereof in which information on a consumer's character,
27       general reputation, personal characteristics, or mode of living is obtained
28       through personal interviews with neighbors, friends, or associates of the
29       consumer reported on or with others with whom the consumer is ac-
30       quainted or who may have knowledge concerning any such items of in-
31       formation. However, such information shall not include specific factual
32       information on a consumer's credit record obtained directly from a cred-
33       itor of the consumer or from a consumer reporting agency when such
34       information was obtained directly from a creditor of the consumer or from
35       the consumer.
36             (e) The term``consumer reporting agency'' means any person which,
37       for monetary fees, dues, or on a cooperative nonprofit basis, regularly
38       engages in whole or in part in the practice of assembling or evaluating
39       consumer credit information or other information on consumers for the
40       purpose of furnishing consumer reports to third parties, and which uses
41       any means or facility of interstate commerce for the purpose of preparing
42       or furnishing consumer reports.;
43             (f) The term ``file,'' when used in connection with information on any

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  1       consumer, means all of the information on that consumer recorded and
  2       retained by a consumer reporting agency regardless of how the infor-
  3       mation is stored.
  4             (g) The term (f) ``consumer reporting agency that compiles and
  5       maintains files on consumers on a nationwide basis'' means a consumer
  6       reporting agency that regularly engages in the practice of assembling or
  7       evaluating, and maintaining, for the purpose of furnishing consumer re-
  8       ports to third parties bearing on a consumer's credit worthiness, credit
  9       standing, or credit capacity, each of the following regarding consumers
10       residing nationwide: (1) Public record information; and
11             (2) credit account information from persons who furnish that infor-
12       mation regularly and in the ordinary course of business;
13             (g) ``credit or insurance transaction that is not initiated by the con-
14       sumer'' does not include the use of a consumer report by a person with
15       which the consumer has an account or insurance policy, for purposes of
16       (1) reviewing the account or insurance policy; or
17             (2) collecting the account;
18             (h) ``employment purposes'' when used in connection with a con-
19       sumer report means a report used for the purpose of evaluating a con-
20       sumer for employment, promotion, reassignment or retention as an
21       employee.;
22             (h) The term (i) ``excluded communications'' means communica-
23       tion: (1) That, except for subsection (d)(6), would be an investigative con-
24       sumer report;
25             (2) that is made to a prospective employer for the purpose of procur-
26       ing an employee for the employer, or procuring an opportunity for a
27       natural person to work for the employer;
28             (3) that is made by a person who regularly performs such
29       procurement;
30             (4) that is not used by any person for any purpose other than a pur-
31       pose described in subsection (i)(2); and
32             (5) with respect to which: (A) The consumer who is the subject of the
33       communication: (i) Consents orally or in writing to the nature and scope
34       of the communication, before the collection of any information for the
35       purpose of making the communication;
36             (ii) consents orally or in writing to the making of the communication
37       to a prospective employer, before the making of the communication; and
38             (iii) in the case of consent under subsection (i)(5)(A)(i) or (ii) given
39       orally, is provided written confirmation of that consent by the person
40       making the communication, not later than three business days after the
41       receipt of the consent by that person;
42             (B) the person who makes the communication does not, for the pur-
43       pose of making the communication, make any inquiry that if made by a

5
  1       prospective employer of the consumer who is the subject of the commu-
  2       nication would violate any applicable federal or state equal employment
  3       opportunity law or regulation; and
  4             (C) the person who makes the communication: (i) Discloses in writing
  5       to the consumer who is the subject of the communication, not later that
  6       five business days after receiving any request from the consumer for such
  7       disclosure, the nature and substance of all information in the consumer's
  8       file at the time of the request, except that the sources of any information
  9       that is acquired solely for use in making the communication and is actually
10       used for no other purpose, need not be disclosed other than under appro-
11       priate discovery procedures in any court of competent jurisdiction in
12       which an action is brought; and
13             (ii) notifies the consumer who is the subject of the communication, in
14       writing, of the consumer's right to request the information described in
15       subsection (i)(5)(C)(i);
16             (j) ``file,'' when used in connection with information on any consumer,
17       means all of the information on that consumer recorded and retained by
18       a consumer reporting agency regardless of how the information is stored;
19             (k) ``firm offer of credit or insurance'' means any offer of credit or
20       insurance to a consumer that will be honored if the consumer is deter-
21       mined, based on information in a consumer report on the consumer, to
22       meet the specific criteria used to select the consumer for the offer, except
23       that the offer may be further conditioned on one or more of the following:
24       (1) The consumer being determined, based on information in the con-
25       sumer's application for the credit or insurance, to meet specific criteria
26       bearing on credit worthiness or insurability, as applicable, that are estab-
27       lished: (A) Before selection of the consumer for the offer; and
28             (B) for the purpose of determining whether to extend credit or insur-
29       ance pursuant to the offer;
30             (2) verification: (A) That the consumer continues to meet the specific
31       criteria used to select the consumer for the offer, by using information in
32       a consumer report on the consumer, information in the consumer's ap-
33       plication for the credit or insurance, or other information bearing on the
34       credit worthiness or insurability of the consumer; or
35             (B) of the information in the consumer's application for the credit or
36       insurance, to determine that the consumer meets the specific criteria bear-
37       ing on credit worthiness or insurability; or
38             (3) the consumer furnishing any collateral that is a requirement for
39       the extension of the credit or insurance that was: (A) Established before
40       selection of the consumer for the offer of credit or insurance; and
41             (B) disclosed to the consumer in the offer of credit or insurance;
42             (l) ``investigative consumer report'' means a consumer report or por-
43       tion thereof in which information on a consumer's character, general rep-

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  1       utation, personal characteristics, or mode of living is obtained through
  2       personal interviews with neighbors, friends, or associates of the consumer
  3       reported on or with others with whom the consumer is acquainted or who
  4       may have knowledge concerning any such items of information. However,
  5       such information shall not include specific factual information on a con-
  6       sumer's credit record obtained directly from a creditor of the consumer
  7       or from a consumer reporting agency when such information was ob-
  8       tained directly from a creditor of the consumer or from the consumer;
  9             (m) ``medical information'' means information or records obtained,
10       with the consent of the individual to whom it relates, from licensed phy-
11       sicians or medical practitioners, hospitals, clinics, or other medical or
12       medically related facilities.; and
13             (n) ``person'' means any individual, partnership, corporation, trust,
14       estate, cooperative, association, government or governmental subdivision
15       or agency, or other entity.
16             Sec.  3. K.S.A. 50-703 is hereby amended to read as follows: 50-703.
17       (a) A consumer reporting agency may furnish a consumer report under
18       the following circumstances and no other:
19             (a) (1) In response to the order of a court having jurisdiction to issue
20       such an order, or a subpoena issued in connection with criminal proceed-
21       ings or a subpoena issued pursuant to the Kansas consumer protection
22       act;
23             (b) (2) in accordance with the written instructions of the consumer
24       to whom it relates; and
25             (c) (3) to a person which it has reason to believe:
26             (1) (A) Intends to use the information in connection with a credit
27       transaction involving the consumer on whom the information is to be
28       furnished and involving the extension of credit to, or review or collection
29       of an account of, the consumer; or
30             (2) (B) intends to use the information for employment purposes; or
31             (3) (C) intends to use the information in connection with the under-
32       writing of insurance involving the consumer; or
33             (4) (D) intends to use the information in connection with a deter-
34       mination of the consumer's eligibility for a license or other benefit granted
35       by a governmental instrumentality required by law to consider an appli-
36       cant's financial responsibility or status; or
37             (5) (E) intends to use the information as a potential investor or ser-
38       vicer, or current insurer, in connection with a valuation of, or an assess-
39       ment of the credit or prepayment risks associated with, an existing credit
40       obligation; or
41             (F) otherwise has a legitimate business need for the information (i)
42       in connection with a business transaction involving that is initiated by
43       the consumer., or (ii) to review an account to determine whether the

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  1       consumer continues to meet the terms of the account; or
  2             (4) in response to a request by the head of a state or local child
  3       support enforcement agency, or a state or local government official au-
  4       thorized by the head of such an agency, if the person making the request
  5       certifies to the consumer reporting agency that: (A) The consumer report
  6       is needed for the purpose of establishing an individual's capacity to make
  7       child support payments or determining the appropriate level of such
  8       payments;
  9             (B) the paternity of the consumer for the child to which the obligation
10       relates has been established or acknowledged by the consumer in ac-
11       cordance with state laws under which the obligation arises, if required by
12       those laws;
13             (C) the person has provided at least 10 days' prior notice to the con-
14       sumer whose report is requested, by certified or registered mail to the
15       last known address of the consumer, that the report will be requested;
16       and
17             (D) the consumer report will be kept confidential, will be used solely
18       for a purpose described in subsection (4)(A), and will not be used in
19       connection with any other civil, administrative or criminal proceeding, or
20       for any other purpose; and
21             (5) to an agency administering a state plan for use to set an initial or
22       modified child support award.; and
23             (6) national security investigations in accordance with 15
24       U.S.C. §  1681b(b)(4).
25             (b)  (1) A consumer reporting agency may furnish a consumer report
26       for employment purposes only if: (A) The person who obtains such report
27       from the agency certifies to the agency that:
28             (i) The person has complied with subsection (b)(2) with respect to the
29       consumer report, and the person will comply with subsection (b)(3) with
30       respect to the consumer report if subsection (b)(3) becomes applicable;
31       and
32             (ii) information from the consumer report will not be used in violation
33       of any applicable federal or state equal employment opportunity law or
34       regulation; and
35             (B) the consumer reporting agency provides with the report, or has
36       previously provided, a summary of the consumer's rights under this title,
37       as prescribed by the federal trade commission, pursuant to 15 U.S.C. §
38       609 1681g (c)(3).
39             (2)  (A) Except as provided in subsection (b)(2)(B), a person may not
40       procure a consumer report, or cause a consumer report to be procured,
41       for employment purposes with respect to any consumer, unless:
42             (i) A clear and conspicuous disclosure has been made in writing to
43       the consumer at any time before the report is procured or caused to be

8
  1       procured, in a document that consists solely of the disclosure, that a con-
  2       sumer report may be obtained for employment purposes; and (ii) the
  3       consumer has authorized in writing, which authorization may be made
  4       on the document referred to in clause (i), the procurement of the report
  5       by that person;
  6             (B) if a consumer described in subsection (b)(2)(C) applies for em-
  7       ployment by mail, telephone, computer or other similar means, at any
  8       time before a consumer report is procured or caused to be procured in
  9       connection with that application:
10             (i) The person who procures the consumer report on the consumer
11       for employment purposes shall provide to the consumer, by oral, written
12       or electronic means, notice that a consumer report may be obtained for
13       employment purposes, and a summary of the consumer's rights pursuant
14       to subsection (a)(3) of K.S.A. 50-714, and amendments thereto;
15             (ii) the consumer shall have consented, orally, in writing, or electron-
16       ically to the procurement of the report by that person;
17             (C) subsection (b)(2)(B) shall apply to a person procuring a consumer
18       report on a consumer in connection with the consumer's application for
19       employment only if, as of the time at which the person procures the report
20       or causes the report to be procured, the only interaction between the
21       consumer and the person in connection with that employment application
22       has been by mail, telephone, computer, or other similar means.
23             (3)  (A) Except as provided in subsection (b)(3)(B), in using a con-
24       sumer report for employment purposes, before taking any adverse action
25       based in whole or in part on the report, the person intending to take such
26       adverse action shall provide to the consumer to whom the report relates:
27             (i) A copy of the report; and
28             (ii) a description in writing of the rights of the consumer under this
29       title, as prescribed by the federal trade commission pursuant to 15 U.S.C.
30       § 609 1681g (c)(3).
31             (B)  (i) If a consumer described in subsection (b)(3)(C) applies for
32       employment by mail, telephone, computer or other similar means, and if
33       a person who has procured a consumer report on the consumer for em-
34       ployment purposes takes adverse action on the employment application
35       based in whole or in part on the report, then the person must provide to
36       the consumer to home whom the report relates, in lieu of the notices
37       required under subsection (b)(3)(A) and pursuant to subsection (a) of
38       K.S.A. 50-714, and amendments thereto, within three business days of
39       taking such adverse action, an oral, written or electronic notification:
40             (a) That adverse action has been taken based in whole or in part on
41       a consumer report received from a consumer reporting agency;
42             (b) of the name, address and telephone number of the consumer re-
43       porting agency that furnished the consumer report, including a toll-free

9
  1       telephone number established by the agency if the agency compiles and
  2       maintains files on consumers on a nationwide basis;
  3             (c) that the consumer reporting agency did not make the decision to
  4       take the adverse action and is unable to provide to the consumer the
  5       specific reasons why the adverse action was taken; and
  6             (d) that the consumer, upon providing proper identification, may re-
  7       quest a free copy of a report and may dispute with the consumer reporting
  8       agency the accuracy or completeness of any information in a report; and
  9             (ii) if, under subsection (b)(3)(B)(i), the consumer requests a copy of
10       a consumer report from the person who procured the report, then, within
11       three business days of receiving the consumer's request, together with
12       proper identification, the person must send or provide to the consumer a
13       copy of a report and a copy of the consumer's rights as prescribed by the
14       federal trade commission, pursuant to 15 U.S.C. § 609 1681g (c)(3).
15             (C) Subsection (b)(3)(B) shall apply to a person procuring a consumer
16       report on a consumer in connection with the consumer's application for
17       employment only if, as of the time at which the person procures the report
18       or causes the report to be procured, the only interaction between the
19       consumer and the person in connection with that employment application
20       has been by mail, telephone, computer, or other similar means.
21             (c)  (1) A consumer reporting agency may furnish a consumer report
22       relating to any consumer pursuant to subsections (a)(3)(A) or (C) in con-
23       nection with any credit or insurance transaction that is not initiated by
24       the consumer only if:
25             (A) The consumer authorized the agency to provide such report to
26       such person; or
27             (B)  (i) the transaction consists of a firm offer of credit or insurance;
28             (ii) the consumer reporting agency has complied with subsection (d);
29       and
30             (iii) there is not in effect an election by the consumer, made in ac-
31       cordance with subsection (d), to have the consumer's name and address
32       excluded from lists of names provided by the agency pursuant to this
33       paragraph.
34             (2) A person may receive pursuant to subsection (c)(1)(B) only:
35             (A) The name and address of a consumer;
36             (B) an identifier that is not unique to the consumer and that is used
37       by the person solely for the purpose of verifying the identity of the con-
38       sumer; and
39             (C) other information pertaining to a consumer that does not identify
40       the relationship or experience of the consumer with respect to a particular
41       creditor or other entity.
42             (3) Except as provided by subsection (a)(5) of K.S.A. 50-708, and
43       amendments thereto, a consumer reporting agency shall not furnish to

10
  1       any person a record of inquiries in connection with a credit or insurance
  2       transaction that is not initiated by a consumer.
  3             (d)  (1) A consumer may elect to have the consumer's name and ad-
  4       dress excluded from any list provided by a consumer reporting agency
  5       under subsection (c)(1)(B) in connection with a credit or insurance trans-
  6       action that is not initiated by the consumer, by notifying the agency in
  7       accordance with subsection (d)(2) that the consumer does not consent to
  8       any use of a consumer report relating to the consumer in connection with
  9       any credit or insurance transaction that is not initiated by the consumer.
10             (2) A consumer shall notify a consumer reporting agency under sub-
11       section (d)(1):
12             (A) Through the notification system maintained by the agency under
13       subsection (d)(5); or
14             (B) by submitting to the agency a signed notice of election form issued
15       by the agency for purposes of this subparagraph.
16             (3) Upon receipt of notification of the election of a consumer under
17       subsection (d)(1) through the notification system maintained by the
18       agency under subsection (d)(5), a consumer reporting agency shall:
19             (A) Inform the consumer that the election is effective only for the two-
20       year period following the election if the consumer does not submit to the
21       agency a signed notice of election form issued by the agency for purposes
22       of subsection (d)(2)(B); and
23             (B) provide to the consumer a notice of election form, if requested by
24       the consumer, not later than five business days after receipt of the noti-
25       fication of the election through the system established under subsection
26       (d)(5), in the case of a request made at the time the consumer provides
27       notification through the system.
28             (4) An election of a consumer under subsection (d)(1):
29             (A) Shall be effective with respect to a consumer reporting agency
30       beginning five business days after the date on which the consumer notifies
31       the agency in accordance with subsection (d)(2);
32             (B) shall be effective with respect to a consumer reporting agency:
33             (i) Subject to subsection (d)(4)(C), during the two-year period begin-
34       ning five business days after the date on which the consumer notifies the
35       agency of the election, in the case of an election for which a consumer
36       notifies the agency only in accordance with subsection (d)(2)(A); or
37             (ii) until the consumer notifies the agency under subsection (d)(4)(C),
38       in the case of an election for which a consumer notifies the agency in
39       accordance with subsection (d)(2)(B);
40             (C) shall not be effective after the date on which the consumer notifies
41       the agency, through the notification system established by the agency
42       under subsection (d)(5), that the election is no longer effective; and
43             (D) shall be effective with respect to each affiliate of the agency.

11
  1             (5)  (A) Each consumer reporting agency that, under subsection
  2       (c)(1)(B), furnishes a consumer report in connection with a credit or in-
  3       surance transaction that is not initiated by a consumer, shall:
  4             (i) Establish and maintain a notification system, including a toll-free
  5       telephone number, which permits any consumer whose consumer report
  6       is maintained by the agency to notify the agency, with appropriate iden-
  7       tification, of the consumer's election to have the consumer's name and
  8       address excluded from any such list of names and addresses provided by
  9       the agency for such a transaction; and
10             (ii) publish by not later than 365 days after the date of enactment of
11       the consumer credit reporting reform act of 1996, and not less than an-
12       nually thereafter, in a publication of general circulation in the area served
13       by the agency:
14             (a) A notification that information in consumer files maintained by
15       the agency may be used in connection with such transactions; and
16             (b) the address and toll-free telephone number for consumers to use
17       to notify the agency of the consumer's election under subsection
18       (d)(5)(A)(ii)(a).
19             (B) Establishment and maintenance of a notification system, includ-
20       ing a toll-free telephone number and publication by a consumer reporting
21       agency on the agency's own behalf and on behalf of any of its affiliates in
22       accordance with this paragraph is deemed to be in compliance with this
23       paragraph by each of those affiliates.
24             (6) Each consumer reporting agency that compiles and maintains files
25       on consumers on a nationwide basis shall establish and maintain a noti-
26       fication system for purposes of subsection (d)(5) jointly with other such
27       consumer reporting agencies.
28             (e) A person shall not use or obtain a consumer report for any purpose
29       unless:
30             (1) The consumer report is obtained for a purpose for which the con-
31       sumer report is authorized to be furnished under this section; and
32             (2) the purpose is certified in accordance with K.S.A. 50-706, and
33       amendments thereto by a prospective user of the report through a general
34       or specific certification.
35             (f) A consumer reporting agency shall not furnish for employment
36       purposes, or in connection with a credit or insurance transaction, a con-
37       sumer report that contains medical information about a consumer, unless
38       the consumer consents to the furnishing of the report.
39             Sec.  4. K.S.A. 50-704 is hereby amended to read as follows: 50-704.
40       (a) Except as authorized under subsection (b) of this section, no consumer
41       reporting agency may make any consumer report containing any of the
42       following items of information:
43             (1) Bankruptcies which, from date of adjudication of the most recent

12
  1       bankruptcy Cases under title 11 of the United States code or under the
  2       bankruptcy act that, from the date of entry of the order for relief or the
  3       date of adjudication, as the case may be, antedate the report by more
  4       than fourteen (14) 10 years;
  5             (2) civil suits and, civil judgments and records of arrest which, from
  6       date of entry, antedate the report by more than seven (7) years or until
  7       the governing statute of limitations has expired, whichever is the longer
  8       period;
  9             (3) paid tax liens which, from date of payment, antedate the report
10       by more than seven (7) years;
11             (4) accounts placed for collection or charged to profit and loss which
12       antedate the report by more than seven (7) years; and
13             (5) records of arrest, indictment, or conviction of crime which, from
14       date of disposition, release, or parole, antedate the report by more than
15       seven (7) years; and
16             (6) any other adverse item of information other than records of con-
17       victions of crimes which antedates the report by more than seven (7)
18       years.
19             (b) The provisions of subsection (a) of this section are not applicable
20       in the case of any consumer credit report to be used in connection with
21             (1) a credit transaction involving, or which may reasonably be ex-
22       pected to involve, a principal amount of fifty thousand dollars ($50,000)
23       $150,000 or more;
24             (2) the underwriting of life insurance involving, or which may rea-
25       sonably be expected to involve, a face amount of fifty thousand dollars
26       ($50,000) $150,000 or more; or
27             (3) the employment of any individual at an annual salary which
28       equals, or which may reasonably be expected to equal twenty thousand
29       dollars ($20,000) $75,000, or more.
30             (c) The seven-year period referred to in subsection (a) shall begin,
31       with respect to any delinquent account that is placed for collection, in-
32       ternally or by referral to a third party, whichever is earlier, charged to
33       profit and loss, or subjected to any similar action, upon the expiration of
34       the 180-day period beginning on the date of the commencement of the
35       delinquency which immediately preceded the collection activity, charge
36       to profit and loss, or similar action.
37             (d) Any consumer reporting agency that furnishes a consumer report
38       that contains information regarding any case involving the consumer that
39       arises under title 11, United States code, shall include in the report an
40       identification of the chapter of such title 11 under which such case arises
41       if provided by the source of the information. If any case arising or filed
42       under title 11, United States code, is withdrawn by the consumer before
43       a final judgment, the consumer reporting agency shall include in the re-

13
  1       port that such case or filing was withdrawn upon receipt of documenta-
  2       tion certifying such withdrawal.
  3             (e) If a consumer reporting agency is notified pursuant to subsection
  4       (a)(6) of K.S.A. 50-722, and amendments thereto that a credit account of
  5       a consumer was voluntarily closed by the consumer, the agency shall
  6       indicate that fact in any consumer report that includes information related
  7       to the account.
  8             (f) If a consumer reporting agency is notified pursuant to subsection
  9       (a)(5)of K.S.A. 50-722, and amendments thereto that information regard-
10       ing a consumer who was furnished to the agency is disputed by the con-
11       sumer, the agency shall indicate that fact in each consumer report that
12       includes the disputed information.
13             Sec.  5. K.S.A. 50-705 is hereby amended to read as follows: 50-705.
14       (a) A person may not procure or cause to be prepared an investigative
15       consumer report on any consumer unless:
16             (1) It is clearly and accurately disclosed to the consumer that an in-
17       vestigative consumer report including information as to the consumer's
18       character, general reputation, personal characteristics, and mode of living,
19       whichever are applicable, may be made, and such disclosure:
20             (A) Is made in a writing mailed, or otherwise delivered, to the con-
21       sumer, not later than three days after the date on which the report was
22       first requested,; and
23             (B) includes a statement informing the consumer of the right to re-
24       quest the additional disclosures provided for under subsection (b) of this
25       section; or
26             (2) the report is to be used for employment purposes for which the
27       consumer has not specifically applied and the written summary of the
28       rights of the consumer prepared by the federal trade commission pursuant
29       to 15 U.S.C. § 609 (c)(3); and
30             (2) the person certifies or has certified to the consumer reporting
31       agency that:
32             (A) The person has made the disclosures to the consumer required by
33       subsection (a)(1); and
34             (B) the person will comply with subsection (b).
35             (b) Any person who procures or causes to be prepared an investiga-
36       tive consumer report on any consumer shall, upon written request made
37       by the consumer within a reasonable period of time after the receipt by
38       him or her the consumer of the disclosure required by subsection (a) (1)
39       of this section, shall make a complete and accurate disclosure of the na-
40       ture and scope of the investigation requested. This disclosure shall be
41       made in a writing and mailed, or otherwise delivered, to the consumer
42       not later than five (5) days after the date on which the request for such
43       disclosure was received from the consumer or such report was first re-

14
  1       quested, whichever is the later.
  2             (c) No person may be held liable for any violation of subsection (a)
  3       or (b) of this section if that person shows by a preponderance of the
  4       evidence that at the time of the violation the person maintained reason-
  5       able procedures to assure compliance with subsection (a) or (b).
  6             (d)  (1) A consumer reporting agency shall not prepare or furnish an
  7       investigative consumer report unless the agency has received a certifica-
  8       tion under subsection (a)(2) from the person who requested the report.
  9             (2) A consumer reporting agency shall not make an inquiry for the
10       purpose of preparing an investigative consumer report on a consumer for
11       employment purposes if the making of the inquiry by an employer or
12       prospective employer or the consumer would violate any applicable fed-
13       eral or state equal employment opportunity law or regulation.
14             (3) Except as otherwise provided by K.S.A. 50-712, and amendments
15       thereto a consumer reporting agency shall not furnish an investigative
16       consumer report that includes information that is a matter of public rec-
17       ord and that relates to an arrest, indictment, conviction, civil judicial
18       action, tax lien or outstanding judgment, unless the agency has verified
19       the accuracy of the information during the 30-day period ending on the
20       date on which the report is furnished.
21             (4) A consumer reporting agency shall not prepare or furnish an in-
22       vestigative consumer report on a consumer that contains information that
23       is adverse to the interest of the consumer and that is obtained through a
24       personal interview with a neighbor, friend, or associate of the consumer
25       or with another person with whom the consumer is acquainted or who
26       has knowledge of such item of information, unless:
27             (A) The agency has followed reasonable procedures to obtain confir-
28       mation of the information, from an additional source that has independent
29       and direct knowledge of the information; or
30             (B) the person interviewed is the best possible source of the
31       information.
32             Sec.  6. K.S.A. 50-706 is hereby amended to read as follows: 50-706.
33       (a) Every consumer reporting agency shall maintain reasonable proce-
34       dures designed to avoid violations of K.S.A. 50-704, and amendments
35       thereto and to limit the furnishing of consumer reports to the purposes
36       listed under K.S.A. 50-703, and amendments thereto. These procedures
37       shall require that prospective users of the information identify them-
38       selves, certify the purposes for which the information is sought, and cer-
39       tify that the information will be used for no other purpose. Every con-
40       sumer reporting agency shall make a reasonable effort to verify the
41       identity of a new prospective user and the uses certified by such pro-
42       spective user prior to furnishing such user a consumer report. No con-
43       sumer reporting agency may furnish a consumer report to any person if

15
  1       it has reasonable grounds for believing that the consumer report will not
  2       be used for a purpose listed in K.S.A. 50-703, and amendments thereto.
  3             (b) Whenever a consumer reporting agency prepares a consumer re-
  4       port it shall follow reasonable procedures to assure maximum possible
  5       accuracy of the information concerning the individual about whom the
  6       report relates.
  7             (c) A consumer reporting agency may not prohibit a user of a con-
  8       sumer report furnished by the agency on a consumer from disclosing the
  9       contents of the report to the consumer, if adverse action against the con-
10       sumer has been taken by the user based in whole or in part on the report.
11             (d)  (1) A consumer reporting agency shall provide a notice of such
12       person's responsibilities under this title to any person:
13             (A) Who regularly and in the ordinary course of business furnishes
14       information to the agency with respect to any consumer; or
15             (B) to whom a consumer report is provided by the agency;
16             (2) a consumer reporting agency shall be in compliance with this sub-
17       section if it provides a notice under subsection (d)(1) that is substantially
18       similar to the federal trade commission prescription under 15 U.S.C. §
19       607 (d)(2).
20             (e)  (1) A person may not procure a consumer report for purposes of
21       reselling the report, or any information in the report, unless the person
22       discloses to the consumer reporting agency that originally furnishes the
23       report:
24             (A) The identity of the end-user of the report or information; and
25             (B) each permissible purpose under K.S.A. 50-703, and amendments
26       thereto for which the report is furnished to the end-user of the report or
27       information.
28             (2) A person who procures a consumer report for purposes of reselling
29       the report or any information in the report shall:
30             (A) Establish and comply with reasonable procedures designed to en-
31       sure that the report or information is resold by the person only for a
32       purpose for which the report may be furnished under K.S.A. 50-703, and
33       amendments thereto including by requiring that each person to which the
34       report or information is resold and that resells or provides the report or
35       information to any other person:
36             (i) Identifies each end-user of the resold report or information;
37             (ii) certifies each purpose for which the report or information will be
38       used; and
39             (iii) certifies that the report or information will be used for no other
40       purpose; and
41             (B) before reselling the report, make reasonable efforts to verify the
42       indentifications and certifications made under subsection (e)(2)(A).
43             (3) Notwithstanding the provisions of subsection (e)(1) or (2), a per-

16
  1       son who procures a consumer report for purposes of reselling the report
  2       or any information in the report shall not disclose the identity of the end-
  3       user of the report under subsection (e)(1) or (2) if:
  4             (A) The end-user is an agency or department of the United States
  5       government which procures the report from the person for purposes of
  6       determining the eligibility of the consumer concerned to receive access or
  7       continued access to classified information; and
  8             (B) the agency or department certifies in writing to the person re-
  9       selling the report that nondisclosure is necessary to protect classified in-
10       formation or the safety of persons employed by or contracting with, or
11       undergoing investigation for work or contracting with the agency or
12       department.
13             Sec.  7. K.S.A. 50-708 is hereby amended to read as follows: 50-708.
14       (a) Every consumer reporting agency shall, upon request and proper iden-
15       tification of any consumer, and subject to the provisions of K.S.A. 50-709,
16       and amendments thereto, clearly and accurately disclose to the consumer:
17             (1) The nature and substance of all information (except medical in-
18       formation) in its files on the consumer at the time of the request. All
19       information in the consumer's file at the time of the request, except that
20       nothing in this subsection shall be construed to require a consumer re-
21       porting agency to disclose to a consumer any information concerning
22       credit scores or any other risk scores or predictors relating to the
23       consumer;
24             (2) the sources of the information;, except that the sources of infor-
25       mation acquired solely for use in preparing an investigative consumer
26       report and actually used for no other purpose need not be disclosed:
27       Provided, That. In the event an action is brought under the provisions of
28       K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, such sources
29       shall be available to the plaintiff under appropriate discovery procedures
30       in the court in which the action is brought.;
31             (3) The recipients of any consumer report on the consumer which it
32       has furnished identification of each person, including each end-user iden-
33       tified under subsection (e)(1) of K.S.A. 50-706, and amendments thereto,
34       that have procured a consumer report:
35             (A) For employment purposes within the two-year period preceding
36       the request, and;
37             (B) for any other purpose within the six-month one-year period pre-
38       ceding the request.;
39             (C) an identification of a person under subsection (a)(3)(A) shall in-
40       clude the name of the person or, if applicable, the trade name, written in
41       full, under which such person conducts business and the address and
42       telephone number of the person;
43             (D) subsection (a)(3)(A) does not apply if:

17
  1             (i) The end-user is an agency or department of the United States gov-
  2       ernment that procures the report from the person for purposes of deter-
  3       mining the eligibility of the consumer to whom the report relates to receive
  4       access or continued access to classified information; and
  5             (ii) the head of the agency or department makes a written finding as
  6       prescribed under 15 U.S.C. § 1681b (4)(A);
  7             (4) the dates, original payees, and amounts of any checks upon which
  8       is based any adverse characterization of the consumer, included in the file
  9       at the time of the disclosure; and
10             (5) a record of all inquiries received by the agency during the one-
11       year period preceding the request that identified the consumer in con-
12       nection with a credit or insurance transaction that was not initiated by
13       the consumer.
14             (b)  (1) A consumer reporting agency shall notify a consumer, by let-
15       ter sent by first-class mail, that the consumer reporting agency will pro-
16       vide the consumer with a disclosure copy of the consumer's file at no
17       charge and a toll-free telephone number to call to request such copy, when
18       one of the following events occurs within a 12-month period:
19             (A) The consumer reporting agency has received three credit inquiries
20       pertaining to the consumer; or
21             (B) the consumer reporting agency has received a report that would
22       add adverse action to a consumer's file.
23             (2) A consumer reporting agency need only send one letter to a con-
24       sumer per 12-month period pursuant to subsection (b)(1) even if more
25       than one such event occurs in that period.
26             (3) Any letter mailed to a consumer pursuant to subsection (b) shall
27       not contain any identifying information particular to that consumer in-
28       cluding, but not limited to social security number, place of employment,
29       date of birth or mother's maiden name.
30             (4) Any letter mailed to a consumer pursuant to subsection (b) may
31       be a form letter, except that each letter shall advise the consumer of the
32       number and type of events that occurred relating to the consumer that
33       initiated the letter.
34             (b) (c) The requirements of subsection (a) respecting the disclosure
35       of sources of information and the recipients of consumer reports do not
36       apply to information received or consumer reports furnished prior to the
37       effective date of this act except to the extent that the matter involved is
38       contained in the files of the consumer reporting agency on that date.
39             Sec.  8. K.S.A. 50-709 is hereby amended to read as follows: 50-709.
40       (a) A consumer reporting agency shall make the disclosures required un-
41       der K.S.A. 50-708 during normal business hours and on reasonable notice.
42             (b) The disclosures required under K.S.A. 50-708 shall be made to
43       the consumer

18
  1             (1) in person if the consumer appears in person and furnishes proper
  2       identification; or
  3             (2) by telephone if the consumer has made a written request, with
  4       proper identification, for telephone disclosure and the toll charge, if any,
  5       for the telephone call is prepaid by or charged directly to the consumer.
  6       (1) A consumer reporting agency shall require, as a condition of making
  7       the disclosures required under K.S.A. 50-708, and amendments thereto
  8       that the consumer furnish proper identification.
  9             (2) Except as provided in subsection (b), the disclosures required to
10       be made under K.S.A. 50-708, and amendments thereto, shall be provided
11       under that section in writing.
12             (b)  (1) If authorized by a consumer, a consumer reporting agency
13       may make the disclosures required under K.S.A. 50-708, and amendments
14       thereto:
15             (A) Other than in writing; and
16             (B) in such form as may be:
17             (i) Specified by the consumer in accordance with subsection (b)(2);
18       and
19             (ii) available from the agency.
20             (2) A consumer may specify pursuant to subsection (b)(1) that disclo-
21       sures under K.S.A. 50-708, and amendments thereto, shall be made:
22             (A) In person, upon the appearance of the consumer at the place of
23       business of the consumer reporting agency where disclosures are regularly
24       provided, during normal business hours, and on reasonable notice;
25             (B) by telephone, if the consumer has made a written request for
26       disclosure by telephone;
27             (C) by electronic means, if available from the agency; or
28             (D) by any other reasonable means that is available from the agency.
29             (c) Any consumer reporting agency shall provide trained personnel
30       to explain to the consumer any information furnished to him or her the
31       consumer pursuant to K.S.A. 50-708, and amendments thereto.
32             (d) The consumer shall be permitted to be accompanied by one other
33       person of his or her the consumer's choosing, who shall furnish reasonable
34       identification. A consumer reporting agency may require the consumer
35       to furnish a written statement granting permission to the consumer re-
36       porting agency to discuss the consumer's file in such person's presence.
37             (e) Except as provided in K.S.A. 50-715 and 50-716, and amendments
38       thereto, no consumer may bring any action or proceeding in the nature
39       of defamation, invasion of privacy, or negligence with respect to the re-
40       porting of information against any consumer reporting agency, any user
41       of information, or any person who furnishes information to a consumer
42       reporting agency, based on information disclosed pursuant to K.S.A. 50-
43       708, 50-709 or 50-714, and amendments thereto, or based on information

19
  1       disclosed by a user of a consumer report to or for a consumer against
  2       whom the user has taken adverse action, based in whole or in part on the
  3       report, except as to false information furnished with malice or willful
  4       intent to injure such consumer.
  5             Sec.  9. K.S.A. 50-710 is hereby amended to read as follows: 50-710.
  6       (a) If the completeness or accuracy of any item of information contained
  7       in his or her a consumer's file at a consumer reporting agency is disputed
  8       by a consumer, and such dispute is directly conveyed to the consumer
  9       reporting agency by the consumer, the consumer reporting agency shall
10       within a reasonable period of time reinvestigate free of charge and record
11       the current status of that the disputed information unless it has reasonable
12       grounds to believe that the dispute by the consumer is frivolous or irrel-
13       evant or delete the item from the file in accordance with subsection (f)
14       before the end of the 30-day period beginning on the date on which the
15       agency receives the notice of the dispute from the consumer. If after such
16       reinvestigation such information is found to be inaccurate or can no
17       longer be verified, the consumer reporting agency shall promptly delete
18       such information. The presence of contradictory information in the con-
19       sumer's file does not in and of itself constitute reasonable grounds for
20       believing the dispute is frivolous or irrelevant.
21             (b) Recordation of current status and/or deletion of disputed infor-
22       mation shall be completed by the consumer reporting agency before the
23       end of the 30-day period beginning on the date on which the agency
24       receives the notice of the dispute from the consumer.
25             (b) The 30-day period described in subsection (a) may be extended
26       for not more than 15 additional days if the consumer reporting agency
27       receives information from the consumer during that 30-day period that
28       is relevant to reinvestigation. No extension shall apply to any reinvesti-
29       gation in which, during the 30-day period, the information that is the
30       subject of the reinvestigation is found to be inaccurate or incomplete or
31       the consumer reporting agency determines that the information cannot
32       be verified.
33             (c)  (1) Before the expiration of the five-business-day period begin-
34       ning on the date on which a consumer reporting agency receives notice
35       of a dispute from any consumer in accordance with subsection (a), the
36       agency shall provide notification of the dispute to any person who pro-
37       vided any item of information in dispute, at the address and in the manner
38       established with the person. The notice shall include all relevant infor-
39       mation regarding the dispute that the agency has received from the
40       consumer.
41             (2) The consumer reporting agency shall promptly provide to the per-
42       son who provided the information in dispute all relevant information re-
43       garding the dispute that is received by the agency from the consumer

20
  1       after the period referred to in subsection (c)(1) and before the end of the
  2       period referred to in subsection (a)(1).
  3             (d)  (1) Notwithstanding subsection (a), a consumer reporting agency
  4       may terminate a reinvestigation of information disputed by a consumer
  5       if the agency reasonably determines that the dispute by the consumer is
  6       frivolous or irrelevant, including by reason of a failure by a consumer to
  7       provide sufficient information to investigate the disputed information.
  8             (2) Upon making any determination that a dispute is frivolous or ir-
  9       relevant, pursuant to subsection (d)(1), a consumer reporting agency shall
10       notify the consumer of such determination not later than five business
11       days after making such determination, by mail or, if authorized by the
12       consumer for that purpose, by any other means available to the agency.
13             (3) A notice under subsection (d)(2) shall include:
14             (i) The reasons for the determination that the dispute is frivolous or
15       irrelevant; and
16             (ii) identification of any information required to investigate the dis-
17       puted information, which may consist of a standardized form describing
18       the general nature of such information.
19             (e) In conducting any reinvestigation under subsection (a) with re-
20       spect to disputed information in the file of any consumer, the consumer
21       reporting agency shall review and consider all relevant information sub-
22       mitted by the consumer during the 30-day period beginning on the date
23       on which the agency receives the notice of the dispute from the consumer
24       with respect to such disputed information.
25             (f)  (1) If, after any reinvestigation under subsection (a) of any infor-
26       mation disputed by a consumer, an item of the information is found to be
27       inaccurate or incomplete or cannot be verified, the consumer reporting
28       agency shall promptly delete that item of information from the consumer's
29       file or modify that item of information, as appropriate, based upon the
30       results of the reinvestigation.
31             (2)  (A) If any information is deleted from a consumer's file pursuant
32       to subsection (f)(1), the information may not be reinserted in the file by
33       the consumer reporting agency unless the person who furnishes the in-
34       formation certifies that the information is complete and accurate.
35             (B) If any information that has been deleted from a consumer's file
36       pursuant to subsection (f)(1) is reinserted in the file, the consumer re-
37       porting agency shall notify the consumer of the reinsertion in writing not
38       later that five business days after the reinsertion or, if authorized by the
39       consumer for that purpose, by any other means available to the agency.
40             (C) As part of, or in addition to, this notice a consumer reporting
41       agency shall provide to a consumer in writing not later than five business
42       days after the date of the reinsertion:
43             (i) A statement that the disputed information has been reinserted;

21
  1             (ii) the business name and address of any furnisher of information
  2       contacted and the telephone number of such furnisher, if reasonably avail-
  3       able, or of any furnisher of information that contacted the consumer re-
  4       porting agency, in connection with the reinsertion of such information;
  5       and
  6             (iii) a notice that the consumer has the right to add a statement to
  7       the consumer's file disputing the accuracy or completeness of the disputed
  8       information.
  9             (3) A consumer reporting agency shall maintain reasonable proce-
10       dures designed to prevent the reappearance in a consumer's file, and in
11       consumer reports on the consumer, of information that is deleted pursuant
12       to this paragraph, other than information that is reinserted in accordance
13       with subsection (f)(2).
14             (4) Any consumer reporting agency that compiles and maintains files
15       on consumers on a nationwide basis shall implement an automated system
16       through which furnishers of information to that consumer reporting
17       agency may report the results of a reinvestigation that finds incomplete
18       or inaccurate information in a consumer's file to other such consumer
19       reporting agencies.
20             (g)  (1) A consumer reporting agency shall provide written notice to
21       a consumer of the results of a reinvestigation under this subsection not
22       later that five business days after the completion of the reinvestigation,
23       by mail or, if authorized by the consumer for that purpose, by other means
24       available to the agency. As part of, or in addition to, such notice, a con-
25       sumer reporting agency shall provide to a consumer in writing before the
26       expiration of the five-day period:
27             (A) A statement that the reinvestigation is completed;
28             (B) a consumer report that is based upon the consumer's file as that
29       file is revised as a result of the reinvestigation;
30             (C) a notice that, if requested by the consumer, a description of the
31       procedure used to determine the accuracy and completeness of the infor-
32       mation shall be provided to the consumer by the agency, including the
33       business name and address of any furnisher of information contacted in
34       connection with such information and the telephone number of such fur-
35       nisher, if reasonably available;
36             (D) a notice that the consumer has the right to add a statement to the
37       consumer's file disputing the accuracy or completeness of the information;
38       and
39             (E) a notice that the consumer has the right to request under subsec-
40       tion (l) that the consumer reporting agency furnish notifications under
41       that subsection.
42             (h) A consumer reporting agency shall provide to a consumer a de-
43       scription referred to in subsection (g)(1)(C) by not later than 15 days after

22
  1       receiving a request from the consumer for that description.
  2             (i) If a dispute regarding an item of information in a consumer's file
  3       at a consumer reporting agency is resolved in accordance with subsection
  4       (f)(1) by the deletion of the disputed information by not later that three
  5       business days after the date on which the agency receives notice of the
  6       dispute from the consumer in accordance with subsection (a), then the
  7       agency shall not be required to comply with subsection (c), (g) and (h)
  8       with respect to that dispute if the agency:
  9             (1) Provides prompt notice of the deletion to the consumer by
10       telephone;
11             (2) includes in that notice, or in a written notice that accompanies a
12       confirmation and consumer report provided in accordance with subsec-
13       tion (i)(3), a statement of the consumer's right to request under subsection
14       (l) that the agency furnish notifications under that subsection; and
15             (3) provides written confirmation of the deletion and a copy of a con-
16       sumer report on the consumer that is based on the consumer's file after
17       the deletion, not later than five business days after making the deletion.
18             (j) If the reinvestigation does not resolve the dispute, the consumer
19       may file a brief statement setting forth the nature of the dispute. The
20       consumer reporting agency may limit such statements to not more than
21       one hundred words if it provides the consumer with assistance in writing
22       a clear summary of the dispute.
23             (c) (k) Whenever a statement of dispute is filed, unless there is rea-
24       sonable grounds to believe that it is frivolous or irrelevant, the consumer
25       reporting agency shall, in any subsequent consumer report containing the
26       information in question, clearly note that it is disputed by the consumer
27       and provide either the consumer's statement or a clear and accurate cod-
28       ification or summary thereof.
29             (d) (l) Following any deletion of information which is found to be
30       inaccurate or whose accuracy can no longer be verified or any notation
31       as to disputed information, the consumer reporting agency shall, at the
32       request of the consumer, furnish notification that the item has been de-
33       leted or the statement, codification or summary pursuant to subsection
34       (b) or (c) of this section (j) or (k) to any person specifically designated by
35       the consumer who has within two years prior thereto received a consumer
36       report for employment purposes, or within six months prior thereto re-
37       ceived a consumer report for any other purpose, which contained the
38       deleted or disputed information. The consumer reporting agency shall
39       clearly and conspicuously disclose to the consumer his or her such con-
40       sumer's rights to make such a request. Such disclosure shall be made at
41       or prior to the time the information is deleted or the consumer's state-
42       ment regarding the disputed information is received.
43             Sec.  10. K.S.A. 50-711 is hereby amended to read as follows: 50-711.

23
  1       (a)  (1) Except as provided in subsections (b), and (c), and (d), a consumer
  2       reporting agency may impose a reasonable charge on a consumer for
  3       making a disclosure to the consumer pursuant to K.S.A. 50-708, and
  4       amendments thereto, which charge:
  5             (A) Shall not exceed $8 the amount allowed under 15 U.S.C. §  
  6       1681(a); and
  7             (B) shall be indicated to the consumer before furnishing such
  8       information.
  9             (2) Except as otherwise provided by this section, a consumer report-
10       ing agency may impose a reasonable charge on a consumer for furnishing,
11       following a reinvestigation, a statement, codification, or summary to a
12       person designated by the consumer under that section after the 30-day
13       period beginning on the date of notification of the consumer with respect
14       to the reinvestigation, which charge:
15             (A) Shall not exceed the charge that the agency would impose on each
16       designated recipient for a consumer report; and
17             (B) shall be indicated to the consumer before furnishing such
18       information.
19             (b) A consumer reporting agency shall make all disclosures pursuant
20       to subsection (d) of K.S.A. 50-708, and amendments thereto, and furnish
21       all consumer reports pursuant to subsection (d) of K.S.A. 50-710(d), and
22       amendments thereto, without charge to the consumer if, within thirty (30)
23       60 days after receipt by such consumer of a notification pursuant to K.S.A.
24       50-714, and amendments thereto, or notification from a debt collection
25       agency affiliated with such consumer reporting agency stating that the
26       consumer's credit rating may be or has been adversely affected, the con-
27       sumer makes a request under K.S.A. 50-708 or subsection (g) or (l) of 50-
28       710(d), and amendments thereto. Otherwise, the consumer reporting
29       agency may impose a reasonable charge on the consumer for making
30       disclosure to such consumer pursuant to K.S.A. 50-708, the charge for
31       which shall be indicated to the consumer prior to making disclosure; and
32       for furnishing notifications, statements, summaries, or codifications to
33       persons designated by the consumer pursuant to K.S.A. 50-710(d), the
34       charge for which shall be indicated to the consumer prior to furnishing
35       such information and shall not exceed the charge that the consumer re-
36       porting agency would impose on each designated recipient for a consumer
37       report except that no charge may be made for notifying such persons of
38       the deletion of information which is found to be inaccurate or which can
39       no longer be verified.
40             (c) Upon the request of the consumer, a consumer reporting agency
41       shall make all disclosures pursuant to K.S.A. 50-708, and amendments
42       thereto, once during any 12-month period without charge to that con-
43       sumer if the consumer certifies in writing that the consumer:

24
  1             (1) Is unemployed and intends to apply for employment in the 60-
  2       day period beginning on the date on which the certification is made;
  3             (2) is a recipient of public welfare assistance, or
  4             (3) has reason to believe that the file on the consumer at the agency
  5       contains inaccurate information due to fraud.
  6             (d) (c) A consumer reporting agency shall not impose any charge on
  7       a consumer for providing any notification required by this act or making
  8       any disclosure required by this act, except as authorized by subsection
  9       (a).
10             (e) (d) Each consumer reporting agency, upon request of a consumer,
11       shall provide the consumer with one disclosure copy of the consumer's
12       file per year at no charge whether or not the consumer has made the
13       request, in response to the notification required in subsection (b)(1) of
14       K.S.A. 50-708. If the consumer requests more than one disclosure copy of
15       the consumer's file per year pursuant to this subsection, the consumer
16       reporting agency may charge the consumer up to $8 for each additional
17       disclosure copy as provided in subsection (a).
18             Sec.  11. K.S.A. 50-714 is hereby amended to read as follows: 50-714.
19       (a) Whenever credit or insurance for personal, family or household pur-
20       poses, or employment involving a consumer is denied or the charge for
21       such credit or insurance is increased either wholly or partly because of
22       information contained in a consumer report from a consumer reporting
23       agency, the user of the consumer report shall so advise the consumer
24       against whom such adverse action has been taken and supply the name
25       and address of the consumer reporting agency making the report. If any
26       person takes any adverse action with respect to any consumer that is based
27       in whole or in part on any information contained in a consumer report,
28       the person shall:
29             (1) Provide oral, written or electronic notice of the adverse action to
30       the consumer;
31             (2) provide to the consumer orally, in writing, or electronically:
32             (A) The name, address, and telephone number of the consumer re-
33       porting agency including a toll-free telephone number established by the
34       agency if the agency compiles and maintains files on consumers on a
35       nationwide basis, that furnished the report to the person; and
36             (B) a statement that the consumer reporting agency did not make the
37       decision to take the adverse action and is unable to provide the consumer
38       the specific reasons why the adverse action was taken; and
39             (3) provide to the consumer an oral, written, or electronic notice of
40       the consumer's right:
41             (A) To obtain, pursuant to K.S.A. 50-711, and amendments thereto,
42       a free copy of a consumer report on the consumer from the consumer
43       reporting agency, which notice shall include an indication of the 60-day

25
  1       period under that section for obtaining such a copy; and
  2             (B) to dispute, pursuant to K.S.A. 50-710, and amendments thereto,
  3       with a consumer reporting agency the accuracy or completeness of any
  4       information in a consumer report furnished by the agency.
  5             (b) Whenever credit for personal, family, or household purposes in-
  6       volving a consumer is denied or the charge for such credit is increased
  7       either wholly or partly because of information obtained from a person
  8       other than a consumer reporting agency bearing upon the consumer's
  9       credit worthiness, credit standing, credit capacity, character, general rep-
10       utation, personal characteristics, or mode of living, the user of such in-
11       formation shall, within a reasonable period of time, upon the consumer's
12       written request for the reasons for such adverse action received within
13       sixty (60) 60 days after learning of such adverse action, disclose the nature
14       of the information to the consumer. The user of such information shall
15       clearly and accurately disclose to the consumer the right to make such
16       written request at the time such adverse action is communicated to the
17       consumer.
18             (c) No person shall be held liable for any violation of this section if
19       the person shows by a preponderance of the evidence that at the time of
20       the alleged violation he or she maintained reasonable procedures to as-
21       sure compliance with the provisions of subsections (a) and (b). If a person
22       takes an adverse action, as defined by subsection (k)(1) of K.S.A. 50-702,
23       and amendments thereto, taken in connection with a transaction initiated
24       by the consumer, or any adverse action, as defined by subsection (k)(2)(a)
25       and (b) of K.S.A. 50-702, and amendments thereto, with respect to a
26       consumer, based in whole or in part on information described in subsec-
27       tion (d), the person shall:
28             (1) Notify the consumer of the action, including a statement that the
29       consumer may obtain the information in accordance with subsection (2);
30       and
31             (2) upon a written request from the consumer received within 60 days
32       after transmittal of the notice required by subsection (1), disclose to the
33       consumer the nature of the information upon which the action is based
34       by not later than 30 days after receipt of the request.
35             (d) Information described in subsection (c), except as provided in sub-
36       section (3), is information that:
37             (1) Is furnished to the person taking the action by a person related
38       by common ownership or affiliated by common corporate control to the
39       person taking the action; and
40             (2) bears on the credit worthiness, credit standing, credit capacity,
41       character, general reputation, personal characteristics, or mode of living
42       of the consumer; and
43             (3) does not include information solely as to transactions or experi-

26
  1       ences between the consumer and the person furnishing the information,
  2       or information contained within a consumer report.
  3             (e) Any person who uses a consumer report on any consumer in con-
  4       nection with any credit or insurance transaction that is not initiated by
  5       the consumer, that is provided to that person pursuant to subsection
  6       (c)(1)(B) of K.S.A. 50-703, and amendments thereto, shall include the
  7       address and toll-free telephone number of the appropriate notification
  8       system established pursuant to subsection (d) of K.S.A. 50-703, and
  9       amendments thereto, and shall provide with each written solicitation
10       made to the consumer regarding the transaction a clear and conspicuous
11       statement that:
12             (1) Information contained in the consumer's consumer report was
13       used in connection with the transaction;
14             (2) the consumer received the offer of credit or insurance because the
15       consumer satisfied the criteria for credit worthiness or insurability under
16       which the consumer was selected for the offer;
17             (3) if applicable, the credit or insurance may not be extended if, after
18       the consumer responds to the offer, the consumer does not meet the cri-
19       teria used to select the consumer for the offer or any applicable criteria
20       bearing on credit worthiness or insurability or does not furnish any re-
21       quired collateral; and
22             (4) the consumer has a right to prohibit information contained in the
23       consumer's file with any consumer reporting agency from being used in
24       connection with any credit or insurance transaction that is not initiated
25       by the consumer, and may exercise such right by notifying a notification
26       system established pursuant to subsection (d) of K.S.A. 50-703, and
27       amendments thereto.
28             (f) A person who makes an offer of credit or insurance to a consumer
29       under a credit or insurance transaction described in subsection (f) shall
30       maintain on file the criteria used to select the consumer to receive the
31       offer, all criteria bearing on credit worthiness or insurability, as appli-
32       cable, that are the basis for determining whether or not to extend credit
33       or insurance pursuant to the offer, and any requirement for the furnishing
34       of collateral as a condition of the extension of credit or insurance, until
35       the expiration of the three-year period beginning on the date on which
36       the offer is made to the consumer.
37             (g) This section is not intended to affect the authority of any federal
38       or state agency to enforce a prohibition against unfair or deceptive acts
39       or practices, including the making of false or misleading statements in
40       connection with a credit or insurance transaction that is not initiated by
41       the consumer.
42             Sec.  12. K.S.A. 50-715 is hereby amended to read as follows: 50-715.
43       (a) Any consumer reporting agency or user of information which person

27
  1       who willfully fails to comply with any requirement imposed under K.S.A.
  2       50-701 to 50-722, inclusive, and amendments thereto, with respect to any
  3       consumer is liable to that consumer in an amount equal to the sum of:
  4             (a) (1) Any actual damages sustained by the consumer as a result of
  5       the failure, or damages of not less than $100 and not more than $1,000;
  6             (b) (2) such amount of punitive damages as the court may allow; and
  7             (c) (3) in the case of liability of a natural person for obtaining a
  8       consumer report under false pretenses or knowingly without a permissible
  9       purpose actual damages sustained by the consumer as a result of the
10       failure or $1,000, whichever is greater; and
11             (4) in the case of any successful action to enforce any liability under
12       this section, the costs of the action together with reasonable attorney's
13       attorney fees as determined by the court.
14             (b) Any person who obtains a consumer report from a consumer re-
15       porting agency under false pretenses or knowingly without a permissible
16       purpose shall be liable to the consumer reporting agency for actual dam-
17       ages sustained by the consumer reporting agency or $1,000, whichever is
18       greater.
19             (c) Upon a finding by the court that an unsuccessful pleading, motion,
20       or other paper filed in connection with an action under this section was
21       filed in bad faith or for purposes of harassment, the court shall award to
22       the prevailing party attorney fees reasonable in relation to the work ex-
23       pended in responding to the pleading, motion, or other paper.
24             Sec.  13. K.S.A. 50-716 is hereby amended to read as follows: 50-716.
25       (a) Any consumer reporting agency or user of information which person
26       who is negligent in failing to comply with any requirement imposed under
27       K.S.A. 50-701 to 50-722, inclusive, and amendments thereto, with respect
28       to any consumer is liable to that consumer in an amount equal to the sum
29       of:
30             (a) (1) Any actual damages sustained by the consumer as a result of
31       the failure;
32             (b) (2) in the case of any successful action to enforce any liability
33       under this section, the costs of the action together with reasonable attor-
34       ney's attorney fees as determined by the court.
35             (b) On a finding by the court that an unsuccessful pleading, motion,
36       or other paper filed in connection with an action under this section was
37       filed in bad faith or for purposes of harassment, the court shall award to
38       the prevailing party attorney fees reasonable in relation to the work ex-
39       pended in responding to the pleading, motion, or other paper.
40             Sec.  14. K.S.A. 50-717 is hereby amended to read as follows: 50-717.
41       An action to enforce any liability created under the provisions of K.S.A.
42       50-701 to 50-722, inclusive, and sections 19 and 20, and amendments
43       thereto, may be brought in the district court of the county in which the

28
  1       controversy arose or any other court of competent jurisdiction, within two
  2       years from the date on which the liability arises, except that where a
  3       defendant has materially and willfully misrepresented any information
  4       required under the provisions of such sections of this act to be disclosed
  5       to an individual and the information so misrepresented is material to the
  6       establishment of the defendant's liability to that individual under such
  7       provisions of this act, the action may be brought at any time within two
  8       years after discovery by the individual of the misrepresentation.
  9             Sec.  15. K.S.A. 50-718 is hereby amended to read as follows: 50-718.
10       Any person who knowingly and willfully obtains information on a con-
11       sumer from a consumer reporting agency under false pretenses shall be
12       deemed is guilty of a class A misdemeanor severity level 7, person felony
13       and upon conviction thereof shall be punished in the manner provided
14       by law.
15             Sec.  16. K.S.A. 50-719 is hereby amended to read as follows: 50-719.
16       Any officer or employee of a consumer reporting agency who knowingly
17       and willfully provides information concerning an individual from the
18       agency's files to a person not authorized to receive that information shall
19       be deemed is guilty of a class A misdemeanor severity level 7, person
20       felony and upon conviction thereof shall be punished in the manner pro-
21       vided by law.
22             Sec.  17. K.S.A. 50-720 is hereby amended to read as follows: 50-720.
23       Any person violating any of the provisions of K.S.A. 50-701 to 50-719 50-
24       722, inclusive, and sections 19 and 20, and amendments thereto, for
25       which penalties are not otherwise hereinbefore provided shall be deemed
26       is guilty of a class C misdemeanor and upon conviction thereof shall be
27       punished in the manner provided by law.
28             Sec.  18. K.S.A. 50-721 is hereby amended to read as follows: 50-721.
29       (a) The consumer credit commissioner attorney general is hereby au-
30       thorized to enforce the provisions of K.S.A. 50-701 to 50-720 50-722,
31       inclusive, and sections 19 and 20, and amendments thereto, and for such
32       purpose is hereby authorized to adopt such rules and regulations as may
33       be necessary for the proper administration and enforcement of the pro-
34       visions of such sections of this act.
35             (b) A violation of this act shall be deemed an unconscionable act or
36       practice under the Kansas consumer protection act.
37             (c) The attorney general is hereby authorized to investigate violations
38       of this act and obtain remedies for violations as provided by the Kansas
39       consumer protection act, K.S.A. 50-623 et seq., and amendments thereto.
40             New Sec.  19. Notwithstanding any other provision of this act, a con-
41       sumer reporting agency shall include in any consumer report furnished
42       by the agency in accordance with K.S.A. 50-703, and amendments
43       thereto, any information on the failure of the consumer to pay overdue

29
  1       support which antedates the report by seven years or less, and is provided:
  2             (a) To the consumer reporting agency by a state or local child support
  3       enforcement agency; or
  4             (b) to the consumer reporting agency and verified by any local, state,
  5       or federal government agency.
  6             New Sec.  20. (a)  (1) A person shall not furnish any information re-
  7       lating to a consumer to any consumer reporting agency if the person
  8       knows or consciously avoids knowing that the information is inaccurate.
  9             (2) A person shall not furnish information relating to a consumer to
10       any consumer reporting agency if:
11             (A) The person has been notified by the consumer, at the address
12       specified by the person for such notices, that specific information is in-
13       accurate; and
14             (B) the information is, in fact, inaccurate.
15             (3) A person who clearly and conspicuously specifies to the consumer
16       an address for notices referred to in subsection (2) shall not be subject
17       to subsection (1); however, nothing in subsection (2) shall require a per-
18       son to specify such an address.
19             (4) A person who: (A) Regularly and in the ordinary course of busi-
20       ness furnishes information to one or more consumer reporting agencies
21       about the person's transactions or experiences with any consumer; and
22             (B) has furnished to a consumer reporting agency information that
23       the person determines is not complete or accurate, shall promptly notify
24       the consumer reporting agency of that determination and provide to the
25       agency any corrections to that information, or any additional information,
26       that is necessary to make the information provided by the person to the
27       agency complete and accurate, and shall not thereafter furnish to the
28       agency any of the information that remains not complete or accurate.
29             (5) If the completeness or accuracy of any information furnished by
30       any person to any consumer reporting agency is disputed to such person
31       by a consumer, the person may not furnish the information to any con-
32       sumer reporting agency without notice that such information is disputed
33       by the consumer.
34             (6) A person who regularly and in the ordinary course of business
35       furnishes information to a consumer reporting agency regarding a con-
36       sumer who has a credit account with that person shall notify the agency
37       of the voluntary closure of the account by the consumer, in information
38       regularly furnished for the period in which the account is closed.
39             (7) A person who furnishes information to a consumer reporting
40       agency regarding a delinquent account being placed for collection,
41       charged to profit or loss, or subjected to any similar action, not later than
42       90 days after furnishing the information, shall notify the agency of the
43       month and year of the commencement of the delinquency that immedi-

30
  1       ately preceded the action.
  2             (b)  (1) After receiving notice of a dispute pursuant to subsection (c)
  3       of K.S.A. 50-710, and amendments thereto, with regard to the complete-
  4       ness or accuracy of any information provided by a person to a consumer
  5       reporting agency, the person shall:
  6             (A) Conduct an investigation with respect to the disputed
  7       information;
  8             (B) review all relevant information provided by the consumer re-
  9       porting agency pursuant to subsection (c) of K.S.A. 50-710, and amend-
10       ments thereto;
11             (C) report the results of the investigation to the consumer reporting
12       agency; and
13             (D) if the investigation finds that the information is incomplete or
14       inaccurate, report those results to all other consumer reporting agencies
15       to which the person furnished the information and that compile and main-
16       tain files on consumers on a nationwide basis.
17             (2) A person shall complete all investigations, reviews, and reports
18       required under subsection (b)(1) regarding information provided by the
19       person to a consumer reporting agency, before the expiration of the pe-
20       riod under K.S.A. 50-710, and amendments thereto, within which the
21       consumer reporting agency is required to complete actions required by
22       that section regarding that information.
23             Sec.  21. K.S.A. 50-722 is hereby amended to read as follows: 50-722.
24       K.S.A. 50-701 to 50-722, inclusive, and sections 19 and 20, and amend-
25       ments thereto, may be cited as the fair credit reporting act. 
26       Sec.  22. K.S.A. 50-701, 50-702, 50-703, 50-704, 50-705, 50-706, 50-
27       708, 50-709, 50-710, 50-711, 50-714, 50-715, 50-716, 50-717, 50-718, 50-
28       719, 50-720, 50-721 and 50-722 are hereby repealed.
29        Sec.  23. This act shall take effect and be in force from and after its
30       publication in the statute book.