Session of 1999
         
SENATE BILL No. 307
         
By Committee on Judiciary
          
2-11
          
  9             AN  ACT concerning the consumer protection act; relating to home im-
10             provement loans for senior citizens and disabled persons; penalties and
11             fines.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. (a) This act shall be known and may be cited as the "unfair
15       home improvement loans for senior citizens and disabled persons act."
16             (b) As provided in this act:
17             (1) "Consumer" means an individual who seeks or acquires, by pur-
18       chase or lease, any goods or services for personal, family or household
19       purposes;
20             (2) "disabled person" means any person who has a physical or mental
21       impairment which substantially limits one or more major life activities;
22             (3) "goods" means tangible chattels bought or leased for use primarily
23       for personal, family or household purposes, including certificates or cou-
24       pons exchangeable for such goods and including goods which, at the time
25       of the sale or subsequently, are to be so affixed to real property as to
26       become a part of real property whether or not severable from such real
27       property;
28             (4) "home solicitation" means any transaction made at the consumer's
29       primary residence, except those transactions initiated by the consumer.
30       A consumer response to an advertisement is not a home solicitation;
31             (5) "person" means an individual, partnership, corporation, limited
32       liability company, association or other entity, however organized;
33             (6) "senior citizen" means a person who is 65 years of age or older;
34             (7) "services" means work, labor and services for other than a com-
35       mercial or business use and including services furnished in connection
36       with the sale or repair of goods; and
37             (8) "transaction" means an agreement between a consumer and any
38       other person, whether or not the agreement is a contract enforceable by
39       action, and includes the making of, and the performance pursuant to,
40       such agreement.
41             (c) The following unfair trade practices and deceptive acts or prac-
42       tices undertaken by any person in a transaction intended to result or
43       which results in the sale or lease of goods or services to any consumer

SB 307

2

  1       are unlawful:
  2             (1) The home solicitation of a consumer who is a senior citizen or
  3       disabled person where a loan is made encumbering the primary residence
  4       of such consumer for the purpose of paying for home improvements; and
  5             (2) where the transaction is part of a pattern or practice in violation
  6       of either subsection (h) or (i) of section 1639 of title 15 of the United
  7       States code or subsection (e) of section 226.32 of title 12 of the code of
  8       federal regulations.
  9             (d) A third party shall not be liable pursuant to this section, unless:
10             (1) There was an agency relationship between the party who engaged
11       in the home solicitation and the third party; or
12             (2) the third party had actual knowledge of, or participated in the
13       unfair or deceptive transaction. A third party who is a holder in due course
14       under a home solicitation transaction shall not be liable pursuant to this
15       section.
16             (e) Any person who violates the provisions of this section is guilty of
17       a class A misdemeanor. In addition to any fines, penalties or sentences
18       imposed by law, any person who is convicted of, or pleads guilty or nolo
19       contendere to a violation of this section shall be required to make
20       restitution.
21             (f) The provisions of this act shall be applicable to transactions and
22       contracts entered into on or after July 1, 1999.
23             (g) The provisions of this shall be part of and supplemental to the
24       Kansas consumer protection act.
25        Sec.  2. This act shall take effect and be in force from and after its
26       publication in the statute book.