CHAPTER 84 Substitute for HOUSE BILL No. 2640 An Act concerning cities and counties; regarding the filing of fire liens; amending K.S.A.
40-3902, 40-3904 and 40-3905 and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 40-3902 is hereby amended to read as follows:
40-3902. The governing body of any city is hereby authorized to create,
by ordinance, a lien in favor of any such city in the proceeds of any
insurance policy based upon a covered claim payment made for damage
or loss to a building or other structure, caused by or arising out of any
fire or, explosion or windstorms. The lien arises upon any unpaid tax,
special ad valorem levy, special assessment or other charge imposed upon
real property by or on behalf of the city which is an encumbrance on real
property, whether or not evidenced by written instrument, or such tax,
levy, assessment, expense or other charge that has remained undischarged
for at least one year prior to the filing of a proof of loss.

Sec. 2. K.S.A. 40-3904 is hereby amended to read as follows: 40-
3904. The governing body of any county is hereby authorized to create,
by resolution, a lien in favor of any such county in the proceeds of any
insurance policy based upon a covered claim payment made for damage
or loss to a building or other structure, caused by or arising out of any
fire or, explosion or windstorms. The lien arises upon any unpaid tax,
special ad valorem levy, special assessment or other charge imposed upon
real property by or on behalf of the county which is an encumbrance on
real property, whether or not evidenced by written instrument, or such
tax, levy, assessment, expense or other charge that has remained undis-
charged for at least one year prior to the filing of a proof of loss. This
resolution shall not apply to cities which have adopted an ordinance under
the provisions of K.S.A. 40-3902 and amendments thereto.

Sec. 3. K.S.A. 40-3905 is hereby amended to read as follows: 40-
3905. Every city or county which adopts an ordinance or resolution under
the provisions of K.S.A. 40-3901 to through 40-3904, inclusive, and
amendments thereto shall notify the commissioner of insurance within 14
days after the adoption of such ordinance. At least once each quarter of
each calendar year, the commissioner shall notify prepare and distribute
a list of all cities and counties adopting an ordinance or resolution under
the provisions of this act during the preceding quarter to all insurance
companies which issue policies insuring buildings and other structures
against loss by fire or, explosion or windstorms within 14 days after no-
tification from cities or counties adopting an ordinance or resolution un-
der the provisions of K.S.A. 40-3901 to 40-3904, inclusive. Insurance
companies shall have 60 days after the commissioner notifies them of the
adoption of such ordinance or resolution to establish procedures within
such cities or counties to carry out the provisions of this act.

Sec. 4. K.S.A. 40-3902, 40-3904 and 40-3905 are hereby repealed.

Sec. 5. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 7, 1998

Published in the Kansas Registers April 16, 1998

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