KansasHB 25182025–2026 Regular SessionHouseWALLET

Enacting the Kansas transparency in consumer legal funding act.

Sponsored By: Committee on Judiciary

Signed by Governor

senate committee on judiciaryhouse committee on judiciary

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

8 provisions identified: 4 benefits, 1 costs, 3 mixed.

Funding companies face fines and oversight

Consumer legal funding companies must register with the Kansas secretary of state. After notice, a hearing opportunity, and a finding of willful violation, the attorney general can assess up to $10,000 per violation. When penalties are assessed, the company cannot recover the funded amount or contract charges. Penalties go to the state general fund and are due within 10 days of written notice; unpaid assessments can become court judgments. Attorney general actions are subject to judicial review, and the act takes effect upon publication in the statute book.

Clearer funding contracts and cancellation rights

Covered Kansas plaintiffs must receive clear, fully completed contracts, with page initials, signature warnings, and prominent front-page cost and rights notices. Contracts must show cash received, all charges regardless of label, itemized one-time charges, maximum repayment, and amounts at six-month intervals through that maximum. Multiple contracts with the same company must show combined exposure. On written request, translation is required when your main language is not English and was used in oral negotiations. Only you may sign unless you lack legal capacity, and you can cancel without penalty or further obligation by returning all funds within 10 business days after funding.

Consumers keep control of funded claims

Funding companies cannot influence how your claim is handled or settled; those decisions stay with you and your attorney. Companies cannot seek waivers of your rights or remedies, including jury trial rights. They cannot knowingly offer or arrange funding to make a represented consumer switch attorneys; those contracts are unenforceable. They also cannot work with attorneys to encourage claims they know, or have reason to know, are fabricated or dishonest. Contracts made for that purpose are also void and unenforceable.

Funding referrals face conflict safeguards

Funding companies cannot pay, offer, or accept referral commissions or other consideration involving covered legal or medical providers or their employees. They also cannot advertise false or misleading claims. Your attorney and the attorney's immediate family cannot hold a financial stake in a company offering you funding. They cannot provide legal funding, personal-needs loans, or advances to current or prospective clients or their immediate families. An attorney who referred you to your retained attorney also cannot hold a stake in the company offering you funding.

Repeat funding and funding sources restricted

A company that knows you already sold claim proceeds generally must pay or purchase the earlier funded amount and contracted charges before funding again. The companies can agree in writing to a smaller payoff. Funding at the same time is allowed with written consent from you and your attorney. Companies cannot knowingly use transaction funds to pay court costs, filing fees, or attorney fees during or after claim resolution. They also cannot accept funds from foreign governments or foreign adversaries defined by federal regulation.

Attorney review safeguards your funding contract

Your attorney must acknowledge reviewing required disclosures and representing you under a written agreement for payment from your recovery. The acknowledgment confirms proceeds go through an attorney trust account or settlement fund, with payment to the company and steps to fulfill the contract. It also confirms no company referral payment and no tax, benefit-planning, or financial advice about the deal. Without the acknowledgment, the contract is void; a compliant contract remains valid if you change attorneys. You must promptly give your attorney a copy of the signed contract when requested.

Claim funding gets new repayment rules

Kansas plaintiffs can sell rights to future claim proceeds for cash for personal or household expenses, not claim expenses. Repayment comes only from available claim proceeds; with no proceeds, you owe nothing except for material contract breaches, fraud, or misrepresentation. Amounts due must be set by time periods, not as a percentage of your recovery. Companies cannot charge enforceable fees or penalties for early payment. Compliant deals are not loans or investment contracts, so those laws do not apply; this act controls conflicting rules.

Funding disclosure duties and privacy protections

After a written request, you or your attorney must disclose whether you entered a funding contract within 30 days. Disclosure goes to the requesting claim party and each insurer with a duty to defend. A continuing duty also requires disclosure within 30 days after entering a funding contract. Your attorney needs your written consent to share confidential or legally protected information with the funding company. Attorney-company communications about your claim's status or expected value are protected from discovery by the party facing your claim.

Sponsors & Cosponsors

Sponsor

  • Committee on Judiciary

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 656 • No: 0

House vote • 4/23/2026

Yea: 40 Nay: 0

Yes: 40 • No: 0

House vote • 4/23/2026

Yea: 40 Nay: 0

Yes: 40 • No: 0

House vote • 4/23/2026

Yea: 124 Nay: 0

Yes: 124 • No: 0

House vote • 4/23/2026

Yea: 124 Nay: 0

Yes: 124 • No: 0

House vote • 3/27/2026

Conference Committee Report was adopted

Yes: 124 • No: 0

Senate vote • 3/27/2026

Conference Committee Report was adopted

Yes: 40 • No: 0

Senate vote • 3/19/2026

Final Action - Passed as amended

Yes: 40 • No: 0

House vote • 2/18/2026

Final Action - Passed as amended

Yes: 124 • No: 0

Actions Timeline

  1. Reengrossed on Sunday, March 29, 2026

    4/9/2026House
  2. Enrolled and presented to Governor on Friday, April 3, 2026

    4/9/2026House
  3. Approved by Governor on Thursday, April 9, 2026

    4/9/2026House
  4. Conference committee report now available

    3/27/2026Senate
  5. Conference Committee Report was adopted; Yea 40, Nay 0

    3/27/2026Senate
  6. Conference Committee Report was adopted; Yea 124, Nay 0, Absent 1

    3/27/2026House
  7. Motion to accede adopted; Sen. Kellie Warren, Sen. Kenny Titus and Sen. Ethan Corson appointed as conferees

    3/24/2026Senate
  8. Nonconcurred with amendments; Conference Committee requested; appointed Rep. Susan Humphries, Rep. Laura Williams and Rep. Dan Osman

    3/23/2026House
  9. Final Action - Passed as amended; Yea 40, Nay 0

    3/19/2026Senate
  10. Committee of the Whole - Committee Report be adopted

    3/18/2026Senate
  11. Committee of the Whole - Be passed as amended

    3/18/2026Senate
  12. Committee Report recommending bill be passed as amended by Senate Committee on Judiciary

    3/13/2026Senate
  13. Hearing: Wednesday, March 11, 2026, 10:30 AM — Room 346-S

    3/11/2026Senate
  14. Referred to Senate Committee on Judiciary

    2/25/2026Senate
  15. Received and Introduced

    2/24/2026Senate
  16. Engrossed on Tuesday, February 17, 2026

    2/19/2026House
  17. Final Action - Passed as amended; Yea 124, Nay 0, Absent 1

    2/18/2026House
  18. Committee of the Whole - Committee Report be adopted

    2/17/2026House
  19. Committee of the Whole - Motion to Amend - Offered by Rep. Bradley Barrett

    2/17/2026House
  20. Committee of the Whole - Amendment by Rep. Bradley Barrett was adopted

    2/17/2026House
  21. Committee of the Whole - Be passed as amended

    2/17/2026House
  22. Committee Report recommending bill be passed as amended by House Committee on Judiciary

    2/12/2026House
  23. Hearing: Monday, February 2, 2026, 3:30 PM — Room 582-N

    2/2/2026House
  24. Introduced

    1/22/2026House
  25. Referred to House Committee on Judiciary

    1/22/2026House

Bill Text

  • As Amended by House Committee

  • As Amended by Senate Committee

  • As Introduced

  • Enrolled

  • {As Amended by House Committee of the Whole}

Related Bills

Back to State Legislation