SB 426 — Enacting the Kansas transparency in consumer legal funding act.

AsAmended by House Committee As Amended by Senate Committee Session of 2026 SENATE BILLNo.

(c) "Consumer" means an individual who is a Kansas resident or an estate for a decedent related to a wrongful death with a legal claim a SB 426—Am.

by SCHC 2 (c) "Consumer" means an individual who is a Kansas resident or an estate for a decedent related to a wrongful death with a legal claim a natural person who resides or is domiciled in Kansas and is a plaintiff in a civil action in Kansas.

"Consumer" includes the state estate of a decedent who was domiciled in Kansas at the time of death if the civil action is a wrongful death claim.

(2) be completely filled in when presented to the consumer for signature;

by SCHC 3 (3) contain(2) be acompletely rightfilled ofin rescission,when allowingpresented the consumer to cancel the contract without penalty or further obligation if, within 10 business days after the funding date, the consumer returnsfor tosignature; the consumer legal funding company the full amount of the disbursed funds;

(3) contain a right of rescission, allowing the consumer to cancel the contract without penalty or further obligation if, within 10 business days after the funding date, the consumer returns to the consumer legal funding company the full amount of the disbursed funds;

and (D) a payment schedule including, but not limited to, the funded amount and charges, all dates and the amount due at the end of each six- month period from the funding date until the date the maximum amount dueSB to426—Am. the company pursuant to the contract is paid.

by HC 4 due to the company pursuant to the contract is paid.

SB(A) In 426—Am.at least 12-point bold type font:

by SC 4 (A) In at least 12-point bold type font:

(1) The attorney has reviewed the mandatory disclosures required by thisSB section426—Am. with the consumer;

(2) theby attorneyHC is5 beingthis paidsection onwith athe contingencyconsumer; fee basis pursuant to a SB 426—Am.

by(2) the SCattorney 5is being paid on a contingency fee basis pursuant to a written fee agreement;

(k) Communications between a consumer's attorney and a consumer legal funding company to allow the consumer legal funding company to SB 426—Am.

by SCHC 6 (k) Communications between a consumer's attorney and a consumer legal funding company to allow the consumer legal funding company to ascertain the status of a legal claim or a legal claim's expected value are not discoverable by a person against whom the legal claim is asserted or filed.

(b) (1)  Any attorney retained by a consumer or any immediate family member of such attorney shall not have a financial interest in a consumer SB 426—Am.

by SCHC 7 (b) (1)  Any attorney retained by a consumer or any immediate family member of such attorney shall not have a financial interest in a consumer legal funding company offering consumer legal funding to that consumer or provide consumer legal funding, loans or advances for personal needs, cash or nonmonetary equivalent to current or prospective consumers or the consumer's immediate family members.

 The attorney general, upon a finding that a consumer legal funding company has willfully violated the provisions of this act after notice and opportunity for hearing in accordance with the Kansas administrative procedure act, maySB assess426—Am. upon such consumer legal funding company a civil penalty of not to exceed $10,000 per violation.

SBby 426—Am.HC 8 may assess upon such consumer legal funding company a civil penalty of not to exceed $10,000 per violation.

by SC 8 (2) In addition to any civil penalty assessed pursuant to paragraph (1), such consumer legal funding company shall not recover the funded amount or any charges under such consumer legal funding contract.