HOUSE BILL No. 2562
AN ACT concerning consumer protection; relating to financial exploitation, real estate
transactions and housing discrimination; enacting the protect vulnerable adults from
financial exploitation act; requiring reporting of instances of suspected financial
exploitation under certain circumstances; providing civil and administrative
immunity to individuals who report such instances; authorizing the Kansas real estate
commission to issue cease and desist orders; regulating contract for deed
transactions; providing for certain penalties related thereto; making certain deceptive
actions violations of the consumer protection act; prohibiting the recording of
unlawful restrictive covenants; authorizing the removal of unlawful restrictive
covenants; amending K.S.A. 17-12a412, 44-1017a and 58-3065 and repealing the
existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. Sections 1 through 9, and amendments thereto,
shall be known and may be cited as the protect vulnerable adults from
financial exploitation act.
New Sec. 2. As used in the protect vulnerable adults from
financial exploitation act:
(a) "Act" means the protect vulnerable adults from financial
exploitation act.
(b) "Agent" means the same as defined in K.S.A. 17-12a102, and
amendments thereto.
(c) "Broker-dealer" means the same as defined in K.S.A. 17-
12a102, and amendments thereto.
(d) "Commissioner" means the securities commissioner of Kansas.
(e) "Eligible adult" means an elder person or dependent adult as
defined in K.S.A. 21-5417, and amendments thereto.
(f) "Financial exploitation" means the unlawful or improper use,
control or withholding of an eligible adult's property, income, resources
or trust funds by any other person or entity in a manner that is not for
the profit of or to the advantage of the eligible adult. "Financial
exploitation" includes, but is not limited to, the:
(1) Use of deception, intimidation, coercion, extortion or undue
influence by a person or entity to obtain or use an eligible adult's
property, income, resources or trust funds in a manner for the profit of
or to the advantage of such person or entity;
(2) breach of a fiduciary duty, including, but not limited to, the
misuse of a power of attorney, trust or a guardianship or
conservatorship appointment, as it relates to the property, income,
resources or trust funds of the eligible adult; or
(3) obtainment or use of an eligible adult's property, income,
resources or trust funds, without lawful authority, by a person or entity
who knows or clearly should know that the eligible adult lacks the
capacity to consent to the release or use of such eligible adult's
property, income, resources or trust funds.
(g) "Investment adviser" means the same as defined in K.S.A. 17-
12a102, and amendments thereto.
(h) "Investment adviser representative" means the same as defined
in K.S.A. 17-12a102, and amendments thereto.
(i) "Person reasonably associated with the eligible adult" means:
(1) A person authorized to transact business on the account of the
eligible adult;
(2) an eligible adult's spouse, child, parent or sibling;
(3) a person who was previously designated by the eligible adult
to receive information under a customer agreement;
(4) a legal guardian or conservator of the eligible adult;
(5) a trustee, co-trustee or successor trustee of the account of the
eligible adult;
(6) a person named as a beneficiary on an account of the eligible
adult;
(7) an agent under a power of attorney of the eligible adult; or
(8) any other person permitted to be notified under existing state
or federal law, regulation or the rules of a self-regulatory organization,
as defined in K.S.A. 17-12a102, and amendments thereto.
(j) "Protective agencies" means the commissioner and the Kansas
department for children and families. HOUSE BILL No. 2562—page 2
(k) "Qualified person" means any agent, broker-dealer, investment
adviser, investment adviser representative or person who serves in a
supervisory, compliance or legal capacity for a broker-dealer or
investment adviser.
New Sec. 3. If a qualified person reasonably believes that
financial exploitation of an eligible adult may have occurred, may have
been attempted or is being attempted, the broker-dealer or investment
adviser shall promptly report the matter to the protective agencies,
which may further report the matter as permitted or required by law.
New Sec. 4. A qualified person who, in good faith and exercising
reasonable care, makes a disclosure of information pursuant to section
3, and amendments thereto, shall be immune from administrative and
civil liability that might otherwise arise from such disclosure or for any
failure to notify the eligible adult of such disclosure.
New Sec. 5. A qualified person who, in good faith and exercising
reasonable care, makes a disclosure of information pursuant to section
3, and amendments thereto, may notify any person reasonably
associated with the eligible adult of the disclosure, unless the qualified
person suspects that such person reasonably associated with the eligible
adult has committed or attempted financial exploitation of such eligible
adult.
New Sec. 6. A qualified person who, in good faith and exercising
reasonable care, complies with the provisions of section 5, and
amendments thereto, shall be immune from any administrative and civil
liability that might otherwise arise from such disclosure.
New Sec. 7. (a) A broker-dealer or investment adviser may delay a
transaction associated with or disbursement from an account of an
eligible adult or an account on which an eligible adult is a beneficiary
if:
(1) A qualified person reasonably believes, after initiating an
internal review of the requested transaction or disbursement and the
suspected financial exploitation, that the requested transaction or
disbursement may further financial exploitation of an eligible adult; and
(2) the broker-dealer or investment adviser:
(A) Immediately, and in no event more than two business days
after the date that a requested transaction or disbursement is delayed,
provides written notification of the delay and the reason for such delay
to all parties authorized to transact business on the account, unless such
qualified person reasonably believes that any such party is engaged in
suspected or attempted financial exploitation of the eligible adult;
(B) immediately, and in no event more than two business days
after the requested transaction or disbursement is delayed, notifies the
protective agencies; and
(C) continues such internal review of the suspected or attempted
financial exploitation of the eligible adult, as necessary and reports the
results of such investigation to the protective agencies upon request.
(b) Any delay of a transaction or disbursement authorized by this
section shall expire upon the soonest of:
(1) A determination by the broker-dealer or investment adviser
that the transaction or disbursement will not result in financial
exploitation of the eligible adult; or
(2) 15 business days following the date on which the broker-dealer
or investment adviser first delayed the transaction or disbursement,
unless either of the protective agencies requests that the broker-dealer
or investment adviser extend the delay, in which case the delay shall
expire not more than 25 business days after the date on which the
broker-dealer or investment adviser first delayed the transaction or
disbursement if not terminated sooner or further extended by either of
the protective agencies or an order of a court of competent jurisdiction. HOUSE BILL No. 2562—page 3
(c) A court of competent jurisdiction may enter an order extending
the delay of the transaction or disbursement or may order other
protective relief based on the petition of either of the protective
agencies, the broker-dealer or investment adviser that initiated the
delay under this section or another interested party.
New Sec. 8. A broker-dealer or investment adviser that, in good
faith and exercising reasonable care, complies with the provisions of
section 7, and amendments thereto, shall be immune from any
administrative and civil liability that might otherwise arise from such
delay of a transaction or disbursement in accordance with this act.
New Sec. 9. (a) A broker-dealer or investment adviser shall
provide access to or copies of records that are relevant to the suspected
or attempted financial exploitation of an eligible adult to the protective
agencies and to law enforcement agencies, either as part of a referral to
the protective agencies or to law enforcement agencies or upon request
of either protective agency or law enforcement agency pursuant to an
investigation. The records may include historical records and records
relating to the most recent transaction or transactions that may
constitute financial exploitation of an eligible adult.
(b) No record made available to the commissioner or other
agencies under this act shall be considered a public record under the
open records act, K.S.A. 45-215 et seq., and amendments thereto. The
provisions of this subsection providing for the confidentiality of public
records shall expire on July 1, 2029, unless the legislature reviews and
acts to continue such provisions in accordance with K.S.A. 45-229, and
amendments thereto, prior to July 1, 2029.
(c) Notwithstanding any provision of law to the contrary, the
protective agencies shall respond to reasonable inquiries from the
notifying qualified person and may disclose to the notifying qualified
person the general status or final disposition of any investigation that
arose from a report made by such qualified person.
(d) Nothing in this act shall limit or otherwise impede the
authority of the commissioner to access or examine the books and
records of broker-dealers and investment advisers as otherwise
provided by law.
New Sec. 10. (a) Sections 10 through 13, and amendments thereto,
shall be known and may be cited as the Kansas contract for deed act.
(b) As used in sections 10 through 13, and amendments thereto:
(1) "Buyer" means a person who purchases property subject to a
contract for deed or any legal successor in interest to the buyer.
(2) "Contract for deed" means an executory agreement in which
the seller agrees to convey title to real property to the buyer and the
buyer agrees to pay the purchase price in five or more subsequent
payments exclusive of the down payment, if any, while the seller
retains title to the property as security for the buyer's obligation. Option
contracts for the purchase of real property are not contracts for deed.
(3) "Property" means real property located in this state upon
which there is located or will be located a structure designed principally
for occupancy of one to four families that is or will be occupied by the
buyer as the buyer's principal place of residence.
(4) "Seller" means any person who makes a sale of property by
means of a contract for deed or any legal successor in interest to the
seller.
New Sec. 11. (a) Any contract for deed or affidavit of equitable
interest may be recorded in the office of the county register of deeds
where the property is located by any interested person.
(b) Following the notice and opportunity to cure provided for in
section 13(c), and amendments thereto, the buyer shall have 15 days to:
(1) Record a record of release of affidavit of equitable interest or HOUSE BILL No. 2562—page 4
contract for deed, if such affidavit or contract were recorded; and
(2) vacate the premises, if applicable.
(c) If the buyer fails to satisfy the conditions under subsection (b),
then such buyer shall be responsible for the seller's reasonable attorney
fees, costs and expenses for the removal of the affidavit of equitable
interest or contract for deed from the title and eviction of the buyer
from the premises, if applicable.
New Sec. 12. (a) A seller shall not execute a contract for deed with
a buyer if the seller does not hold title to the property. Except as
provided further, a seller shall maintain fee simple title to the property
free from any mortgage, lien or other encumbrance for the duration of
the contract for deed. This subsection shall not apply to a mortgage,
lien or encumbrance placed on the property:
(1) Due to the conduct of the buyer;
(2) with the agreement of the buyer as a condition of a loan
obtained to make improvements on the property; or
(3) by the seller prior to the execution of the contract for deed if:
(A) The seller disclosed the mortgage, lien or encumbrance to the
buyer;
(B) the seller continues to make timely payments on the
outstanding mortgage, lien or other encumbrance;
(C) the seller disclosed the contract for deed to the mortgagee,
lienholder or other party of interest; and
(D) the seller satisfies and obtains a release of the mortgage, lien
or other encumbrance not later than the date the buyer makes final
payment on the contract for deed unless the buyer assumes the
mortgage, lien or other encumbrance as part of the contract for deed.
(b) Any violation of this section is a deceptive act or practice
under the provisions of the Kansas consumer protection act and shall be
subject to any and all of the enforcement provisions of the Kansas
consumer protection act.
New Sec. 13. (a) A buyer's rights under a contract for deed shall
not be forfeited or canceled except as provided in this section,
notwithstanding any provision in the contract providing for forfeiture
of buyer's rights. Nothing in this section shall be construed to limit the
power of the district court to require proceedings in equitable
foreclosure.
(b) The buyer's rights under a contract for deed shall not be
forfeited until the buyer has been notified of the intent to forfeit as
provided in subsection (c) and has been given a right to cure the
default, and such buyer has failed to do so within the time period
allowed. A timely tender of cure shall reinstate the contract for deed.
(c) A notice of default and intent to forfeit shall:
(1) Reasonably identify the contract and describe the property
covered by it;
(2) specify the terms and conditions of the contract with which the
buyer has not complied; and
(3) notify the buyer that the contract will be forfeited unless the
buyer performs the terms and conditions within the following periods
of time:
(A) If the buyer has paid less than 50% of the purchase price, 30
days from completed service of notice; or
(B) if the buyer has paid 50% or more of the purchase price, 90
days from completed service of notice.
(d) A notice of default and intent to forfeit shall be served on the
buyer in person, or by leaving a copy at the buyer's usual place of
residence with someone of suitable age and discretion who resides at
such place of residence, or by certified mail or priority mail, return
receipt requested, addressed to the buyer at the buyer's usual place of HOUSE BILL No. 2562—page 5
residence.
(e) Nothing in this section shall be construed to preclude the buyer
or the seller from pursuing any other remedy at law or equity.
New Sec. 14. (a) Any restrictive covenant recitals on real property
contained in any deed, plat, declaration, restriction, covenant or other
conveyance filed at any time in the office of the register of deeds in any
county in violation of K.S.A. 44-1016 or 44-1017, and amendments
thereto, shall be void and unenforceable.
(b) A restrictive covenant that violates K.S.A. 44-1016 or 44-
1017, and amendments thereto, may be released by the owner of the
real property subject to such covenant by recording a certificate of
release of prohibited covenants. Such certificate may be recorded prior
to recording of a document conveying any interest in such real property
or at such other time as the owner discovers that such prohibited
covenant exists. Any certificate recorded with the register of deeds shall
be subject to recording fees pursuant to K.S.A. 28-115, and
amendments thereto. A certificate of release of prohibited covenants
shall contain:
(1) The name of the current owner of the real property;
(2) a legal description of the real property;
(3) the volume and page or the document number in which the
original document containing the restrictive covenant is recorded;
(4) a brief description of the restrictive covenant; and
(5) the citation to the location of the restrictive covenant in the
original document.
Sec. 15. K.S.A. 17-12a412 is hereby amended to read as follows:
17-12a412. (a) Disciplinary conditions — applicants. An order issued
under this act may deny an application, or may condition or limit
registration of an applicant to be a broker-dealer, agent, investment
adviser, or investment adviser representative if the administrator finds
that the order is in the public interest and that there is a ground for
discipline under subsection (d) against the applicant or, if the applicant
is a broker-dealer or investment adviser, against any partner, officer,
director, person having a similar status or performing similar functions,
or person directly or indirectly controlling the broker-dealer or
investment adviser.
(b) Disciplinary conditions — registrants. An order issued under
this act may revoke, suspend, condition, or limit the registration of a
registrant if the administrator finds that the order is in the public
interest and that there is a ground for discipline under subsection (d)
against the registrant or, if the registrant is a broker-dealer or
investment adviser, against any partner, officer, or director, any person
having a similar status or performing similar functions, or any person
directly or indirectly controlling the broker-dealer or investment
adviser. However, the administrator:
(1) May not institute a revocation or suspension proceeding under
this subsection based on an order issued by another state that is
reported to the administrator or designee later than one year after the
date of the order on which it is based; and
(2) under subsection (d)(5)(A) and (B), may not issue an order on
the basis of an order under the state securities act of another state unless
the other order was based on conduct for which subsection (d) would
authorize the action had the conduct occurred in this state.
(c) Disciplinary penalties — registrants. If the administrator finds
that the order is in the public interest and that there is a ground for
discipline under subsection (d)(1) through (6), (8), (9), (10), (12) or
(13) against a registrant or, if the registrant is a broker-dealer or
investment adviser, against any partner, officer, or director, any person
having similar functions, or any person directly or indirectly controlling HOUSE BILL No. 2562—page 6
the broker-dealer or investment adviser, then the administrator may
enter an order against the registrant containing one or more of the
following sanctions or remedies:
(1) A censure;
(2) a bar or suspension from association with a broker-dealer or
investment adviser registered in this state;
(3) a civil penalty up to $25,000 for each violation. If any person
is found to have violated any provision of this act, and such violation is
committed against elder or disabled persons, as defined in K.S.A. 50-
676, and amendments thereto, in addition to any civil penalty otherwise
provided by law, the administrator may impose an additional penalty
not to exceed $15,000 for each such violation. The total penalty against
a person shall not exceed $1,000,000;
(4) an order requiring the registrant to pay restitution for any loss
or disgorge any profits arising from a violation, including, in the
administrator's discretion, the assessment of interest from the date of
the violation at the rate provided for interest on judgments by K.S.A.
16-204, and amendments thereto;
(5) an order charging the registrant with the actual cost of an
investigation or proceeding; or
(6) an order requiring the registrant to cease and desist from any
action that constitutes a ground for discipline, or to take other action
necessary or appropriate to comply with this act.
(d) Grounds for discipline. A person may be disciplined under
subsections (a) through (c) if the person:
(1) Has filed an application for registration in this state under this
act or the predecessor act within the previous 10 years, which, as of the
effective date of registration or as of any date after filing in the case of
an order denying effectiveness, was incomplete in any material respect
or contained a statement that, in light of the circumstances under which
it was made, was false or misleading with respect to a material fact;
(2) willfully violated or willfully failed to comply with this act or
the predecessor act or a rule adopted or order issued under this act or
the predecessor act within the previous 10 years;
(3) has been convicted of a felony or within the previous 10 years
has been convicted of a misdemeanor involving a security, a
commodity future or option contract, or an aspect of a business
involving securities, commodities, investments, franchises, insurance,
banking, or finance;
(4) is enjoined or restrained by a court of competent jurisdiction in
an action instituted by the administrator under this act or the
predecessor act, a state, the securities and exchange commission, or the
United States from engaging in or continuing an act, practice, or course
of business involving an aspect of a business involving securities,
commodities, investments, franchises, insurance, banking, or finance;
(5) is the subject of an order, issued after notice and opportunity
for hearing by:
(A) The securities, depository institution, insurance, or other
financial services regulator of a state or by the securities and exchange
commission or other federal agency denying, revoking, barring, or
suspending registration as a broker-dealer, agent, investment adviser,
federal covered investment adviser, or investment adviser
representative;
(B) the securities regulator of a state or by the securities and
exchange commission against a broker-dealer, agent, investment
adviser, investment adviser representative, or federal covered
investment adviser;
(C) the securities and exchange commission or by a self-
regulatory organization suspending or expelling the registrant from HOUSE BILL No. 2562—page 7
membership in the self-regulatory organization;
(D) a court adjudicating a United States postal service fraud order;
(E) the insurance regulator of a state denying, suspending, or
revoking the registration of an insurance agent; or
(F) a depository institution regulator suspending or barring a
person from the depository institution business;
(6) is the subject of an adjudication or determination, after notice
and opportunity for hearing, by the securities and exchange
commission, the commodity futures trading commission, the federal
trade commission, a federal depository institution regulator, or a
depository institution, insurance, or other financial services regulator of
a state that the person willfully violated the securities act of 1933, the
securities exchange act of 1934, the investment advisers act of 1940,
the investment company act of 1940, or the commodity exchange act,
the securities or commodities law of a state, or a federal or state law
under which a business involving investments, franchises, insurance,
banking, or finance is regulated;
(7) is insolvent, either because the person's liabilities exceed the
person's assets or because the person cannot meet the person's
obligations as they mature, but the administrator may not enter an order
against an applicant or registrant under this paragraph without a finding
of insolvency as to the applicant or registrant;
(8) refuses to allow or otherwise impedes the administrator from
conducting an audit or inspection under K.S.A. 17-12a411(d), and
amendments thereto, refuses access to a registrant's office to conduct an
audit or inspection under K.S.A. 17-12a411(d), and amendments
thereto, fails to keep or maintain sufficient records to permit an audit
disclosing the condition of the registrant's business, or fails willfully
and without cause to comply with a request for information by the
administrator or person designated by the administrator in conducting
investigations or examinations under this act;
(9) has failed to reasonably supervise an agent, investment adviser
representative, or other individual, if the agent, investment adviser
representative, or other individual was subject to the person's
supervision and committed a violation of this act or the predecessor act
or a rule adopted or order issued under this act or the predecessor act
within the previous 10 years;
(10) has not paid the proper filing fee within 30 days after having
been notified by the administrator of a deficiency, but the administrator
shall vacate an order under this paragraph when the deficiency is
corrected;
(11) after notice and opportunity for a hearing, has been found
within the previous 10 years:
(A) By a court of competent jurisdiction to have willfully violated
the laws of a foreign jurisdiction under which the business of securities,
commodities, investment, franchises, insurance, banking, or finance is
regulated;
(B) to have been the subject of an order of a securities regulator of
a foreign jurisdiction denying, revoking, or suspending the right to
engage in the business of securities as a broker-dealer, agent,
investment adviser, investment adviser representative, or similar
person; or
(C) to have been suspended or expelled from membership by or
participation in a securities exchange or securities association operating
under the securities laws of a foreign jurisdiction;
(12) is the subject of a cease and desist order issued by the
securities and exchange commission or issued under the securities,
commodities, investment, franchise, banking, finance, or insurance
laws of a state; HOUSE BILL No. 2562—page 8
(13) has engaged in dishonest or unethical practices in the
securities, commodities, investment, franchise, banking, finance, or
insurance business within the previous 10 years;
(14) is not qualified on the basis of factors such as training,
experience, and knowledge of the securities business. However, in the
case of an application by an agent for a broker-dealer that is a member
of a self-regulatory organization or by an individual for registration as
an investment adviser representative, a denial order may not be based
on this paragraph if the individual has successfully completed all
examinations required by subsection (e). The administrator may require
an applicant for registration under K.S.A. 17-12a402 or 17-12a404, and
amendments thereto, who has not been registered in a state within the
two years preceding the filing of an application in this state to
successfully complete an examination; or
(15) lacks sufficient character or reputation to warrant the public
trust; or
(16) was required to report information under the protect
vulnerable adults from financial exploitation act and knowingly failed
to make such a report or knowingly caused such report not to be made
within the previous 10 years.
(e) Examinations. A rule adopted or order issued under this act
may require that an examination, including an examination developed
or approved by an organization of securities regulators, be successfully
completed by a class of individuals or all individuals. An order issued
under this act may waive, in whole or in part, an examination as to an
individual and a rule adopted under this act may waive, in whole or in
part, an examination as to a class of individuals if the administrator
determines that the examination is not necessary or appropriate in the
public interest and for the protection of investors.
(f) Summary process. In accordance with the Kansas
administrative procedures procedure act, the administrator may use
summary or emergency proceedings to suspend or deny an application;
restrict, condition, limit, or suspend a registration; or censure, bar, or
impose a civil penalty or cease and desist order on a registrant before
final determination of an administrative proceeding. If a hearing is not
requested and none is ordered by the administrator within 30 days after
the date of service of the order, the order becomes final by operation of
law. If a hearing is requested or ordered, the administrator, after notice
of and opportunity for hearing to each person subject to the order, may
modify or vacate the order or extend the order until final determination.
(g) Procedural requirements. (1) An order issued may not be
issued under this section, except under subsection (f), without:
(A) Appropriate notice to the applicant or registrant;
(B) opportunity for hearing; and
(C) findings of fact and conclusions of law in a record.
(2) Proceedings under this subsection shall be conducted in
accordance with the Kansas administrative procedures procedure act.
(h) Control person liability. A person that controls, directly or
indirectly, a person not in compliance with this section may be
disciplined by order of the administrator under subsections (a) through
(c) to the same extent as the noncomplying person, unless the
controlling person did not know, and in the exercise of reasonable care
could not have known, of the existence of conduct that is a ground for
discipline under this section.
(i) Limit on investigation or proceeding. The administrator may
not institute a proceeding under subsection (a), (b), or (c) based solely
on material facts actually known by the administrator unless an
investigation or the proceeding is instituted within one year after the
administrator actually acquires knowledge of the material facts. HOUSE BILL No. 2562—page 9
Sec. 16. K.S.A. 44-1017a is hereby amended to read as follows:
44-1017a. (a) No declaration or other governing document of an
association shall include a restrictive covenant in violation of K.S.A.
44-1016 and 44-1017, and amendments thereto.
(b) Within 60 days of the effective date of this act, the board of
directors of an association shall amend any declaration or other
governing document that includes a restrictive covenant in violation of
K.S.A. 44-1016 and 44-1017, and amendments thereto, by removing
such restrictive covenant. Such amendment shall not require the
approval of the members of the association. No other change shall be
required to be made to the declaration or other governing document of
the association pursuant to this section. Within 10 days of the adoption
of the amendment, the amended declaration or other governing
document shall be recorded in the same manner as the original
declaration or other governing document and shall be subject to
recording fees pursuant to K.S.A. 28-115, and amendments thereto. No
fee shall be charged for such recording.
(c) If the commission, a city or county in which where the
association is located provides written notice to an association
requesting that the association delete a restrictive covenant in violation
of K.S.A. 44-1016 and 44-1017, and amendments thereto, the
association shall delete the restrictive covenant within 30 days of
receiving the notice. If the association fails to delete the restrictive
covenant in violation of K.S.A. 44-1016 and 44-1017, and amendments
thereto, the commission, a city or county in which where the
association is located, or any person adversely affected by such
restrictive covenant may bring an action against the homeowners
association for injunctive relief to enforce the provisions of subsections
(a) and (b) of this section. The court may award attorney's fees to the
prevailing party.
(d) If a city or county determines that the association is no longer
active such that the written notice described in subsection (c) cannot be
provided to the association, then the city or county, upon adoption of a
resolution by the governing body of such city or county, may remove
such restrictive covenant that is in violation of K.S.A. 44-1016 or 44-
1017, and amendments thereto, by recording a certificate of release of
prohibited covenants in accordance with section 14, and amendments
thereto. A resolution may authorize the removal of more than one
restrictive covenant that is in violation of K.S.A. 44-1016 or 44-1017,
and amendments thereto. No signature or other consent of any property
owner affected by such recording shall be required to record any
certificate of release of prohibited covenants pursuant to this
subsection. Any such certificate recorded pursuant to this subsection
shall not affect the validity of any property interest recorded within the
original or redacted plat. No city or county shall incur any liability
arising from the recording of any certificate of release of prohibited
covenants pursuant to this subsection. No fee shall be charged for any
recording filed pursuant to this subsection. Any such recording shall be
exempt from the survey requirements of K.S.A. 58-2001 et seq., and
amendments thereto.
(e) For the purposes of this section:
(1) "Association" means a non-profit homeowners association as
defined in K.S.A. 60-3611, and amendments thereto.
(2) "Commission" means the Kansas human rights commission as
defined in K.S.A. 44-1002, and amendments thereto.
(e)(f) This section shall be a part of and supplemental to and a part
of the Kansas act against discrimination.
Sec. 17. K.S.A. 58-3065 is hereby amended to read as follows: 58-
3065. (a) Willful violation of any provision of this act or the brokerage HOUSE BILL No. 2562—page 10
relationships in real estate transactions act is a misdemeanor punishable
by imprisonment for not more than 12 months or a fine of not less than
$100 or more than $1,000, or both, for the first offense and
imprisonment for not more than 12 months or a fine of not less than
$1,000 or more than $10,000, or both, for a second or subsequent
offense.
(b) Nothing in this act or the brokerage relationships in real estate
transactions act shall be construed as requiring the commission or the
director to report minor violations of the acts for criminal prosecution
whenever the commission or the director believes that the public
interest will be adequately served by other administrative action.
(c) If the commission determines that a person or associated
association, corporation, limited liability company, limited liability
partnership, partnership, professional corporation or trust has
practiced without a valid broker's or salesperson's license issued by the
commission, in addition to any other penalties imposed by law, the
commission, in accordance with the Kansas administrative procedure
act, may issue a cease and desist order against the unlicensed person.
Sec. 18. K.S.A. 17-12a412, 44-1017a and 58-3065 are hereby
repealed.
Sec. 19. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the HOUSE, and was
adopted by that body
HOUSE adopted
Conference Committee Report
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report
President of the Senate.
Secretary of the Senate.
APPROVED
Governor.