Kansas 2025-2026 Regular Session

Kansas House Bill HB2323 Compare Versions

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1	1	Session of 2025
2	2	HOUSE BILL No. 2323
3	3	By Committee on Judiciary
4	4	Requested by Steve Karrer on behalf of the Kansas Insurance Department
5	5	2-7
6	6	AN ACT concerning fraudulent insurance acts; establishing procedures for
7	7	a civil action instituted by the commissioner of insurance and
8	8	authorizing civil penalties, restitution and other relief; providing that
9	9	expunged criminal records will be disclosed in any application for
10	10	licensure as an insurance producer or public adjuster if the arrest,
11	11	conviction or diversion is for a fraudulent insurance act; including
12	12	automobile assigned claims plans in provisions related to fraudulent
13	13	insurance acts; amending K.S.A. 21-6614, 40-2,118 and 40-2,119 and
14	14	repealing the existing sections.
15	15	Be it enacted by the Legislature of the State of Kansas:
16	16	New Section 1. (a) If the commissioner believes that a person has
17	17	committed a fraudulent insurance act, the commissioner may bring a civil
18	18	action in the district court of Shawnee county or in the district court of any
19	19	county in which an alleged fraudulent insurance act occurred.
20	20	(b) In an action brought pursuant to this section, the burden of proof
21	21	shall be on the commissioner to prove by a preponderance of the evidence
22	22	that the person committed a fraudulent insurance act.
23	23	(c) In an action pursuant to this section, if the court finds that the
24	24	person committed a fraudulent insurance act, the court may:
25	25	(1) Impose a civil penalty of up to $10,000 for each fraudulent
26	26	insurance act, which shall be paid into the insurance department service
27	27	regulation fund;
28	28	(2) order the person who engaged in the fraudulent insurance act to
29	29	pay restitution to the insurer or automobile assigned claims plan to the
30	30	extent of such insurer's or plan's actual pecuniary harm;
31	31	(3) order payment of reasonable expenses and investigation fees
32	32	incurred by the department of insurance as a result of the fraudulent
33	33	insurance act or acts, which shall be paid into the department of insurance
34	34	service regulation fund; and
35	35	(4) order such other relief as the court considers appropriate.
36	36	(d) An aggrieved insurer or automobile assigned claims plan shall not
37	37	be joined as a party pursuant to K.S.A 60-219 or 60-220, and amendments
38	38	thereto, in any action brought pursuant to this section.
39	39	(e) The defendant and the commissioner shall be permitted to present
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75	75	the testimony of witnesses through a two-way electronic audio-video
76	76	communication device in actions brought pursuant to this section.
77	77	(f) In an action pursuant to this section, a person shall not be excused
78	78	from testifying, producing a record or other evidence or obeying a
79	79	subpoena on the ground that the required testimony, record or other
80	80	evidence, directly or indirectly, may tend to incriminate the individual or
81	81	subject the person to a criminal fine, penalty or forfeiture. If the person
82	82	refuses to testify, produce a record or other evidence or obey a subpoena
83	83	based on the person's privilege against self-incrimination, the court may
84	84	compel the testimony, the production of the record or other evidence or
85	85	compliance with the subpoena. The testimony, record or other evidence
86	86	compelled under such an order shall not be used, directly or indirectly,
87	87	against the person in a criminal case, except in a prosecution for perjury or
88	88	contempt or otherwise failing to comply with the court's order.
89	89	(g) As used in this section:
90	90	(1) "Commissioner" means the commissioner of insurance; and
91	91	(2) "fraudulent insurance act" means the same as defined in K.S.A.
92	92	40-2,118, and amendments thereto.
93	93	Sec. 2. K.S.A. 21-6614 is hereby amended to read as follows: 21-
94	94	6614. (a) (1) Except as provided in subsections (b), (c), (d), (e) and (f), any
95	95	person convicted in this state of a traffic infraction, cigarette or tobacco
96	96	infraction, misdemeanor or a class D or E felony, or for crimes committed
97	97	on or after July 1, 1993, any nongrid felony or felony ranked in severity
98	98	levels 6 through 10 of the nondrug grid, or for crimes committed on or
99	99	after July 1, 1993, but prior to July 1, 2012, any felony ranked in severity
100	100	level 4 of the drug grid, or for crimes committed on or after July 1, 2012,
101	101	any felony ranked in severity level 5 of the drug grid may petition the
102	102	convicting court for the expungement of such conviction or related arrest
103	103	records if three or more years have elapsed since the person: (A) Satisfied
104	104	the sentence imposed; or (B) was discharged from probation, a community
105	105	correctional services program, parole, postrelease supervision, conditional
106	106	release or a suspended sentence.
107	107	(2) Except as provided in subsections (b), (c), (d), (e) and (f), any
108	108	person who has fulfilled the terms of a diversion agreement may petition
109	109	the district court for the expungement of such diversion agreement and
110	110	related arrest records if three or more years have elapsed since the terms of
111	111	the diversion agreement were fulfilled.
112	112	(3) Notwithstanding the provisions of subsection (a)(1), and except as
113	113	provided in subsections (b), (c), (d), (e) and (f), any person who has
114	114	completed the requirements of a specialty court program established
115	115	pursuant to K.S.A. 20-173, and amendments thereto, may petition the
116	116	district court for the expungement of the conviction and related arrest
117	117	records. The court may waive all or part of the docket fee imposed for
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161	161	filing a petition pursuant to this subsection.
162	162	(b) Any person convicted of prostitution, as defined in K.S.A. 21-
163	163	3512, prior to its repeal, convicted of a violation of K.S.A. 21-6419, and
164	164	amendments thereto, or who entered into a diversion agreement in lieu of
165	165	further criminal proceedings for such violation, may petition the
166	166	convicting court for the expungement of such conviction or diversion
167	167	agreement and related arrest records if:
168	168	(1) One or more years have elapsed since the person satisfied the
169	169	sentence imposed or the terms of a diversion agreement or was discharged
170	170	from probation, a community correctional services program, parole,
171	171	postrelease supervision, conditional release or a suspended sentence; and
172	172	(2) such person can prove they were acting under coercion caused by
173	173	the act of another. For purposes of this subsection, "coercion" means:
174	174	Threats of harm or physical restraint against any person; a scheme, plan or
175	175	pattern intended to cause a person to believe that failure to perform an act
176	176	would result in bodily harm or physical restraint against any person; or the
177	177	abuse or threatened abuse of the legal process.
178	178	(c) Except as provided in subsections (e) and (f), no person may
179	179	petition for expungement until five or more years have elapsed since the
180	180	person satisfied the sentence imposed or the terms of a diversion
181	181	agreement or was discharged from probation, a community correctional
182	182	services program, parole, postrelease supervision, conditional release or a
183	183	suspended sentence, if such person was convicted of a class A, B or C
184	184	felony, or for crimes committed on or after July 1, 1993, if convicted of an
185	185	off-grid felony or any felony ranked in severity levels 1 through 5 of the
186	186	nondrug grid, or for crimes committed on or after July 1, 1993, but prior to
187	187	July 1, 2012, any felony ranked in severity levels 1 through 3 of the drug
188	188	grid, or for crimes committed on or after July 1, 2012, any felony ranked
189	189	in severity levels 1 through 4 of the drug grid, or:
190	190	(1) Vehicular homicide, as defined in K.S.A. 21-3405, prior to its
191	191	repeal, or K.S.A. 21-5406, and amendments thereto, or as prohibited by
192	192	any law of another state that is in substantial conformity with that statute;
193	193	(2) driving while the privilege to operate a motor vehicle on the
194	194	public highways of this state has been canceled, suspended or revoked, as
195	195	prohibited by K.S.A. 8-262, and amendments thereto, or as prohibited by
196	196	any law of another state that is in substantial conformity with that statute;
197	197	(3) perjury resulting from a violation of K.S.A. 8-261a, and
198	198	amendments thereto, or resulting from the violation of a law of another
199	199	state that is in substantial conformity with that statute;
200	200	(4) violating the provisions of K.S.A. 8-142 Fifth, and amendments
201	201	thereto, relating to fraudulent applications or violating the provisions of a
202	202	law of another state that is in substantial conformity with that statute;
203	203	(5) any crime punishable as a felony wherein a motor vehicle was
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247	247	used in the perpetration of such crime;
248	248	(6) failing to stop at the scene of an accident and perform the duties
249	249	required by K.S.A. 8-1603, prior to its repeal, or K.S.A. 8-1602 or 8-1604,
250	250	and amendments thereto, or required by a law of another state that is in
251	251	substantial conformity with those statutes;
252	252	(7) violating the provisions of K.S.A. 40-3104, and amendments
253	253	thereto, relating to motor vehicle liability insurance coverage; or
254	254	(8) a violation of K.S.A. 21-3405b, prior to its repeal.
255	255	(d) (1) No person may petition for expungement until five or more
256	256	years have elapsed since the person satisfied the sentence imposed or the
257	257	terms of a diversion agreement or was discharged from probation, a
258	258	community correctional services program, parole, postrelease supervision,
259	259	conditional release or a suspended sentence, if such person was convicted
260	260	of a first violation of K.S.A. 8-1567, and amendments thereto, including
261	261	any diversion for such violation.
262	262	(2) No person may petition for expungement until 10 or more years
263	263	have elapsed since the person satisfied the sentence imposed or was
264	264	discharged from probation, a community correctional services program,
265	265	parole, postrelease supervision, conditional release or a suspended
266	266	sentence, if such person was convicted of a second or subsequent violation
267	267	of K.S.A. 8-1567, and amendments thereto.
268	268	(3) Except as provided further, the provisions of this subsection shall
269	269	apply to all violations committed on or after July 1, 2006. The provisions
270	270	of subsection (d)(2) shall not apply to violations committed on or after
271	271	July 1, 2014, but prior to July 1, 2015.
272	272	(e) There shall be no expungement of convictions for the following
273	273	offenses or of convictions for an attempt to commit any of the following
274	274	offenses:
275	275	(1) Rape, as defined in K.S.A. 21-3502, prior to its repeal, or K.S.A.
276	276	21-5503, and amendments thereto;
277	277	(2) indecent liberties with a child or aggravated indecent liberties
278	278	with a child, as defined in K.S.A. 21-3503 or 21-3504, prior to their repeal,
279	279	or K.S.A. 21-5506, and amendments thereto;
280	280	(3) criminal sodomy, as defined in K.S.A. 21-3505(a)(2) or (a)(3),
281	281	prior to its repeal, or K.S.A. 21-5504(a)(3) or (a)(4), and amendments
282	282	thereto;
283	283	(4) aggravated criminal sodomy, as defined in K.S.A. 21-3506, prior
284	284	to its repeal, or K.S.A. 21-5504, and amendments thereto;
285	285	(5) indecent solicitation of a child or aggravated indecent solicitation
286	286	of a child, as defined in K.S.A. 21-3510 or 21-3511, prior to their repeal,
287	287	or K.S.A. 21-5508, and amendments thereto;
288	288	(6) sexual exploitation of a child, as defined in K.S.A. 21-3516, prior
289	289	to its repeal, or K.S.A. 21-5510, and amendments thereto;
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333	333	(7) internet trading in child pornography or aggravated internet
334	334	trading in child pornography, as defined in K.S.A. 21-5514, and
335	335	amendments thereto;
336	336	(8) aggravated incest, as defined in K.S.A. 21-3603, prior to its
337	337	repeal, or K.S.A. 21-5604, and amendments thereto;
338	338	(9) endangering a child or aggravated endangering a child, as defined
339	339	in K.S.A. 21-3608 or 21-3608a, prior to their repeal, or K.S.A. 21-5601,
340	340	and amendments thereto;
341	341	(10) abuse of a child, as defined in K.S.A. 21-3609, prior to its repeal,
342	342	or K.S.A. 21-5602, and amendments thereto;
343	343	(11) capital murder, as defined in K.S.A. 21-3439, prior to its repeal,
344	344	or K.S.A. 21-5401, and amendments thereto;
345	345	(12) murder in the first degree, as defined in K.S.A. 21-3401, prior to
346	346	its repeal, or K.S.A. 21-5402, and amendments thereto;
347	347	(13) murder in the second degree, as defined in K.S.A. 21-3402, prior
348	348	to its repeal, or K.S.A. 21-5403, and amendments thereto;
349	349	(14) voluntary manslaughter, as defined in K.S.A. 21-3403, prior to
350	350	its repeal, or K.S.A. 21-5404, and amendments thereto;
351	351	(15) involuntary manslaughter, as defined in K.S.A. 21-3404, prior to
352	352	its repeal, or K.S.A. 21-5405, and amendments thereto;
353	353	(16) sexual battery, as defined in K.S.A. 21-3517, prior to its repeal,
354	354	or K.S.A. 21-5505, and amendments thereto, when the victim was less
355	355	than 18 years of age at the time the crime was committed;
356	356	(17) aggravated sexual battery, as defined in K.S.A. 21-3518, prior to
357	357	its repeal, or K.S.A. 21-5505, and amendments thereto;
358	358	(18) a violation of K.S.A. 8-2,144, and amendments thereto,
359	359	including any diversion for such violation; or
360	360	(19) any conviction for any offense in effect at any time prior to July
361	361	1, 2011, that is comparable to any offense as provided in this subsection.
362	362	(f) Except as provided in K.S.A. 22-4908, and amendments thereto,
363	363	for any offender who is required to register as provided in the Kansas
364	364	offender registration act, K.S.A. 22-4901 et seq., and amendments thereto,
365	365	there shall be no expungement of any conviction or any part of the
366	366	offender's criminal record while the offender is required to register as
367	367	provided in the Kansas offender registration act.
368	368	(g) (1) When a petition for expungement is filed, the court shall set a
369	369	date for a hearing of such petition and shall cause notice of such hearing to
370	370	be given to the prosecutor and the arresting law enforcement agency. The
371	371	petition shall state the:
372	372	(A) Defendant's full name;
373	373	(B) full name of the defendant at the time of arrest, conviction or
374	374	diversion, if different than the defendant's current name;
375	375	(C) defendant's sex, race and date of birth;
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419	419	(D) crime for which the defendant was arrested, convicted or
420	420	diverted;
421	421	(E) date of the defendant's arrest, conviction or diversion; and
422	422	(F) identity of the convicting court, arresting law enforcement
423	423	authority or diverting authority.
424	424	(2) Except as otherwise provided by law, a petition for expungement
425	425	shall be accompanied by a docket fee in the amount of $176. On and after
426	426	July 1, 2019, through June 30, 2025, the supreme court may impose a
427	427	charge, not to exceed $19 per case, to fund the costs of non-judicial
428	428	personnel. The charge established in this section shall be the only fee
429	429	collected or moneys in the nature of a fee collected for the case. Such
430	430	charge shall only be established by an act of the legislature and no other
431	431	authority is established by law or otherwise to collect a fee.
432	432	(3) All petitions for expungement shall be docketed in the original
433	433	criminal action. Any person who may have relevant information about the
434	434	petitioner may testify at the hearing. The court may inquire into the
435	435	background of the petitioner and shall have access to any reports or
436	436	records relating to the petitioner that are on file with the secretary of
437	437	corrections or the prisoner review board.
438	438	(h) At the hearing on the petition, the court shall order the petitioner's
439	439	arrest record, conviction or diversion expunged if the court finds that:
440	440	(1) (A) The petitioner has not been convicted of a felony in the past
441	441	two years and no proceeding involving any such crime is presently
442	442	pending or being instituted against the petitioner if the petition is filed
443	443	under subsection (a)(1) or (a)(2); or
444	444	(B) no proceeding involving a felony is presently pending or being
445	445	instituted against the petitioner if the petition is filed under subsection (a)
446	446	(3);
447	447	(2) the circumstances and behavior of the petitioner warrant the
448	448	expungement;
449	449	(3) the expungement is consistent with the public welfare; and
450	450	(4) with respect to petitions seeking expungement of a felony
451	451	conviction, possession of a firearm by the petitioner is not likely to pose a
452	452	threat to the safety of the public.
453	453	(i) When the court has ordered an arrest record, conviction or
454	454	diversion expunged, the order of expungement shall state the information
455	455	required to be contained in the petition. The clerk of the court shall send a
456	456	certified copy of the order of expungement to the Kansas bureau of
457	457	investigation that shall notify the federal bureau of investigation, the
458	458	secretary of corrections and any other criminal justice agency that may
459	459	have a record of the arrest, conviction or diversion. If the case was
460	460	appealed from municipal court, the clerk of the district court shall send a
461	461	certified copy of the order of expungement to the municipal court. The
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505	505	municipal court shall order the case expunged once the certified copy of
506	506	the order of expungement is received. After the order of expungement is
507	507	entered, the petitioner shall be treated as not having been arrested,
508	508	convicted or diverted of the crime, except that:
509	509	(1) Upon conviction for any subsequent crime, the conviction that
510	510	was expunged may be considered as a prior conviction in determining the
511	511	sentence to be imposed;
512	512	(2) the petitioner shall disclose that the arrest, conviction or diversion
513	513	occurred if asked about previous arrests, convictions or diversions:
514	514	(A) In any application for licensure as a private detective, private
515	515	detective agency, certification as a firearms trainer pursuant to K.S.A. 75-
516	516	7b21, and amendments thereto, or employment as a detective with a
517	517	private detective agency, as defined by K.S.A. 75-7b01, and amendments
518	518	thereto; as security personnel with a private patrol operator, as defined by
519	519	K.S.A. 75-7b01, and amendments thereto; or with an institution, as defined
520	520	in K.S.A. 76-12a01, and amendments thereto, of the Kansas department
521	521	for aging and disability services;
522	522	(B) in any application for admission, or for an order of reinstatement,
523	523	to the practice of law in this state;
524	524	(C) to aid in determining the petitioner's qualifications for
525	525	employment with the Kansas lottery or for work in sensitive areas within
526	526	the Kansas lottery as deemed appropriate by the executive director of the
527	527	Kansas lottery;
528	528	(D) to aid in determining the petitioner's qualifications for executive
529	529	director of the Kansas racing and gaming commission, for employment
530	530	with the commission or for work in sensitive areas in parimutuel racing as
531	531	deemed appropriate by the executive director of the commission, or to aid
532	532	in determining qualifications for licensure or renewal of licensure by the
533	533	commission;
534	534	(E) to aid in determining the petitioner's qualifications for the
535	535	following under the Kansas expanded lottery act: (i) Lottery gaming
536	536	facility manager or prospective manager, racetrack gaming facility
537	537	manager or prospective manager, licensee or certificate holder; or (ii) an
538	538	officer, director, employee, owner, agent or contractor thereof;
539	539	(F) upon application for a commercial driver's license under K.S.A.
540	540	8-2,125 through 8-2,142, and amendments thereto;
541	541	(G) to aid in determining the petitioner's qualifications to be an
542	542	employee of the state gaming agency;
543	543	(H) to aid in determining the petitioner's qualifications to be an
544	544	employee of a tribal gaming commission or to hold a license issued
545	545	pursuant to a tribal-state gaming compact;
546	546	(I) in any application for registration as a broker-dealer, agent,
547	547	investment adviser or investment adviser representative all as defined in
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591	591	K.S.A. 17-12a102, and amendments thereto;
592	592	(J) in any application for employment as a law enforcement officer as
593	593	defined in K.S.A. 22-2202 or 74-5602, and amendments thereto; or
594	594	(K) to aid in determining the petitioner's qualifications for a license to
595	595	act as a bail enforcement agent pursuant to K.S.A. 75-7e01 through 75-
596	596	7e09, and amendments thereto, and K.S.A. 2024 Supp. 50-6,141, and
597	597	amendments thereto; or
598	598	(L) in any application for licensure as an insurance producer or
599	599	public adjuster, as defined in K.S.A. 40-4901 and 40-5501, and
600	600	amendments thereto, and the arrest, conviction or diversion is for one or
601	601	more instances of a fraudulent insurance act, as defined in K.S.A. 40-
602	602	2,118, and amendments thereto;
603	603	(3) the court, in the order of expungement, may specify other
604	604	circumstances under which the conviction is to be disclosed;
605	605	(4) the conviction may be disclosed in a subsequent prosecution for
606	606	an offense that requires as an element of such offense a prior conviction of
607	607	the type expunged; and
608	608	(5) upon commitment to the custody of the secretary of corrections,
609	609	any previously expunged record in the possession of the secretary of
610	610	corrections may be reinstated and the expungement disregarded, and the
611	611	record continued for the purpose of the new commitment.
612	612	(j) Whenever a person is convicted of a crime, pleads guilty and pays
613	613	a fine for a crime, is placed on parole, postrelease supervision or
614	614	probation, is assigned to a community correctional services program, is
615	615	granted a suspended sentence or is released on conditional release, the
616	616	person shall be informed of the ability to expunge the arrest records or
617	617	conviction. Whenever a person enters into a diversion agreement, the
618	618	person shall be informed of the ability to expunge the diversion.
619	619	(k) (1) Subject to the disclosures required pursuant to subsection (i),
620	620	in any application for employment, license or other civil right or privilege,
621	621	or any appearance as a witness, a person whose arrest records, conviction
622	622	or diversion of a crime has been expunged under this statute may state that
623	623	such person has never been arrested, convicted or diverted of such crime.
624	624	(2) A person whose arrest record, conviction or diversion of a crime
625	625	that resulted in such person being prohibited by state or federal law from
626	626	possessing a firearm has been expunged under this statute shall be deemed
627	627	to have had such person's right to keep and bear arms fully restored. This
628	628	restoration of rights shall include, but not be limited to, the right to use,
629	629	transport, receive, purchase, transfer and possess firearms. The provisions
630	630	of this paragraph shall apply to all orders of expungement, including any
631	631	orders issued prior to July 1, 2021.
632	632	(l) Whenever the record of any arrest, conviction or diversion has
633	633	been expunged under the provisions of this section or under the provisions
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677	677	of any other existing or former statute, the custodian of the records of
678	678	arrest, conviction, diversion and incarceration relating to that crime shall
679	679	not disclose the existence of such records, except when requested by:
680	680	(1) The person whose record was expunged;
681	681	(2) a private detective agency or a private patrol operator, and the
682	682	request is accompanied by a statement that the request is being made in
683	683	conjunction with an application for employment with such agency or
684	684	operator by the person whose record has been expunged;
685	685	(3) a court, upon a showing of a subsequent conviction of the person
686	686	whose record has been expunged;
687	687	(4) the secretary for aging and disability services, or a designee of the
688	688	secretary, for the purpose of obtaining information relating to employment
689	689	in an institution, as defined in K.S.A. 76-12a01, and amendments thereto,
690	690	of the Kansas department for aging and disability services of any person
691	691	whose record has been expunged;
692	692	(5) a person entitled to such information pursuant to the terms of the
693	693	expungement order;
694	694	(6) a prosecutor, and such request is accompanied by a statement that
695	695	the request is being made in conjunction with a prosecution of an offense
696	696	that requires a prior conviction as one of the elements of such offense;
697	697	(7) the supreme court, the clerk or disciplinary administrator thereof,
698	698	the state board for admission of attorneys or the state board for discipline
699	699	of attorneys, and the request is accompanied by a statement that the
700	700	request is being made in conjunction with an application for admission, or
701	701	for an order of reinstatement, to the practice of law in this state by the
702	702	person whose record has been expunged;
703	703	(8) the Kansas lottery, and the request is accompanied by a statement
704	704	that the request is being made to aid in determining qualifications for
705	705	employment with the Kansas lottery or for work in sensitive areas within
706	706	the Kansas lottery as deemed appropriate by the executive director of the
707	707	Kansas lottery;
708	708	(9) the governor or the Kansas racing and gaming commission, or a
709	709	designee of the commission, and the request is accompanied by a
710	710	statement that the request is being made to aid in determining
711	711	qualifications for executive director of the commission, for employment
712	712	with the commission, for work in sensitive areas in parimutuel racing as
713	713	deemed appropriate by the executive director of the commission or for
714	714	licensure, renewal of licensure or continued licensure by the commission;
715	715	(10) the Kansas racing and gaming commission, or a designee of the
716	716	commission, and the request is accompanied by a statement that the
717	717	request is being made to aid in determining qualifications of the following
718	718	under the Kansas expanded lottery act: (A) Lottery gaming facility
719	719	managers and prospective managers, racetrack gaming facility managers
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763	763	and prospective managers, licensees and certificate holders; and (B) their
764	764	officers, directors, employees, owners, agents and contractors;
765	765	(11) the Kansas sentencing commission;
766	766	(12) the state gaming agency, and the request is accompanied by a
767	767	statement that the request is being made to aid in determining
768	768	qualifications: (A) To be an employee of the state gaming agency; or (B)
769	769	to be an employee of a tribal gaming commission or to hold a license
770	770	issued pursuant to a tribal-gaming compact;
771	771	(13) the Kansas securities commissioner or a designee of the
772	772	commissioner, and the request is accompanied by a statement that the
773	773	request is being made in conjunction with an application for registration as
774	774	a broker-dealer, agent, investment adviser or investment adviser
775	775	representative by such agency and the application was submitted by the
776	776	person whose record has been expunged;
777	777	(14) the Kansas commission on peace officers' standards and training
778	778	and the request is accompanied by a statement that the request is being
779	779	made to aid in determining certification eligibility as a law enforcement
780	780	officer pursuant to K.S.A. 74-5601 et seq., and amendments thereto;
781	781	(15) a law enforcement agency and the request is accompanied by a
782	782	statement that the request is being made to aid in determining eligibility
783	783	for employment as a law enforcement officer as defined by K.S.A. 22-
784	784	2202, and amendments thereto;
785	785	(16) (A) the attorney general and the request is accompanied by a
786	786	statement that the request is being made to aid in determining
787	787	qualifications for a license to act as a bail enforcement agent pursuant to
788	788	K.S.A. 75-7e01 through 75-7e09, and amendments thereto, and K.S.A.
789	789	2024 Supp. 50-6,141, and amendments thereto; or
790	790	(B) the attorney general for any other purpose authorized by law,
791	791	except that an expungement record shall not be the basis for denial of a
792	792	license to carry a concealed handgun under the personal and family
793	793	protection act; or
794	794	(17) the Kansas bureau of investigation, for the purpose of
795	795	completing a person's criminal history record information within the
796	796	central repository, in accordance with K.S.A. 22-4701 et seq., and
797	797	amendments thereto; or
798	798	(18) the Kansas insurance commissioner or a designee of the
799	799	commissioner, and the request is accompanied by a statement that the
800	800	request is being made in conjunction with an application for licensure as
801	801	an insurance producer or public adjuster, as defined in K.S.A 40-4901 and
802	802	40-5501, and amendments thereto, and the arrest, conviction or diversion
803	803	is for one or more instances of a fraudulent insurance act, as defined in
804	804	K.S.A. 40-2,118, and amendments thereto.
805	805	(m) (1) The provisions of subsection (l)(17) shall apply to records
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849	849	created prior to, on and after July 1, 2011.
850	850	(2) Upon the issuance of an order of expungement that resulted in the
851	851	restoration of a person's right to keep and bear arms, the Kansas bureau of
852	852	investigation shall report to the federal bureau of investigation that such
853	853	expunged record be withdrawn from the national instant criminal
854	854	background check system. The Kansas bureau of investigation shall
855	855	include such order of expungement in the person's criminal history record
856	856	for purposes of documenting the restoration of such person's right to keep
857	857	and bear arms.
858	858	Sec. 3. K.S.A. 40-2,118 is hereby amended to read as follows: 40-
859	859	2,118. (a) For purposes of this act, a "fraudulent insurance act" means an
860	860	act committed by any person who, knowingly and with intent to defraud,
861	861	presents, causes to be presented or prepares with knowledge or belief that
862	862	it will be presented to or by an insurer, purported insurer, broker or any
863	863	agent thereof, or the Kansas automobile assigned claims plan, any written,
864	864	electronic, electronic impulse, facsimile, magnetic, oral, or telephonic
865	865	communication or statement as part of, or in support of, an application for
866	866	the issuance of, or the rating of an insurance policy for personal or
867	867	commercial insurance, or a claim for payment or other benefit pursuant to
868	868	an insurance policy for commercial or personal insurance or automobile
869	869	assigned claims plan that such person knows to contain materially false
870	870	information concerning any fact material thereto; or conceals, for the
871	871	purpose of misleading, information concerning any fact material thereto.
872	872	(b) An insurer or automobile assigned claims plan that has
873	873	knowledge or a good faith belief that a fraudulent insurance act is being or
874	874	has been committed shall provide to the commissioner, on a form
875	875	prescribed by the commissioner, any and all information and such
876	876	additional information relating to such fraudulent insurance act as the
877	877	commissioner may require.
878	878	(c) Any other person who has knowledge or a good faith belief that a
879	879	fraudulent insurance act is being or has been committed may provide to
880	880	the commissioner, on a form prescribed by the commissioner, any and all
881	881	information and such additional information relating to such fraudulent
882	882	insurance act as the commissioner may request.
883	883	(d) (1) Each insurer and automobile assigned claims plan shall have
884	884	antifraud initiatives reasonably calculated to detect fraudulent insurance
885	885	acts. Antifraud initiatives may include fraud investigators, who may be
886	886	insurer employees or independent contractors and an antifraud plan
887	887	submitted to the commissioner not later than July 1, 2007. Each insurer
888	888	and automobile assigned claims plan that submits an antifraud plan shall
889	889	notify the commissioner of any material change in the information
890	890	contained in the antifraud plan within 30 days after such change occurs.
891	891	Such insurer or automobile assigned claims plan shall submit to the
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935	935	commissioner in writing the amended antifraud plan.
936	936	(2) Any antifraud plan, or any amendment thereof, submitted to the
937	937	commissioner for informational purposes only shall be confidential and
938	938	not be a public record and shall not be subject to discovery or subpoena in
939	939	a civil action unless following an in camera review, the court determines
940	940	that the antifraud plan is relevant and otherwise admissible under the rules
941	941	of evidence set forth in article 4 of chapter 60 of the Kansas Statutes
942	942	Annotated, and amendments thereto.
943	943	(e) Except as otherwise specifically provided in K.S.A. 44-5,125, and
944	944	amendments thereto, and K.S.A. 21-5812(a), and amendments thereto, a
945	945	fraudulent insurance act shall constitute a severity level 6, nonperson
946	946	felony if the amount involved is $25,000 or more; a severity level 7,
947	947	nonperson felony if the amount involved is at least $5,000 but less than
948	948	$25,000; a severity level 8, nonperson felony if the amount involved is at
949	949	least $1,000 but less than $5,000; and a class C nonperson misdemeanor if
950	950	the amount involved is less than $1,000. Any combination of fraudulent
951	951	acts as defined in subsection (a) that occur in a period of six consecutive
952	952	months and that involve $25,000 or more shall have a presumptive
953	953	sentence of imprisonment regardless of its location on the sentencing grid
954	954	block.
955	955	(f) In addition to any other penalty, a person who violates this statute
956	956	shall be ordered to make restitution to the insurer or any other person or
957	957	entity for any financial loss sustained as a result of such violation. An
958	958	insurer shall not be required to provide coverage or pay any claim
959	959	involving a fraudulent insurance act.
960	960	(g) For the purposes of this section:
961	961	(1) "Amount involved" means the greater of: (A) The actual
962	962	pecuniary harm resulting from the fraudulent insurance act; (B) the
963	963	pecuniary harm that was intended to result from the fraudulent insurance
964	964	act; or (C) the intended pecuniary harm that would have been impossible
965	965	or unlikely to occur, such as in a government sting operation or a fraud in
966	966	which the claim for payment or other benefit pursuant to an insurance
967	967	policy exceeded the allowed value. The aggregate dollar amount of the
968	968	fraudulent claims submitted to the insurance company shall constitute
969	969	prima facie evidence of the amount of intended loss and is sufficient to
970	970	establish the aggregate amount involved in the fraudulent insurance act, if
971	971	not rebutted; and
972	972	(2) "pecuniary harm" means harm that is monetary or that otherwise
973	973	is readily measurable in money, and does not include emotional distress,
974	974	harm to reputation or other non-economic harm.
975	975	(h) This act shall apply to all insurance applications, ratings, claims
976	976	and other benefits made pursuant to any insurance policy or automobile
977	977	assigned claims plan.
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1021	1021	Sec. 4. K.S.A. 40-2,119 is hereby amended to read as follows: 40-
1022	1022	2,119. In the absence of fraud, bad faith or malice, no person or, insurer or
1023	1023	automobile assigned claims plan shall be subject to civil liability for libel,
1024	1024	slander or any other relevant cause of action:
1025	1025	(a) For filing reports or furnishing other information required by
1026	1026	chapter 40 of the Kansas Statutes Annotated, and amendments thereto, or
1027	1027	required by the commissioner under the authority granted in chapter 40 of
1028	1028	the Kansas Statutes Annotated, and amendments thereto;
1029	1029	(b) for any information relating to suspected fraudulent insurance acts
1030	1030	furnished to or received from law enforcement officials, their agents and
1031	1031	employees;
1032	1032	(c) for any information relating to suspected fraudulent insurance acts
1033	1033	furnished to or received from other persons subject to the provisions of
1034	1034	chapter 40 of the Kansas Statutes Annotated, and amendments thereto;
1035	1035	(d) for any such information furnished in reports to the insurance
1036	1036	department, regulatory agencies of any other state, the national association
1037	1037	of insurance commissioners or any organization established to detect and
1038	1038	prevent fraudulent insurance acts, their agents, employees or designees; or
1039	1039	(e) for the publication of any report or bulletin related to the official
1040	1040	activities of the insurance department by the commissioner or any
1041	1041	employee of the insurance department. Nothing herein is intended to
1042	1042	abrogate or modify in any way any common law or statutory privilege or
1043	1043	immunity heretofore enjoyed by any person.
1044	1044	Sec. 5. K.S.A. 21-6614, 40-2,118 and 40-2,119 are hereby repealed.
1045	1045	Sec. 6. This act shall take effect and be in force from and after its
1046	1046	publication in the statute book.
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