KS SB426

Establishes the Kansas Transparency in Consumer Legal Funding Act to regulate nonrecourse transactions where consumers assign a portion of potential lawsuit proceeds to funding companies in exchange for upfront cash for personal or household expenses

Requires consumer legal funding contracts to include clear disclosures in at least 12-point font, a 10-business-day rescission period, consumer initials on each page, payment schedules showing amounts due at six-month intervals, and written acknowledgment from the consumer's attorney

Prohibits funding companies from paying or accepting referral fees from attorneys or medical providers, interfering with attorney judgment or settlement decisions, charging prepayment penalties, or accepting funds from foreign governments or adversaries

Mandates that consumers and attorneys must disclose the existence of funding contracts to opposing parties and insurers within 30 days of a written request, and requires funding companies to register with the secretary of state

Authorizes the attorney general to assess civil penalties up to $10,000 per willful violation, with violating companies forfeiting recovery of funded amounts and charges under the contract