Bill Summary – FastDemocracy

SESSION OF 2021
     SUPPLEMENTAL NOTE ON SENATE BILL NO. 58
          As Amended by House Committee on Judiciary

Brief*
      SB 58, as amended, would add a provision to the
Kansas Criminal Code that would prohibit the filing of certain
liens or claims against real or personal property and provide
for criminal penalties, as follows.
     The bill would provide it is a severity level 8, nonperson
felony for any person to present for filing in any public record:
     ●     Any lien or claim against any real or personal
           property when such person knows or reasonably
           should know that such lien or claim is false or
           contains any materially false, fictitious or fraudulent
           statement or representation;
     ●     Any document that purports to assert a lien against
           real or personal property of any person or entity
           that is not expressly provided for in Kansas or
           federal law, does not depend on the consent of the
           owner of the real or personal property affected, and
           is not an equitable or constructive lien imposed by
           a court with proper jurisdiction;
     ●     Any financing statement pursuant to article 9 of the
           Uniform Commercial Code, when such person
           knows or reasonably should know that the
           financing statement is not based on a bona fide
           security agreement or was not authorized or
           authenticated by the alleged debtor identified in the
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
          financing statement or the debtor’s authorized
          representative; or
     ●    Any document filed in an attempt to harass an
          entity, individual or public official, or obstruct a
          governmental operation or judicial proceeding,
          when such person knows or reasonably should
          know that the document contains false information.
      Under the new crime, it also would be unlawful for any
person to violate a court order issued pursuant to the statute
governing an expedited process to review and determine the
validity of liens and claims against real or personal property.
In that statute, the bill would add to this process a
requirement that, if the court orders the lien or claim to be set
aside, the court’s findings of fact and conclusions of law must
include:
     ●    An order prohibiting the person who filed such lien
          or claim from filing any future lien or claim with any
          filing officer without approval of the court that
          enters the order; and
     ●    A provision stating that a violation of the order may
          subject the party in violation to civil and criminal
          penalties.
      The bill also would require any order finding that a lien
or claim is fraudulent to include a provision stating a violation
of the order may result in civil and criminal penalties, and
remove a provision providing for a specific penalty of
imprisonment of up to 120 days, a fine not to exceed $1,000,
or both.
     The bill would make technical amendments to ensure
consistency in statutory references and phrasing.
    The bill would be in effect upon publication in the
Kansas Register.

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Background
     The bill was introduced in the Senate Committee on
Judiciary at the request of the Office of the Attorney General
(OAG).

Senate Committee on Judiciary
       In the Senate Committee hearing on February 3, 2021,
representatives of the OAG, Kansas District Judges
Association, League of Kansas Municipalities, and the Office
of the Secretary of State, and a representative of the Kansas
Association of Chiefs of Police, Kansas Peace Officers
Association, and Kansas Sheriffs Association testified as
proponents on the bill. The proponents generally stated this
bill is needed to address fraudulent lien filings made with the
intent to harass public officials and employees. No other
testimony was provided.

House Committee on Judiciary
     In the House Committee hearing on March 15, 2021, the
conferees appearing in the Senate Committee again testified
as proponents on the bill. No other testimony was provided.
      On March 18, 2021, the House Committee amended the
bill to make it effective upon publication in the Kansas
Register.

Fiscal Information
     According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Office of Judicial
Administration (OJA) indicates enactment of the bill could
have a fiscal effect on the Judicial Branch because it creates
a new crime, which could result in more time spent by court
employees and judges processing and deciding these cases.
Enactment of the bill could also increase the amount of
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supervision of offenders required by court service officers.
OJA also estimates enactment of the bill could result in the
collection of docket fees and supervision fees assessed in
those cases filed under the bill’s provisions.
     The Kansas Sentencing Commission (Commission)
indicates enactment of the bill could have an effect on prison
admissions and beds; however, the Commission estimates
the effect would be negligible.
      Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2022 Governor’s Budget Report.
Personal property; real property; fraudulent liens;criminal penalties


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Statutes affected: 
As introduced: 58-4301, 58-4302
As Amended by House Committee: 58-4301, 58-4302