[As Amended by House Committee of the Whole]

As Amended by House Commettee

          Session of 1998
By Committee on Taxation
          12             AN ACT concerning delinquent payments for sale of cable television
13             services.
15       Be it enacted by the Legislature of the State of Kansas:
16           Section 1. (a) Notwithstanding any other law to the contrary, no fee
17       shall be imposed upon consumers for any delinquent payment for sale of
18       cable television services unless all of the following conditions apply:
19           (1) For all contracts entered into on or after the effective date of this
20       act, at or before the time the consumer enters into the initial agreement
21       for services, the consumer is provided with written notice that it is the
22       policy of seller to impose a fee on delinquent accounts;
23           (2) at least 10 days prior to the date a fee is imposed, the consumer
24       is warned in writing on the face of the notice, of the late fee that will be
25       imposed if the delinquency is not paid and the date on or after which a
26       late fee will be charged;
27           (3) the consumer's invoice specifies a due date that is not earlier than
28       the 10th day of the service period for which the invoice is issued;
29           (4) the fee is assessed no earlier than 27 days after the due date
30       specified on the invoice; and
31           (5) the fee is assessed on a delinquent balance of more than $10.
32           (b) A delinquency fee charged in a cable television transaction which
33       is not in excess of $7.50 and which is imposed in accordance with the
34       procedures set forth in this section shall be valid. The delinquency fee
35       may not exceed such amount, unless the federal communications com-
36       mission expressly requires late fees to be fully included when setting
37       benchmark rates applicable to a cable television operator. If this require-
38       ment is imposed by the federal communications commission, then the
39       maximum delinquency fee charged by the cable television provider shall
40       be 1.5% of the delinquent amount in the relevant franchise areas for so
41       long as late fees are fully included in benchmark rates.
42           (c) A fee which is not in excess of $20 and is in addition to the delin-
43       quency fee shall also be valid in a cable television consumer service trans-

HB 3022--Am. by HCW


  1       action if the service provider sends an employee or contractor to the
  2       customer's residence in order to collect payment or disconnect service.
  3       Such fee must be imposed in accordance with the provisions set forth in
  4       subsection (a).
  5           [(c) No delinquency fee shall be increased above the amount
  6       such fee was set at on April 1, 1998, unless the governing body of
  7       the city where such cable television service is franchised and all
  8       cable television customers who are to be charged such increased
  9       fee are notified 30 days prior to such increase taking effect.]
10           Sec. 2. This act shall take effect and be in force from and after its
11       publication in the statute book.