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Minutes for HB2231 - Committee on Judiciary

Short Title

Amending the definition of the crime of conducting a pyramid promotional scheme, providing for an exemption and defining key terms.

Minutes Content for Tue, Feb 1, 2022

Chairperson Warren opened the hearing on HB2231.

Jason Thompson, Senior Assistant Revisor, provided an overview of HB2231. (Attachment 1) The revisor responded to questions from Committee members.

Bryan Harrison testified supporting HB2231 noting the bill will provide clarity and eliminate confusion by consumers by distinguishing between legitimate direct selling companies and the promoters of pyramid schemes who use recruiting fees or inventory loading policies. (Attachment 2)

John Webb testified in support of HB2231 stating the bill more clearly defines and bans pyramid schemes while protecting legitimate direct selling, independent distributors. At the same time, HB2231 gives law enforcement more guidance on identifying and prosecuting pyramid scheme operators. (Attachment 3)

Question by the Committee members were addressed.

Scott Schultz, Executive Director, Kansas Sentencing Commission, submitted an updated HB2231 Prison Bed Impact Assessment. (Attachment 4)

Chairperson Warren closed the hearing on HB2231.