Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Senate panel hears bill to let Bank Commissioner create nonprofit for consumer financial education
Loading...
Summary
The Office of the State Bank Commissioner asked for authority to form a 501(c)(3) foundation to invest and disburse consumer financial education grants from a large settlement balance; senators asked about scholarship scope, political-activity limits, and State General Fund investment impacts.
The committee opened and heard testimony on Senate Bill 316, which would authorize the State Bank Commissioner to incorporate a nonprofit foundation to support charitable consumer financial education initiatives in Kansas.
Brock Raler, general counsel for the Office of the State Bank Commissioner (OSBC), told senators the agency’s consumer education settlement fund (KSA 75-3036) has an atypically large balance after a recent multistate settlement involving Block Inc. and that a foundation structure would allow the office to invest assets (subject to a foundation’s required annual distribution, about 5% in IRS rules) to sustain and expand grantmaking without using state general funds for operational costs.
Raler described that the OSBC has historically funded grants through administrative fines and settlement proceeds and that the proposed foundation would continue to fund Kansas-based consumer education projects. He said the office typically lists grant recipients publicly and requires MOUs and midyear and year-end reports; Christy Hanshaw, manager of consumer affairs, confirmed that recipients and outcome summaries are posted on the agency’s website.
Senators pressed on scope and safeguards. Several asked whether scholarships awarded by the foundation would be limited to financial-education subjects; Raler said scholarships are currently awarded to Kansas residents attending Kansas secondary education and acknowledged the language could be tightened if the committee wanted to restrict awards to finance-related studies. Senators also asked about the definition and prohibition of political activities; OSBC said it would accept tightened statutory language to clarify the limitation.
Lawmakers questioned whether moving investment authority away from the state treasurer would reduce SGF investment earnings; Raler acknowledged investment earnings that currently flow to the state general fund would be affected if the foundation held and invested the funds directly and said the fiscal note for the agency reflected no direct agency operational cost, while SGF impacts would need treasurer input.
The hearing closed with no vote; senators asked the OSBC to provide clarifying amendments on political-activity language and scholarship scope as needed.
