Bill would let Kansas bank commissioner start a financial education nonprofit

The Kansas state bank commissioner would be allowed to establish a nonprofit that provides financial education. The nonprofit would be incorporated under Kansas law and provide charitable financial education in Kansas. The nonprofit could teach people directly, fund other financial education nonprofits, and offer Kansans scholarships for education beyond high school in Kansas. It could invest unused money for future financial education and use outside contractors to support its work. If enacted, the authorization would take effect after publication in the statute book.

The nonprofit could accept public grants and donations, and the bank commissioner could authorize transfers from the consumer education settlement fund. The donation option would cover people under an enforcement action or examination who are ordered to pay a fine designated for consumer financial education. Replacing a fine with a donation would require approval from the state bank commissioner or someone the commissioner designates. The commissioner could authorize both initial and later transfers from the consumer education settlement fund.

A volunteer board would control the nonprofit, which could not have paid employees or fund political activities. These rules would apply to the authorized nonprofit, which would not be treated as a state agency. The bank commissioner would appoint the first board. The nonprofit’s internal rules would set the board’s size and how later directors are appointed. Board members could receive reimbursement for actual expenses paid for the organization, but no other pay. Board members and their immediate families could not benefit from the nonprofit. The nonprofit could not hold or acquire real estate or other property, except publications and personal property intended to be provided through its financial education work.