Kansas sues Delaware, MoneyGram over $1.78 million in uncashed checks

Kansas today filed an original action in the U.S. Supreme Court alleging the state of Delaware and MoneyGram have failed to comply with federal law in returning to other states unclaimed property in the form of uncashed checks, Kansas Attorney General Derek Schmidt said.

MoneyGram, which is incorporated in Delaware, offers a service of issuing “official checks,” which work similarly to money orders. But unlike a money order, MoneyGram merely backs the “official check” and pays the check amount only upon presentment.

When an “official check” is never presented for payment, MoneyGram doesn’t release the money it collected for the “official check.” Thus, MoneyGram accumulates hundreds of millions of dollars each year in unclaimed funds when these checks are not presented. It is believed that $1.78 million in these uncashed checks were purchased in Kansas.

The complaint alleges that MoneyGram – at the direction of the state of Delaware – has been improperly remitting these funds as unclaimed property to the State of Delaware instead of returning the funds to the states where the checks were purchased. Under the Disposition of Abandoned Money Orders and Traveler’s Checks Act, 12 U.S.C. § 2501(3), “the States wherein the purchasers of money orders and traveler’s checks reside should, as a matter of equity among the several States, be entitled to the proceeds of such instruments in the event of abandonment.”

“Delaware has wrongly claimed monies that properly belong to Kansans, and those funds should be handled under the Kansas unclaimed property law,” Schmidt said. “The law is clear that Delaware has acted improperly and we will fight on behalf of Kansans to get this money back so our state treasurer can return it to its rightful owners.”

State Treasurer Ron Estes said he supports Schmidt’s filing of this lawsuit.

“These money orders were purchased in Kansas, and when they are returned to this office it’ll be easier for Kansans who purchased them to find them,” Estes said. “Our Unclaimed Property Program has returned $100 million of property since the beginning of my term in office. Litigation like this gives us the opportunity to expand our efforts and fulfill our responsibilities.”

Under the U.S. Constitution, lawsuits between states originate before the U.S. Supreme Court. The lawsuit was filed today by Kansas and 20 other states. The states are asking the court to declare that the Disposition of Abandoned Money Orders and Traveler’s Checks Act applies to these “official checks” and that MoneyGram and the State of Delaware violated the law by failing to return these funds to the states where the checks were purchased.

A copy of the filing is available at: http://1.usa.gov/1PMgokP .

Kansas lawmakers to return June 23 for special session on school finance

by Stephen Koranda, KHI News Service

Gov. Sam Brownback on Wednesday set June 23 as the date for a special session for state lawmakers to come up with a plan for financing public schools.

The Kansas Supreme Court has ruled that funding disparities among school districts must be reduced by the end of the month or schools will be closed.

The governor said he disagrees with the court’s ruling, but he and lawmakers seem to be coalescing around the idea of providing $38 million in additional funding for schools to comply with the court ruling.

Brownback said work would start in committees before lawmakers return to Topeka.

“I’m seeing several plans now where you use a variety of different sources of funding to come up with the $38 million,” Brownback said. “I think that’s part of having the committees meet ahead of time and to come up with a plan the committees agree with that we can then run.”

The money could be shifted from other government agencies or other parts of the school funding formula to comply with the court ruling, Brownback said, adding that it’s unlikely lawmakers will consider a tax increase.

“There are a number of places being looked at. Those plans are still being kicked around with people,” he said. “There are any range of places, including in the education funding formula itself.”

The nonprofit KHI News Service is an editorially independent initiative of the Kansas Health Institute and a partner in the Heartland Health Monitor reporting collaboration. All stories and photos may be republished at no cost with proper attribution and a link back to KHI.org when a story is reposted online.
– See more at http://www.khi.org/news/article/kansas-lawmakers-to-return-june-23-for-special-session-on-school-finance#sthash.3C8RqUm8.dpuf

UG Commission distributes $1.2 million to local nonprofits

It was Christmas in June on Thursday night, as more than double the usual amount of charitable funds was distributed to nonprofits by the Unified Government Commission.

The annual $500,000 from Hollywood Casino for local charities was added to a one-time amount of $750,000 from Schlitterbahn for nonprofit donations in the community.

Each UG commissioner controlled about $111,581 to allocate from the $1.2 million Hollywood Casino-Schlitterbahn charitable grant funds, except for three.

Commissioner Mike Kane, whose total was $86,581, and Mayor Mark Holland, whose total was $106,000, are setting aside part of their funds for a future grant allocation in 2017, according to Joe Connor, assistant UG administrator.

Commissioner Gayle Townsend had $5,000 more to give this year because $5,000 was returned to the fund last year from one of the grants she authorized, he said.

Most of the commissioners spread out the funds among several organizations, while a few commissioners decided to give larger amounts to fewer organizations.

The highest amount awarded was $100,200 to the Argentine Betterment Corporation for the program, “A Healthy Active Argentine for All Ages,” including $70,000 from Commissioner Ann Murguia and $30,200 from Commissioner Angela Markley.

Other large grants included:
• $81,698 to the Friends of Yates Branch for a domestic violence – renovation program from five commissioners;
• $74,333 to the Bonner Springs-Edwardsville Educational Foundation for a healthy life initiative from Commissioner Jim Walters;
• $53,000 to the Turner Recreation Commission for an Outdoor Fitness Zone from Commissioner Angela Markley;
• $50,000 to the Urban Scholastic Center for a program to develop future leaders, from four commissioners;
• $45,000 to the Oak Ridge Youth Development Corp. for a health, education and fitness program, with $40,000 from Mayor Mark Holland and $5,000 from Commissioner Melissa Bynum;
• $43,781 to the County Fair Foundation for a fairground shooting park development, from three commissioners.

The list of grants:
Unified Government – Hollywood Casino Grants
• American Youth Football Inc., Youth Succeed with STEM and Sports, $31,581 allocated, including $6,581 from Murguia, $15,000 from Johnson, $5,000 from Townsend and $5,000 from Philbrook.
• Archdiocese of Kansas City, United Cyclones, $26,800 allocated, all from Kane.
• Argentine Betterment Corporation, A Healthy Active Argentine for All Years, $100,200 allocated, $30,200 from Markley, and $70,000 from Murguia.
• Argentine Betterment Corporation, Youth Softball Field Renovations, $28,000 allocated, $20,000 from Walker and $8,000 from Markley.
• Argentine Betterment Corporation, Spring Valley curb, apron and sidewalk repairs, $35,000 allocated, all from Murguia.
• Armourdale Renewal Association, Armourdale Community Garden, nutrition and year-long canning program, $8,000 allocated, $4,000 from Bynum and $4,000 from McKiernan.
• Avenue of Life Inc., Impact Wednesday Program, $24,000, all from McKiernan.
• Beauty Builders Inc., Body Builders Initiative, $7,500 allocated, $5,000 from Townsend and $2,500 from Philbrook.
• Bethel Neighborhood Center, Youth Fit for Life, $20,081 allocated, $15,081 from McKiernan, $5,000 from Bynum.
• Bonner Springs-Edwardsville Educational Foundation, Bonner Springs-Edwardsville Healthy Life Initiative, $74,333 allocated, all from Walters.
• Caritas Clinics, Duchesne Clinic, Diabetes Care and Prevention, $29,748 allocated, $9,500 McKiernan, $3,000 Philbrook, $17,248 Walters.
• Catholic Charities of Northeast Kansas, New Roots for Refugees program, $13,000 allocated, $5,000 Johnson, $5,000 Townsend, $3,000 Philbrook.
• CHWC Inc., My Healthy Neighborhood, $9,581 allocated, $4,000 Walker, $3,000 McKiernan, $2,581 Philbrook.
• Connecting for Good, Linking Digital Literacy to Diabetes, $5,000 allocated, all from Townsend.
• County Fair Foundation, Fair Ground Shooting Park Development, $43,781 allocated, $10,000 Walker, $23,781 Kane, $10,000 Philbrook.
• Crosslines Community Outreach Inc., Healthy Choices Hunger Relief, $20,000 allocated, all from McKiernan.
• Cultivate Kansas City, Beans and Greens Nutrition Incentive Program, $24,400 allocated, $5,000 Holland, $5,000 Bynum, $5,000 McKiernan, $9,400 Townsend.
• Diocese of Kansas City – St. Joseph, Blessed Sacrament Parish Health Program, $9,000 allocated, $4,000 Bynum, $5,000 Johnson.
• El Centro Inc., Promotores de Salud, Buying Local, Buying Healthy, $8,000 allocated, $5,000 Bynum, $3,000 Philbrook.
• Freewheels for Kids Inc., Bike Clubs for a Healthy Wyandotte, $3,000 allocated, all from Philbrook.
• Friends of Yates Branch Inc., Friends of Yates, Domestic Violence, Renovation, $81,698 allocated, $10,000 Walker, $10,081 Bynum, $22,536 Johnson, $22,081 Townsend, $17,000 Philbrook.
• Girls on the Run Greater Kansas City, Girls on the Run of Greater Kansas City, $0 allocated.
• Girl Scouts of Northeast Kansas and Northwest Missouri, Girl Scouting in Wyandotte County, $4,500 allocated, $2,000 Bynum, $2,500 Philbrook.
• Grinter Place Friends Inc., Grinter Place Enhancement Project, $17,181 allocated, $13,181 Markley, $4,000 Philbrook.
• Hartwig Legacy Foundation, I Am Here Wyandotte, $0 allocated.
• Harvesters, Harvesters’ Wyandotte Healthy Eating Programs, $15,000 allocated, $10,000 Bynum, $5,000 Townsend.
• Heartland 180 Incorporated, The 180 Degrees Program, $0 allocated.
• Hillcrest Ministries of Wyandotte County Inc., Health and Wellness for the Homeless, $10,000 allocated, $5,000 Johnson, $5,000 Philbrook.
• Historic Northeast-Midtown Association Inc., Learn to Earn, $24,045 allocated, $10,000 Walker, $3,000 Bynum, $5,045 Johnson, $6,000 Townsend.
• Humane Society of Greater Kansas City, Healthy Pets, Healthy Owners, Healthy Communities, $10,000 allocated, $5,000 Bynum, $5,000 Philbrook.
• Kansas Black Chamber Foundation, Youth Leadership Development, $0 allocated.
• KCKCC Endowment, KCK Organic Teaching Gardens, $0 allocated.
• Kansas City Community Gardens, Community Gardens and Orchards for Healthy Wyandotte County, $11,000 allocated, $5,000 Bynum, $6,000 McKiernan.
• KCK Public Library Foundation, Summer Reading 2016, $2,000 allocated, $2,000 Bynum.
• Kansas University Endowment, Connecting the Dottes, $0 allocated.
• Mattie Rhodes Center, Soccer for Success, $0 allocated.
• Mercy and Truth Medical Missions Inc., integrating primary care and health education, $31,000 total, $5,000 Bynum, $6,000 McKiernan, $20,000 Johnson.
• Mo-Kan 20-20 Vision Inc., Bonner Springs Sand Volleyball Court, $5,000 total, $5,000 Walter.
• Mo-Kan 20-20 Vision Inc., Harmon HUB Outdoor Classroom, $0 allocated.
• Mo-Kan 20-20 Vision Inc., Turner High School Students Building Projects, $0 allocated.
• Mo-Kan 20-20 Vision Inc., Piper High School Students – Embrace Your Library, $15,000 allocated, $15,000 Kane.
• Mt. Carmel Redevelopment Corp. Inc., Mt. Carmel Transitional Housing, $25,000 allocated, $20,000 Holland, $5,000 Philbrook.
• Oak Ridge Youth Development Corp., ORYDS Health, Education and Fitness, $45,000 allocated, $40,000 Holland, $5,000 Bynum.
• Pomeroy Neighborhood Watch Group Corp., placement of a Historic Pomeroy Neighborhood, $2,000 total, $2,000 Philbrook.
• Rosedale Development Association, Rosedale Healthy Kids, $15,000 allocated, $10,000 Holland, $5,000 Bynum.
• Sharing Community in Rosedale Inc., Rainbow Freedom School, $15,000 allocated, $10,000 Holland, $5,000 Bynum.
• Southwest Boulevard Family Health Care, MOMS Maternal Options that Matter, $0 allocated.
• The Downtown Shareholders of KCK Inc., Huron Park Wellness Enhancements, $7,000 allocated, $2,500 Bynum, $2,000 Johnson, $2,500 Philbrook.
• The Downtown Shareholders of KCK Inc., KCK Farmers Market, $7,500 allocated, $2,500 Bynum, $2,000 Johnson, $3,000 Philbrook.
• The Family Conservancy, Healthy Parents, Healthy Kids, $15,000 allocated, $7,500 McKiernan, $7,500 Townsend.
• The Family Conservancy, Growing Healthy Kids, $9,000 allocated, $6,000 McKiernan, $3,000 Philbrook.
• Trinity African Methodist Episcopal Church, Nutrition and Physical Activities for Children, $12,000 allocated, all from Townsend.
• Turner Community Connection Inc., 2016 Healthy Turner, $20,000 allocated, all from Walker.
• Turner House Clinic, Turner House Healthy Lifestyles Program, $10,000 allocated, $4,500 Bynum, $5,500 McKiernan.
• Turner Recreation Commission, Outdoor Fitness Zone, $53,000 allocated, all from Markley.
• Turner Recreation Commission, Turner Community Garden Electrical, $14,400 total, $7,200 Walker, $7,200 Markley.
• United Way of Wyandotte County, Wyandotte County Back to School Fair at KCKCC, $25,600 allocated, $5,000 Holland, $5,000 Bynum, $5,000 Kane, $10,600 Townsend.
• Unlimited Play Inc., Include, Inform, Inspire! Unlimited Play’s Wy. Co., $10,390 allocated, all from Walker.
• Urban Scholastic Center, engaging indigenous leaders to develop future leaders, $50,000 allocated, $5,000 Bynum, $25,000 Johnson, $5,000 Townsend, $15,000 Philbrook.
• Vaughn-Trent Community Services Inc., Fresh Foods Program Year 2, $15,000 allocated, all from Walters.
• Wildwood Outdoor Education Center Inc., Camp Wildwood, $0 allocated.
• Wyandot Center for Community Behavioral Health, Mental Health First Aid, $15,000 allocated, $10,000 Townsend, $5,000 Philbrook.
• Wyandotte County Historical Society and Museum, Preservation of the Wyandotte County, $23,000 total, $20,000 Walker, $3,000 Philbrook.
• Wyandotte County Parks Foundation, Armourdale Bike and Levee Walking Trail, $0.
• Wyandotte County Sports Association, Infrastructure Action for Growth, $35,000 allocated, $16,000 Holland, $3,000 Bynum, $16,000 Kane.
• Young Men’s Christian Association of Greater Kansas City, Learn to Swim, Drowning Prevention, $12,500 allocated, $10,000 Townsend, $2,500 Philbrook.
• Young Women on the Move, Advancing health, resiliency and self-sufficiency of adolescent youth in KCK, $19,000 allocated, $9,000 Bynum, $5,000 Johnson, $5,000 Philbrook.