12-1677d.   Municipally established foundations; investment of funds.(a) As used in this act:

      (1)   "Municipality" means any city, county or other political or taxingsubdivision of the state.

      (2)   "Foundation" means any not for profit charitable or eleemosynarycorporationestablished by a municipality which has been in existence atleast15 years. Any such foundation is hereby deemed to be a public body.

      (b)   The board of directors of any foundation shall invest the funds held bysuch foundation which are not required immediately for the purposes of thefoundation in the manner provided by this section:

      (1)   Any funds in an amount equal to 110% of the average annual expenses ofthe foundation for the next preceding five years may be invested in the mannerprovided by K.S.A. 12-1675, and amendments thereto. If funds in the amountrequired by this paragraph are available from the municipality whichestablished the foundation, the foundation may invest all of its funds in themanner provided in paragraph (2).

      (2)   Any funds exceeding the amount described in paragraph (1) may beinvested in such investments that may be lawful for fiduciaries in this stateand also may be invested in such investments as would be lawful for a privatecorporation or other foundation having purposes similar to the foundation. Nomoneys derived pursuant to any tax may be invested under this paragraph.

      (c)   Nothing in this act shall effect the status of the foundation as amunicipal entity.

      (d)   The provisions of this section shall apply to foundations whethercreated before or after the effective date of this act. Any investment offunds by a foundation prior to July 1, 1997, which would have complied with theprovisions of this section, as amended by this act, are hereby validated.

      History:   L. 1994, ch. 94, § 1;L. 1997, ch. 180, § 18; May 29.