12-16,102.   Employee benefits contribution fund incertain taxingsubdivisions; tax levy; use of proceeds; use of trust fund to hold and investpostemployment benefits funds, management of trust fund.(a) Except as provided in this section, "taxing subdivision" means any city,county, township or other politicalsubdivision of the state of Kansas havingauthority to levy taxes on taxable tangible property. A community collegedistrict shall not be considered a taxing subdivision for the purpose of thissection. A school districtshall not be considered a taxing subdivision for the purpose of thissection except that any school district operating a public librarypursuant to K.S.A. 72-1623, and amendments thereto, for that purpose, shall beconsidered a taxing subdivision for the purpose of this section.

      (b)   For purposes of this section, "other postemploymentbenefits" means any postemployment healthcare, life insurance and otherbenefits provided by a taxing subdivision, other than pension benefits, so longas such benefits are provided separately from a pension plan.

      (c)   Any taxing subdivision may create and establishemployee benefits contribution funds, including pension, retirement or otherpostemployment benefits funds, for (1) the taxing subdivision or (2) anypolitical subdivision for which a tax is levied by such taxing subdivision forthe purpose of paying the employer'sshare of any employee benefits, including pensions, retirement or otherpostemployment benefits, exclusive of any salaries, wages or other directpayments to such employees, as may be prescribed in the ordinance or resolutionof the governing body creating such funds. The taxing subdivision may receiveand place in such funds any moneys from any source whatsoever which may belawfully utilized for the purposes stated in the ordinance or resolutioncreating such funds, including the proceeds of tax levies authorized by law forsuch purposes.

      (d)   The governing body of any taxing subdivision havingestablished employee benefits funds, including pension, retirement or otherpostemployment benefits funds under subsection (c) ishereby authorized tolevy an annual tax upon all taxable tangible property within the taxingsubdivision in an amount determined by the governing body to be necessary forthe purposes for which such funds were created and to pay a portion of theprincipal and interest on bonds issued under the authority of K.S.A. 12-1774,and amendments thereto, by cities located in the county.

      (e) (1)   For the purpose of holding and investing the assets of otherpostemployment benefits funds, and notwithstanding the provisions of anystatute, any taxing subdivision may, by ordinance or resolution, eitherestablish one or more trust funds or determine to participate in amultiemployer trust fund.

      (2)   Each taxing subdivision establishing or participating in such a trustfund shall provide for the management and investment of such funds and any suchtrust. The taxing subdivision may establish a board or commission or designatean existing board or commission to manage the trust and invest the trust funds.Each taxing subdivision that chooses to establish or designate such a board orcommission shall provide for the organization of and the manner of election orappointment of the members of such board or commission.

      (3)   Notwithstanding any limitations on the investment of municipal funds setforth in K.S.A. 12-1675, and amendments thereto, funds held in any such trustmay be invested in accordance with the terms of such other postemploymentbenefit plans, as such terms may be amended from time to time. The investmentand management of the assets of any such trust shall be in compliance with theprudent investor rule as set forth in K.S.A. 58-24a01 to 58-24a19, inclusive,and amendments thereto.

      (f)   The trust funds created pursuant to subsection (e) or in which money fromother postemployment benefit funds is held and invested pursuant to subsection(e) shall not be subject to the provisions of K.S.A. 79-2925 through 79-2937,and amendments thereto. The taxing subdivision may receive and place in suchtrust funds any moneys from any source that may be lawfully utilized for thepurposes stated in the ordinance or resolution creating such trust funds,including transfers from employee benefit funds established for otherpostemployment benefits.

      (g)   The provisions of subsections (c) and (e) of this section shall notoperate to invalidate the establishment by any municipality or subdivisionthereof, pursuant to the provisions of any statute, ordinance or resolution, ofany other postemployment benefit system duly established prior to effectivedate of this act or of any trust duly established or board or commission dulyestablishedor designated prior to the effective date of this act with respect to otherpostemployment benefit systems.

      History:   L. 1978, ch. 67, § 1;L. 1978, ch. 163, § 3;L. 1979, ch. 52, § 48;L. 1983, ch. 65, § 1;L. 1987, ch. 71, § 13;L. 1990, ch. 73, § 1;L. 1991, ch. 57, § 1;L. 1999, ch. 147, § 78;L. 2007, ch. 82, § 1; Apr. 12.