40-1706.Financial reports of firefighters reliefassociations, filing, proceedings for improper expenditures; authorizeddisposition of tax proceeds; determination and payment of amounts to state andlocal associations; procedures upon dissolution of local associations; handlingand investment of moneys by local association, restrictions.(a) On or before April 1 of each year, every firefighters relief associationwhich holds funds received under the firefighters relief act shall submit tothe commissioner of insurance a verified account showing in full the receiptsand disbursements and general condition of such funds for the year ending onthe preceding December 31. If such account or other information shows suchfunds are not being expended for the purposes authorized by the firefightersrelief act, the commissioner of insurance shall notify the county attorney ofthe county in which any such firefighters relief association is located andthe county attorney shall institute proceedings to recover for the use ofthe firefighters relief association all moneys expended for purposes not inaccordance with the provisions of the firefighters relief act. The commissionerof insurance shall hold any funds of such firefighters relief association untilthe commissioner is notified by the district or county attorney that suchcondition has been corrected.
(b) (1) All moneys received by the commissioner of insurance from the taximposed by K.S.A. 40-1703, and amendments thereto, shall beremitted to thestate treasurer in accordance with the provisions of K.S.A. 75-4215, andamendments thereto. Upon receipt of each such remittance, the statetreasurershall deposit the entire amount in the state treasury to the credit ofthe state firefighters relief fund whichis hereby created in thestate treasury.
(2) The state firefighters relief fund shall be administered by thecommissioner of insurance. An amount equal to not more than the amountauthorized for expenditure during the current fiscal year by appropriationsenacted by the legislature may be set aside in the state firefighters relieffund and expended by the commissioner of insurance for the administrativeexpenses of the department of insurance under the firefighters relief act,subject to the provisions of appropriations acts.
(c) Prior to August 1, 1987, and each August 1 thereafter, except asprovided in subsections (b) and (d), of the total amount of moneys credited tothe state firefighters relief fund as of July 1 of the same year the amountsdetermined as prescribed in subsections (c)(1) through (c)(6) shall be paid asprovided therein.
(1) An amount equal to 3% of such total amount shall be paid by thecommissioner of insurance to the treasurer of the Kansas state firefightersassociation, inc. for fire prevention and fire extinguishment education andstudy.
(2) An amount equal to 5% of such total amount shall be paid by thecommissioner of insurance to the Kansas state firefighters association,inc. which shall be set aside as a death benefit fund to provide suchbenefits as determined by the association in accordance with theconstitution and bylaws thereof, except the amount paid under this subsection(c)(2) shall not be more than the lesser of $100,000 or the result obtained bysubtracting the balance in the death benefit fund of the association on July 1from $100,000.
(3) The amount of $1,000 shall be paid by the commissioner of insurance toeach firefighters relief association.
(4) The remaining amount of the moneys credited to the state firefightersrelief fund, after the amounts are reserved or paid for the purposesauthorized by subsections (b)(2), (c)(1), (c)(2) and (c)(3), shall be paid bythe commissioner of insurance to firefighters relief associations so that theamount received by each firefighters relief association bears the sameproportion to the total amount to be paid as the amount such firefightersrelief association received from the amounts collected from the tax imposed byK.S.A. 40-1703, and amendments thereto, for all of calendar year1983, bears tothe total amount paid to all firefighters relief associations from the taxescollected for all of calendar year 1983, subject to adjustments made to correctfor errors in the payments distributed and as otherwise provided pursuant tothis subsection (c)(4), adjustments made pursuant to subsection (c)(5) forfirefighters relief associations that did not receive a payment from taxes paidfor all of calendar year 1983 and adjustments pursuant to subsection (c)(6) forredeterminations based upon changed circumstances. The commissioner ofinsurance may make adjustments in the amounts of payments for the current yearmade under this subsection (c)(4) for errors in the payments distributed forthe prior year, except that adjustments may be made in the payments to bedistributed by August 1, 1987, for any errors in the payments distributedduring the period from July 1, 1984, through June 30, 1987, and an adjustmentshall be made in the payment to be distributed by August 1, 1987, for eachfirefighters relief association which was in existence for only part ofcalendar year 1983 and which received a payment for calendar year 1983 based onthe taxes received for only part of calendar year 1983, to reflect the total ofthe payments that would most probably have been received by such firefightersrelief association during the period from August 1, 1984, through June 30,1987, if such firefighters relief association had been in existence for all ofcalendar year 1983, reduced by the payments actually received by suchfirefighters relief association during the period from August 1, 1984, throughJune 30, 1987. For purposes of all payments under subsection (c)(4) after theadjusted payment distributed by August 1, 1987, such firefighters reliefassociation shall be considered to have received for calendar year 1983, theamount it most probably would have received if it had been in existence for allof calendar year 1983, which shall be the amount having the same proportionalrelationship to 365 days as the amount actually received for calendar year 1983has to the number of days that such firefighters relief association was inexistence during calendar year 1983, subject to adjustments pursuant tosubsection (c)(6) for redeterminations based upon changed circumstances.
(5) Whenever a firefighters relief association is to receive a payment undersubsection (c)(4) but did not receive a payment from any of the taxes collectedfor calendar year 1983, the commissioner of insurance shall determine for thenonreceiving association, from such information as is made available to thecommissioner by the nonreceiving association, the amount the nonreceivingassociation would most probably have received if it had actually received sucha payment from the taxes collected for all of calendar year 1983, withappropriate adjustments based on payments to firefighters relief associationsof fire departments providing fire protection services within geographic areashaving similar populations and assessed tangible property valuation as thegeographic area provided fire protection services by the fire department ofeach such nonreceiving association. The commissioner shall make suchdetermination as follows:
(A) One-half of the amount due shall be determined based upon thepopulation figure provided by the association pursuant to administrativerules and regulations adopted by the commissioner. The determination of this1/2 of the amount due shall be made in accordance with the following formula:
(i) An association which received a payment from the taxes collectedfor all of calendar year 1983 and which has a population similar to that ofthe nonreceiving association shall be ascertained;
(ii) the payment the comparable association received from taxescollected for all of calendar year 1983 shall be divided by two;
(iii) the population of the area served by the nonreceivingassociation shall be divided by the population of the area served by theassociation to which the nonreceiving association is being compared, toproduce an adjustment factor reflecting the variance in population size; and
(iv) the amount received from taxes collected for all of calendar year 1983by the association with the comparable population shall be multiplied bythe population adjustment factor obtained in paragraph (iii) of thissubsection (c)(5)(A).
(B) The remaining 1/2 of the amount due shall be determined based uponthe assessed tangible property valuation figure provided by thenonreceiving association pursuant to administrative rules and regulationsadopted by the commissioner. The determination of the remaining 1/2 of theamount due shall be made in accordance with the following formula:
(i) An association which received a payment from the taxes collectedfor all of calendar year 1983 and which has an assessed tangible propertyvaluation as of November 1, 1989, similar to that of the nonreceivingassociation shall be ascertained;
(ii) the payment the comparable association received from taxescollected for all of calendar year 1983 shall be divided by two;
(iii) the assessed tangible property valuation of the area served bythe nonreceiving association shall be divided by the assessed tangibleproperty valuation of the area served by the association to which thenonreceiving association is being compared, to produce an adjustment factorreflecting the variance in assessed tangible property valuation; and
(iv) the amount received from taxes collected for all of calendar year 1983by the association with the comparable assessed tangible property valuationshall be multiplied by the valuation adjustment factor obtained in paragraph(iii) of this subsection (c)(5)(B).
(C) The amount obtained in paragraph (iv) of subsection (c)(5)(A)shall be added to the amount obtained in paragraph (iv) of subsection(c)(5)(B) to determine the total amount the nonreceiving association mostprobably would have received if it had actually received a payment from thetaxes collected for all of calendar year 1983. The amount a nonreceivingassociation most probably would have received if it had actually received apayment from taxes collected for all of calendar year 1983 shall be divided bythe total amount paid to all firefighters relief associations from the taxescollected for all of calendar year 1983 to determine the proportionate amountdue the nonreceiving association for the current and succeeding years andthereafter such association shall not be considered to be a nonreceivingassociation. The commissioner of insurance shall include the amount sodetermined within the computations prescribed by subsection (c)(4) for paymentsthereunder.
(6) One or more firefighters relief associations may apply, prior to October1 of any year, to the commissioner of insurance for a redetermination of theproportionate amounts payable to all firefighters relief associations undersubsection (c)(4) and, upon receipt of such application, the commissioner ofinsurance shall hold one joint hearing in accordance with the provisions of theKansas administrative procedure act prior to December 1 of such year, at whichall applicants shall be heard and may present information. The commissioner ofinsurance may redetermine such proportionate amounts based upon suchinformation as is presented to or otherwise made available by the applicants tothe commissioner and may make a finding of changed circumstances. However,increases in the assessed tangible property valuation resulting from astatewide reappraisal conducted pursuant to K.S.A. 79-1476 et seq.,and amendments thereto, shall not constitute a changed circumstance. Uponmakingsuch finding, the commissioner of insurance may include such redeterminationwithin the computations prescribed by subsection (c)(4) for payments insubsequent years. Any increase or reduction in the amounts to be distributed asa result of a finding of changed circumstances by the commissioner shall beproportionately distributed among all firefighters relief associations. Anapplication for redetermination shall not be made by any firefighters reliefassociation more often than once every three years, but this restriction shallnot apply with respect to applications for redetermination submitted incalendar year 1989 that were based in whole or in part on an increase in theassessed tangible property valuation resulting from statewide reappraisal.
(d) Except as otherwise provided in this section, whenever any firefightersrelief association fails to qualify for funds, as provided in the firefightersrelief act, for a period of two consecutive years, the funds on deposit withsuch association shall be returned by the district or county attorney to thecommissioner of insurance. The commissioner of insurance shall remit all suchfunds to the state treasurer in accordance with the provisions of K.S.A.75-4215, and amendments thereto. Upon receipt of eachsuch remittance, thestatetreasurer shall deposit the entire amount in the state treasuryto thecredit of the state firefighters relief fund. The commissioner of insuranceshall pay such amount of funds to the Kansas state firefighters association,inc. for fire prevention and fire extinguishment education and study.
(e) When a firefighters relief association fails to qualify for paymentsunder the firefighters relief act as a result of the territory which it servesbeing consolidated, merged or annexed with another governmental unit having aqualified firefighters relief association, the funds and obligations of suchdisqualified association shall be transferred to the surviving firefightersrelief association and the disqualified association shall dissolve forthwithunder the existing laws of this state.
(f) When any firefighter, the spouse of such firefighter or those dependentupon any member of a disqualified association is receiving reasonable benefitsfrom such association at the time of disqualification, the benefits shall becontinued in accordance with the resolution of such disqualified associationand shall be paid by the surviving association if the disqualification resultedfrom consolidation, merger or annexation and shall be paid by the district orcounty attorney if disqualification resulted from reasons other thanconsolidation, merger or annexation. Nothing in the firefighters relief actshall be construed as a bar to the lawful receipt of such benefits.
(g) The treasurer of a firefighters relief association shall give bond forthe safekeeping of funds received under the firefighters relief act and forfaithful performance in such sum with such sureties as may be approved by thegoverning body of such city, township, county or fire district. All the moneysso received shall be set apart and used by the firefighters relief associationof such cities, townships, counties or fire districts solely and entirely forthe objects and purposes of the firefighters relief act and shall be paid toand distributed by the firefighters relief associations of such cities,townships, counties or fire districts under such provisions as shall bemade by the governing body thereof. All such expenditures or payments shall besubject to the continued availability of moneys distributed to the associationfrom the tax imposed by K.S.A. 40-1703, and amendments thereto, in amountssufficient for such expenditures. In all cases involving expendituresor payments in an amount of $1,500 or more prior certification shall beobtained from an attorney designated by the governing body of the city,township, county or fire district that such expenditure or payment complieswith the requirements of the firefighters relief act.
(h) The officers of a firefighters relief association may invest any amount,not to exceed 90% of all such moneys, in investments authorized by K.S.A.12-1675, and amendments thereto, in the manner prescribed thereinor inpurchasing bonds of the city, township, county or fire district in which suchfirefighters relief association is located. When such investments are notobtainable, United States government bonds may be purchased or municipal bondsor other obligations issued by any municipality of the state of Kansas asdefined in K.S.A. 10-1101, and amendments thereto, which are generalobligations of the municipality issuing the same. Such investment shall beapproved by the governing body of such city, township, county or fire district.
History: L. 1927, ch. 231, 40-1706; L. 1935, ch. 200, § 1; L.1941, ch. 257, § 5; L. 1957, ch. 287, § 6; L. 1967, ch. 269,§ 1; L.1977, ch. 54, § 32; L. 1979, ch. 145, § 4; L. 1984, ch. 165,§ 7;L. 1987, ch. 168, § 1; L. 1988, ch. 356, § 97; L. 1990, ch. 167,§ 1;L. 2001, ch. 5, § 115; July 1.
40-1706.Financial reports of firefighters reliefassociations, filing, proceedings for improper expenditures; authorizeddisposition of tax proceeds; determination and payment of amounts to state andlocal associations; procedures upon dissolution of local associations; handlingand investment of moneys by local association, restrictions.(a) On or before April 1 of each year, every firefighters relief associationwhich holds funds received under the firefighters relief act shall submit tothe commissioner of insurance a verified account showing in full the receiptsand disbursements and general condition of such funds for the year ending onthe preceding December 31. If such account or other information shows suchfunds are not being expended for the purposes authorized by the firefightersrelief act, the commissioner of insurance shall notify the county attorney ofthe county in which any such firefighters relief association is located andthe county attorney shall institute proceedings to recover for the use ofthe firefighters relief association all moneys expended for purposes not inaccordance with the provisions of the firefighters relief act. The commissionerof insurance shall hold any funds of such firefighters relief association untilthe commissioner is notified by the district or county attorney that suchcondition has been corrected.
(b) (1) All moneys received by the commissioner of insurance from the taximposed by K.S.A. 40-1703, and amendments thereto, shall beremitted to thestate treasurer in accordance with the provisions of K.S.A. 75-4215, andamendments thereto. Upon receipt of each such remittance, the statetreasurershall deposit the entire amount in the state treasury to the credit ofthe state firefighters relief fund whichis hereby created in thestate treasury.
(2) The state firefighters relief fund shall be administered by thecommissioner of insurance. An amount equal to not more than the amountauthorized for expenditure during the current fiscal year by appropriationsenacted by the legislature may be set aside in the state firefighters relieffund and expended by the commissioner of insurance for the administrativeexpenses of the department of insurance under the firefighters relief act,subject to the provisions of appropriations acts.
(c) Prior to August 1, 1987, and each August 1 thereafter, except asprovided in subsections (b) and (d), of the total amount of moneys credited tothe state firefighters relief fund as of July 1 of the same year the amountsdetermined as prescribed in subsections (c)(1) through (c)(6) shall be paid asprovided therein.
(1) An amount equal to 3% of such total amount shall be paid by thecommissioner of insurance to the treasurer of the Kansas state firefightersassociation, inc. for fire prevention and fire extinguishment education andstudy.
(2) An amount equal to 5% of such total amount shall be paid by thecommissioner of insurance to the Kansas state firefighters association,inc. which shall be set aside as a death benefit fund to provide suchbenefits as determined by the association in accordance with theconstitution and bylaws thereof, except the amount paid under this subsection(c)(2) shall not be more than the lesser of $100,000 or the result obtained bysubtracting the balance in the death benefit fund of the association on July 1from $100,000.
(3) The amount of $1,000 shall be paid by the commissioner of insurance toeach firefighters relief association.
(4) The remaining amount of the moneys credited to the state firefightersrelief fund, after the amounts are reserved or paid for the purposesauthorized by subsections (b)(2), (c)(1), (c)(2) and (c)(3), shall be paid bythe commissioner of insurance to firefighters relief associations so that theamount received by each firefighters relief association bears the sameproportion to the total amount to be paid as the amount such firefightersrelief association received from the amounts collected from the tax imposed byK.S.A. 40-1703, and amendments thereto, for all of calendar year1983, bears tothe total amount paid to all firefighters relief associations from the taxescollected for all of calendar year 1983, subject to adjustments made to correctfor errors in the payments distributed and as otherwise provided pursuant tothis subsection (c)(4), adjustments made pursuant to subsection (c)(5) forfirefighters relief associations that did not receive a payment from taxes paidfor all of calendar year 1983 and adjustments pursuant to subsection (c)(6) forredeterminations based upon changed circumstances. The commissioner ofinsurance may make adjustments in the amounts of payments for the current yearmade under this subsection (c)(4) for errors in the payments distributed forthe prior year, except that adjustments may be made in the payments to bedistributed by August 1, 1987, for any errors in the payments distributedduring the period from July 1, 1984, through June 30, 1987, and an adjustmentshall be made in the payment to be distributed by August 1, 1987, for eachfirefighters relief association which was in existence for only part ofcalendar year 1983 and which received a payment for calendar year 1983 based onthe taxes received for only part of calendar year 1983, to reflect the total ofthe payments that would most probably have been received by such firefightersrelief association during the period from August 1, 1984, through June 30,1987, if such firefighters relief association had been in existence for all ofcalendar year 1983, reduced by the payments actually received by suchfirefighters relief association during the period from August 1, 1984, throughJune 30, 1987. For purposes of all payments under subsection (c)(4) after theadjusted payment distributed by August 1, 1987, such firefighters reliefassociation shall be considered to have received for calendar year 1983, theamount it most probably would have received if it had been in existence for allof calendar year 1983, which shall be the amount having the same proportionalrelationship to 365 days as the amount actually received for calendar year 1983has to the number of days that such firefighters relief association was inexistence during calendar year 1983, subject to adjustments pursuant tosubsection (c)(6) for redeterminations based upon changed circumstances.
(5) Whenever a firefighters relief association is to receive a payment undersubsection (c)(4) but did not receive a payment from any of the taxes collectedfor calendar year 1983, the commissioner of insurance shall determine for thenonreceiving association, from such information as is made available to thecommissioner by the nonreceiving association, the amount the nonreceivingassociation would most probably have received if it had actually received sucha payment from the taxes collected for all of calendar year 1983, withappropriate adjustments based on payments to firefighters relief associationsof fire departments providing fire protection services within geographic areashaving similar populations and assessed tangible property valuation as thegeographic area provided fire protection services by the fire department ofeach such nonreceiving association. The commissioner shall make suchdetermination as follows:
(A) One-half of the amount due shall be determined based upon thepopulation figure provided by the association pursuant to administrativerules and regulations adopted by the commissioner. The determination of this1/2 of the amount due shall be made in accordance with the following formula:
(i) An association which received a payment from the taxes collectedfor all of calendar year 1983 and which has a population similar to that ofthe nonreceiving association shall be ascertained;
(ii) the payment the comparable association received from taxescollected for all of calendar year 1983 shall be divided by two;
(iii) the population of the area served by the nonreceivingassociation shall be divided by the population of the area served by theassociation to which the nonreceiving association is being compared, toproduce an adjustment factor reflecting the variance in population size; and
(iv) the amount received from taxes collected for all of calendar year 1983by the association with the comparable population shall be multiplied bythe population adjustment factor obtained in paragraph (iii) of thissubsection (c)(5)(A).
(B) The remaining 1/2 of the amount due shall be determined based uponthe assessed tangible property valuation figure provided by thenonreceiving association pursuant to administrative rules and regulationsadopted by the commissioner. The determination of the remaining 1/2 of theamount due shall be made in accordance with the following formula:
(i) An association which received a payment from the taxes collectedfor all of calendar year 1983 and which has an assessed tangible propertyvaluation as of November 1, 1989, similar to that of the nonreceivingassociation shall be ascertained;
(ii) the payment the comparable association received from taxescollected for all of calendar year 1983 shall be divided by two;
(iii) the assessed tangible property valuation of the area served bythe nonreceiving association shall be divided by the assessed tangibleproperty valuation of the area served by the association to which thenonreceiving association is being compared, to produce an adjustment factorreflecting the variance in assessed tangible property valuation; and
(iv) the amount received from taxes collected for all of calendar year 1983by the association with the comparable assessed tangible property valuationshall be multiplied by the valuation adjustment factor obtained in paragraph(iii) of this subsection (c)(5)(B).
(C) The amount obtained in paragraph (iv) of subsection (c)(5)(A)shall be added to the amount obtained in paragraph (iv) of subsection(c)(5)(B) to determine the total amount the nonreceiving association mostprobably would have received if it had actually received a payment from thetaxes collected for all of calendar year 1983. The amount a nonreceivingassociation most probably would have received if it had actually received apayment from taxes collected for all of calendar year 1983 shall be divided bythe total amount paid to all firefighters relief associations from the taxescollected for all of calendar year 1983 to determine the proportionate amountdue the nonreceiving association for the current and succeeding years andthereafter such association shall not be considered to be a nonreceivingassociation. The commissioner of insurance shall include the amount sodetermined within the computations prescribed by subsection (c)(4) for paymentsthereunder.
(6) One or more firefighters relief associations may apply, prior to October1 of any year, to the commissioner of insurance for a redetermination of theproportionate amounts payable to all firefighters relief associations undersubsection (c)(4) and, upon receipt of such application, the commissioner ofinsurance shall hold one joint hearing in accordance with the provisions of theKansas administrative procedure act prior to December 1 of such year, at whichall applicants shall be heard and may present information. The commissioner ofinsurance may redetermine such proportionate amounts based upon suchinformation as is presented to or otherwise made available by the applicants tothe commissioner and may make a finding of changed circumstances. However,increases in the assessed tangible property valuation resulting from astatewide reappraisal conducted pursuant to K.S.A. 79-1476 et seq.,and amendments thereto, shall not constitute a changed circumstance. Uponmakingsuch finding, the commissioner of insurance may include such redeterminationwithin the computations prescribed by subsection (c)(4) for payments insubsequent years. Any increase or reduction in the amounts to be distributed asa result of a finding of changed circumstances by the commissioner shall beproportionately distributed among all firefighters relief associations. Anapplication for redetermination shall not be made by any firefighters reliefassociation more often than once every three years, but this restriction shallnot apply with respect to applications for redetermination submitted incalendar year 1989 that were based in whole or in part on an increase in theassessed tangible property valuation resulting from statewide reappraisal.
(d) Except as otherwise provided in this section, whenever any firefightersrelief association fails to qualify for funds, as provided in the firefightersrelief act, for a period of two consecutive years, the funds on deposit withsuch association shall be returned by the district or county attorney to thecommissioner of insurance. The commissioner of insurance shall remit all suchfunds to the state treasurer in accordance with the provisions of K.S.A.75-4215, and amendments thereto. Upon receipt of eachsuch remittance, thestatetreasurer shall deposit the entire amount in the state treasuryto thecredit of the state firefighters relief fund. The commissioner of insuranceshall pay such amount of funds to the Kansas state firefighters association,inc. for fire prevention and fire extinguishment education and study.
(e) When a firefighters relief association fails to qualify for paymentsunder the firefighters relief act as a result of the territory which it servesbeing consolidated, merged or annexed with another governmental unit having aqualified firefighters relief association, the funds and obligations of suchdisqualified association shall be transferred to the surviving firefightersrelief association and the disqualified association shall dissolve forthwithunder the existing laws of this state.
(f) When any firefighter, the spouse of such firefighter or those dependentupon any member of a disqualified association is receiving reasonable benefitsfrom such association at the time of disqualification, the benefits shall becontinued in accordance with the resolution of such disqualified associationand shall be paid by the surviving association if the disqualification resultedfrom consolidation, merger or annexation and shall be paid by the district orcounty attorney if disqualification resulted from reasons other thanconsolidation, merger or annexation. Nothing in the firefighters relief actshall be construed as a bar to the lawful receipt of such benefits.
(g) The treasurer of a firefighters relief association shall give bond forthe safekeeping of funds received under the firefighters relief act and forfaithful performance in such sum with such sureties as may be approved by thegoverning body of such city, township, county or fire district. All the moneysso received shall be set apart and used by the firefighters relief associationof such cities, townships, counties or fire districts solely and entirely forthe objects and purposes of the firefighters relief act and shall be paid toand distributed by the firefighters relief associations of such cities,townships, counties or fire districts under such provisions as shall bemade by the governing body thereof. All such expenditures or payments shall besubject to the continued availability of moneys distributed to the associationfrom the tax imposed by K.S.A. 40-1703, and amendments thereto, in amountssufficient for such expenditures. In all cases involving expendituresor payments in an amount of $1,500 or more prior certification shall beobtained from an attorney designated by the governing body of the city,township, county or fire district that such expenditure or payment complieswith the requirements of the firefighters relief act.
(h) The officers of a firefighters relief association may invest any amount,not to exceed 90% of all such moneys, in investments authorized by K.S.A.12-1675, and amendments thereto, in the manner prescribed thereinor inpurchasing bonds of the city, township, county or fire district in which suchfirefighters relief association is located. When such investments are notobtainable, United States government bonds may be purchased or municipal bondsor other obligations issued by any municipality of the state of Kansas asdefined in K.S.A. 10-1101, and amendments thereto, which are generalobligations of the municipality issuing the same. Such investment shall beapproved by the governing body of such city, township, county or fire district.
History: L. 1927, ch. 231, 40-1706; L. 1935, ch. 200, § 1; L.1941, ch. 257, § 5; L. 1957, ch. 287, § 6; L. 1967, ch. 269,§ 1; L.1977, ch. 54, § 32; L. 1979, ch. 145, § 4; L. 1984, ch. 165,§ 7;L. 1987, ch. 168, § 1; L. 1988, ch. 356, § 97; L. 1990, ch. 167,§ 1;L. 2001, ch. 5, § 115; July 1.
40-1706.Financial reports of firefighters reliefassociations, filing, proceedings for improper expenditures; authorizeddisposition of tax proceeds; determination and payment of amounts to state andlocal associations; procedures upon dissolution of local associations; handlingand investment of moneys by local association, restrictions.(a) On or before April 1 of each year, every firefighters relief associationwhich holds funds received under the firefighters relief act shall submit tothe commissioner of insurance a verified account showing in full the receiptsand disbursements and general condition of such funds for the year ending onthe preceding December 31. If such account or other information shows suchfunds are not being expended for the purposes authorized by the firefightersrelief act, the commissioner of insurance shall notify the county attorney ofthe county in which any such firefighters relief association is located andthe county attorney shall institute proceedings to recover for the use ofthe firefighters relief association all moneys expended for purposes not inaccordance with the provisions of the firefighters relief act. The commissionerof insurance shall hold any funds of such firefighters relief association untilthe commissioner is notified by the district or county attorney that suchcondition has been corrected.
(b) (1) All moneys received by the commissioner of insurance from the taximposed by K.S.A. 40-1703, and amendments thereto, shall beremitted to thestate treasurer in accordance with the provisions of K.S.A. 75-4215, andamendments thereto. Upon receipt of each such remittance, the statetreasurershall deposit the entire amount in the state treasury to the credit ofthe state firefighters relief fund whichis hereby created in thestate treasury.
(2) The state firefighters relief fund shall be administered by thecommissioner of insurance. An amount equal to not more than the amountauthorized for expenditure during the current fiscal year by appropriationsenacted by the legislature may be set aside in the state firefighters relieffund and expended by the commissioner of insurance for the administrativeexpenses of the department of insurance under the firefighters relief act,subject to the provisions of appropriations acts.
(c) Prior to August 1, 1987, and each August 1 thereafter, except asprovided in subsections (b) and (d), of the total amount of moneys credited tothe state firefighters relief fund as of July 1 of the same year the amountsdetermined as prescribed in subsections (c)(1) through (c)(6) shall be paid asprovided therein.
(1) An amount equal to 3% of such total amount shall be paid by thecommissioner of insurance to the treasurer of the Kansas state firefightersassociation, inc. for fire prevention and fire extinguishment education andstudy.
(2) An amount equal to 5% of such total amount shall be paid by thecommissioner of insurance to the Kansas state firefighters association,inc. which shall be set aside as a death benefit fund to provide suchbenefits as determined by the association in accordance with theconstitution and bylaws thereof, except the amount paid under this subsection(c)(2) shall not be more than the lesser of $100,000 or the result obtained bysubtracting the balance in the death benefit fund of the association on July 1from $100,000.
(3) The amount of $1,000 shall be paid by the commissioner of insurance toeach firefighters relief association.
(4) The remaining amount of the moneys credited to the state firefightersrelief fund, after the amounts are reserved or paid for the purposesauthorized by subsections (b)(2), (c)(1), (c)(2) and (c)(3), shall be paid bythe commissioner of insurance to firefighters relief associations so that theamount received by each firefighters relief association bears the sameproportion to the total amount to be paid as the amount such firefightersrelief association received from the amounts collected from the tax imposed byK.S.A. 40-1703, and amendments thereto, for all of calendar year1983, bears tothe total amount paid to all firefighters relief associations from the taxescollected for all of calendar year 1983, subject to adjustments made to correctfor errors in the payments distributed and as otherwise provided pursuant tothis subsection (c)(4), adjustments made pursuant to subsection (c)(5) forfirefighters relief associations that did not receive a payment from taxes paidfor all of calendar year 1983 and adjustments pursuant to subsection (c)(6) forredeterminations based upon changed circumstances. The commissioner ofinsurance may make adjustments in the amounts of payments for the current yearmade under this subsection (c)(4) for errors in the payments distributed forthe prior year, except that adjustments may be made in the payments to bedistributed by August 1, 1987, for any errors in the payments distributedduring the period from July 1, 1984, through June 30, 1987, and an adjustmentshall be made in the payment to be distributed by August 1, 1987, for eachfirefighters relief association which was in existence for only part ofcalendar year 1983 and which received a payment for calendar year 1983 based onthe taxes received for only part of calendar year 1983, to reflect the total ofthe payments that would most probably have been received by such firefightersrelief association during the period from August 1, 1984, through June 30,1987, if such firefighters relief association had been in existence for all ofcalendar year 1983, reduced by the payments actually received by suchfirefighters relief association during the period from August 1, 1984, throughJune 30, 1987. For purposes of all payments under subsection (c)(4) after theadjusted payment distributed by August 1, 1987, such firefighters reliefassociation shall be considered to have received for calendar year 1983, theamount it most probably would have received if it had been in existence for allof calendar year 1983, which shall be the amount having the same proportionalrelationship to 365 days as the amount actually received for calendar year 1983has to the number of days that such firefighters relief association was inexistence during calendar year 1983, subject to adjustments pursuant tosubsection (c)(6) for redeterminations based upon changed circumstances.
(5) Whenever a firefighters relief association is to receive a payment undersubsection (c)(4) but did not receive a payment from any of the taxes collectedfor calendar year 1983, the commissioner of insurance shall determine for thenonreceiving association, from such information as is made available to thecommissioner by the nonreceiving association, the amount the nonreceivingassociation would most probably have received if it had actually received sucha payment from the taxes collected for all of calendar year 1983, withappropriate adjustments based on payments to firefighters relief associationsof fire departments providing fire protection services within geographic areashaving similar populations and assessed tangible property valuation as thegeographic area provided fire protection services by the fire department ofeach such nonreceiving association. The commissioner shall make suchdetermination as follows:
(A) One-half of the amount due shall be determined based upon thepopulation figure provided by the association pursuant to administrativerules and regulations adopted by the commissioner. The determination of this1/2 of the amount due shall be made in accordance with the following formula:
(i) An association which received a payment from the taxes collectedfor all of calendar year 1983 and which has a population similar to that ofthe nonreceiving association shall be ascertained;
(ii) the payment the comparable association received from taxescollected for all of calendar year 1983 shall be divided by two;
(iii) the population of the area served by the nonreceivingassociation shall be divided by the population of the area served by theassociation to which the nonreceiving association is being compared, toproduce an adjustment factor reflecting the variance in population size; and
(iv) the amount received from taxes collected for all of calendar year 1983by the association with the comparable population shall be multiplied bythe population adjustment factor obtained in paragraph (iii) of thissubsection (c)(5)(A).
(B) The remaining 1/2 of the amount due shall be determined based uponthe assessed tangible property valuation figure provided by thenonreceiving association pursuant to administrative rules and regulationsadopted by the commissioner. The determination of the remaining 1/2 of theamount due shall be made in accordance with the following formula:
(i) An association which received a payment from the taxes collectedfor all of calendar year 1983 and which has an assessed tangible propertyvaluation as of November 1, 1989, similar to that of the nonreceivingassociation shall be ascertained;
(ii) the payment the comparable association received from taxescollected for all of calendar year 1983 shall be divided by two;
(iii) the assessed tangible property valuation of the area served bythe nonreceiving association shall be divided by the assessed tangibleproperty valuation of the area served by the association to which thenonreceiving association is being compared, to produce an adjustment factorreflecting the variance in assessed tangible property valuation; and
(iv) the amount received from taxes collected for all of calendar year 1983by the association with the comparable assessed tangible property valuationshall be multiplied by the valuation adjustment factor obtained in paragraph(iii) of this subsection (c)(5)(B).
(C) The amount obtained in paragraph (iv) of subsection (c)(5)(A)shall be added to the amount obtained in paragraph (iv) of subsection(c)(5)(B) to determine the total amount the nonreceiving association mostprobably would have received if it had actually received a payment from thetaxes collected for all of calendar year 1983. The amount a nonreceivingassociation most probably would have received if it had actually received apayment from taxes collected for all of calendar year 1983 shall be divided bythe total amount paid to all firefighters relief associations from the taxescollected for all of calendar year 1983 to determine the proportionate amountdue the nonreceiving association for the current and succeeding years andthereafter such association shall not be considered to be a nonreceivingassociation. The commissioner of insurance shall include the amount sodetermined within the computations prescribed by subsection (c)(4) for paymentsthereunder.
(6) One or more firefighters relief associations may apply, prior to October1 of any year, to the commissioner of insurance for a redetermination of theproportionate amounts payable to all firefighters relief associations undersubsection (c)(4) and, upon receipt of such application, the commissioner ofinsurance shall hold one joint hearing in accordance with the provisions of theKansas administrative procedure act prior to December 1 of such year, at whichall applicants shall be heard and may present information. The commissioner ofinsurance may redetermine such proportionate amounts based upon suchinformation as is presented to or otherwise made available by the applicants tothe commissioner and may make a finding of changed circumstances. However,increases in the assessed tangible property valuation resulting from astatewide reappraisal conducted pursuant to K.S.A. 79-1476 et seq.,and amendments thereto, shall not constitute a changed circumstance. Uponmakingsuch finding, the commissioner of insurance may include such redeterminationwithin the computations prescribed by subsection (c)(4) for payments insubsequent years. Any increase or reduction in the amounts to be distributed asa result of a finding of changed circumstances by the commissioner shall beproportionately distributed among all firefighters relief associations. Anapplication for redetermination shall not be made by any firefighters reliefassociation more often than once every three years, but this restriction shallnot apply with respect to applications for redetermination submitted incalendar year 1989 that were based in whole or in part on an increase in theassessed tangible property valuation resulting from statewide reappraisal.
(d) Except as otherwise provided in this section, whenever any firefightersrelief association fails to qualify for funds, as provided in the firefightersrelief act, for a period of two consecutive years, the funds on deposit withsuch association shall be returned by the district or county attorney to thecommissioner of insurance. The commissioner of insurance shall remit all suchfunds to the state treasurer in accordance with the provisions of K.S.A.75-4215, and amendments thereto. Upon receipt of eachsuch remittance, thestatetreasurer shall deposit the entire amount in the state treasuryto thecredit of the state firefighters relief fund. The commissioner of insuranceshall pay such amount of funds to the Kansas state firefighters association,inc. for fire prevention and fire extinguishment education and study.
(e) When a firefighters relief association fails to qualify for paymentsunder the firefighters relief act as a result of the territory which it servesbeing consolidated, merged or annexed with another governmental unit having aqualified firefighters relief association, the funds and obligations of suchdisqualified association shall be transferred to the surviving firefightersrelief association and the disqualified association shall dissolve forthwithunder the existing laws of this state.
(f) When any firefighter, the spouse of such firefighter or those dependentupon any member of a disqualified association is receiving reasonable benefitsfrom such association at the time of disqualification, the benefits shall becontinued in accordance with the resolution of such disqualified associationand shall be paid by the surviving association if the disqualification resultedfrom consolidation, merger or annexation and shall be paid by the district orcounty attorney if disqualification resulted from reasons other thanconsolidation, merger or annexation. Nothing in the firefighters relief actshall be construed as a bar to the lawful receipt of such benefits.
(g) The treasurer of a firefighters relief association shall give bond forthe safekeeping of funds received under the firefighters relief act and forfaithful performance in such sum with such sureties as may be approved by thegoverning body of such city, township, county or fire district. All the moneysso received shall be set apart and used by the firefighters relief associationof such cities, townships, counties or fire districts solely and entirely forthe objects and purposes of the firefighters relief act and shall be paid toand distributed by the firefighters relief associations of such cities,townships, counties or fire districts under such provisions as shall bemade by the governing body thereof. All such expenditures or payments shall besubject to the continued availability of moneys distributed to the associationfrom the tax imposed by K.S.A. 40-1703, and amendments thereto, in amountssufficient for such expenditures. In all cases involving expendituresor payments in an amount of $1,500 or more prior certification shall beobtained from an attorney designated by the governing body of the city,township, county or fire district that such expenditure or payment complieswith the requirements of the firefighters relief act.
(h) The officers of a firefighters relief association may invest any amount,not to exceed 90% of all such moneys, in investments authorized by K.S.A.12-1675, and amendments thereto, in the manner prescribed thereinor inpurchasing bonds of the city, township, county or fire district in which suchfirefighters relief association is located. When such investments are notobtainable, United States government bonds may be purchased or municipal bondsor other obligations issued by any municipality of the state of Kansas asdefined in K.S.A. 10-1101, and amendments thereto, which are generalobligations of the municipality issuing the same. Such investment shall beapproved by the governing body of such city, township, county or fire district.
History: L. 1927, ch. 231, 40-1706; L. 1935, ch. 200, § 1; L.1941, ch. 257, § 5; L. 1957, ch. 287, § 6; L. 1967, ch. 269,§ 1; L.1977, ch. 54, § 32; L. 1979, ch. 145, § 4; L. 1984, ch. 165,§ 7;L. 1987, ch. 168, § 1; L. 1988, ch. 356, § 97; L. 1990, ch. 167,§ 1;L. 2001, ch. 5, § 115; July 1.
