40-2305. Plans for coverage of employees of political subdivisions; contributions; late penalty; recovery of delinquent payments; tax levy, use of proceeds.
40-2305
40-2305. Plans for coverage of employees ofpolitical subdivisions; contributions; late penalty; recovery of delinquentpayments; tax levy, use of proceeds.(a) Each political subdivision of the state is hereby authorized tosubmit for approval by the state agency a plan for extending ormodifying the benefits of title II of the social security act, inconformity with the applicable provisions of such act, to employees,including any holding the office or position of policeman or fireman, ofsuch political subdivisions. Whenever the governorcertifies to thesecretary of health and human services that, as a result of areferendum held pursuant to subsection (b) of K.S.A. 40-2305a,and amendments thereto, school employees who are covered by the state systemfor retirement and payment of annuities to school employees as providedfor in article 55 of chapter 72 of the Kansas Statutes Annotated, andamendmentsthereto, the conditions specified in section 218(d)(3)of the social security act have been met with respect to such employeesunder such separate retirement system, the state agency shall adopt aplan or amend a plan for extending such benefits to school employees, asdefined in subsection (d) of K.S.A. 72-5501, and amendmentsthereto, of every political subdivision and such political subdivision,and its employees shall be liable under such plan or amended plan to thesame extent as if the political subdivision had submitted the plan andthe same had been approved by the state agency. Each such plan and anyamendment thereof shall be approved by the state agency if it finds thatsuch plan, or such plan as amended, is in conformity with suchrequirements as are provided in regulations of the state agency, exceptthat no such plan shall be approved unless: (1) It is in conformity withthe requirements of the federal social security act and with theagreement entered into pursuant to K.S.A. 40-2303, and amendmentsthereto; (2) it provides that all services which constitute employmentas defined in subsection (b) of K.S.A. 40-2302, and amendmentsthereto, and are performed in the employ of the political subdivision byemployees thereof, including any holding the office or position ofpoliceman or fireman, shall be covered by the plan, except that it mayexclude services performed by other individuals to whomsection 218(c)(3)(C) of the federal social security act is applicable; (3) itspecifies the source or sources from which the funds necessary to makethe payments required by paragraph (1) of subsection (c) of this sectionand by subsection (d) of this section are expected to be derived andcontains reasonable assurance that such sources will be adequate forsuch purpose; (4) it provides for such methods of administration of theplan by the political subdivision as are found by the state agency to benecessary for the proper and efficient administration of the plan; (5)it provides that the political subdivision will make such reports, insuch form and containing such information, as the state agency may fromtime to time require, and comply with such provisions as the stateagency or the secretary of health and human services may from timeto time find necessary to assure the correctness and verification ofsuch reports; and (6) it authorizes the state agency to terminate theplan in its entirety, in the discretion of the state agency, if it findsthere has been a failure to comply substantially with any provisioncontained in such plan, such termination to take effect at theexpiration of such notice and on such conditions as may be provided byregulations of the state agency and may be consistent with theprovisions of the social security act.
(b) The state agency shall not finally refuse to approve a plansubmitted by a political subdivision under subsection (a) of thissection, and shall not terminate an approved plan, without reasonablenotice and opportunity for hearing to the political subdivision affectedthereby. Hearings under this subsection shall be conducted in accordancewith the provisions of the Kansas administrative procedure act.
(c) (1) Each political subdivision as to which a plan has beenapproved under this section shall pay into the contribution fund, withrespect to wages, as defined in subsection (a) of K.S.A.40-2302, and amendments thereto, at such time or times as the stateagency may by regulation prescribe, contributions in the amounts and atthe rates specified in the applicable agreement entered into by thestate agency under K.S.A. 40-2303, and amendments thereto. Delinquentcontributions shall be subject to a late penalty to defraythe costs of the collection efforts in the amount of $10 for each contributionperiod. All moneys received for the late penalty imposedby this paragraph (1) of subsection (c) shall be remittedto the state treasurer in accordance with the provisions of K.S.A. 75-4215, andamendments thereto. Upon receipt of each such remittance, the state treasurershall deposit the entire amount in the state treasuryto the credit of the municipal accountingservices recovery fund.
(2) Eachpolitical subdivision required to make payments under paragraph (1) ofthis subsection (c) is authorized, in consideration of the employee'sretention in, or entry upon, employment after enactment of this act, toimpose upon each of its employees, as to services which are covered byan approved plan, a contribution with respect to such employee's wages,as defined in subsection (a) of K.S.A. 40-2302, and amendmentsthereto, not exceeding the amount of the employee tax which would beimposed by the federal insurance contributions act if such servicesconstituted employment within the meaning of that act, and to deduct theamount of such contribution from such employee's wages as and when paid.Contributions so collected shall be paid into the contribution fund inpartial discharge of the liability of such political subdivision orinstrumentality under paragraph (1) of this subsection (c). Failure todeduct such contribution shall not relieve the employee or employer ofliability therefor.
(d) Delinquent payments due under paragraph (1) of subsection (c) ofthis section may, with interest at the rateprescribed by federal statute or regulation for delinquent social securityremittances, be recovered by the state agency by action in a court ofcompetent jurisdiction against the political subdivision liable thereforor may, at the request of the state agency, be deducted from any othermoneys payable to such subdivision by any department or agency of thestate or may be offset against any funds of the subdivision held by thecounty treasurer upon certification by the state agency of such liabilityto the officials of the subdivision and to the county treasurer. Upon receiptof the state agency's certification, the county treasurer shall remit fromthe funds of such political subdivision the amount certified. The countytreasurer shall notify the subdivision of the amount remitted to the stateagency.
(e) Each political subdivision, other than an instrumentality of thestate, shall pay its contributions required under the provisions ofsubsection (c) of this section from the same fund that the wages forwhich such contribution is made are paid or from any other fundsavailable to it for such purpose. Each political subdivision, except aninstrumentality of the state or a school district, which is by lawauthorized to levy taxes for other purposes, annually at the time of itslevy of taxes for other purposes, may levy a tax, which may be inaddition to all other taxes authorized by law, for thepurpose of making itscontributions under subsection (c) of this section and, in the case ofcities and counties, to pay a portion of the principal and interest onbonds issued under the authority of K.S.A. 12-1774, andamendments thereto, by cities located in the county, which tax togetherwith any other funds available to such political subdivision for suchpurpose shall be sufficient to enable it to make such contributions. Anytaxing subdivision authorized to levy a tax under this subsection, inlieu of levying such tax, may pay the required employer contributionfrom any employee benefits contribution fund established pursuant toK.S.A. 12-16,102, and amendments thereto. All contributionsof such politicalsubdivisions shall be transmitted to the state agency in the manner asthe state agency shall by rules and regulations provide, and, uponreceipt of the same, the state agency shall remit such contributions to thestate treasurer, inaccordance with the provisions of K.S.A. 75-4215, and amendments thereto. Uponreceipt of each such remittance, the state treasurer shalldeposit the entire amount in thestate treasury to thecredit of the contribution fund created by K.S.A. 40-2307, andamendmentsthereto.
History: L. 1951, ch. 464, § 5; L. 1953, ch. 237, § 1;L. 1955, ch. 246, § 5; L. 1961, ch. 238, § 1; L. 1978, ch. 296,§ 14; L.1978, ch. 163, § 4; L. 1979, ch. 52, § 153; L. 1981, ch. 196,§1; L. 1983, ch. 157, § 1;L. 1988, ch. 356, § 109;L. 1990, ch. 66, § 40;L. 2001, ch. 5, § 118; July 1.