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AN ACT concerning local governments; relating to health care benefits
  plan; providing coverage for spouse; amending K.S.A. 12-5040 and
  repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 12-5040 is hereby amended to read as follows: 12-
5040. (a) Each local government which provides an employer-sponsored
group health care benefits plan for the employees of the local government
shall make coverage under such group health care benefits program avail-
able to retired former employees and their dependents, upon written
application filed with the clerk or secretary thereof within 30 days follow-
ing retirement of the employee, as provided by this section. Coverage
under the employee group health care benefits plan may cease to be made
available upon (1) the retired employee attaining age 65, (2) the retired
employee failing to make required premium payments on a timely basis,
or (3) the retired employee becoming covered or becoming eligible to be
covered under a plan of another employer.
  (b)  Each such local government shall make such coverage available
to all persons who were employed by the local government for not less
than 10 years and who retired from such employment after December
31, 1988, and may make such coverage available to other retired em-
ployees and their dependents. Each such retired employee who elects to
continue such coverage may be required to contribute to the employee
group health benefits plan, including the administrative costs thereof, but
such contribution shall not exceed 125% of the premium cost for other
similarly situated employees. The local government may pay for all or part
of the cost of continuing the employee group health care benefits plan
coverage for such retired former employees and their dependents.
  (c)  Subject to the conditions contained in this section, coverage under
the employee group health care benefits plan shall continue for the spouse
of a retired employee until such spouse has attained age 65, even though
the retired employee has already attained age 65.
  (c) (d)  As used in this section, ``local government'' means any county,
city, township, special district, unified school district or any instrumen-
tality of any one or several of such governmental entities; and ``retired''
means any employee who has terminated employment and is receiving a
retirement or disability benefit for service with the local government from
which they terminated employment.
  Sec. 2.  K.S.A. 12-5040 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.