Session of 1999
By Committee on Appropriations

  9             AN  ACT establishing the medical resources and collection fund; con-
10             cerning adult care home fines; amending K.S.A. 39-965 and repealing
11             the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14             New Section  1. (a) There is hereby established in the state treasury
15       the medical resources and collection fund which shall be administered by
16       the department on aging.
17             (b) Revenue from the following sources shall be deposited in the state
18       treasury and credited to this fund:
19             (1) Any proceeds from fines imposed on nursing facilities by the de-
20       partment of health and environment pursuant to K.S.A. 39-965 and
21       amendments thereto;
22             (2) any proceeds from fines imposed by the federal health care fi-
23       nancing administration on nursing facilities for licensure violations; and
24             (3) any proceeds received or collected by the secretary of aging due
25       to medicaid overpayments.
26             (c) Moneys in the medical resources and collection fund may be ex-
27       pended only to pay the costs of relocating residents when a nursing facility
28       closes. Interest earnings collected pursuant to subsection (d) from such
29       fund may be expended only for training of department on aging staff,
30       including persons providing case management services.
31             (d) On or before the 10th of each month, the director of accounts
32       and reports shall transfer from the state general fund to the medical
33       resources and collection fund interest earnings based on:
34             (1) The average daily balance of moneys in the medical resources and
35       collection fund for the preceding month; and
36             (2) the net earnings rate of the pooled money investment portfolio
37       for the preceding month.
38             Sec.  2. K.S.A. 39-965 is hereby amended to read as follows: 39-965.
39       (a) If the secretary of health and environment determines that an adult
40       care home is in violation of or has violated any requirements, standards
41       or rules and regulations established under the adult care home licensure
42       act which violation can reasonably be determined to have resulted in,
43       caused or posed serious physical harm to a resident, the secretary in

HB 2556


  1       accordance with proceedings under the Kansas administrative procedure
  2       act, may assess a civil penalty against the licensee of such adult care home
  3       in an amount of not to exceed $1,000 per day per violation for each day
  4       the secretary finds that the adult care home was not in compliance with
  5       such requirements, standards or rules and regulations but the maximum
  6       assessment shall not exceed $10,000. All moneys received or collected by
  7       the secretary of health and environment due to civil monetary penalty
  8       assessments against adult care homes shall be deposited in the state treas-
  9       ury and credited to the medical resources and collection fund of the de-
10       partment on aging.
11             (b) All civil penalties assessed shall be due and payable in accordance
12       with subsection (c) of K.S.A. 39-946 and K.S.A. 39-947 and amendments
13       thereto.
14             (c) The secretary of health and environment may adopt rules and
15       regulations which shall include due process procedures for the issuance
16       of civil penalties relating to nursing facilities.
17             (d) The authority to assess civil penalties granted to the secretary of
18       health and environment under this section is in addition to any other
19       statutory authority of the secretary relating to the licensure and operation
20       of adult care homes and is not to be construed to limit any of the powers
21       and duties of the secretary under the adult care home licensure act.
22             (e) This section shall be part of and supplemental to the adult care
23       home licensure act.
24        Sec.  3. K.S.A. 39-965 is hereby repealed.
25        Sec.  4. This act shall take effect and be in force from and after its
26       publication in the statute book.