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AN ACT relating to nonprofit hospital service corporations, nonprofit
  medical service corporations, nonprofit optometric service corpora-
  tions, and nonprofit pharmacy service corporations; amending K.S.A.
  19-212a, 40-112, 40-222c, 40-2,125, 40-2217, 40-2227, 40-2402, 40-
  3606, 65-28,108 and 65-6002 and K.S.A. 1996 Supp. 40-225, 40-2,116,
  40-2,153 and 40-3302 and repealing the existing sections; also repeal-
  ing K.S.A. 40-1801, 40-1802, 40-1803, 40-1804, 40-1805, 40-1806,
  40-1807, 40-1808, 40-1809, 40-1811, 40-1813, 40-1816, 40-1901, 40-
  1902, 40-1903, 40-1904, 40-1905, 40-1906, 40-1907, 40-1908, 40-1911,
  40-1912, 40-1914, 40-1915, 40-19b01, 40-19b02, 40-19b03, 40-19b04,
  40-19b05, 40-19b06, 40-19b08, 40-19b09, 40-19b11, 40-19b12,
  40-19b13, 40-19b14, 40-19d01, 40-19d02, 40-19d03, 40-19d04, 40-
  19d05, 40-19d06, 40-19d08, 40-19d09, 40-19d11, 40-19d12, 40-19d13
  and 40-19d14 and K.S.A. 1996 Supp. 40-1909, 40-19b10 and 40-19d10.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 19-212a is hereby amended to read as follows: 19-
212a. The board of county commissioners of any county is hereby au-
thorized to direct the proper officers to withhold from the salaries of its
officers and employees such sums as such officers or employees may
authorize to provide for the payment of group health, accident and life
insurance or for a group policy issued by mutual nonprofit hospital service
corporation and nonprofit medical service corporation for the benefit of
such officers and employees.
  Sec. 2.  K.S.A. 40-112 is hereby amended to read as follows: 40-112.
  (a) For the purpose of maintaining the insurance department and the
payment of expenses incident thereto, there is hereby established the
insurance department service regulation fund in the state treasury which
shall be administered by the commissioner of insurance. All expenditures
from the insurance department service regulation fund shall be made in
accordance with appropriation acts upon warrants of the director of ac-
counts and reports issued pursuant to vouchers approved by the com-
missioner of insurance or by a person or persons designated by the com-
missioner.
  (b)  On and after the effective date of this act, all fees received by the
commissioner of insurance pursuant to any statute and the portion of taxes
received pursuant to K.S.A. 40-252 and amendments thereto, which is
certified by the commissioner of insurance to be necessary for the pur-
poses of the insurance department service regulation fund and which,
together with the total amount of fees deposited to the credit of the
insurance department service regulation fund pursuant to this subsection,
does not total more than $4,800,000 for any fiscal year, shall be remitted
to the state treasurer for deposit in the state treasury and credited to the
insurance department service regulation fund. The total amount credited
to the insurance department service regulation fund pursuant to this sub-
section for any fiscal year shall not exceed $4,800,000.
  (c)  Except as otherwise provided by this section, the commissioner
of insurance shall make an annual assessment for the fiscal year ending
June 30, 1993, and for each fiscal year thereafter, on each group of affil-
iated insurers whose certificates of authority to do business in this state
are in good standing at the time of the assessment. The total amount of
all such assessments for a fiscal year shall be equal to the amount sufficient
which, when combined with the total amount to be credited to the in-
surance department service regulation fund pursuant to subsection (b) is
equal to the amount approved by the legislature to fund the insurance
company regulation program. With respect to each group of affiliated
insurers, such assessment shall be in proportion to the amount of total
assets of the group of affiliated insurers as reported to the commissioner
of insurance pursuant to K.S.A. 40-225 and amendments thereto for the
immediately preceding calendar year, shall not be less than $500 and shall
not be more than the amount equal to .0000015 of the amount of total
assets of the group of affiliated insurers or $25,000, whichever is less. The
total assessment for any fiscal year after the fiscal year ending June 30,
1993, shall not increase by any amount greater than 15% of the total
budget approved by the legislature to fund the insurance company reg-
ulation program for the fiscal year immediately preceding the fiscal year
for which the assessment is made. In the event the total amount of the
assessment would be less than the aggregate amount resulting by assess-
ing the $500 minimum on each insurer, the commissioner may establish
a lower minimum to be assessed equally on each insurer.
  (d)  Assessments payable under this section shall be past due if not
paid to the insurance department within 45 days of the billing date of
such assessment. A penalty equal to 10% of the amount assessed shall be
imposed upon any past due payment and the total amount of the assess-
ment and penalty shall bear interest at the rate of 1.5% per month or any
portion thereof.
  (e)  On or after July 1, 1992, when there exists in the insurance de-
partment service regulation fund a deficiency which would render such
fund temporarily insufficient during any fiscal year to meet the insurance
department's funding requirements, the commissioner of insurance shall
certify the amount of the insufficiency. Upon receipt of any such certi-
fication, the director of accounts and reports shall transfer an amount of
moneys equal to the amount so certified from the state general fund to
the insurance department service regulation fund. On June 30 of any fiscal
year during which an amount or amounts are certified and transferred
under this subsection, the director of accounts and reports shall provide
for the repayment of the amounts so transferred and shall transfer the
amount equal to the total of all such amounts transferred during the fiscal
year from the insurance department service regulation fund to the state
general fund.
  (f)  Any unexpended balance in the insurance department service reg-
ulation fund at the close of a fiscal year shall remain credited to the
insurance department service regulation fund for use in the succeeding
fiscal year and shall be used to reduce future assessments or to accom-
modate cash flow demands on the fund.
  (g)  The commissioner of insurance shall exempt the assessment of
any insurer which, as of December 31 of the calendar year preceding the
assessment, has a surplus of less than two times the minimum amount of
surplus required for a certificate of authority on and after May 1, 1994,
and which is subject to the premium tax liability imposed on insurers
organized under the laws of this state. The commissioner of insurance
may also exempt or defer, in whole or in part, the assessment of any other
insurer if, in the opinion of the commissioner of insurance, immediate
payment of the total assessment would be detrimental to the solvency of
the insurer.
  (h)  As used in this section:
  (1)  ``Affiliates'' or ``affiliated'' has the meaning ascribed by K.S.A. 40-
3302 and amendments thereto;
  (2)  ``group'' or ``group of affiliated insurers'' means the affiliated in-
surers of a group and also includes an individual, unaffiliated insurer; and
  (3)  ``insurer'' means any insurance company, as defined by K.S.A. 40-
201 and amendments thereto, any fraternal benefit society, as defined by
K.S.A. 40-738 and amendments thereto, any reciprocal or interinsurance
exchange under K.S.A. 40-1601 through 40-1614 and amendments
thereto, any mutual insurance company organized to provide health care
provider liability insurance under K.S.A. 40-12a01 through 40-12a09 and
amendments thereto, any mutual nonprofit hospital service corporation
under K.S.A. 40-1801 through 40-1816 and amendments thereto, any
nonprofit medical service corporation under K.S.A. 40-1901 through 40-
1915 and amendments thereto, any nonprofit dental service corporation
under K.S.A. 40-19a01 through 40-19a14 and amendments thereto, any
nonprofit optometric service corporation under K.S.A. 40-19b01 through
40-19b14 and amendments thereto, any nonprofit medical and hospital
service corporation under K.S.A. 40-19c01 through 40-19c11 and amend-
ments thereto, any health maintenance organization, as defined by K.S.A.
40-3202 and amendments thereto, or any captive insurance company, as
defined by K.S.A. 40-4301 and amendments thereto, which is authorized
to do business in Kansas.
  Sec. 3.  K.S.A. 40-222c is hereby amended to read as follows: 40-
222c. As used in this act: The term ``insurance company'' shall mean and
include all corporations, companies, associations, societies, fraternal ben-
efit societies, mutual nonprofit hospital service corporations, nonprofit
medical service corporations, reciprocal exchanges, persons or partner-
ships writing contracts of insurance, indemnity or suretyship in this state
upon any type of risk or loss except insurance companies transacting busi-
ness pursuant to the provisions of K.S.A. 40-202.
  Sec. 4.  K.S.A. 1996 Supp. 40-225 is hereby amended to read as fol-
lows: 40-225. Every insurance company or fraternal benefit society doing
business in this state shall, if the statement of condition required below
is compatible, participate in the insurance regulatory information system
administered by the national association of insurance commissioners and
shall annually, on January 1 or within 60 days thereafter, file with the
commissioner of insurance a statement of its condition as of the preceding
December 31. The commissioner may upon request, and for good cause
shown grant a reasonable extension of time within which such statement
may be filed. Such statement shall be made upon the form and be pre-
pared in accordance with the instructions and accounting practices and
procedures prescribed and adopted from time to time by the national
association of insurance commissioners with such additions or amend-
ments thereto as shall seem to the commissioner of insurance best
adapted to elicit from such companies a true exhibit of their condition.
  The commissioner may require any insurer, fraternal benefit society,
mutual nonprofit hospital and medical service corporation, health main-
tenance organization or any prepaid service plan operating under articles
article 19a, 19b or 19d of chapter 40 of the Kansas Statutes Annotated to
have an annual audit by an independent certified public accountant and
file an audited financial report in accordance with rules and regulations
adopted to effectuate such requirement.
  The commissioner of insurance shall, on or before December 1 of each
year, furnish, upon request, to each company required to make such re-
port two or more printed forms as herein prescribed. The commissioner
may also at any time address any proper inquiries to any such insurance
company or fraternal benefit society or its officers in relation to its con-
dition or any other matter connected with its transactions. Each company,
society or officer addressed shall promptly and truthfully reply in writing
to all such inquiries, and such replies shall be verified if the commissioner
of insurance requires. If the national association of insurance commis-
sioners does not prescribe such a form as is contemplated by this section
for any insurance company or fraternal benefit society doing business in
this state, the commissioner of insurance shall prescribe and adopt a form
to be used by such companies. The statement of any insurance company
organized under the laws of a country other than the United States may,
in the discretion of the commissioner of insurance, include only its assets,
liabilities and transactions in the United States.
  In accordance with rules and regulations adopted by the commissioner,
the information contained on the statement of condition required by this
section shall be provided the commissioner, or the national association of
insurance commissioners, or both, by electronically readable means.
  Sec. 5.  K.S.A. 1996 Supp. 40-2,116 is hereby amended to read as
follows: 40-2,116. As used in this act:
  (a)  ``Contracting facility'' means a health facility which has entered
into a contract with a service corporation to provide services to subscrib-
ers of the service corporation.
  (b)  ``Contracting professional provider'' means a professional pro-
vider who has entered into a contract with a service corporation to provide
services to subscribers of the service corporation.
  (c)  ``Health facility'' means a medical care facility as defined in K.S.A.
65-425 and amendments thereto; psychiatric hospital licensed under
K.S.A. 75-3307b and amendments thereto; adult care home, which term
shall be limited to nursing facility, assisted living facility and residential
health care facility as such terms are defined in K.S.A. 39-923 and amend-
ments thereto; and kidney disease treatment center, including centers
not located in a medical care facility.
  (d)  ``Professional provider'' means a provider, other than a contract-
ing facility, of services for which benefits are provided under contracts
issued by a service corporation.
  (e)  ``Service corporation'' means a mutual nonprofit hospital service
corporation organized under the provisions of K.S.A. 40-1801 et seq., and
amendments thereto, a nonprofit medical service corporation organized
under the provisions of K.S.A. 40-1901 et seq., and amendments thereto
or a nonprofit medical and hospital service corporation organized under
the provisions of K.S.A. 40-19c01 et seq., and amendments thereto.
  Sec. 6.  K.S.A. 40-2,125 is hereby amended to read as follows: 40-
2,125. (a) If the commissioner determines after notice and opportunity
for a hearing that any person has engaged or is engaging in any act or
practice constituting a violation of any provision of Kansas insurance stat-
utes or any rule and regulation or order thereunder, the commissioner,
by order, may require that such person cease and desist from the unlawful
act or practice and take such affirmative action as in the judgment of the
commissioner will carry out the purposes of the violated or potentially
violated provision.
  (b)  If the commissioner makes written findings of fact that there is a
situation involving an immediate danger to the public health, safety or
welfare or the public interest will be irreparably harmed by delay in is-
suing an order under subsection (a), the commissioner may issue an emer-
gency temporary cease and desist order. Such order, even when not an
order within the meaning of K.S.A. 77-502 and amendments thereto, shall
be subject to the same procedures as an emergency order issued under
K.S.A. 77-536 and amendments thereto. Upon the entry of such an order,
the commissioner shall promptly notify the person subject to the order
that: (1) It has been entered, (2) the reasons therefor and (3) that upon
written request within 15 days after service of the order the matter will
be set for a hearing which shall be conducted in accordance with the
provisions of the Kansas administrative procedure act. If no hearing is
requested and none is ordered by the commissioner, the order will remain
in effect until it is modified or vacated by the commissioner. If a hearing
is requested or ordered, the commissioner, after notice of and opportu-
nity for hearing to the person subject to the order, shall by written find-
ings of fact and conclusions of law vacate, modify or make permanent the
order.
  (c)  If, after notice and an opportunity for hearing, the commissioner
finds that a person has violated the insurance laws of this state or a rule
and regulation of the commissioner, the commissioner, in addition to any
specific power applicable to such violation, may:
  (1)  Censure the person; or
  (2)  issue an order against any person who violates the insurance laws
of this state, or a rule and regulation, or order of the commissioner, im-
posing an administrative penalty up to a maximum of $5,000 for each
violation but not to exceed $25,000 for the same violation occurring within
any six consecutive calendar months unless such person knew or reason-
ably should have known the act was a violation of the insurance laws, rules
and regulations or order of the commissioner. If the person knew or
reasonably should have known the act was a violation as aforementioned,
the commissioner may impose a penalty up to a maximum of $10,000 for
each violation but not to exceed $50,000 for the same violation occurring
within any six consecutive calendar months.
  (d)  For purposes of this section:
  (1)  ``Person'' means any individual, corporation, association, partner-
ship, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit
society and any other legal entity engaged in the business of insurance,
but shall not include insurance agents licensed pursuant to K.S.A. 40-241
or 40-246, and amendments thereto, insurance brokers licensed pursuant
to K.S.A. 40-3701 et seq., and amendments thereto, or employees of li-
censed agents or brokers. Person also means mutual nonprofit hospital
service organizations, nonprofit medical service corporations, nonprofit
medical and hospital service corporations, as defined in articles 18, 19
and article 19c of chapter 40 of the Kansas Statutes Annotated and
amendments thereto; administrators, as defined in article 38 of chapter
40 of the Kansas Statutes Annotated and amendments thereto; and health
maintenance organizations, as defined in article 32 of chapter 40 of the
Kansas Statutes Annotated and amendments thereto and prepaid service
plans as defined in article 42 of chapter 40 of the Kansas Statutes An-
notated and amendments thereto.
  (2)  ``Commissioner'' means the commissioner of insurance of this
state.
  Sec. 7.  K.S.A. 1996 Supp. 40-2,153 is hereby amended to read as
follows: 40-2,153. (a) Every policy, contract, plan or agreement delivered
to any group in this state which provides benefits or services, or both, for
hospital and medical services that is offered by an accident and health
insurance company, by a nonprofit medical and hospital service corpo-
ration, or by a health maintenance organization as defined in K.S.A. 40-
3202 and amendments thereto, except when the health maintenance or-
ganization owns and operates its own pharmacies and such health
maintenance organization is in operation on the effective date of this act,
by a preferred provider organization or by an individual practice associ-
ation or by a similar mechanism shall provide for written notice to the
commissioner of insurance of the creation of a pharmacy network not less
than 90 days prior to the effective date of any contract for pharmacy
services. All notices shall identify a contact person or office of such plan,
the address of such person or office and the geographic area to be served
by such contract. The commissioner of insurance shall cause to be pub-
lished in the Kansas register on a weekly basis a copy of all notices re-
ceived by the commissioner in the preceding week.
  (b)  If such policy, contract, plan or agreement provides or contracts
for the services of a pharmacy network, such policy, contract, plan or
agreement shall permit participation of at least one pharmacy for each
Kansas county in which that plan has participating employers or physi-
cians. In no event shall a plan have less than one pharmacy within 30
miles of a plan physician or employer in a Kansas county designated pur-
suant to K.S.A. 76-375 and amendments thereto as an underserved area
and within 10 miles in any other county. The provisions of this subsection
shall apply only if the plan has a written offer to participate in the phar-
macy network from a registered pharmacy located in such Kansas county
under the same terms and conditions of the policy, contract, plan or
agreement as those offered to any other provider of pharmacy services.
  (c)  No such policy, contract, plan or agreement, except as permitted
in this subsection, shall permit or mandate any difference in coverage for
or impose any different conditions, including copayment fees, whether
the prescription benefits are provided through direct contact with a phar-
macy or by use of an out-of-state mail order pharmacy so long as the
provider selected is a participant in the plan involved. The limitations of
this subsection shall not apply to any pharmacy services owned and op-
erated by an accident and health insurance company, its commonly owned
affiliate or subsidiary, nonprofit medical and hospital service corporation,
health maintenance organization, individual practice association or other
similar mechanism.
  (d)  Any provision in an accident and health insurance policy, contract,
plan or agreement offered in this state which violates the provisions of
this section is void.
  (e)  Nothing in this section shall apply to any policy, plan, contract or
agreement operating pursuant to the federal employee retirement income
security act of 1974 (ERISA).
  (f)  The department of insurance shall enforce the provisions of this
section with regard to any policy, contract, plan or agreement issued un-
der authority of chapter 40 of the Kansas Statutes Annotated.
  Sec. 8.  K.S.A. 40-2217 is hereby amended to read as follows: 40-
2217. For the purposes of this act:
  (a)  The term ``form'' means policies, riders, endorsements, applica-
tions, subscriber contracts, or other documents required to be filed pur-
suant to K.S.A. 40-216, 40-1806, 40-1906 or 40-19a07 and amendments
thereto.
  (b)  The term ``accident and sickness insurance'' means insurance
written under K.S.A. 40-401, K.S.A. 40-1102(1)(a), other than credit in-
surance, and coverages written under K.S.A. 40-1802, 40-1902 or 40-
19a02 and amendments thereto. For purposes of this act mutual nonprofit
hospital service corporations, nonprofit medical service corporations and
nonprofit dental service corporations shall be deemed to be engaged in
the business of insurance.
  (c)  The term ``policy'' means the entire contract between the insurer
and the insured, including the policy, riders, endorsements, and the ap-
plication if attached, and such term includes subscriber agreements issued
by nonprofit hospital, medical and dental service corporations.
  Sec. 9.  K.S.A. 40-2227 is hereby amended to read as follows: 40-
2227. As used in this act, unless the context requires otherwise:
  (a)  ``Long-term care insurance'' means any insurance policy primarily
advertised, marketed, offered or designed to provide coverage for not less
than 12 consecutive months for each covered person on an expense in-
curred, indemnity, prepaid, or other basis, for one or more necessary or
diagnostic, preventive, therapeutic, rehabilitative, maintenance, custodial,
residential or personal care services, provided in a setting other than an
acute care unit of a hospital. Such term includes group and individual
policies or riders whether issued by insurers, fraternal benefit societies,
nonprofit health, hospital, and medical and hospital service corporations,
prepaid health plans, health maintenance organizations, or any similar
organization. Long-term care insurance shall not include any insurance
policy which is offered primarily to provide basic medicare supplement
coverage, basic hospital expense coverage, basic medical-surgical expense
coverage, hospital confinement indemnity coverage, major medical ex-
pense coverage, disability income protection coverage, accident-only cov-
erage, specified disease or specified accident coverage, or limited benefit
health coverage, but the inclusion or attachment of long-term care insur-
ance coverage to one of the foregoing products shall not exempt it from
the requirements of this act.
  (b)  ``Applicant'' means:
  (1)  In the case of an individual long-term care insurance policy, the
person who seeks to contract for such benefits; and
  (2)  in the case of a group long-term care insurance policy, the pro-
posed certificateholder.
  (c)  ``Certificate'' means any certificate issued under a group long-
term care insurance policy, which policy has been delivered or issued for
delivery in this state.
  (d)  ``Commissioner'' means the insurance commissioner of this state.
  (e)  ``Group long-term care insurance'' means a long-term care insur-
ance policy delivered or issued for delivery in this state and issued to a
group as defined in K.S.A. 40-2209, and amendments thereto. No group
long-term care insurance coverage may be offered to a resident of this
state under a group policy issued in another state to a group defined in
K.S.A. 40-2209, and amendments thereto, unless this state, or another
state having statutory and regulatory long-term care insurance require-
ments substantially similar to those adopted in this state, has made a
determination that such requirements have been met.
  (f)  ``Policy'' means, except as otherwise provided in subsection (e) of
this section, any individual or group policy, contract, subscriber agree-
ment, rider or endorsement delivered or issued for delivery in this state
by an insurer, fraternal benefit society, nonprofit health, hospital, or med-
ical and hospital service corporation, prepaid health plan, health main-
tenance organization or any similar organization.
  Sec. 10.  K.S.A. 40-2402 is hereby amended to read as follows: 40-
2402. When used in this act:
  (a)  ``Person'' means any individual, corporation, association, partner-
ship, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit
society and any other legal entity engaged in the business of insurance,
including agents, brokers and adjusters. Person also means mutual non-
profit hospital service organizations, nonprofit medical service corpora-
tions, any nonprofit medical and hospital service corporations, as defined
in articles 18, 19 and article 19c of chapter 40 of the Kansas Statutes
Annotated, and amendments thereto; administrators, as defined in article
38 of chapter 40 of the Kansas Statutes Annotated, and amendments
thereto; and health maintenance organizations, as defined in article 32 of
chapter 40 of the Kansas Statutes Annotated, and amendments thereto.
  (b)  ``Commissioner'' means the commissioner of insurance of this
state.
  (c)  ``Insurance policy'' or ``insurance contract'' means any contract of
insurance, indemnity, medical or hospital service, suretyship or annuity
issued, proposed for issuance or intended for issuance by any person.
  Sec. 11.  K.S.A. 1996 Supp. 40-3302 is hereby amended to read as
follows: 40-3302. As used in this act, unless the context otherwise re-
quires:
  (a)  ``Affiliate'' of, or person ``affiliated'' with, a specific person,
     means
a person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the person
specified.
  (b)  ``Commissioner of insurance'' means the commissioner of insur-
ance, the commissioner's deputies, or the insurance department, as ap-
propriate.
  (c)  ``Control'' including the terms ``controlling,'' ``controlled by'' and
``under common control with'', means the possession, direct or indirect,
of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
by contract other than a commercial contract for goods or nonmanage-
ment services, or otherwise, unless the power is the result of an official
position with or corporate office held by the person. Control shall be
presumed to exist if any person, directly or indirectly, owns, controls,
holds with the power to vote, or holds proxies representing 10% or more
of the voting securities of any other person. This presumption may be
rebutted only for registration purposes pursuant to K.S.A. 40-3305 and
amendments thereto by a showing made in the manner provided by sub-
section (i) of K.S.A. 40-3305 and amendments thereto, that control does
not exist in fact. The commissioner of insurance may determine, after a
hearing in accordance with the provisions of the Kansas administrative
procedure act, that control exists in fact, notwithstanding the absence of
a presumption to that effect.
  (d)  ``Insurance holding company system'' means two or more affili-
ated persons, one or more of which is an insurer.
  (e)  ``Insurer'' means any corporation, company, association, society,
fraternal benefit society, health maintenance organization, mutual non-
profit hospital service corporation, nonprofit medical service corporation,
nonprofit dental service corporation, nonprofit optometric service cor-
poration, nonprofit medical and hospital service corporation, reciprocal
exchange, person or partnership writing contracts of insurance, indemnity
or suretyship in this state upon any type of risk or loss except lodges,
societies, persons or associations transacting business pursuant to the pro-
visions of K.S.A. 40-202 and amendments thereto.
  (f)  ``Person'' means an individual, corporation, a partnership, an as-
sociation, a joint stock company, a trust, an unincorporated organization,
any similar entity or any combination of the foregoing acting in concert.
  (g)  ``Securityholder'' of a specified person means one who owns any
security of such person, including common stock, preferred stock, debt
obligations, and any other security convertible into or evidencing the right
to acquire any of the foregoing.
  (h)  ``Subsidiary'' of a specified person means an affiliate controlled
by such person directly, or indirectly, through one or more intermediar-
ies.
  (i)  ``Voting security'' means any security convertible into or evidenc-
ing a right to acquire a voting security.
  Sec. 12.  K.S.A. 40-3606 is hereby amended to read as follows: 40-
3606. This act shall apply to all insurance companies, fraternal benefit
societies, mutual nonprofit hospital and medical service corporations, cap-
tive insurance companies, group funded pools except municipal group
funded pools governed by K.S.A. 12-2616 through 12-2629 and amend-
ments thereto, prepaid service plans operating under articles article 19a,
19b or 19d of chapter 40 of the Kansas Statutes Annotated, regardless of
whether such entities are authorized to do business in this state, and such
entities which are in the process of organization.
  Sec. 13.  K.S.A. 65-28,108 is hereby amended to read as follows: 65-
28,108. (a) The withholding or withdrawal of life-sustaining procedures
from a qualified patient in accordance with the provisions of this act shall
not, for any purpose, constitute a suicide and shall not constitute the
crime of assisting suicide as defined by K.S.A. 21-3406.
  (b)  The making of a declaration pursuant to K.S.A. 65-28,103 shall
not affect in any manner the sale, procurement, or issuance of any policy
of life insurance, nor shall it be deemed to modify the terms of an existing
policy of life insurance. No policy of life insurance shall be legally im-
paired or invalidated in any manner by the withholding or withdrawal of
life-sustaining procedures from an insured qualified patient, notwith-
standing any term of the policy to the contrary.
  (c)  No physician, medical care facility, or other health care provider,
and no health care service plan, health maintenance organization, insurer
issuing disability insurance, self-insured employee welfare benefit plan,
nonprofit medical service corporation or mutual nonprofit hospital service
corporation or nonprofit medical and hospital service corporation shall
require any person to execute a declaration as a condition for being in-
sured for, or receiving, health care services.
  (d)  Nothing in this act shall impair or supersede any legal right or
legal responsibility which any person may have to effect the withholding
or withdrawal of life-sustaining procedures in any lawful manner. In such
respect the provisions of this act are cumulative.
  (e)  This act shall create no presumption concerning the intention of
an individual who has not executed a declaration to consent to the use or
withholding of life-sustaining procedures in the event of a terminal con-
dition.
  Sec. 14.  K.S.A. 65-6002 is hereby amended to read as follows: 65-
6002. (a) Whenever any physician has information indicating that a person
is suffering from or has died from AIDS, such knowledge or information
shall be reported immediately to the secretary, together with the name
and address of the person who has AIDS, or the name and former address
of the deceased individual who had such disease. Any laboratory director
shall report all positive reactions to an AIDS test to the secretary. Any
physician who is in receipt of a report indicating a positive reaction to a
test for HIV infection resulting from the examination of any specimen
provided to a laboratory by such physician shall report all such positive
reactions to the secretary. Reports by physicians and laboratory directors
shall be provided within one week of receipt or interpretation of the
positive test results and shall designate the type of test or tests performed,
the date of performance of the test or tests, the results of the test or tests,
the sex, date of birth, county of residence and racial/ethnic group of the
person tested. For the purpose of reporting HIV infection only, the name
of the patient shall not be reported. The provisions of this subsection shall
not apply to a physician who, while performing services, other than the
direct rendition of medical services, for an insurance company, or health
maintenance organization or nonprofit medical and hospital service cor-
poration, becomes aware that a person has tested positive for HIV or is
suffering from or has died from AIDS.
  (b)  Any physician or laboratory director who reports the information
required to be reported under subsection (a) in good faith and without
malice to the secretary shall have immunity from any liability, civil or
criminal, that might otherwise be incurred or imposed in an action re-
sulting from such report. Any such physician or laboratory director shall
have the same immunity with respect to participation in any judicial pro-
ceeding resulting from such report.
  (c)  Information required to be reported under subsection (a) and
information obtained through laboratory tests conducted by the depart-
ment of health and environment relating to HIV or AIDS and persons
suffering therefrom or infected therewith shall be confidential and shall
not be disclosed or made public, upon subpoena or otherwise, beyond
the disclosure necessary under subsection (a) or under subsection (a) of
K.S.A. 65-6003 and amendments thereto or the usual reporting of labo-
ratory test results to persons specifically designated by the secretary as
authorized to obtain such information, except such information may be
disclosed:
  (1)  If no person can be identified in the information to be disclosed
and the disclosure is for statistical purposes;
  (2)  if all persons who are identifiable in the information to be dis-
closed consent in writing to its disclosure;
  (3)  if the disclosure is necessary, and only to the extent necessary, as
specified by rules and regulations of the secretary, to protect the public
health;
  (4)  if a medical emergency exists and the disclosure is to medical
personnel qualified to treat AIDS or HIV infection, except that any in-
formation disclosed pursuant to this paragraph shall be disclosed only to
the extent necessary to protect the health or life of a named party; or
  (5)  if the information to be disclosed is required in a court proceeding
involving a minor and the information is disclosed in camera.
  (d)  Information regarding cases of AIDS or HIV infection reported
in accordance with this section shall be used only as authorized under
this act. Such information shall not be used in any form or manner which
would lead to the discrimination against any individual or group with
regard to employment, to provision of medical care or acceptance into
any facilities or institutions for medical care, housing, education, trans-
portation, or for the provision of any other goods or services.
  Sec. 15.  K.S.A. 19-212a, 40-112, 40-222c, 40-2,125, 40-1801, 40-
1802, 40-1803, 40-1804, 40-1805, 40-1806, 40-1807, 40-1808, 40-1809,
40-1811, 40-1813, 40-1816, 40-1901, 40-1902, 40-1903, 40-1904, 40-
1905, 40-1906, 40-1907, 40-1908, 40-1911, 40-1912, 40-1914, 40-1915,
40-19b01, 40-19b02, 40-19b03, 40-19b04, 40-19b05, 40-19b06, 40-
19b08, 40-19b09, 40-19b11, 40-19b12, 40-19b13, 40-19b14, 40-19d01,
40-19d02, 40-19d03, 40-19d04, 40-19d05, 40-19d06, 40-19d08, 40-
19d09, 40-19d11, 40-19d12, 40-19d13, 40-19d14, 40-2217, 40-2227,
40-2402, 40-3606, 65-28,108 and 65-6002 and K.S.A. 1996 Supp. 40-225,
40-2,116, 40-2,153, 40-1909, 40-19b10, 40-19d10 and 40-3302 are hereby
repealed.
  Sec. 16.  This act shall take effect and be in force from and after its
publication in the statute book.