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AN ACT concerning social welfare; medical assistance; resource deter-
  mination; amending K.S.A. 1996 Supp. 39-709 and repealing the ex-
  isting section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 39-709 is hereby amended to read as
follows: 39-709. (a) General eligibility requirements for assistance for
which federal moneys are expended. Subject to the additional require-
ments below, assistance in accordance with plans under which federal
moneys are expended may be granted to any needy person who:
  (1)  Has insufficient income or resources to provide a reasonable sub-
sistence compatible with decency and health. Where a husband and wife
are living together, the combined income or resources of both shall be
considered in determining the eligibility of either or both for such assis-
tance unless otherwise prohibited by law. The secretary, in determining
need of any applicant for or recipient of assistance shall not take into
account the financial responsibility of any individual for any applicant or
recipient of assistance unless such applicant or recipient is such indivi-
dual's spouse or such individual's minor child or minor stepchild if the
stepchild is living with such individual. The secretary in determining need
of an individual may provide such income and resource exemptions as
may be permitted by federal law. For purposes of eligibility for aid for
families with dependent children, for food stamp assistance and for any
other assistance provided through the department of social and rehabil-
itation services under which federal moneys are expended, the secretary
of social and rehabilitation services shall consider one motor vehicle
owned by the applicant for assistance, regardless of the value of such
vehicle, as exempt personal property and shall consider any equity in any
additional motor vehicle owned by the applicant for assistance to be a
nonexempt resource of the applicant for assistance.
  (2)  Is a citizen of the United States or is an alien lawfully admitted
to the United States and who is residing in the state of Kansas.
  (b)  Assistance to families with dependent children. Assistance may be
granted under this act to any dependent child, or relative, subject to the
general eligibility requirements as set out in subsection (a), who resides
in the state of Kansas or whose parent or other relative with whom the
child is living resides in the state of Kansas. Such assistance shall be known
as aid to families with dependent children. Where husband and wife are
living together both shall register for work under the program require-
ments for aid to families with dependent children in accordance with
criteria and guidelines prescribed by rules and regulations of the secre-
tary.
  (c)  Aid to families with dependent children; assignment of support
rights and limited power of attorney. By applying for or receiving aid to
families with dependent children such applicant or recipient shall be
deemed to have assigned to the secretary on behalf of the state any ac-
crued, present or future rights to support from any other person such
applicant may have in such person's own behalf or in behalf of any other
family member for whom the applicant is applying for or receiving aid.
In any case in which an order for child support has been established and
the legal custodian and obligee under the order surrenders physical cus-
tody of the child to a caretaker relative without obtaining a modification
of legal custody and support rights on behalf of the child are assigned
pursuant to this section, the surrender of physical custody and the as-
signment shall transfer, by operation of law, the child's support rights
under the order to the secretary on behalf of the state. Such assignment
shall be of all accrued, present or future rights to support of the child
surrendered to the caretaker relative. The assignment of support rights
shall automatically become effective upon the date of approval for or
receipt of such aid without the requirement that any document be signed
by the applicant, recipient or obligee. By applying for or receiving aid to
families with dependent children, or by surrendering physical custody of
a child to a caretaker relative who is an applicant or recipient of such
assistance on the child's behalf, the applicant, recipient or obligee is also
deemed to have appointed the secretary, or the secretary's designee, as
an attorney in fact to perform the specific act of negotiating and endorsing
all drafts, checks, money orders or other negotiable instruments repre-
senting support payments received by the secretary in behalf of any per-
son applying for, receiving or having received such assistance. This limited
power of attorney shall be effective from the date the secretary approves
the application for aid and shall remain in effect until the assignment of
support rights has been terminated in full.
  (d)  Eligibility requirements for general assistance, the cost of which
is not shared by the federal government. (1) General assistance may be
granted to eligible persons who do not qualify for financial assistance in
a program in which the federal government participates and who satisfy
the additional requirements prescribed by or under this subsection (d).
  (A)  To qualify for general assistance in any form a needy person must
have insufficient income or resources to provide a reasonable subsistence
compatible with decency and health and, except as provided for transi-
tional assistance, be a member of a family in which a minor child or a
pregnant woman resides or be unable to engage in employment. The
secretary shall adopt rules and regulations prescribing criteria for estab-
lishing when a minor child may be considered to be living with a family
and whether a person is able to engage in employment, including such
factors as age or physical or mental condition. Eligibility for general as-
sistance, other than transitional assistance, is limited to families in which
a minor child or a pregnant woman resides or to an adult or family in
which all legally responsible family members are unable to engage in
employment. Where a husband and wife are living together the combined
income or resources of both shall be considered in determining the eli-
gibility of either or both for such assistance unless otherwise prohibited
by law. The secretary in determining need of any applicant for or recipient
of general assistance shall not take into account the financial responsibility
of any individual for any applicant or recipient of general assistance unless
such applicant or recipient is such individual's spouse or such individual's
minor child or a minor stepchild if the stepchild is living with such indi-
vidual. In determining the need of an individual, the secretary may pro-
vide for income and resource exemptions.
  (B)  To qualify for general assistance in any form a needy person must
be a citizen of the United States or an alien lawfully admitted to the
United States and must be residing in the state of Kansas.
  (2)  General assistance in the form of transitional assistance may be
granted to eligible persons who do not qualify for financial assistance in
a program in which the federal government participates and who satisfy
the additional requirements prescribed by or under this subsection (d),
but who do not meet the criteria prescribed by rules and regulations of
the secretary relating to inability to engage in employment or are not a
member of a family in which a minor or a pregnant woman resides.
  (3)  In addition to the other requirements prescribed under this sub-
section (d), the secretary shall adopt rules and regulations which establish
community work experience program requirements for eligibility for the
receipt of general assistance in any form and which establish penalties to
be imposed when a work assignment under a community work experience
program requirement is not completed without good cause. The secretary
may adopt rules and regulations establishing exemptions from any such
community work experience program requirements. A first time failure
to complete such a work assignment requirement shall result in ineligi-
bility to receive general assistance for a period fixed by such rules and
regulations of not more than three calendar months. A subsequent failure
to complete such a work assignment requirement shall result in a period
fixed by such rules and regulations of ineligibility of not more than six
calendar months.
  (4)  If any person is found guilty of the crime of theft under the pro-
visions of K.S.A. 39-720, and amendments thereto, such person shall
thereby become forever ineligible to receive any form of general assis-
tance under the provisions of this subsection (d) unless the conviction is
the person's first conviction under the provisions of K.S.A. 39-720, and
amendments thereto, or the law of any other state concerning welfare
fraud. First time offenders convicted of a misdemeanor under the pro-
visions of such statute shall become ineligible to receive any form of
general assistance for a period of 12 calendar months from the date of
conviction. First time offenders convicted of a felony under the provisions
of such statute shall become ineligible to receive any form of general
assistance for a period of 60 calendar months from the date of conviction.
If any person is found guilty by a court of competent jurisdiction of any
state other than the state of Kansas of a crime involving welfare fraud,
such person shall thereby become forever ineligible to receive any form
of general assistance under the provisions of this subsection (d) unless
the conviction is the person's first conviction under the law of any other
state concerning welfare fraud. First time offenders convicted of a mis-
demeanor under the law of any other state concerning welfare fraud shall
become ineligible to receive any form of general assistance for a period
of 12 calendar months from the date of conviction. First time offenders
convicted of a felony under the law of any other state concerning welfare
fraud shall become ineligible to receive any form of general assistance for
a period of 60 calendar months from the date of conviction.
  (e)  Requirements for medical assistance for which federal moneys or
state moneys or both are expended. When the secretary has adopted a
medical care plan under which federal moneys or state moneys or both
are expended, medical assistance in accordance with such plan shall be
granted to any person who is a citizen of the United States or who is an
alien lawfully admitted to the United States and who is residing in the
state of Kansas, whose resources and income do not exceed the levels
prescribed by the secretary. In determining the need of an individual, the
secretary may provide for income and resource exemptions and protected
income and resource levels. Resources from inheritance shall be counted.
A disclaimer of an inheritance pursuant to K.S.A. 59-2291, and amend-
ments thereto, shall constitute a transfer of resources. Resources from
trusts shall be considered when determining eligibility of a trust benefi-
ciary for medical assistance. It is the public policy of the state of Kansas
that medical assistance is to be secondary to all resources, including trusts,
that may be available to an applicant or recipient of medical assistance.
If a trust has discretionary language, the trust shall be considered to be
an available resource to the extent, using the full extent of discretion, the
trustee may make any of the income or principal available to the applicant
or recipient of medical assistance. Any such discretionary trust shall be
considered an available resource unless: (1) The trust is funded exclusively
from resources of a person who, at the time of creation of the trust, owed
no duty of support to the applicant or recipient; and (2) the trust contains
specific contemporaneous language that states an intent that the trust be
supplemental to public assistance and the trust makes specific reference
to medicaid, medical assistance or title XIX of the social security act. The
secretary shall exempt principal and interest held in irrevocable trust pur-
suant to subsection (c) of K.S.A. 16-303, and amendments thereto, from
the eligibility requirements of applicants for and recipients of medical
assistance. Such assistance shall be known as medical assistance.
  (f)  Eligibility for medical assistance of resident receiving medical care
outside state. A person who is receiving medical care including long-term
care outside of Kansas whose health would be endangered by the post-
ponement of medical care until return to the state or by travel to return
to Kansas, may be determined eligible for medical assistance if such in-
dividual is a resident of Kansas and all other eligibility factors are met.
Persons who are receiving medical care on an ongoing basis in a long-
term medical care facility in a state other than Kansas and who do not
return to a care facility in Kansas when they are able to do so, shall no
longer be eligible to receive assistance in Kansas unless such medical care
is not available in a comparable facility or program providing such medical
care in Kansas. For persons who are minors or who are under guardi-
anship, the actions of the parent or guardian shall be deemed to be the
actions of the child or ward in determining whether or not the person is
remaining outside the state voluntarily.
  (g)  Medical assistance; assignment of rights to medical support and
limited power of attorney; recovery from estates of deceased recipients.
  (1) Except as otherwise provided in K.S.A. 39-786 and 39-787, and
amendments thereto, or as otherwise authorized on and after September
30, 1989, under section 303 and amendments thereto of the federal med-
icare catastrophic coverage act of 1988, whichever is applicable, by ap-
plying for or receiving medical assistance under a medical care plan in
which federal funds are expended, any accrued, present or future rights
to support and any rights to payment for medical care from a third party
of an applicant or recipient and any other family member for whom the
applicant is applying shall be deemed to have been assigned to the sec-
retary on behalf of the state. The assignment shall automatically become
effective upon the date of approval for such assistance without the re-
quirement that any document be signed by the applicant or recipient. By
applying for or receiving medical assistance the applicant or recipient is
also deemed to have appointed the secretary, or the secretary's designee,
as an attorney in fact to perform the specific act of negotiating and en-
dorsing all drafts, checks, money orders or other negotiable instruments,
representing payments received by the secretary in behalf of any person
applying for, receiving or having received such assistance. This limited
power of attorney shall be effective from the date the secretary approves
the application for assistance and shall remain in effect until the assign-
ment has been terminated in full. The assignment of any rights to pay-
ment for medical care from a third party under this subsection shall not
prohibit a health care provider from directly billing an insurance carrier
for services rendered if the provider has not submitted a claim covering
such services to the secretary for payment. Support amounts collected on
behalf of persons whose rights to support are assigned to the secretary
only under this subsection and no other shall be distributed pursuant to
subsection (d) of K.S.A. 39-756, and amendments thereto, except that
any amounts designated as medical support shall be retained by the sec-
retary for repayment of the unreimbursed portion of assistance. Amounts
collected pursuant to the assignment of rights to payment for medical
care from a third party shall also be retained by the secretary for repay-
ment of the unreimbursed portion of assistance.
  (2)  The amount of any medical assistance paid after June 30, 1992,
under the provisions of subsection (e) is (A) a claim against the property
or any interest therein belonging to and a part of the estate of any de-
ceased recipient or, if there is no estate, the estate of the surviving spouse,
if any, shall be charged for such medical assistance paid to either or both,
and (B) a claim against any funds of such recipient or spouse in any
account under K.S.A. 9-1215, 9-1216, 17-2263, 17-2264, 17-5828 or 17-
5829, and amendments thereto. There shall be no recovery of medical
assistance correctly paid to or on behalf of an individual under subsection
  (e) except after the death of the surviving spouse of the individual, if any,
and only at a time when the individual has no surviving child who is under
21 years of age or is blind or permanently and totally disabled. Transfers
of real or personal property by recipients of medical assistance without
adequate consideration are voidable and may be set aside. Except where
there is a surviving spouse, or a surviving child who is under 21 years of
age or is blind or permanently and totally disabled, the amount of any
medical assistance paid under subsection (e) is a claim against the estate
in any guardianship or conservatorship proceeding. The monetary value
of any benefits received by the recipient of such medical assistance under
long-term care insurance, as defined by K.S.A. 40-2227, and amendments
thereto, shall be a credit against the amount of the claim provided for
such medical assistance under this subsection (g). The secretary is au-
thorized to enforce each claim provided for under this subsection (g).
The secretary shall not be required to pursue every claim, but is granted
discretion to determine which claims to pursue. All moneys received by
the secretary from claims under this subsection (g) shall be deposited in
the social welfare fund. The secretary may adopt rules and regulations
for the implementation and administration of the medical assistance re-
covery program under this subsection (g).
  (h)  Placement under code for care of children or juvenile offenders
code; assignment of support rights and limited power of attorney. In any
case in which the secretary of social and rehabilitation services pays for
the expenses of care and custody of a child pursuant to K.S.A. 38-1501
et seq. or 38-1601 et seq., and amendments thereto, including the ex-
penses of any foster care placement, an assignment of all past, present
and future support rights of the child in custody possessed by either
parent or other person entitled to receive support payments for the child
is, by operation of law, conveyed to the secretary. Such assignment shall
become effective upon placement of a child in the custody of the secretary
or upon payment of the expenses of care and custody of a child by the
secretary without the requirement that any document be signed by the
parent or other person entitled to receive support payments for the child.
When the secretary pays for the expenses of care and custody of a child
or a child is placed in the custody of the secretary, the parent or other
person entitled to receive support payments for the child is also deemed
to have appointed the secretary, or the secretary's designee, as attorney
in fact to perform the specific act of negotiating and endorsing all drafts,
checks, money orders or other negotiable instruments representing sup-
port payments received by the secretary on behalf of the child. This lim-
ited power of attorney shall be effective from the date the assignment to
support rights becomes effective and shall remain in effect until the as-
signment of support rights has been terminated in full.
  (i)  No person who voluntarily quits employment or who is fired from
employment due to gross misconduct as defined by rules and regulations
of the secretary or who is a fugitive from justice by reason of a felony
conviction or charge shall be eligible to receive public assistance benefits
in this state. Any recipient of public assistance who fails to timely comply
with monthly reporting requirements under criteria and guidelines pre-
scribed by rules and regulations of the secretary shall be subject to a
penalty established by the secretary by rules and regulations.
  (j)  If the applicant or recipient of aid to families with dependent chil-
dren is a mother of the dependent child, as a condition of the mother's
eligibility for aid to families with dependent children the mother shall
identify by name and, if known, by current address the father of the
dependent child except that the secretary may adopt by rules and regu-
lations exceptions to this requirement in cases of undue hardship. Any
recipient of aid to families with dependent children who fails to cooperate
with requirements relating to child support enforcement under criteria
and guidelines prescribed by rules and regulations of the secretary shall
be subject to a penalty established by the secretary by rules and regula-
tions which penalty shall progress to ineligibility for the family after three
months of noncooperation.
  (k)  By applying for or receiving child care benefits or food stamps,
the applicant or recipient shall be deemed to have assigned, pursuant to
K.S.A. 39-756 and amendments thereto, to the secretary on behalf of the
state only accrued, present or future rights to support from any other
person such applicant may have in such person's own behalf or in behalf
of any other family member for whom the applicant is applying for or
receiving aid. The assignment of support rights shall automatically be-
come effective upon the date of approval for or receipt of such aid without
the requirement that any document be signed by the applicant or recip-
ient. By applying for or receiving child care benefits or food stamps, the
applicant or recipient is also deemed to have appointed the secretary, or
the secretary's designee, as an attorney in fact to perform the specific act
of negotiating and endorsing all drafts, checks, money orders or other
negotiable instruments representing support payments received by the
secretary in behalf of any person applying for, receiving or having received
such assistance. This limited power of attorney shall be effective from the
date the secretary approves the application for aid and shall remain in
effect until the assignment of support rights has been terminated in full.
An applicant or recipient who has assigned support rights to the secretary
pursuant to this subsection shall cooperate in establishing and enforcing
support obligations to the same extent required of applicants for or re-
cipients of aid to families with dependent children.
  Sec. 2.  K.S.A. 1996 Supp. 39-709 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.