[As Amended by House Committee of the Whole]
         

         
As Amended by House Commettee
         

          Session of 1998
                   
HOUSE BILL No. 2477
         
By Committee on Appropriations
         
2-17
          12             AN ACT concerning social welfare; duties of the secretary of social and
13             rehabilitation services [and the secretary of aging]; rate schedules
14             for health care providers; amending [K.S.A. 75-5945 and] K.S.A.
15             1995 1997 Supp. 39-708c, as amended by section 104 of chapter 229
16             of the 1996 Session Laws of Kansas, and repealing the existing section
17             [sections].
18            
19       Be it enacted by the Legislature of the State of Kansas:
20           Section 1. K.S.A. 1995 1997 Supp. 39-708c, as amended by section
21       104 of chapter 229 of the 1996 Session Laws of Kansas, is hereby
22       amended to read as follows: 39-708c. (a) The secretary of social and re-
23       habilitation services shall develop state plans, as provided under the fed-
24       eral social security act, whereby the state cooperates with the federal
25       government in its program of assisting the states financially in furnishing
26       assistance and services to eligible individuals. The secretary shall under-
27       take to cooperate with the federal government on any other federal pro-
28       gram providing federal financial assistance and services in the field of
29       social welfare not inconsistent with this act. The secretary is not required
30       to develop a state plan for participation or cooperation in all federal social
31       security act programs or other federal programs that are available. The
32       secretary shall also have the power, but is not required, to develop a state
33       plan in regard to assistance and services in which the federal government
34       does not participate.
35           (b) The secretary shall have the power and duty to determine the
36       general policies relating to all forms of social welfare which are admin-
37       istered or supervised by the secretary and to adopt the rules and regu-
38       lations therefor.
39           (c) The secretary shall hire, in accordance with the provisions of the
40       Kansas civil service act, such employees as may be needed, in the judg-
41       ment of the secretary, to carry out the provisions of this act. The secretary
42       shall advise the governor and the legislature on all social welfare matters
43       covered in this act.

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  1           (d) The secretary shall establish and maintain intake offices through-
  2       out the state. The secretary may establish and create area offices to co-
  3       ordinate and supervise the administration of the intake offices located
  4       within the area. The number and location of intake offices and area offices
  5       shall be within the discretion of the secretary. Each intake office shall be
  6       open at least 12 hours of each working week on a regularly scheduled
  7       basis. The secretary shall supervise all social welfare activities of the intake
  8       offices and area offices. The secretary may lease office or business space,
  9       but no lease or rental contract shall be for a period to exceed 10 years
10       without having first advised and consulted with the joint commit-
11       tee on state building construction. A person desiring public assistance,
12       or if the person is incapable or incapacitated, a relative, friend, personal
13       representative or conservator of the person shall make application at the
14       intake office. When it is necessary, employees may take applications else-
15       where at any time. The applications shall contain a statement of the
16       amount of property, both personal and real, in which the applicant has
17       an interest and of all income which the applicant may have at the time
18       of the filing of the application and such other information as may be
19       required by the secretary. When a husband and wife are living together
20       the combined income or resources of both shall be considered in deter-
21       mining the eligibility of either or both for assistance unless otherwise
22       prohibited by law. The form of application, the procedure for the deter-
23       mination of eligibility and the amount and kind of assistance or service
24       shall be determined by the secretary.
25           (e) The secretary shall provide special inservice training for employ-
26       ees of the secretary and may provide the training as a part of the job or
27       at accredited educational institutions.
28           (f) The secretary shall establish an adequate system of financial rec-
29       ords. The secretary shall make annual reports to the governor and shall
30       make any reports required by federal agencies.
31           (g) The secretary shall sponsor, operate or supervise community work
32       experience programs whereby recipients of assistance shall work out a
33       part or all of their assistance and conserve work skills and develop new
34       skills. The compensation credited to recipients for the programs shall be
35       based upon an hourly rate equal to or in excess of the federal minimum
36       wage hourly rate. The programs shall be administered by the secretary.
37       In the programs, the secretary shall provide protection to the recipient
38       under the workmen's workers compensation act or shall provide com-
39       parable protection and may enter into cooperative arrangements with
40       other public officials and agencies or with private not-for-profit corpo-
41       rations providing assistance to needy persons in developing, subject to
42       the approval of the secretary, the programs under this section.
43           (h) The secretary may receive, have custody of, protect, administer,

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  1       disburse, dispose of and account for federal or private commodities,
  2       equipment, supplies and any kind of property, including food stamps or
  3       coupons, which are given, granted, loaned or advanced to the state of
  4       Kansas for social welfare works, and for any other purposes provided for
  5       by federal laws or rules and regulations or by private devise, grant or loan,
  6       or from corporations organized to act as federal agencies, and to do all
  7       things and acts which are necessary or required to perform the functions
  8       and carry out the provisions of federal laws, rules and regulations under
  9       which such commodities, equipment, supplies and other property may be
10       given, granted, loaned or advanced to the state of Kansas, and to act as
11       an agent of the federal government when designated as an agent, and do
12       and perform all things and acts that may be required by the federal laws
13       or rules and regulations not inconsistent with the act.
14           (i) The secretary may assist other departments, agencies and insti-
15       tutions of the state and federal government and of other states under
16       interstate agreements, when so requested, by performing services in con-
17       formity with the purpose of this act.
18           (j) The secretary shall have authority to lease real and personal prop-
19       erty whenever the property is not available through the state or a political
20       subdivision of the state, for carrying on the functions of the secretary.
21           (k) All contracts shall be made in the name of ``secretary of social and
22       rehabilitation services,'' and in that name the secretary may sue and be
23       sued on such contracts. The grant of authority under this subsection shall
24       not be construed to be a waiver of any rights retained by the state under
25       the 11th amendment to the United States constitution and shall be subject
26       to and shall not supersede the provisions of any appropriations act of this
27       state.
28           (l) All moneys and property of any kind whatsoever received from the
29       Kansas emergency relief committee or from any other state department
30       or political subdivision of the state shall be used by the secretary in the
31       administration and promotion of social welfare in the state of Kansas. The
32       property may be given, loaned or placed at the disposal of any county,
33       city or state agency engaged in the promotion of social welfare.
34           (m) The secretary shall prepare annually, at the time and in the form
35       directed by the governor, a budget covering the estimated receipts and
36       expenditures of the secretary for the ensuing year.
37           (n) The secretary shall have authority to make grants of funds, com-
38       modities or other needed property to local units of government under
39       rules and regulations adopted by the secretary for the promotion of social
40       welfare in local units of government.
41           (o) The secretary shall have authority to sell any property in the sec-
42       retary's possession received from any source whatsoever for which there
43       is no need or use in the administration or the promotion of social welfare

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  1       in the state of Kansas.
  2           (p) The secretary shall adopt a seal.
  3           (q) The secretary shall initiate or cooperate with other agencies in
  4       developing programs for the prevention of blindness, the restoration of
  5       eyesight and the vocational rehabilitation of blind persons and shall es-
  6       tablish a division of services for the blind. The secretary may initiate or
  7       cooperate with other agencies in developing programs for the prevention
  8       and rehabilitation of other handicapped persons.
  9           (r) The secretary shall develop a children and youth service program
10       and shall administer or supervise program activities including the care
11       and protection of children who are deprived, defective, wayward, miscre-
12       ant, delinquent or children in need of care. The secretary shall cooperate
13       with the federal government through its appropriate agency or instru-
14       mentality in establishing, extending and strengthening such services and
15       undertake other services to children authorized by law. Nothing in this
16       act shall be construed as authorizing any state official, agent or represen-
17       tative, in carrying out any of the provisions of this act, to take charge of
18       any child over the objection of either of the parents of such child or of
19       the person standing in loco parentis to such child except pursuant to a
20       proper court order.
21           (s) The secretary shall develop plans financed by federal funds or
22       state funds or both for providing medical care for needy persons. The
23       secretary, in developing the plan, may enter into an agreement with an
24       agent or intermediary for the purpose of performing certain functions,
25       including the making of medical payment reviews, determining the
26       amount due the medical vendors from the state in accordance with stan-
27       dards set by the secretary, preparing and certifying to the secretary lists
28       of medical vendors and the amounts due them and other related functions
29       determined by the secretary. The secretary may also provide medical,
30       remedial, preventive or rehabilitative care and services for needy persons
31       by the payment of premiums to the federal social security system for the
32       purchase of supplemental medical insurance benefits as provided by the
33       federal social security act and amendments thereto. Medicaid recipients
34       who were residents of a nursing facility on September 1, 1991, and who
35       subsequently lost eligibility in the period September 1, 1991, through
36       June 30, 1992, due to an increase in income shall be considered to meet
37       the 300% income cap eligibility test.
38           (t) The secretary shall carry on research and compile statistics relative
39       to the entire social welfare program throughout the state, including all
40       phases of dependency, defectiveness, delinquency and related problems;
41       develop plans in cooperation with other public and private agencies for
42       the prevention as well as treatment of conditions giving rise to social
43       welfare problems.

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  1           (u) The secretary may receive grants, gifts, bequests, money or aid of
  2       any character whatsoever, for state welfare work. All moneys coming into
  3       the hands of the secretary shall be deposited in the state social welfare
  4       fund provided for in this act.
  5           (v) The secretary may enter into agreements with other states or the
  6       welfare department of other states, in regard to the manner of determin-
  7       ing the state of residence in disputed cases, the manner of returning
  8       persons to the place of residence and the bearing or sharing of the costs.
  9           (w) The secretary shall perform any other duties and services nec-
10       essary to carry out the purposes of this act and promote social welfare in
11       the state of Kansas, not inconsistent with the state law.
12           (x) The secretary shall establish payment schedules for each group of
13       health care providers. Any payment schedules which are a part of the
14       state medicaid plan shall conform to state and federal law. The secretary
15       shall not be required to make any payments under the state medicaid
16       plan which do not meet requirements for state and federal financial par-
17       ticipation. [Any payment schedules which are a part of the state
18       medicaid plan shall conform to state and federal law. The secretary
19       shall not be required to make any payments under the state med-
20       icaid plan which do not meet requirements for state and federal
21       financial participation.]
22           (1) [(1)] The secretary shall consider budgetary constraints as a factor
23       in establishing payment schedules so long as the result complies with state
24       and federal law.
25           (2) The secretary shall establish payment schedules for providers of
26       hospital and adult care home services under the medicaid plan that are
27       reasonable and adequate to meet the costs which must be incurred by
28       efficiently and economically operated facilities in order to provide care
29       and services in conformity with applicable state and federal laws, regu-
30       lations, and quality and safety standards. The secretary shall not be re-
31       quired to make any payments under any federal grant program which do
32       not meet the requirements for state and federal financial participation.
33       The secretary shall not be required to establish rates for any such facility
34       that are in excess of the minimum necessary to efficiently and economi-
35       cally meet those standards payment requirements regardless of any excess
36       costs incurred by any such facility provider.
37        [(2) The secretary shall establish payment schedules for pro-
38       viders of hospital and adult care home services under the medicaid
39       plan that are reasonable and adequate to meet the costs which
40       must be incurred by efficiently and economically operated facili-
41       ties in order to provide care and services in conformity with ap-
42       plicable state and federal laws, regulations, and quality and safety
43       standards. The secretary shall not be required to establish rates

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  1       for any such facility that are in excess of the minimum necessary
  2       to efficiently and economically meet those standards regardless of
  3       any excess costs incurred by any such facility.]
  4           (y) The secretary shall maintain a system of centralized payment for
  5       all welfare expenditures.
  6        [Sec. 2. K.S.A. 75-5945 is hereby amended to read as follows:
  7       75-5945. The secretary of aging shall administer the long-term
  8       care programs and services transferred in this act. All powers
  9       granted in this act are to be interpreted and administered in con-
10       formity with federal grant requirements as applicable to programs
11       transferred, even if such powers are limited or excluded:
12           [(a) The secretary of aging shall develop state plans or state
13       plan amendments or portions of state plans or state plan amend-
14       ments in consultation with the secretary of social and rehabilita-
15       tion services relating to long-term care programs as provided un-
16       der the federal social security act. The secretary of aging shall not
17       develop any state plan amendment in duplication of or contrary to
18       any state plan otherwise developed by the secretary of social and
19       rehabilitation services. The secretary of aging may cooperate with
20       the federal government on any other program providing federal
21       financial assistance and long-term care services not otherwise in-
22       consistent with this act. The secretary of aging is not required to
23       develop a state plan for participation or cooperation in all federal
24       social security act programs or other federal programs that are
25       available for long-term care services. The secretary of aging may
26       develop a state plan in regard to long-term care services in which
27       the federal government does not participate.
28           [(b) The secretary of aging, in consultation with the secretary
29       of social and rehabilitation services, may determine the general
30       policies relating to all forms of long-term care programs which are
31       administered or supervised by the secretary of aging and to adopt
32       the rules and regulations therefor.
33           [(c) The secretary of aging shall adopt rules and regulations
34       necessary to protect the confidentiality of all client information as
35       required by federal and state statutes and regulations.
36           [(d) The secretary of aging shall provide that all officers and
37       employees of the department of social and rehabilitation services
38       who are engaged in the exercise and performance of the powers,
39       duties and functions of the programs transferred in this act and
40       are determined by the secretary to be necessary to perform such
41       functions are transferred to the department on aging. Officers and
42       employees of the department of social and rehabilitation services
43       shall retain all retirement benefits and leave rights which had ac-

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  1       crued or vested prior to each date of transfer. The service of each
  2       such officer and employee so transferred shall be deemed to have
  3       been continuous. All transfers, layoffs and abolition of classified
  4       service positions under the Kansas civil service act which may re-
  5       sult from program transfers shall be made in accordance with the
  6       civil service laws and any rules and regulations adopted thereun-
  7       der. The secretary of aging may appoint attorneys as are necessary
  8       to effectively carry out the mission of the department and the pro-
  9       grams transferred by this act. The attorneys appointed shall be in
10       the unclassified service under the Kansas civil service act, shall
11       serve at the pleasure of the secretary, and shall receive an annual
12       salary fixed by the secretary and approved by the governor. Noth-
13       ing in this act shall affect the classified status of any transferred
14       person employed as an attorney by the department of social and
15       rehabilitation services prior to the date of transfer and the unclas-
16       sified status shall apply only to persons appointed to such attorney
17       positions on or after the effective date of this act.
18           [(e) The secretary of aging shall establish an adequate system
19       of financial records. The secretary of aging and the secretary of
20       social and rehabilitation services shall execute agreements for the
21       department of social and rehabilitation services and the depart-
22       ment on aging to share data systems necessary to maximize the
23       efficiency of program operations and to ensure that federal grant
24       requirements are met. The secretary of aging shall make annual
25       reports to the governor and shall make any reports required by
26       federal agencies.
27           [(f) The secretary of aging may receive, have custody of, pro-
28       tect, administer, disburse, dispose of and account for federal or
29       private equipment, supplies and property which is given, granted,
30       loaned or advanced to the state of Kansas for long-term care pro-
31       grams after the transfer of such programs pursuant to this act.
32           [(g) The secretary of aging may assist other departments, agen-
33       cies and institutions of the state and federal government and of
34       other states under interstate agreements, when so requested, by
35       performing services in conformity with the purpose of this act.
36           [(h) The secretary of aging may lease real and personal prop-
37       erty whenever the property is not available through the state or a
38       political subdivision of the state for performing the functions re-
39       quired by this act.
40           [(i) All contracts shall be made in the name of ``secretary of
41       aging'' and in that name the secretary may sue and be sued on
42       such contracts. The grant of authority under this subsection shall
43       not be construed to be a waiver of any rights retained by the state

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  1       under the 11th amendment to the United States constitution and
  2       shall be subject to and shall not supersede the provisions of any
  3       appropriations act of this state.
  4           [(j) The secretary of aging, except as set forth in the Kansas
  5       administrative procedure act and paragraphs 5 and 6, shall provide
  6       a fair hearing for any person who is an applicant, client or other
  7       interested person who appeals from the decision or final action of
  8       any agent or employee of the secretary. The hearing shall be con-
  9       ducted in accordance with the provisions of the Kansas adminis-
10       trative procedure act and the requirements of any applicable fed-
11       eral grant programs.
12           [(1) The secretary of aging may investigate (A) any claims and
13       vouchers and persons, businesses and other entities who provide
14       services to the secretary of aging or to clients served by long-term
15       care programs under the administration of the secretary, and (B)
16       the eligibility of persons to receive services under long-term care
17       programs under the administration of the secretary, and (C) the
18       eligibility of providers of services.
19           [(2) When conducting investigations, the secretary of aging
20       may issue subpoenas; compel the attendance of witnesses at any
21       place in this state; compel the production of any records, books,
22       papers or other documents considered necessary; administer
23       oaths; take testimony; and render decisions. If a person refuses to
24       comply with any subpoena issued under this section or to testify
25       to any matter regarding which the person may lawfully be ques-
26       tioned, the district court of any county, on application of the sec-
27       retary, may issue an order requiring the person to comply with the
28       subpoena and to testify. Failure to obey the order of the court may
29       be punished by the court as a contempt of court. Unless incapac-
30       itated, the person placing a claim or defending a privilege before
31       the secretary shall appear in person or by authorized representa-
32       tive and may not be excused from answering questions and sup-
33       plying information, except in accordance with the person's consti-
34       tutional rights and lawful privileges.
35           [(3) The presiding officer may close any portion of a hearing
36       conducted under the Kansas administrative procedure act when
37       matters made confidential, pursuant to federal or state law or reg-
38       ulation are under consideration.
39           [(4) Except as provided in subsection (d) of K.S.A. 77-511 and
40       amendments thereto and notwithstanding the other provisions of
41       the Kansas administrative procedure act, the secretary of aging
42       may enforce any order prior to the disposition of a person's appli-
43       cation for an adjudicative proceeding unless prohibited from such

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  1       action by federal or state statute, regulation or court order.
  2           [(5) This appeals procedure shall not have jurisdiction to de-
  3       termine the facial validity of a state or federal statute, rule or reg-
  4       ulation.
  5           [(6) The secretary of aging shall not be required to provide a
  6       hearing if: (A) The appeals procedure lacks jurisdiction over the
  7       subject matter; (B) resolution of the matter does not require the
  8       secretary to issue an order that determines an applicant's or cli-
  9       ent's legal rights, duties, privileges, immunities or other legal in-
10       terests; (C) the matter was not timely submitted for appeal pur-
11       suant to regulation or other provision of law; (D) the matter was
12       not submitted in a form substantially complying with any appli-
13       cable provision of law; or (E) the matter is under the prior or con-
14       current jurisdiction of the secretary of social and rehabilitation
15       services pursuant to K.S.A. 75-3306 and amendments thereto.
16           [(k) The secretary of aging may establish payment schedules for each
17       group of providers for the long-term care programs. The secretary shall
18       consider budgetary constraints as a factor in establishing payment sched-
19       ules so long as the result does not conflict with applicable federal law.
20       The secretary shall not be required to make any payments under any
21       federal grant program which do not meet the requirements for state and
22       federal financial participation. The secretary shall not be required to make
23       any payments under any federal grant program which do not meet the
24       requirements for state and federal financial participation. The secretary
25       shall not be required to establish or pay at rates which are in excess of
26       the minimum necessary payment requirements regardless of excess costs
27       incurred by a provider. The secretary shall establish payment schedules
28       for each group of health care providers for long-term care programs. Any
29       payment schedules which are a part of the state medicaid plan shall con-
30       form to state and federal law. The secretary shall not be required to make
31       any payments under the state medicaid plan which do not meet require-
32       ments for state and federal financial participation.
33           [(1) The secretary shall consider budgetary constraints as a factor in
34       establishing payment schedules so long as the result complies with state
35       and federal law.
36           [(2) The secretary shall establish payment schedules for providers of
37       long-term care services under the medicaid plan that are reasonable and
38       adequate to meet the costs which must be incurred by efficiently and
39       economically operated facilities in order to provide care and services in
40       conformity with applicable state and federal laws, regulations, and quality
41       and safety standards. The secretary shall not be required to establish rates
42       for any such provider or facility that are in excess of the minimum nec-
43       essary to efficiently and economically meet those standards regardless of

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10

  1       any excess costs incurred by any such provider or facility.
  2           [(l) The secretary of aging shall review all rules and regulations
  3       of the department on aging and shall amend and revoke the rules
  4       and regulations to conform to the purposes of this act.
  5           [(m) The secretary of aging may implement a program which
  6       would permit the value of any services provided by the area agen-
  7       cies on aging for the benefit of any long-term care programs ad-
  8       ministered by the secretary to be considered eligible for federal
  9       financial participation for such long-term care programs.]
10           Sec. 2 [3][K.S.A. 75-5945 and] K.S.A. 1995 1997 Supp. 39-708c,
11       as amended by section 104 of chapter 229 of the 1996 Session Laws of
12       Kansas, is [are] hereby repealed.
13           Sec. 3 [4]. This act shall take effect and be in force from and after
14       its publication in the statute book.
15