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 9  AN ACT concerning the Kansas commission on veterans affairs; estab-
10    lishing the Kansas veterans' home to be located on the grounds of
11    Winfield state hospital and training center; amending K.S.A. 73-1207,
12    73-1208b, 73-1210a and 75-3036a and K.S.A. 1996 Supp. 40-3414, 76-
13    375 and 76-381 and repealing the existing sections.
14
15  Be it enacted by the Legislature of the State of Kansas:
16    New Section 1.  (a) On and after January 1, 1998, the Kansas com-
17  mission on veterans affairs shall operate a Kansas veterans' home to be
18  located on the grounds of Winfield state hospital and training center. The
19  commission on veterans affairs and the secretary of social and rehabili-
20  tation services shall enter into an agreement concerning property, prem-
21  ises, facilities, installations, equipment and records of Winfield state hos-
22  pital and training center which will be transferred to the Kansas
23  commission on veterans affairs for the purpose of establishing and op-
24  erating the Kansas veterans' home. The agreement shall establish the
25  timing of any such transfers. Any conflict as to the proper disposition of
26  property or records arising under this section shall be determined by the
27  governor, whose decision shall be final.
28    (b)  The Kansas commission on veterans affairs shall have full control
29  of the Kansas veterans' home, the property, effects, supervision and man-
30  agement of the home.
31    (c)  A superintendent of the Kansas veterans' home shall be appointed
32  by the Kansas commission on veterans affairs, and shall serve at the pleas-
33  ure of the commission. The superintendent shall be in the unclassified
34  service under the Kansas civil service act and shall receive an annual salary
35  fixed by the Kansas commission on veterans affairs, with the approval of
36  the governor. The superintendent of the Kansas veterans' home shall
37  perform such duties and exercise such powers as the commission may
38  prescribe, and such duties and powers as are prescribed by law.
39    New Sec. 2.  The Kansas commission on veterans affairs shall estab-
40  lish rates of charges to be made to members and patients of the Kansas
41  veterans' home. The charges in the first year of operation of the Kansas
42  veterans' home shall not exceed an amount equal to the per diem cost of
43  care for the Kansas soldiers' home for the preceding year or the charge
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 1  made against patients under K.S.A. 59-2006 and amendments thereto,
 2  whichever is less, and thereafter the charges shall not exceed an amount
 3  equal to the per diem cost of care for the Kansas veterans' home for the
 4  preceding year or the charge made against patients under K.S.A. 59-2006
 5  and amendments thereto, whichever is the lesser amount. No action shall
 6  be commenced by the Kansas commission on veterans affairs against a
 7  member or patient or the estate of a member or patient for the recovery
 8  of any such charges unless such action is commenced within five years
 9  after the date such charges are incurred. The commission may compro-
10  mise and settle any claim for charges under this section, and may, upon
11  payment of a valuable consideration by the member or patient or the
12  estate of the member of patient, discharge and release such member,
13  patient or estate of any or all past liability incurred under this section due
14  or claim to be due from a member or a patient or the estate of the
15  member or patient, no action shall thereafter be brought or claim made
16  for any amounts due for charges incurred prior to the effective date of
17  the agreement entered into, except for the amounts provided for in the
18  agreement. Nothing in this act shall be deemed to extend the period
19  specified in K.S.A. 59-2239 and amendments thereto for the purposes
20  therein specified.
21    New Sec. 3.  The superintendent of the Kansas veterans' home shall
22  remit all moneys received by or for the superintendent under this act and
23  all moneys received from the United States veterans administration for
24  reimbursements for the care of residents to the state treasurer at least
25  monthly. Upon receipt of any such remittance, the state treasurer shall
26  deposit the entire amount thereof in the state treasury and the same shall
27  be credited to the veterans' home fee fund which is hereby created. All
28  expenditures from such fund shall be made in accordance with appro-
29  priation acts upon warrants of the director of accounts and reports issued
30  pursuant to vouchers approved by the director of the Kansas commission
31  on veterans affairs or by a person or persons designated by the director.
32    New Sec. 4.  (a) The following, subject to the rules and regulations
33  that may be adopted by the Kansas commission on veterans affairs for
34  the management and government of the Kansas veterans' home shall be
35  eligible to admission to the Kansas veterans' home:
36    (1)  Any person who served in the active military service of the United
37  States during any period of war, or who served in the active military
38  service of the United States during peacetime and is entitled to veterans
39  administration hospitalization or domiciliary care under title 38, United
40  States code and veterans administration rules and regulations, and who
41  has been discharged or relieved therefrom under conditions other than
42  dishonorable, who may be disabled by disease, wounds, old age or oth-
43  erwise disabled, and who, by reason of such disability, is incapacitated
SB 318
                                     

 1  from earning a living.
 2    (2)  The widow, mother, widower, father or minor child of any person
 3  who qualified under paragraph (1) of subsection (a), if such widow,
 4  mother, widower, father or minor child is incapable of self-support be-
 5  cause of physical disability.
 6    (b)  No person shall be admitted to the veterans' home except upon
 7  application to the commission and approval of the application by the com-
 8  mission. No applicant shall be admitted to the veterans' home who has
 9  not been an actual resident of the state of Kansas for at least two years
10  next preceding the date of application.
11    (c)  No person shall be admitted to or retained in the veterans' home
12  who has been convicted of a felony, unless the commission finds that such
13  person has been adequately rehabilitated and is not dangerous to oneself
14  or to the person or property of others.
15    (d)  No child shall be admitted to or retained in the veterans' home
16  who is 16 years of age or over, unless such child is incapable of supporting
17  oneself.
18    (e)  No child properly a member of the veterans' home shall be dis-
19  charged under 16 years of age.
20    (f)  The Kansas commission on veterans affairs shall have authority by
21  resolution to discharge any member from the veterans' home on a show-
22  ing that the member has gained admittance into the veterans' home by
23  misrepresentation of the member's financial or physical condition, or a
24  showing that the financial or physical condition of such member has been
25  so altered since admittance so that the further maintenance of the mem-
26  ber in the veterans' home is not justified. No such member shall be dis-
27  charged without notice and opportunity to be heard in accordance with
28  the provisions of the Kansas administrative procedure act.
29    (g)  The rules and regulations for admission of members to the Kansas
30  veterans' home:
31    (1)  Shall require that a veteran who has no adequate means of sup-
32  port, and such members of the family as are dependent upon such person
33  for support, shall be given priority over other applicants for admission;
34  and
35    (2)  shall require that an applicant for admission be given priority over
36  patients transferred from state institutions under the provisions of section
37  8 and amendments thereto.
38    New Sec. 5.  (a) The Kansas commission on veterans affairs shall have
39  the authority to establish rules and regulations for the management and
40  operation of the Kansas veterans' home and governing conduct and dis-
41  cipline of the members of and other persons in the Kansas veterans'
42  home. Such rules and regulations shall be filed with the secretary of state
43  as provided by law.
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 1    (b)  The superintendent of the Kansas veterans' home shall enforce
 2  such rules and regulations, and the superintendent may furlough any
 3  member for violation of such rules.
 4    (c)  The Kansas commission on veterans affairs may discharge any
 5  member who violates such rules and regulations, except that no member
 6  shall be discharged without notice to such member and a right to be heard
 7  concerning such charges in accordance with the provisions of the Kansas
 8  administrative procedure act.
 9    (d)  If any member shall seek an injunction or restraining order to
10  restrain the Kansas commission on veterans affairs or the officers of such
11  Kansas veterans' home from enforcing such rules and regulations or to
12  restrain disciplinary action, during the pendency of such legal proceed-
13  ings, such member and the member's dependents, if any, shall not be
14  entitled to draw subsistence or rations as provided for by such home.
15    (e)  If any member of such veterans' home shall refuse to vacate the
16  premises upon receiving a furlough from the officers designated to en-
17  force the rules and regulations, such refusal shall constitute a forfeiture
18  of such member's right to remain in the home and such member shall be
19  forthwith discharged by the Kansas commission on veterans affairs.
20    (f)  If any member shall refuse to vacate the premises upon being
21  discharged by the Kansas commission on veterans affairs, such member
22  shall forthwith forfeit the member's right to subsistence and rations for
23  such member and dependents, if any, and the Kansas commission on
24  veterans affairs shall institute legal proceedings to force such member to
25  vacate the premises.
26    (g)  The word ``member'' as used in this act shall refer to any person
27  legally admitted as a member or any dependent of such member, or any
28  person drawing subsistence or quarters in the Kansas veterans' home for
29  any reason whatsoever, except the employees of such veterans' home.
30  The word ``member'' shall not include any person transferred to the vet-
31  erans' home from any state hospital or training school.
32    New Sec. 6.  The Kansas commission on veterans affairs shall desig-
33  nate a person at the Kansas veterans' home who shall be in charge of the
34  member funds at such veterans' home. The person so designated shall
35  have custody and charge of all moneys belonging to the members, or
36  persons attending the Kansas veterans' home, which are held for their
37  use, benefit and burial. The Kansas commission on veterans affairs shall
38  designate the bank or banks, in which such moneys shall be deposited,
39  and shall provide that any sums in excess of $5,000 shall be deposited
40  with the state treasurer for safekeeping. Any fund so deposited with the
41  state treasurer shall be held by the state treasurer, separate and apart
42  from the other funds in the custody of the state treasurer, and may be
43  withdrawn by the person designated by the Kansas commission on vet-
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 1  erans affairs.
 2    New Sec. 7.  (a) The custodian of the members and patients trust
 3  fund at the Kansas veterans' home shall notify the executive director of
 4  the Kansas commission on veterans affairs of any moneys which are under
 5  the custodian's charge belonging to members who have died intestate,
 6  without known heirs or designated beneficiaries for funds on deposit, and
 7  the executive director shall publish a notice for two consecutive weeks in
 8  the Kansas register which shall state the name of each deceased member,
 9  their last known home address and the amount of the deposit remaining
10  in the account of such former member; and such notice shall further state
11  that unless interested persons appear and file a legitimate claim therefor
12  within one year after the date of the last publication of such notice, such
13  amount or amounts will be transferred to the general fees fund of the
14  veterans' home to help defray unrecovered costs connected with the
15  maintenance and operation of the veterans' home and for accounting,
16  auditing, budgeting, legal, payroll, personnel and purchasing services
17  which are performed on behalf of such agency by other state agencies.
18    (b)  Unless a party entitled thereto makes claim within the time stated
19  in the notice, the balance in any former member's fund as so published
20  for which no claim is made as prescribed in this section shall be trans-
21  ferred as provided in this section. Thereafter, unless a claim is filed with
22  the commission on veterans affairs within two years after such transfer is
23  made, no claim may be made or filed for such former member's fund
24  except that a person under legal disability during the two-year period may
25  file a claim within one year after removal of the disability. The commission
26  on veterans affairs is hereby authorized to make payments to claimants it
27  shall determine are entitled thereto, if such claims otherwise comply with
28  the terms of this act; and such payments shall be authorized from the
29  general fees fund of the Kansas veterans' home to which the former mem-
30  ber's funds were transferred.
31    New Sec. 8.  (a) The commissioner of mental health and develop-
32  mental disabilities of the department of social and rehabilitation services,
33  with the approval of the secretary of social and rehabilitation services and
34  the Kansas commission on veterans affairs, may transfer patients in the
35  state hospitals in Topeka, Osawatomie and Larned and patients in the
36  Rainbow mental health facility, the Parsons state hospital and training
37  center and the Winfield state hospital and training center who have served
38  in the military or naval forces of the United States or whose husband,
39  wife, father, son or daughter has served in the active military or naval
40  service of the United States during any period of any war as defined in
41  section 4 and amendments thereto, and was discharged or relieved there-
42  from under conditions other than dishonorable, to the Kansas veterans'
43  home. No patient who is such a mentally ill person, in the opinion of the
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 1  commissioner of mental health and developmental disabilities, that be-
 2  cause of such patient's illness such patient is likely to injure themself or
 3  others shall be so transferred to such Kansas veterans' home, and no such
 4  patient shall be so transferred if such transfer will deny admission to
 5  persons entitled to admission under section 4 and amendments thereto
 6  and rules and regulations promulgated thereunder. Persons so transferred
 7  shall not be considered as members of the Kansas veterans' home but
 8  shall be considered as patients therein.
 9    (b)  All of the laws, rules and regulations relating to patients in the
10  above-specified state hospitals and mental health facilities shall be appli-
11  cable to such patients so transferred insofar as the same can be made
12  applicable. Any patient so transferred who is found to be or shall become
13  such a mentally ill person, in the opinion of the commissioner of mental
14  health and developmental disabilities, that because of such patient's ill-
15  ness such patient is likely to injure oneself or others or who is determined
16  to need additional psychiatric treatment, shall be retransferred by the
17  superintendent of the Kansas veterans' home, with the approval of the
18  commissioner of mental health and developmental disabilities, to the in-
19  stitution from whence the patient was originally transferred.
20    Sec. 9.  On January 1, 1998, K.S.A. 1996 Supp. 40-3414 is hereby
21  amended to read as follows: 40-3414. (a) Any health care provider, or any
22  health care system organized and existing under the laws of this state
23  which owns and operates two or more medical care facilities licensed by
24  the department of health and environment, whose aggregate annual in-
25  surance premium is or would be $100,000 or more for basic coverage
26  calculated in accordance with rating procedures approved by the com-
27  missioner pursuant to K.S.A. 40-3413 and amendments thereto, may
28  qualify as a self-insurer by obtaining a certificate of self-insurance from
29  the board of governors. Upon application of any such health care provider
30  or health care system, on a form prescribed by the board of governors,
31  the board of governors may issue a certificate of self-insurance if the
32  board of governors is satisfied that the applicant is possessed and will
33  continue to be possessed of ability to pay any judgment for which liability
34  exists equal to the amount of basic coverage required of a health care
35  provider obtained against such applicant arising from the applicant's ren-
36  dering of professional services as a health care provider. In making such
37  determination the board of governors shall consider (1) the financial con-
38  dition of the applicant, (2) the procedures adopted and followed by the
39  applicant to process and handle claims and potential claims, (3) the
40  amount and liquidity of assets reserved for the settlement of claims or
41  potential claims and (4) any other relevant factors. The certificate of self-
42  insurance may contain reasonable conditions prescribed by the board of
43  governors. Upon notice and a hearing in accordance with the provisions
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 1  of the Kansas administrative procedure act, the board of governors may
 2  cancel a certificate of self-insurance upon reasonable grounds therefor.
 3  Failure to pay any judgment for which the self-insurer is liable arising
 4  from the self-insurer's rendering of professional services as a health care
 5  provider, the failure to comply with any provision of this act or the failure
 6  to comply with any conditions contained in the certificate of self-insur-
 7  ance shall be reasonable grounds for the cancellation of such certificate
 8  of self-insurance. The provisions of this subsection shall not apply to the
 9  Kansas soldiers' home, the Kansas veterans' home or to any person who
10  is a self-insurer pursuant to subsection (d) or (e).
11    (b)  Any such health care provider or health care system that holds a
12  certificate of self-insurance shall pay the applicable surcharge set forth in
13  subsection (c) of K.S.A. 40-3402 and amendments thereto.
14    (c)  The Kansas soldiers' home and the Kansas veterans' home shall
15  be a self-insurer self-insurers and shall pay the applicable surcharge set
16  forth in subsection (c) of K.S.A. 40-3402 and amendments thereto.
17    (d)  Persons engaged in residency training as provided in subsections
18    (r)(1) and (2) of K.S.A. 40-3401, and amendments thereto, shall be self-
19  insured by the state of Kansas for occurrences arising during such train-
20  ing, and such person shall be deemed a self-insurer for the purposes of
21  the health care provider insurance availability act. Such self-insurance
22  shall be applicable to a person engaged in residency training only when
23  such person is engaged in medical activities which do not include extra-
24  curricular, extra-institutional medical service for which such person re-
25  ceives extra compensation and which have not been approved as provided
26  in subsections (r)(1) and (2) of K.S.A. 40-3401, and amendments thereto.
27    (e) (1)  A person engaged in a postgraduate training program ap-
28  proved by the state board of healing arts at a medical care facility or
29  mental health center in this state may be self-insured by such medical
30  care facility or mental health center in accordance with this subsection
31    (e) and in accordance with such terms and conditions of eligibility therefor
32  as may be specified by the medical care facility or mental health center
33  and approved by the board of governors. A person self-insured under this
34  subsection (e) by a medical care facility or mental health center shall be
35  deemed a self-insurer for purposes of the health care provider insurance
36  availability act. Upon application by a medical care facility or mental
37  health center, on a form prescribed by the board of governors, the board
38  of governors may authorize such medical care facility or mental health
39  center to self-insure persons engaged in postgraduate training programs
40  approved by the state board of healing arts at such medical care facility
41  or mental health center if the board of governors is satisfied that the
42  medical care facility or mental health center is possessed and will continue
43  to be possessed of ability to pay any judgment for which liability exists
SB 318
                                     

 1  equal to the amount of basic coverage required of a health care provider
 2  obtained against a person engaged in such a postgraduate training pro-
 3  gram and arising from such person's rendering of or failure to render
 4  professional services as a health care provider.
 5    (2)  In making such determination the board of governors shall con-
 6  sider (A) the financial condition of the medical care facility or mental
 7  health center, (B) the procedures adopted by the medical care facility or
 8  mental health center to process and handle claims and potential claims,
 9  (C) the amount and liquidity of assets reserved for the settlement of
10  claims or potential claims by the medical care facility or mental health
11  center and (D) any other factors the board of governors deems relevant.
12  The board of governors may specify such conditions for the approval of
13  an application as the board of governors deems necessary. Upon approval
14  of an application, the board of governors shall issue a certificate of self-
15  insurance to each person engaged in such postgraduate training program
16  at the medical care facility or mental health center who is self-insured by
17  such medical care facility or mental health center.
18    (3)  Upon notice and a hearing in accordance with the provisions of
19  the Kansas administrative procedure act, the board of governors may
20  cancel, upon reasonable grounds therefor, a certificate of self-insurance
21  issued pursuant to this subsection (e) or the authority of a medical care
22  facility or mental health center to self-insure persons engaged in such
23  postgraduate training programs at the medical care facility or mental
24  health center. Failure of a person engaged in such postgraduate training
25  program to comply with the terms and conditions of eligibility to be self-
26  insured by the medical care facility or mental health center, the failure
27  of a medical care facility or mental health center to pay any judgment for
28  which such medical care facility or mental health center is liable as self-
29  insurer of such person, the failure to comply with any provisions of the
30  health care provider insurance availability act or the failure to comply
31  with any conditions for approval of the application or any conditions con-
32  tained in the certificate of self-insurance shall be reasonable grounds for
33  cancellation of such certificate of self-insurance or the authority of a med-
34  ical care facility or mental health center to self-insure such persons.
35    (4)  A medical care facility or mental health center authorized to self-
36  insure persons engaged in such postgraduate training programs shall pay
37  the applicable surcharge set forth in subsection (c) of K.S.A. 40-3402 and
38  amendments thereto on behalf of such persons.
39    (5)  As used in this subsection (e), ``medical care facility'' does not
40  include the university of Kansas medical center or those community hos-
41  pitals or medical care facilities described in subsection (r)(2) of K.S.A.
42  40-3401, and amendments thereto.
43    (f)  For the purposes of subsection (a), ``health care provider'' may
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 1  include each health care provider in any group of health care providers
 2  who practice as a group to provide physician services only for a health
 3  maintenance organization, any professional corporations, partnerships or
 4  not-for-profit corporations formed by such group and the health main-
 5  tenance organization itself. The premiums for each such provider, health
 6  maintenance organization and group corporation or partnership may be
 7  aggregated for the purpose of being eligible for and subject to the stat-
 8  utory requirements for self-insurance as set forth in this section.
 9    (g)  The provisions of subsections (a) and (f), relating to health care
10  systems, shall not affect the responsibility of individual health care pro-
11  viders as defined in subsection (f) of K.S.A. 40-3401 and amendments
12  thereto or organizations whose premiums are aggregated for purposes of
13  being eligible for self-insurance from individually meeting the require-
14  ments imposed by K.S.A. 40-3402 and amendments thereto with respect
15  to the ability to respond to injury or damages to the extent specified
16  therein and K.S.A. 40-3404 and amendments thereto with respect to the
17  payment of the health care stabilization fund surcharge.
18    (h)  Each private practice corporation or foundation and their full-
19  time physician faculty employed by the university of Kansas medical cen-
20  ter shall be deemed a self-insurer for the purposes of the health care
21  provider insurance availability act. The private practice corporation or
22  foundation of which the full-time physician faculty is a member shall pay
23  the applicable surcharge set forth in subsection (a) of K.S.A. 40-3404, and
24  amendments thereto, on behalf of the private practice corporation or
25  foundation and their full-time physician faculty employed by the univer-
26  sity of Kansas medical center.
27    Sec. 10.  On January 1, 1998, K.S.A. 73-1207 is hereby amended to
28  read as follows: 73-1207. The purposes of this act are (1) to afford vet-
29  erans, their relatives and dependents information, advice, direction and
30  assistance through coordination of programs and services in the fields of
31  education, health, vocational guidance and placement, mental care and
32  economic security and (2) to provide a commission to furnish the services
33  described in clause (1) of this section and to manage, operate and control
34  the Kansas soldiers' home, Kansas veterans' home and Mother Bickerdyke
35  annex.
36    Sec. 11.  K.S.A. 73-1208b is hereby amended to read as follows: 73-
37  1208b. The commission shall hold regular monthly meetings and such
38  other meetings as the chairman of the commission shall deem advisable.
39  Such regular monthly meetings shall be held in regular offices to be es-
40  tablished and maintained at Topeka, Kansas, or shall be held at the Kansas
41  soldiers' home, Kansas veterans' home and Mother Bickerdyke annex.
42    Sec. 12.  On January 1, 1998, K.S.A. 73-1210a is hereby amended to
43  read as follows: 73-1210a. (a) Except as otherwise provided by law, and
SB 318
                                     

 1  subject to the Kansas civil service act, the executive director of the Kansas
 2  commission on veterans affairs shall appoint such subordinate officers and
 3  employees, subject to the approval of the commission, as are necessary
 4  to enable the commission to exercise or perform its functions, powers
 5  and duties pursuant to the provisions of article 12 of chapter 73 of Kansas
 6  Statutes Annotated, and amendments thereto. All such subordinate offi-
 7  cers and employees shall be within the classified service under the Kansas
 8  civil service act, shall perform such duties and exercise such powers as
 9  the Kansas commission on veterans affairs and the executive director of
10  the commission may prescribe and such duties and powers as are desig-
11  nated by law, and shall act for and exercise the powers of the commission
12  and the executive director to the extent authority to do so is delegated by
13  such commission or director.
14    (b)  Except as otherwise provided by law, and subject to the Kansas
15  civil service act, the executive director of the Kansas commission on vet-
16  erans affairs shall appoint such subordinate officers and employees, sub-
17  ject to the approval of the Kansas commission on veterans affairs, as shall
18  be necessary to enable the commission to exercise or perform its func-
19  tions, powers and duties pursuant to the provisions of article 19 of chapter
20  76 of Kansas Statutes Annotated, and amendments thereto. All such sub-
21  ordinate officers and employees shall be within the classified service un-
22  der the Kansas civil service act, shall perform such duties and exercise
23  such powers as the commission, the executive director of the commission
24  and, the superintendent of the Kansas soldiers' home and the superin-
25  tendent of the Kansas veterans' home may prescribe and such duties and
26  powers as are designated by law, and shall act for and exercise the powers
27  of the commission, the executive director of the commission and, the
28  superintendent of the Kansas soldiers' home and the superintendent of
29  the Kansas veterans' home to the extent authority to do so is delegated
30  by such commission, executive director or superintendent.
31    (c)  Nothing in this act shall be construed to affect the status, rights
32  or benefits of any officer or employee of the Kansas veterans' commission
33  employed by such commission on the effective date of this act.
34    Sec. 13.  On January 1, 1998, K.S.A. 75-3036a is hereby amended to
35  read as follows: 75-3036a. No moneys appropriated from the general fund
36  for any correctional institution, as defined in K.S.A. 75-5202(d) and
37  amendments thereto, any institution, as defined in K.S.A. 76-12a01(b) and
38  amendments thereto, the Kansas soldiers' home, the Kansas veterans'
39  home, the Kansas state school for the visually handicapped, or the Kansas
40  state school for the deaf, shall be used for the purchase of identifiable
41  imported meats.
42    Sec. 14.  On January 1, 1998, K.S.A. 1996 Supp. 76-375 is hereby
43  amended to read as follows: 76-375. (a) On or before December 31 in
SB 318
                                     

 1  each year, the chancellor of the university of Kansas, or the designee of
 2  the chancellor, shall prepare a list of the areas of this state which the
 3  chancellor, or designee of the chancellor, determines to be critically med-
 4  ically underserved areas by specialty and the areas of this state which the
 5  chancellor, or designee of the chancellor, determines to be medically
 6  underserved areas by specialty. In preparing such a list the chancellor, or
 7  designee of the chancellor, shall consult with the medical scholarship
 8  advisory committee. All state medical care facilities or institutions, all
 9  medical centers operated in the state of Kansas by the veterans admin-
10  istration of the United States, and all full-time faculty positions at the
11  university of Kansas school of medicine in family medicine or family prac-
12  tice are qualified for service in both service commitment area I and serv-
13  ice commitment area II without being determined medically underserved
14  areas. In preparing such a list, the portion of time of persons engaged in
15  the practice of medicine and surgery at any institution under the juris-
16  diction and control of the secretary of social and rehabilitation services
17  shall not be included in determining whether an area is critically medically
18  underserved or medically underserved. Every such list shall note that all
19  state medical care facilities or institutions qualify for such service com-
20  mitments, in addition to listing those areas determined to be critically
21  medically underserved or medically underserved. Critically medically un-
22  derserved areas by specialty and medically underserved areas by specialty
23  established prior to the effective date of this act by the secretary of health
24  and environment shall continue in effect for the purposes of this act until
25  changed by the chancellor of the university of Kansas, or the designee of
26  the chancellor. The chancellor of the university of Kansas, or the designee
27  of the chancellor, upon a finding of exceptional circumstances may modify
28  areas or portions of areas determined to be critically medically underser-
29  ved or medically underserved by specialty.
30    (b) (1)  A service commitment area shall be designated as a service
31  commitment area I or a service commitment area II. Service commitment
32  area I shall be any area determined by the chancellor of the university of
33  Kansas, or the designee of the chancellor, under subsection (a) to be, for
34  purposes of all agreements entered into under K.S.A. 76-374 and amend-
35  ments thereto, a medically underserved area or a critically medically un-
36  derserved area. Service commitment area II shall be, for purposes of all
37  agreements entered into under K.S.A. 76-374 and amendments thereto,
38  the state of Kansas.
39    (2)  The service commitment area I or II for persons first awarded
40  scholarships after December 31, 1985, shall be an incorporated city of
41  this state as specified in subsection (d)(2) of K.S.A. 76-374 and amend-
42  ments thereto, all state medical care facilities or institutions, all medical
43  centers operated in the state of Kansas by the veterans administration of
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 1  the United States, and the full-time faculty positions at the university of
 2  Kansas school of medicine in general internal medicine, general pediat-
 3  rics, family medicine or family practice, except that, at the time any person
 4  commences satisfying a service commitment under this subsection as a
 5  full-time faculty member, the number of persons satisfying service com-
 6  mitments or service obligations, pursuant to agreements under K.S.A. 76-
 7  374 and amendments thereto or the medical student loan act, as full-time
 8  faculty members pursuant to this subsection shall not exceed the number
 9  equal to 25% of the total number of full-time faculty members of the
10  university of Kansas school of medicine in general internal medicine, gen-
11  eral pediatrics, family medicine or family practice.
12    (c)  In selecting a service commitment area I or II, whichever is ap-
13  plicable, prior to the commencement of the full-time practice of medicine
14  and surgery pursuant to all agreements entered into under K.S.A. 76-374
15  and amendments thereto requiring service for a period of time in a service
16  commitment area I or II, whichever is applicable, the person so selecting
17  shall select such area from among those areas appearing on the list of
18  areas prepared by the chancellor of the university of Kansas, or the des-
19  ignee of the chancellor, under this section. The service commitment area
20  selected shall have appeared on any such list not more than 36 months
21  prior to the commencement of such full-time practice of medicine and
22  surgery by the person selecting such service commitment area. Upon the
23  selection of such service commitment area, the person so selecting shall
24  inform the university of Kansas school of medicine of the area selected.
25    (d)  A person serving in a service commitment area I or II, whichever
26  is applicable, pursuant to any agreement under this act may serve all or
27  part of any commitment in the service commitment area initially selected
28  by such person. If such person moves from one service commitment area
29  I or II to another service commitment area I or II, as applicable, such
30  person shall notify the university of Kansas school of medicine of such
31  person's change of service commitment area. Service in any such service
32  commitment area I or II, as applicable, selected from the appropriate lists
33  of service commitment areas, shall be deemed to be continuous for the
34  purpose of satisfying any agreement entered into under this act. Any
35  service commitment area I or II, as applicable, selected after the initially
36  selected service commitment area I or II shall have appeared on a service
37  commitment area I list or on a service commitment area II list, as appli-
38  cable, which shall have been prepared not more than 12 months prior to
39  the move by such person from one service commitment area I or II to
40  another service commitment area I or II, as applicable.
41    (e) (1)  A person awarded a scholarship prior to January 1, 1986, may
42  satisfy the obligation to engage in the full-time practice of medicine and
43  surgery in a service commitment area I even though such person is en-
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 1  gaged in such practice in two or more locations within the state of Kansas,
 2  at least one of which is not located in a service commitment area I, if the
 3  person is engaged in the full-time practice of medicine and surgery in
 4  such locations pursuant to a practice affiliation agreement approved by
 5  the chancellor of the university of Kansas, or the designee of the chan-
 6  cellor.
 7    (2)  A person awarded a scholarship prior to January 1, 1986, may
 8  satisfy the obligation to engage in the full-time practice of medicine and
 9  surgery in either service commitment area I or service commitment area
10  II by performing at least 100 hours per month of on-site primary care as
11  defined in K.S.A. 76-374 and amendments thereto at a medical facility
12  operated by a local health department or nonprofit organization in this
13  state serving medically indigent persons. As used in this paragraph, ``med-
14  ically indigent'' means a person: (A) Who is unable to secure health care
15  because of inability to pay for all or a part of the costs thereof due to
16  inadequate personal resources, being uninsured, being underinsured, be-
17  ing ineligible for governmental health benefits; or (B) who is eligible for
18  governmental benefits but is unable to obtain medical services.
19    (3)  A person awarded a scholarship prior to January 1, 1986, may
20  satisfy the obligation to engage in the full-time practice of medicine and
21  surgery in either service commitment area I or II by engaging in such
22  full-time practice of medicine and surgery, other than in a primary care
23  specialty, anywhere in the state of Kansas with the exception of the fol-
24  lowing counties: Douglas, Johnson, Leavenworth, Sedgwick, Shawnee or
25  Wyandotte, except that the full-time practice of medicine and surgery
26  within the six listed counties will qualify if the selected county is desig-
27  nated as a service commitment area I or II in accordance with the pro-
28  visions of this section, or whenever there are fewer than three persons
29  engaged in the full-time practice of medicine and surgery in a designated
30  specialty in the selected county. Any person who satisfies the obligation
31  to engage in the full-time practice of medicine and surgery in accordance
32  with this subsection (e)(3) shall remain obligated to repay the amounts
33  received for living expenses as prescribed in subsection (a)(5) of K.S.A.
34  75-376 and amendments thereto. As used in this subsection (e)(3), ``pri-
35  mary care'' means general pediatrics, general internal medicine or family
36  practice.
37    (f)  A person awarded a scholarship in accordance with the provisions
38  of K.S.A. 76-373 through 76-377a and amendments thereto may satisfy
39  the obligation to engage in the practice of medicine and surgery, under
40  an agreement entered into pursuant to K.S.A. 76-374 and amendments
41  thereto even though such person is engaged in practice in an area not
42  designated a medically underserved area by specialty, or a critically med-
43  ically underserved area by specialty, through employment on a part-time
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 1  basis by the state of Kansas which has been approved by the chancellor
 2  of the university of Kansas, or the designee of the chancellor, for the
 3  practice of medicine and surgery at any state medical care facility or
 4  institution.
 5    (g)  In connection with the determination of critically medically un-
 6  derserved areas and medically underserved areas under this section, the
 7  chancellor of the university of Kansas, or the designee of the chancellor,
 8  shall assess annually the need in the state as a whole for medical services
 9  provided by persons engaged in the practice of medicine and surgery and
10  shall report thereon annually to the legislature. Each report shall include
11  any recommendations for needed legislation, including any recom-
12  mended amendments to this act, which relate to the need for such med-
13  ical services in the various areas of this state.
14    (h)  There is hereby established the medical scholarship advisory com-
15  mittee. Members of the medical scholarship advisory committee shall be
16  appointed by the chancellor of the university of Kansas as follows:  (1)
17  One member shall be from the office of the chancellor of the university
18  of Kansas; (2) one member shall be a representative of the Kansas medical
19  society; (3) one member shall be a member of the Kansas legislature; (4)
20  one member shall be a student at the university of Kansas school of med-
21  icine; and (5) one member shall be a representative of the Kansas hospital
22  association. The medical scholarship advisory committee shall meet pe-
23  riodically upon the call of the chancellor, or the designee of the chancel-
24  lor, and shall make recommendations to the chancellor, or the designee
25  of the chancellor, in regard to the administration of the provisions of this
26  act.
27    (i)  The chancellor of the university of Kansas may appoint a medical
28  scholarship program coordinator for the purpose of planning and admin-
29  istering the provisions of this act. The coordinator shall be in the unclas-
30  sified service under the Kansas civil service act.
31    (j)  For all purposes under this section, service or employment after
32  June 30, 1988, on a part-time basis (1) pursuant to a practice affiliation
33  agreement approved by the chancellor of the university of Kansas, or the
34  chancellor's designee, or (2) at a state medical care facility or institution,
35  shall be on the basis of at least the equivalent of 1/2 time in order to satisfy
36  the obligation to engage in the practice of medicine and surgery under
37  an agreement entered into pursuant to K.S.A. 76-374 and amendments
38  thereto.
39    (k)  As used in this section, ``state medical care facility or institution''
40  includes, but is not limited to, the Kansas state school for the visually
41  handicapped, the Kansas state school for the deaf, any institution under
42  the secretary of social and rehabilitation services, as defined by subsection
43    (b) of K.S.A. 76-12a01 and amendments thereto or by subsection (b) of
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 1  K.S.A. 76-12a18 and amendments thereto, the Kansas soldiers' home, the
 2  Kansas veterans' home and any correctional institution under the secre-
 3  tary of corrections, as defined by subsection (d) of K.S.A. 75-5202 and
 4  amendments thereto, but shall not include any state educational institu-
 5  tion under the state board of regents, as defined by subsection (a) of
 6  K.S.A. 76-711 and amendments thereto, except as specifically provided
 7  by statute.
 8    Sec. 15.  On January 1, 1998, K.S.A. 1996 Supp. 76-381 is hereby
 9  amended to read as follows: 76-381. As used in K.S.A. 1996 Supp. 76-
10  380 through 76-386:
11    (a)  ``Act'' means the medical student loan act;
12    (b)  ``approved postgraduate residency training program'' means a res-
13  idency training program in general pediatrics, general internal medicine,
14  family medicine, family practice or emergency medicine;
15    (c)  ``service commitment area'' means (1) any community within any
16  county in Kansas other than Douglas, Johnson, Sedgwick, Shawnee or
17  Wyandotte county, (2) any state medical care facility or institution, (3)
18  any medical center operated by the veterans administration of the United
19  States, or (4) the full-time faculty of the university of Kansas school of
20  medicine in family medicine or family practice; and
21    (d)  ``state medical care facility or institution'' includes, but is not lim-
22  ited to, the Kansas state school for the visually handicapped, the Kansas
23  state school for the deaf, any institution under the secretary of social and
24  rehabilitation services, as defined by subsection (b) of K.S.A. 76-12a01
25  and amendments thereto or by subsection (b) of K.S.A. 76-12a18 and
26  amendments thereto, the Kansas soldiers' home, the Kansas veterans'
27  home and any correctional institution under the secretary of corrections,
28  as defined by subsection (d) of K.S.A. 75-5202 and amendments thereto,
29  but shall not include any state educational institution under the state
30  board of regents, as defined by subsection (a) of K.S.A. 76-711 and
31  amendments thereto, except as specifically provided by statute.
32    Sec. 16.  On January 1, 1998, K.S.A. 73-1207, 73-1208b, 73-1210a
33  and 75-3036a and K.S.A. 1996 Supp. 40-3414, 76-375 and 76-381 are
34  hereby repealed.
35    Sec. 17.  This act shall take effect and be in force from and after its
36  publication in the statute book.