Session of 1999
HOUSE BILL No. 2556
By Committee on Appropriations
3-9
9 AN ACT
establishing the medical resources and collection fund; con-
10 cerning adult care
home fines; amending K.S.A. 39-965 and repealing
11 the existing
section.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 New Section
1. (a) There is hereby established in the state treasury
15 the medical resources and collection fund
which shall be administered by
16 the department on aging.
17 (b) Revenue from
the following sources shall be deposited in the state
18 treasury and credited to this fund:
19 (1) Any proceeds
from fines imposed on nursing facilities by the de-
20 partment of health and environment pursuant
to K.S.A. 39-965 and
21 amendments thereto;
22 (2) any proceeds
from fines imposed by the federal health care fi-
23 nancing administration on nursing
facilities for licensure violations; and
24 (3) any proceeds
received or collected by the secretary of aging due
25 to medicaid overpayments.
26 (c) Moneys in the
medical resources and collection fund may be ex-
27 pended only to pay the costs of relocating
residents when a nursing facility
28 closes. Interest earnings collected
pursuant to subsection (d) from such
29 fund may be expended only for training of
department on aging staff,
30 including persons providing case management
services.
31 (d) On or before
the 10th of each month, the director of accounts
32 and reports shall transfer from the state
general fund to the medical
33 resources and collection fund interest
earnings based on:
34 (1) The average
daily balance of moneys in the medical resources and
35 collection fund for the preceding month;
and
36 (2) the net
earnings rate of the pooled money investment portfolio
37 for the preceding month.
38 Sec.
2. K.S.A. 39-965 is hereby amended to read as follows:
39-965.
39 (a) If the secretary of health and
environment determines that an adult
40 care home is in violation of or has
violated any requirements, standards
41 or rules and regulations established under
the adult care home licensure
42 act which violation can reasonably be
determined to have resulted in,
43 caused or posed serious physical harm to a
resident, the secretary in
HB 2556
2
1 accordance with proceedings under the
Kansas administrative procedure
2 act, may assess a civil penalty
against the licensee of such adult care home
3 in an amount of not to exceed $1,000
per day per violation for each day
4 the secretary finds that the adult
care home was not in compliance with
5 such requirements, standards or rules
and regulations but the maximum
6 assessment shall not exceed $10,000.
All moneys received or collected by
7 the secretary of health and
environment due to civil monetary penalty
8 assessments against adult care
homes shall be deposited in the state treas-
9 ury and credited to the medical
resources and collection fund of the de-
10 partment on aging.
11 (b) All civil
penalties assessed shall be due and payable in accordance
12 with subsection (c) of K.S.A. 39-946 and
K.S.A. 39-947 and amendments
13 thereto.
14 (c) The secretary
of health and environment may adopt rules and
15 regulations which shall include due process
procedures for the issuance
16 of civil penalties relating to nursing
facilities.
17 (d) The authority
to assess civil penalties granted to the secretary of
18 health and environment under this section
is in addition to any other
19 statutory authority of the secretary
relating to the licensure and operation
20 of adult care homes and is not to be
construed to limit any of the powers
21 and duties of the secretary under the adult
care home licensure act.
22 (e) This section
shall be part of and supplemental to the adult care
23 home licensure act.
24 Sec. 3. K.S.A. 39-965 is
hereby repealed.
25 Sec. 4. This act shall
take effect and be in force from and after its
26 publication in the statute book.