Session of 2000
         
HOUSE BILL No. 2951
         
By Committee on Insurance
         
2-9
         

  9             AN  ACT concerning health insurance; reorganizing the Kansas state em-
10             ployees health care commission; amending K.S.A. 75-6501, 75-6503,
11             75-6504, 75-6505, 75-6506, 75-6508, 75-6509, 75-6510, 75-6511, 75-
12             6512, 75-6513, 75-6520, 75-6521, 75-6522 and 75-6523 and repealing
13             the existing sections; also repealing K.S.A. 75-6502.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             New Section  1. The Kansas state employees health care commission
17       is hereby abolished. Except as otherwise provided in this act, all of the
18       powers, duties and functions of the Kansas state employees health care
19       commission are hereby transferred to and conferred upon the committee
20       on surety bonds and insurance established by K.S.A. 75-4101 and amend-
21       ments thereto.
22             Sec.  2. K.S.A. 75-6501 is hereby amended to read as follows: 75-
23       6501. (a) Within the limits of appropriations made or available therefor
24       and subject to the provisions of appropriation acts relating thereto, the
25       Kansas state employees health care commission committee on surety
26       bonds and insurance shall develop and provide for the implementation
27       and administration of a state health care benefits program.
28             (b) The state health care benefits program may provide benefits for
29       persons qualified to participate in the program for hospitalization, medical
30       services, surgical services, nonmedical remedial care and treatment ren-
31       dered in accordance with a religious method of healing and other health
32       services. The program may include such provisions as are established by
33       the Kansas state employees health care commission committee on surety
34       bonds and insurance, including but not limited to qualifications for ben-
35       efits, services covered, schedules and graduation of benefits, conversion
36       privileges, deductible amounts, limitations on eligibility for benefits by
37       reason of termination of employment or other change of status, leaves of
38       absence, military service or other interruptions in service and other rea-
39       sonable provisions as may be established by the commission committee.
40             (c) The Kansas state employees health care commission committee
41       on surety bonds and insurance shall designate by rules and regulations
42       those persons who are qualified to participate in the state health care
43       benefits program, including active and retired public officers and em-


2

  1       ployees and their dependents as defined by rules and regulations of the
  2       commission. In designating persons qualified to participate in the state
  3       health care benefits program, the commission such committee may estab-
  4       lish such conditions, restrictions, limitations and exclusions as the com-
  5       mission such committee deems reasonable. Each person who was formerly
  6       elected or appointed and qualified to an elective state office and who was
  7       covered immediately preceding the date such person ceased to hold such
  8       office by the provisions of group health insurance or a health maintenance
  9       organization plan under the law in effect prior to August 1, 1984, or the
10       state health care benefits program in effect after that date, shall continue
11       to be qualified to participate in the state health care benefits program
12       and shall pay the cost of participation in the program as established and
13       in accordance with the procedures prescribed by the commission such
14       committee if such person chooses to participate therein.
15             (d) The state health care benefits program established under this act
16       shall be effective on and after August 1, 1984.
17             Sec.  3. K.S.A. 75-6503 is hereby amended to read as follows: 75-
18       6503. (a) Except as otherwise provided by this act, all budgeting, pur-
19       chasing and related management functions of the Kansas state employees
20       health care commission committee on surety bonds and insurance shall
21       be administered by the secretary of administration commissioner of in-
22       surance under the direction and supervision of the chairperson of the
23       commission such committee. All vouchers for expenditures and all payrolls
24       of the Kansas state employees health care commission committee on sur-
25       ety bonds and insurance shall be approved by the chairperson of the
26       commission or by a person or persons designated by the chairperson.
27             (b) There is hereby created the position of technical administrator
28       for the state health care benefit program committee on surety bonds and
29       insurance. Under the direction and supervision of the secretary of ad-
30       ministration commissioner of insurance, the technical administrator shall
31       provide primary staffing assistance to the commission such committee and
32       perform such other functions and duties as may be prescribed by the
33       commission such committee. The technical administrator shall be in the
34       classified or unclassified service under the Kansas civil service act as spec-
35       ified by the secretary of administration commissioner of insurance and
36       shall be appointed by the secretary of administration commissioner of
37       insurance. Within the limits of available appropriations, the secretary of
38       administration shall provide such additional assistance as may be re-
39       quested by the commission such committee.
40             Sec.  4. K.S.A. 75-6504 is hereby amended to read as follows: 75-
41       6504. (a) Subject to the provisions of appropriation acts relating thereto,
42       in developing and providing for the implementation of a state health care
43       benefits program the Kansas state employees health care commission


3

  1       committee on surety bonds and insurance may:
  2             (1) Enter into one or more group insurance contracts to provide cov-
  3       erage for all or part of the state health care benefits program;
  4             (2) establish a self-funded program on an actuarially sound basis to
  5       provide coverage for all or part of the state health care benefits program
  6       and administer the self-funded program or contract for all or part of the
  7       administration of the self-funded program;
  8             (3) provide for the self-administration of all or part of the state health
  9       care benefits program;
10             (4) enter into contracts with one or more health care providers for
11       the provision of health care services;
12             (5) enter into contracts in accordance with the provisions of K.S.A.
13       75-6505, and amendments thereto, with one or more health maintenance
14       organizations for the provision of health care services; or
15             (6) any combination of the authority granted under this subsection
16       (a).
17             (b) The Kansas state employees health care commission committee
18       on surety bonds and insurance is hereby authorized to negotiate and enter
19       into contracts with qualified insurers, health maintenance organizations
20       and other contracting parties for the purpose of establishing the state
21       health care benefits program, including the acquisition of consulting and
22       other services necessary therefor. The commission Such committee shall
23       advertise for proposals, shall negotiate with not less than three firms or
24       other parties submitting proposals, and shall select from among those
25       submitting proposals the firm or other contracting party to contract with
26       for the purpose of entering into contracts for services related to the state
27       health care benefits program.
28             (c) The provisions of K.S.A. 75-4317 through 75-4320a, and amend-
29       ments thereto, shall not apply to meetings of the Kansas state employees
30       health care commission committee on surety bonds and insurance when
31       the commission such committee meets solely for the purpose of:
32             (1) Discussing and preparing strategies for negotiations for such plans
33       and contracts; and
34             (2) considering health care matters relating to individually identifia-
35       ble plan participants.
36             (d) Contracts entered into pursuant to this section, K.S.A. 75-6505
37       or 75-6510, and amendments thereto, shall not be subject to the provi-
38       sions of K.S.A. 75-3738 to 75-3740, inclusive, and amendments thereto.
39       Such contracts may be for terms of not more than three years and may
40       be renegotiated and renewed. All such contracts shall be subject to the
41       limits of appropriations made or available therefor and subject to the
42       provisions of appropriations acts relating thereto.
43             Sec.  5. K.S.A. 75-6505 is hereby amended to read as follows: 75-


4

  1       6505. The Kansas state employees health care commission committee on
  2       surety bonds and insurance, in accordance with the provisions of K.S.A.
  3       75-6504, may contract to provide health care services of a health main-
  4       tenance organization for persons qualified to participate in the state
  5       health care benefits program. The contract shall provide that coverage
  6       under the contract is applicable to those persons qualified to participate
  7       in the state health care benefits program as the commission such com-
  8       mittee determines feasible. This coverage may be available to such qual-
  9       ified persons as an alternative to other benefits under the state health
10       care benefits program or may be part of the benefits provided to such
11       persons under the program. The contract may include services for spouses
12       and dependents of members at rates established in accordance with such
13       contract. A contract to provide health care services of a health mainte-
14       nance organization under this section shall be construed to be part of the
15       state health care benefits program.
16             Sec.  6. K.S.A. 75-6506 is hereby amended to read as follows: 75-
17       6506. (a) The participation of a person qualified to participate in the state
18       health care benefits program shall be voluntary, and the cost of the state
19       health care benefits program for such person shall be established by the
20       Kansas state employees health care commission committee on surety
21       bonds and insurance.
22             (b) Periodic deductions from state payrolls may be made in accord-
23       ance with procedures prescribed by the secretary of administration com-
24       missioner of insurance to cover the costs of the state health care benefits
25       program payable by persons who are on the state payroll when authorized
26       by such persons. Any such periodic payroll deductions in effect on an
27       implementation date for biweekly payroll periods shall be collected in the
28       manner prescribed by the secretary of administration commissioner of
29       insurance.
30             (c) In the event that the Kansas state employees health care com-
31       mission committee on surety bonds and insurance designates by rules and
32       regulations a group of persons on the payroll of a county, township, city,
33       special district or other local governmental entity, public school district,
34       licensed child care facility operated by a not-for-profit corporation pro-
35       viding residential group foster care for children and receiving reimburse-
36       ment for all or part of such care from the department of social and re-
37       habilitation services, nonprofit community mental health center, as
38       provided in K.S.A. 19-4001 et seq. and amendments thereto, nonprofit
39       community facility for the mentally retarded, as provided in K.S.A. 19-
40       4001 et seq. and amendments thereto, or nonprofit independent living
41       agency, as defined in K.S.A. 65-5101 and amendments thereto, as quali-
42       fied to participate in the state health care benefits program, periodic
43       deductions from payrolls of the local governmental entity, public school


5

  1       district, licensed child care facility operated by a not-for-profit corpora-
  2       tion providing residential group foster care for children and receiving
  3       reimbursement for all or part of such care from the department of social
  4       and rehabilitation services, nonprofit community mental health center, as
  5       provided in K.S.A. 19-4001 et seq. and amendments thereto, nonprofit
  6       community facility for the mentally retarded, as provided in K.S.A. 19-
  7       4001 et seq. and amendments thereto, or nonprofit independent living
  8       agency, as defined in K.S.A. 65-5101 and amendments thereto, may be
  9       made to cover the costs of the state health care benefits program payable
10       by such persons when authorized by such persons. All such moneys de-
11       ducted from payrolls shall be remitted to the Kansas state employees
12       health care commission committee on surety bonds and insurance in ac-
13       cordance with the directions of the commission such committee.
14             Sec.  7. K.S.A. 75-6508 is hereby amended to read as follows: 75-
15       6508. (a) (1) Each state agency which has on its payroll persons partici-
16       pating in the state health care benefits program shall pay from any moneys
17       available to the agency for such purpose an amount specified by the Kan-
18       sas state employees health care commission committee on surety bonds
19       and insurance, including any amounts prescribed under a cafeteria plan
20       established under K.S.A. 75-6512, and amendments thereto. All such pay-
21       ments shall continue on the behalf of employees otherwise eligible for
22       participation in the state health care benefits program in accordance with
23       the continuation provisions of the federal family and medical leave act of
24       1993, P.L. 103-03, 107 Stat. 6. The commission Such committee may
25       charge each state agency a uniform amount per person as the cost to the
26       agency for the state's contribution for persons participating in the state
27       health care benefits program. Such amounts may include the costs of
28       administering the program.
29             (2) In the event that the Kansas state employees health care com-
30       mission committee on surety bonds and insurance designates by rules and
31       regulations a group of persons on the payroll of a county, township, city,
32       special district or other local governmental entity, public school district,
33       licensed child care facility operated by a not-for-profit corporation pro-
34       viding residential group foster care for children and receiving reimburse-
35       ment for all or part of such care from the department of social and re-
36       habilitation services, nonprofit community mental health center, as
37       provided in K.S.A. 19-4001 et seq., and amendments thereto, nonprofit
38       community facility for the mentally retarded, as provided in K.S.A. 19-
39       4001 et seq., and amendments thereto, or nonprofit independent living
40       agency, as defined in K.S.A. 65-5101, and amendments thereto, as qual-
41       ified to participate in the state health care benefits program, each local
42       governmental entity, public school district, licensed child care facility op-
43       erated by a not-for-profit corporation providing residential group foster


6

  1       care for children and receiving reimbursement for all or part of such care
  2       from the department of social and rehabilitation services, nonprofit com-
  3       munity mental health center, as provided in K.S.A. 19-4001 et seq., and
  4       amendments thereto, nonprofit community facility for the mentally re-
  5       tarded, as provided in K.S.A. 19-4001 et seq., and amendments thereto,
  6       or nonprofit independent living agency, as defined in K.S.A. 65-5101, and
  7       amendments thereto, which has on its payroll persons participating in the
  8       state health care benefits program shall pay from any moneys available to
  9       the local governmental entity, public school district, licensed child care
10       facility operated by a not-for-profit corporation providing residential
11       group foster care for children and receiving reimbursement for all or part
12       of such care from the department of social and rehabilitation services,
13       nonprofit community mental health center, as provided in K.S.A. 19-4001
14       et seq., and amendments thereto, nonprofit community facility for the
15       mentally retarded, as provided in K.S.A. 19-4001 et seq., and amendments
16       thereto, or nonprofit independent living agency, as defined in K.S.A. 65-
17       5101, and amendments thereto, for such purpose an amount specified by
18       the commission. The commission Such committee may charge each local
19       governmental entity, public school district, licensed child care facility op-
20       erated by a not-for-profit corporation providing residential group foster
21       care for children and receiving reimbursement for all or part of such care
22       from the department of social and rehabilitation services, nonprofit com-
23       munity mental health center, as provided in K.S.A. 19-4001 et seq., and
24       amendments thereto, nonprofit community facility for the mentally re-
25       tarded, as provided in K.S.A. 19-4001 et seq., and amendments thereto,
26       or nonprofit independent living agency, as defined in K.S.A. 65-5101, and
27       amendments thereto, a uniform amount per person as the cost to the
28       local governmental entity, public school district, licensed child care facility
29       operated by a not-for-profit corporation providing residential group foster
30       care for children and receiving reimbursement for all or part of such care
31       from the department of social and rehabilitation services, nonprofit com-
32       munity mental health center, as provided in K.S.A. 19-4001 et seq., and
33       amendments thereto, nonprofit community facility for the mentally re-
34       tarded, as provided in K.S.A. 19-4001 et seq., and amendments thereto,
35       or nonprofit independent living agency, as defined in K.S.A. 65-5101, and
36       amendments thereto, for the contribution of the local governmental en-
37       tity, public school district, licensed child care facility operated by a not-
38       for-profit corporation providing residential group foster care for children
39       and receiving reimbursement for all or part of such care from the de-
40       partment of social and rehabilitation services, nonprofit community men-
41       tal health center, as provided in K.S.A. 19-4001 et seq., and amendments
42       thereto, nonprofit community facility for the mentally retarded, as pro-
43       vided in K.S.A. 19-4001 et seq., and amendments thereto, or nonprofit


7

  1       independent living agency, as defined in K.S.A. 65-5101, and amend-
  2       ments thereto, for persons participating in the state health care benefits
  3       program. Such amounts may include the costs of administering the
  4       program.
  5             (b) Payments from public funds for coverage under the state health
  6       care benefits program for persons participating in that program shall not
  7       be deemed a payment or supplement of wages of such person notwith-
  8       standing any other provision of law or rules and regulations relating to
  9       wages of any such person.
10             Sec.  8. K.S.A. 75-6509 is hereby amended to read as follows: 75-
11       6509. Commencing with the regular session of the legislature in 1985 and
12       with each regular session of the legislature thereafter, the Kansas state
13       employees health care commission committee on surety bonds and in-
14       surance shall submit to the president of the senate and to the speaker of
15       the house of representatives, on the day the governor's budget report is
16       submitted to the legislature, recommendations with respect to the state
17       health care benefits program together with estimates of the cost of the
18       program proposed by the commission, including a five-year projection of
19       the cost of the program. Together with the recommendations submitted,
20       the commission such committee shall include alternatives for cost con-
21       tainment and benefit coverage for qualified persons for both the proposed
22       program and the five-year projected program. The commission shall also
23       submit any recommendations for legislation with respect to the state
24       health care benefits program.
25             Sec.  9. K.S.A. 75-6510 is hereby amended to read as follows: 75-
26       6510. (a) In exercising and performing the powers, duties and functions
27       prescribed by K.S.A. 75-6501 to 75-6511, inclusive, and amendments
28       thereto the Kansas state employees health care commission commission
29       on surety bonds and insurance may adopt rules and regulations and enter
30       into such contracts as may be necessary.
31             (b) The Kansas state employees health care commission commission
32       on surety bonds and insurance may establish an advisory committee to
33       advise the commission on matters relating to health care benefits of state
34       officers and employees and to assist the commission such committee in
35       the development of policy with respect to such benefits.
36             (c) The Kansas state employees health care commission committee
37       on surety bonds and insurance shall maintain an ongoing study and review
38       of the state health care benefits program in order to make necessary
39       improvements therein and to make recommendations thereon under
40       K.S.A. 75-6509.
41             Sec.  10. K.S.A. 75-6511 is hereby amended to read as follows: 75-
42       6511. (a) Except as provided in subsection (b), the director of accounts
43       and reports shall make periodic deductions from state retirement or other


8

  1       benefit payments to retired state officers and employees and other per-
  2       sons who are qualified to participate in the state health care benefits
  3       program for the costs of the state health care benefits program which are
  4       payable by such retired state officers and employees and other persons.
  5             (b) No deductions shall be made under this section in cases (1) where
  6       the retired state officer or employee or other person submits a written
  7       request in accordance with procedures prescribed by the commission
  8       committee on surety bonds and insurance that the deductions not be
  9       made, or (2) where the commission has directed that the deductions not
10       be made.
11             (c) No deductions made under this section shall be construed to be
12       an assignment of any annuity, benefits, funds, property or rights of any
13       person under K.S.A. 20-2618, 74-4923 or 74-49,105 and amendments to
14       these sections thereto.
15             Sec.  11. K.S.A. 75-6512 is hereby amended to read as follows: 75-
16       6512. (a) Subject to the provisions of appropriations acts, the secretary of
17       administration is hereby authorized to establish and administer a cafeteria
18       plan pursuant to the provisions of section 125 of the federal internal
19       revenue code of 1986 which shall be available to persons who are officers
20       or employees of the state and who are qualified to participate in the state
21       health care benefits program and which shall include, but not be limited
22       to, provisions under which such officers and employees may agree to
23       receive reduced compensation and (1) have the state's contribution under
24       K.S.A. 75-6508 and amendments thereto cover costs of dependent benefit
25       coverage or other benefits under the state health care benefits program
26       which would otherwise be payable by such officers and employees, and
27       (2) receive benefits under the state employee dependent care assistance
28       program under K.S.A. 75-6520 and amendments thereto.
29             (b) Any reduction in compensation for any person pursuant to any
30       such cafeteria plan shall not reduce the compensation of such person for
31       purposes of the employment security law, workers compensation act or
32       the purposes of determining contributions and benefits under the Kansas
33       public employees retirement system or any retirement system adminis-
34       tered by the board of trustees of the Kansas public employees retirement
35       system.
36             (c) Implementation of any such cafeteria plan and any additions or
37       deletions thereto shall be subject to approval of the secretary of admin-
38       istration commissioner of insurance to assure adequate data processing
39       resources therefor within the division of information systems and com-
40       munications of the department of administration.
41             Sec.  12. K.S.A. 75-6513 is hereby amended to read as follows: 75-
42       6513. (a) The health care benefits program fund is hereby abolished and
43       any reference to the health care benefits program fund in any statute,


9

  1       contract or other document shall be deemed to be a reference to the
  2       cafeteria benefits fund established by this section which shall be admin-
  3       istered by the commissioner of insurance. There is hereby created in the
  4       state treasury the cafeteria benefits fund. On the effective date of this
  5       act, the director of accounts and reports shall transfer all moneys in the
  6       health care benefits program fund to the cafeteria benefits fund and all
  7       liabilities of the health care benefits program fund are hereby transferred
  8       to and imposed upon the cafeteria benefits fund.
  9             (b) The cost of the state health care benefits program, including the
10       costs of administering the program, shall be paid from the cafeteria ben-
11       efits fund. The cost of the long-term care insurance, including the costs
12       of administration, purchased pursuant to K.S.A. 75-6523 shall be paid
13       from the cafeteria benefits fund. The Kansas state employees health care
14       commission committee on surety bonds and insurance shall remit all mon-
15       eys received by or for the commission such committee pursuant to the
16       state health care benefits program or from the purchase of long-term care
17       insurance to the state treasurer. Upon receipt of such remittance the state
18       treasurer shall deposit the entire amount thereof in the state treasury to
19       the credit of the cafeteria benefits fund.
20             (c) Each state agency shall pay into the cafeteria benefits fund
21       amounts specified by the secretary of administration to pay for costs of
22       administering the cafeteria plan as provided by law, including the costs
23       of benefits provided thereunder.
24             (d) All expenditures from the cafeteria benefits fund shall be made
25       in accordance with appropriation acts upon warrants of the director of
26       accounts and reports issued pursuant to vouchers approved by: (1) The
27       chairperson of the Kansas state employees health care commission com-
28       mittee on surety bonds and insurance or by a person or persons designated
29       by the chairperson, for expenditures relating to the health care benefits
30       program; and (2) the secretary of administration commissioner of insur-
31       ance or by a person or persons designated by the secretary commissioner,
32       for expenditures relating to administering the cafeteria plan as provided
33       by law, including the costs of benefits provided thereunder. The director
34       of accounts and reports shall issue warrants pursuant to vouchers ap-
35       proved under this section for payments from the cafeteria benefits fund
36       notwithstanding the fact that claims for such payments were not submit-
37       ted or processed for payment from money appropriated for the fiscal year
38       in which the fund first became liable to make such payments.
39             Sec.  13. K.S.A. 75-6520 is hereby amended to read as follows: 75-
40       6520. Subject to the provisions of appropriations acts, the secretary of
41       administration commissioner of insurance is hereby authorized to estab-
42       lish and administer a state employee dependent care assistance program
43       for all state officers and employees as part of the cafeteria plan established


10

  1       under K.S.A. 75-6512 and amendments thereto, pursuant to the provi-
  2       sions of sections 125 and 129 of the federal internal revenue code of 1986.
  3       Subject to the provisions of subsection (c) of K.S.A. 75-6512 and amend-
  4       ments thereto, the state employee dependent care assistance program
  5       shall be in effect not later than July 1, 1989. In accordance with this
  6       section, the secretary of administration commissioner of insurance shall
  7       establish the provisions and procedures of such program and shall inform
  8       all state officers and employees of such provisions and procedures.
  9             Sec.  14. K.S.A. 75-6521 is hereby amended to read as follows: 75-
10       6521. As used in K.S.A. 75-6521 through 75-6523 and amendments
11       thereto:
12             (a) "Commission" means the Kansas state employees health care
13       commission established pursuant to K.S.A. 75-6502, "Committee" means
14       the committee on surety bonds and insurance established under K.S.A.
15       75-4101 and amendments thereto.
16             (b) "Director" means the director of accounts and reports.
17             (c) "Employee" means any person who is an elected or appointed
18       officer or any employee of the state in the classified service or unclassified
19       service under the Kansas civil service act, other than persons who are
20       employed on a seasonal or temporary basis.
21             (d) "Long-term care insurance" means any long-term care insurance
22       policy which is authorized to be sold in the state of Kansas.
23             (e) "State" means the state of Kansas and any state agency as defined
24       in subsection (3) of K.S.A. 75-3701, and amendments thereto.
25             Sec.  15. K.S.A. 75-6522 is hereby amended to read as follows: 75-
26       6522. (a) The Kansas state employees health care commission committee
27       on surety bonds and insurance shall offer to all employees long-term care
28       insurance and the commission such committee may enter into one or more
29       group insurance contracts to provide such long-term care insurance.
30             (b) The Kansas state employees health care commission committee
31       on surety bonds and insurance is hereby authorized to negotiate and enter
32       into contracts with qualified insurers for the purpose of providing long-
33       term care insurance. The commission Such committee shall advertise for
34       proposals, shall negotiate with not less than three firms or other parties
35       submitting proposals, and shall select from among those submitting pro-
36       posals the firm or other contracting party to contract with for the purpose
37       of entering into contracts for long-term care insurance.
38             (c) The provisions of K.S.A. 75-4317 to 75-4320a, inclusive, and
39       amendments thereto, shall not apply to meetings of the Kansas state em-
40       ployees health care commission committee on surety bonds and insurance
41       when the commission such committee meets solely for the purpose of
42       discussing and preparing strategies for negotiations for contracts for long-
43       term care insurance.


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  1             (d) Contracts entered into pursuant to this section shall not be subject
  2       to the provisions of K.S.A. 75-3738 to 75-3740, inclusive, and amend-
  3       ments thereto. Such contracts may be for terms of not more than three
  4       years and may be renegotiated and renewed. All such contracts shall be
  5       subject to the limits of appropriations made or available therefor and
  6       subject to the provisions of appropriations acts relating thereto.
  7             (e) In exercising and performing the powers, duties and functions
  8       prescribed by this section, the Kansas state employees health care com-
  9       mission committee on surety bonds and insurance may adopt rules and
10       regulations and enter into such contracts as may be necessary.
11             Sec.  16. K.S.A. 75-6523 is hereby amended to read as follows: 75-
12       6523. (a) The purchase of long-term care insurance by an employee shall
13       be voluntary, and the cost of such insurance shall be paid by the employee.
14       The cost of such insurance for such employee shall be established by the
15       Kansas state employees health care commission committee on surety
16       bonds and insurance.
17             (b) Periodic deductions from state payrolls may be made in accord-
18       ance with procedures prescribed by the secretary of administration to
19       cover the costs of the long-term care insurance payable employees. All
20       moneys deducted pursuant to this section shall be remitted to the com-
21       mission and deposited in the cafeteria benefits fund in the manner pro-
22       vided by K.S.A. 75-6513, and amendments thereto.
23             New Sec.  17. (a) The committee on surety bonds and insurance shall
24       be the successor in every way to the powers, duties and functions of the
25       Kansas state employees health care commission in which the same were
26       vested prior to the effective date of this act. Every act performed in the
27       exercise of such powers, duties and functions by or under the authority
28       of the committee on surety bonds and insurance shall be deemed to have
29       the same force and effect as if performed by the Kansas state employees
30       health care commission in which such powers, duties and functions were
31       vested prior to the effective date of this act.
32             (b) Whenever the Kansas state employees health care commission,
33       or words of like effect, are referred to or designated by a statute, contract
34       or other document, such reference or designation shall be deemed to
35       apply to the committee on surety bonds and insurance.
36             (c) All orders and directives of the Kansas state employees health care
37       commission in existence on the effective date of this act shall continue to
38       be effective and shall be deemed to be orders and directives of the com-
39       mittee on surety bonds and insurance until revised, amended or nullified
40       pursuant to law.
41             (d) All rules and regulations of the Kansas state employee health care
42       commission, in existence on the effective date of this act shall continue
43       to be effective and shall be deemed to be duly adopted rules and regu-


12

  1       lations of the committee on surety bonds and insurance until revised,
  2       amended, revoked or nullified pursuant to law.
  3             (e) The committee on surety bonds and insurance shall succeed to
  4       whatever right, title or interest the Kansas state employees health care
  5       commission has acquired in any real property in this state, and the com-
  6       mittee on surety bonds and insurance shall hold the same for and in the
  7       name of the state of Kansas.
  8             (f) On and after the effective date of this act, whenever any statute,
  9       contract or other document concerns the power or authority of the Kansas
10       state employees health care commission, the committee on surety bonds
11       and insurance shall succeed to such power or authority.
12             New Sec.  18. (a) When any conflict arises as to the disposition of any
13       property, power, duty or function or the unexpended balance of any ap-
14       propriation as a result of any abolition, transfer, attachment or change
15       made by or under authority of this act, such conflict shall be resolved by
16       the governor, whose decision shall be final.
17             (b) The committee on surety bonds and insurance shall succeed to
18       all property, property rights and records which were used for or pertain
19       to the performance of the powers, duties and functions transferred to the
20       committee.
21             New Sec.  19. (a) No suit, action or other proceeding, judicial or ad-
22       ministrative, lawfully commenced, or which could have been commenced,
23       by or against any state agency or program mentioned in this act, or by or
24       against any officer of the state in such officer's official capacity or in
25       relation to the discharge of such officer's official duties, shall abate by
26       reason of this act. The court may allow any such suit, action or other
27       proceeding to be maintained by or against the successor of any such state
28       agency or any officer affected.
29             (b) No criminal action commenced or which could have been com-
30       menced by the state shall abate by the taking effect of this act.
31             New Sec.  20. (a) On the effective date of this act, the balances of all
32       funds appropriated or reappropriated for the Kansas state employees
33       health care commission are hereby transferred to the committee on surety
34       bonds and insurance.
35             (b) On the effective date of this act, the liability for all accrued com-
36       pensation or salaries of officers and employees who, immediately prior to
37       such date, were engaged in the performance of powers, duties or func-
38       tions of any state agency or officer transferred by this act, or which be-
39       comes a part of the office of the committee on surety bonds and insurance
40       or the powers, duties and functions of which are transferred to the com-
41       mittee on surety bonds and insurance, shall be assumed and paid by the
42       committee on surety bonds and insurance.
43             New Sec.  21. On the effective date of this act, officers and employees


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  1       who, immediately prior to such date, were engaged in the performance
  2       of powers, duties or functions involved in the administration of any law
  3       administered by the Kansas state employees health care commission, and
  4       who, in the opinion of the committee on surety bonds and insurance, are
  5       necessary to perform the powers, duties and functions involved in the
  6       administration of any law administered by the Kansas state employees
  7       health care commission, shall be transferred to, and shall become officers
  8       and employees of the committee on surety bonds and insurance. Any such
  9       officer or employee shall retain all retirement benefits and all rights of
10       civil service which had accrued to or vested in such officer or employee
11       prior to the effective date of this act. The service of each such officer and
12       employee so transferred shall be deemed to have been continuous. 
13       Sec.  22. K.S.A. 75-6501, 75-6502, 75-6503, 75-6504, 75-6505, 75-
14       6506, 75-6508, 75-6509, 75-6510, 75-6511, 75-6512, 75-6513, 75-6520,
15       75-6521, 75-6522 and 75-6523 are hereby repealed.
16        Sec.  23. This act shall take effect and be in force from and after its
17       publication in the statute book.