CHAPTER 106 Substitute for SENATE BILL No. 513 An  Act concerning recipients of medicaid; after death requiring certain moneys to be
recouped and repaid to the secretary of social and rehabilitation services; amending
K.S.A. 16-301 and K.S.A. 2001 Supp. 16-304 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 16-301 is hereby amended to read as follows: 16-
301. Any agreement, contract or plan requiring the payment of money in
a lump sum or installments which is made or entered into with any person,
association, partnership, firm or corporation for the final disposition of a
dead human body, or for funeral or burial services, or for the furnishing
of personal property or funeral or burial merchandise, wherein the deliv-
ery of the personal property or the funeral or burial merchandise or the
furnishing of services is not immediately required, is hereby declared to
be against public policy and void, unless all money paid thereunder shall
be deposited in a bank or savings and loan association which is authorized
to do business in this state and insured by a federal agency, or invested
in a credit union which is insured with an insurer or guarantee corporation
as required under K.S.A. 17-2246, and amendments thereto, all as herein
provided, and subject to the terms of an agreement for the benefit of the
purchaser of the agreement, contract or plan. For the purposes of this
act, personal property or funeral or burial merchandise shall include cas-
kets, vaults and all other articles of merchandise incidental to a funeral
service, but shall not include grave lots, grave spaces, grave memorials,
tombstones, crypts, niches and mausoleums. This act shall not prohibit
the funding of a prearranged funeral agreement with insurance proceeds
derived from a policy issued by an insurance company authorized to con-
duct business in this state.

      Sec.  2. K.S.A. 2001 Supp. 16-304 is hereby amended to read as fol-
lows: 16-304. If any balance remains in the account upon the death of
the person for whose services the funds were paid, the same shall not be
paid by such bank, credit union or savings and loan association to the
person, association, partnership, firm or corporation until the expiration
of at least five days after the date of death of the person for whose services
such funds were paid. The funds shall not be paid by the bank, credit
union or savings and loan association until a certified copy of the death
certificate of such person, a verification of death form or other acceptable
proof of death shall have been furnished to the bank, credit union or
savings and loan association, together with a verified statement setting
forth that all of the terms and conditions of such agreement have been
fully performed by the person, association, partnership, firm or corpo-
ration. If any balance remains in the fund after disposition of the fund in
accordance with the terms of the agreement, contract or plan such bal-
ance shall inure to the benefit of the estate of the purchaser of the agree-
ment, contract or plan unless the purchaser was a person who received
medical assistance from the department of social and rehabilitation serv-
ices or a deceased surviving spouse of a recipient of medical assistance,
in which case the balance shall be paid to the secretary of social and
rehabilitation services or the secretary's designee to the extent of medical
assistance expended on the deceased recipient.

      New Sec.  3. (a) Whenever a person, who is or has been a recipient
of medical assistance from the department of social and rehabilitation
services, enters into a prearranged funeral agreement, contract or plan
pursuant to K.S.A. 16-301, and amendments thereto, or a prearranged
funeral agreement, contract or plan funded by insurance proceeds, such
person shall inform the secretary of social and rehabilitation services or
the secretary's designee of the existence of such an agreement, contract
or plan and shall inform the funeral establishment that such person is or
has been a recipient of medical assistance.

      (b) If any balance remains after payment for the final disposition of
a dead human body, or for funeral or burial services, or funeral or burial
merchandise, and the purchaser of the agreement contract, or plan is or
has been a recipient of medical assistance or a deceased surviving spouse
of a recipient of medical assistance, any remaining balance shall be paid
according to K.S.A. 16-304, and amendments thereto, or if said agree-
ment, contract or plan was funded by insurance, any remaining balance
shall be paid by the insurance company or the person, association, part-
nership, firm or corporation providing the services or merchandise to the
secretary of social and rehabilitation services or the secretary's designee,
to the extent of medical assistance expended on the deceased recipient.

      (c) Payments to the secretary of social and rehabilitation services un-
der subsection (b) and K.S.A. 16-304, and amendments thereto, shall be
governed by subsection (g)(2) of K.S.A. 39-709, and amendments thereto.

 Sec.  4. K.S.A. 16-301 and K.S.A. 2001 Supp. 16-304 are hereby re-
pealed.

 Sec.  5. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 13, 2002.
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