AN ACT relating to the reorganization of the Cabinet for Human Resources.
     Establish KRS Chapter 194A to create various new sections thereof to require the Cabinet for Health Services to be the primary state agency responsible for the development and operation of public health, Medicaid, mental health and mental retardation programs in the Commonwealth and other related services, including all federal programs in which the state elects to participate; require the cabinet to promote, supervise, and regulate local, public, and private programs, services, and facilities, which protect, develop, and maintain the health, personal dignity, integrity, and sufficiency of the individual citizens of the Commonwealth; allow the secretary for health services to administer oaths and affirmations, take depositions, certify official acts, and issue subpoenas to compel the attendance of witnesses and production of books, papers, correspondence, memoranda, and other records considered necessary and relevant as evidence at hearings held in connection with the administration of the cabinet; allow the secretary to delegate duties of the office to employees of the cabinet as the secretary deems necessary and appropriate; allow the secretary to enter into contracts and agreements with individuals, colleges, universities, associations, corporations, municipalities, and other government units as may be deemed necessary and advisable to carry out the general intent and purposes of the cabinet; create and set forth the major organizational units of the Cabinet for Health Services including the Office of the Secretary, Office of Management Support, Department for Medicaid Services, Department for Public Health, Department for Mental Health and Mental Retardation Services, Office of the Inspector General, Commission for Children with Special Health Care Needs, Kentucky Health Policy Board, and Office of the General Counsel; require the secretary to establish internal organization of the offices and departments; provide the secretary the power to create positions and employ necessary personnel to enable the cabinet to fulfill all assigned functions; require the secretary, with approval of the Governor, to elect unemployment insurance coverage for cabinet employees; require the secretary to formulate, promote, establish, and execute policies, plans, and programs and adopt, administer, and enforce laws, rules and regulations to protect, develop and maintain the health, personal dignity, integrity, and sufficiency of individual citizens; require the secretary to adopt, administer, and enforce rules and regulations necessary to implement programs mandated by federal law or to qualify for the receipt of federal funds and as necessary to cooperate with other state and federal agencies; require the secretary to utilize the Public Health Services Advisory Council to review and make recommendations on contemplated administrative regulations; direct that no administrative regulations issued under the authority of the cabinet be filed with the Legislative Research Commission unless issued under the authority of the secretary; direct the secretary to have the authority to establish by regulation a schedule of reasonable fees, none of which is to exceed $100, to cover the costs of annual inspections of efforts regarding compliance with program standards administered by the cabinet for health services; require all fees collected for inspections be deposited in the State Treasury and credited to a revolving fund account to be used for administration of those programs of the Cabinet for Health Services; require the balance of the account to lapse to the general fund at the end of each biennium; prohibit the charging of fees for the investigation of complaints; require the secretary to develop and adopt regulations and rules protecting the confidential nature of all records and reports of the cabinet which directly or indirectly identify a client or patient or former client or patient; provide for limited disclosure and sharing of certain records and reports; authorize the cabinet to utilize and promote available or potential community resources for the delivery of services and contract for services with local, community, and private agencies when the services would not otherwise be available without cost; authorize charging for services; direct the secretary to arrange for the development of a cost allocation plan for the cabinet; require the cabinet to include specified citizen advisory bodies within its structure; set forth the structure of citizen bodies within the cabinet; authorize the secretary to create special task forces, technical advisory committees, and other citizens panels as necessary to support the operations of the cabinet; provide for the maintenance of transferred rules, regulations, acts determinations, and decisions of or by the corporate bodies or instrumentalities of the Commonwealth, advisory committees, interstate compacts, or other statutory bodies; empower the Public Health Services and Advisory Council for Medical Assistance to accept gifts and grants; allow members of the Public Health Services Advisory Council to receive necessary expenses incurred through the performance of their duties; authorize the secretary for health services to purchase liability insurance for the protection of physicians, hospital administrators, and directors; define terms including false statement or misrepresentation, benefit, provider, and assistance program; set forth acts considered fraudulent in the process of eligibility determination for benefits under any assistance program; penalties; establish KRS Chapter 194B to create various new sections thereof to require the Cabinet for Families and Children be the primary state agency responsible for operating human services programs involving social services to families and children and income supplement programs which protect, develop, preserve and maintain families and children in the Commonwealth; require the cabinet to promote, supervise, and regulate local, public, and private programs, services, and facilities, which protect, develop, and maintain the welfare, personal dignity, integrity, and sufficiency of the individual citizens of the Commonwealth; authorize the secretary for families and children to administer oaths and affirmations, take depositions, certify official acts, and issue subpoenas to compel the attendance of witnesses and production of books, papers, correspondence, memoranda, and other records considered necessary and relevant as evidence at hearings held in connection with the administration of the cabinet; set forth the major organizational units of the cabinet for families and children including the Office of the Secretary, Office of Program Support, Office of Advocacy and Accountability, Office of Technology Services, Department for Transitional Support, Department for Protection and Family Support, and Office of the General Counsel; direct the secretary to establish internal organization of the offices and departments; give the secretary the power and authority to create positions and employ necessary personnel to enable the cabinet to fulfill all assigned functions; mandate the secretary to elect unemployment insurance coverage for cabinet employees; empower the secretary to formulate, promote, establish and execute policies, plans, and programs and adopt, administer, and enforce all applicable state laws and rules and regulations necessary to protect, develop, and maintain the welfare, personal dignity, integrity, and sufficiency of individual citizens; empower the secretary to adopt, administer, and enforce rules and regulations necessary to implement programs mandated by federal law or to qualify for the receipt of federal funds and necessary to cooperate with other state and federal agencies for the proper administration of the cabinet and its programs; require the secretary to utilize the Institute for Aging and the Council for Families and Children to review and make recommendations on contemplated administrative regulations; empower the secretary to establish by regulation a schedule of reasonable fees, with none to exceed $100, to cover the costs of annual inspections of efforts regarding compliance with program standards administered by the cabinet; require the balance of the account to lapse to the general fund at the end of each biennium; prohibit the charging of fees for investigation of complaints; provide for confidentiality of records and reports directly or indirectly identifying a client or patient or former client or patient; provide for limited disclosure or sharing of the records; authorize the cabinet to utilize and promote available or potential community resources for the delivery of services and to contract for services with local, community, and private agencies when the services would not otherwise be available without cost; allow the cabinet and contracting local, community, and private agencies to charge for services rendered; mandate the development of a cost allocation plan; require the cabinet to include specified citizen advisory bodies within its structure to provide independent advice from the general public; prohibit a corporate body or instrumentality of the Commonwealth, advisory committee, interstate compact, or other statutory body from expending funds, hiring employees, issuing grants, or otherwise engaging in the normal administrative processes of the cabinet; grant the secretary the authority to create special subcommittees of the Institute for Aging and the council for Families and Children; authorize the secretary to create special task forces, technical advisory committees, and other citizens panels; provide for the transfer and maintenance of rules and regulations; empower the Institute for Aging and the Council for Families and Children to accept gifts and grants; require the cabinet to make an annual report to the Governor, the General Assembly, and the Chief Justice on the number of children under an order of dependent, status, public, or voluntary commitment to the cabinet, the number of children in the custody of the cabinet by they of residential placement, average length of stay, and average number of placements, the number of children in cabinet custody eligible for adoption, the number placed in an adoptive home, and the number ineligible for adoption, the cost in federal and state general funds to care for the type of children identified, and other matters relating to the care of foster children which may promote further understanding of the impediments to permanent homes; direct the cabinet to provide professional development for staff employed by the cabinet or by local public agencies in child development, the dynamics of physical and sexual abuse, the impact of violence on child development, the treatment of offenders, and related issues; require each staff person employed by the cabinet or by a local public agency and who works with children or families to successfully complete a professional development program in order to remain assigned to child or family programs; define terms including false statement or misrepresentation, benefit, and assistance program; set forth acts considered fraudulent in the qualifying for benefits under any assistance program; penalties; requires that administrative hearings conform with KRS Chapter 13B; require domestic violence training for state employees who may provide services to victims of domestic violence and their families; specifies the exchange of certain types of information between the states agencies and departments handling the administration and operation of public assistance programs, emphasizing that confidentiality issues will be respected; places the Alzheimers and Related Disease Disorders Council in the Cabinet for Health Services; amend various KRS sections to conform to the Acts reorganization of the former Cabinet for Human Resources; repeal KRS 194.010, 194.025, 194.030, 194.040, 194.050, 194.060, 194.070, 194.080, 194.090, 194.100, 194.110, 194.120, 194.130, 194.135, 194.140, 194.150, 194.160, 194.170, 194.180, 194.190, 194.200, 194.350, 194.360, 194.370, 194.500, 194.505, 194.510, 194.515, 194.530, 194.540, 194.550, 194.552, 194.555, 194.559, 194.990, 195.120, 195.130, 195.140, and 195.180; authorize the Reviser of Statutes to take action in codifying 1996 legislation to reflect the reorganization effectuated by the Act; confirm Executive Order 96-862 to the extent not otherwise confirmed or superseded; confirm Executive Order 96-1494; confirm Executive Order 96-1499; and confirm Executive Order 97-1348.

     (Prefiled by the sponsor(s).)

     Jan 6-introduced in House
     Jan 7-to State Government (H)
     Jan 8-posted in committee
     Jan 13-reported favorably, 1st reading, to Calendar with Committee Substitute
     Jan 14-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for January 15, 1998
     Jan 15-3rd reading, passed 90-6 with Committee Substitute
     Jan 16-received in Senate
     Jan 20-to Appropriations and Revenue (S)
     Jan 22-House floor amendment (1) filed
     Mar 23-reported favorably, 1st reading, to Calendar
     Mar 24-floor amendment (1) filed; 2nd reading, to Rules; posted for passage in the Regular Orders of the Day for March 25, 1998
     Mar 25-3rd reading, passed 29-6 with floor amendment (1)
     Mar 26-received in House; posted for passage for concurrence in Senate amendment
     Mar 31-House concurred in Senate floor amendment (1); passed 84-9
     Apr 1-enrolled, signed by each presiding officer, delivered to Governor
     Apr 9-signed by Governor