Committee Reports to the 2015 Kansas Legislature
This is a two volume set combined into one volume. The Supplement volume appears after the main volume in this online document.
MAIN VOLUME: Corrections and Juvenile Justice Oversight – page 1-1 Information Technology – page 2-1 Kansas Security – page 3-1 Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight – page 4-1 Capitol Preservation – page 5-1 K-12 Student Performance and Efficiency Commission – page 6-1
SUPPLEMENT VOLUME: Special Committee on Ethics, Elections and Local Government -- page 1-1 Special Committee on Judiciary -- page 2-1 Legislative Budget Committee -- page 3-1 Joint Committee on Pensions, Investments and Benefits -- page 4-1 Joint Committee on State Building Construction -- page 5-1 Health Care Stabilization Fund Oversight Committee -- page 6-1 Telecommunications Study Committee -- page 7-1 Committee Reports to the 2015 Kansas Legislature
Special Committees; Selected Joint Committees; Other Committees, Commissions, and Task Forces
Kansas Legislative Research Department January 2015 2014 Legislative Coordinating Council
Chairperson
Representative Ray Merrick, Speaker of the House
Vice-chairperson
Senator Susan Wagle, President of the Senate
Terry Bruce, Senate Majority Leader Anthony Hensley, Senate Minority Leader Jene Vickrey, House Majority Leader Peggy Mast, Speaker Pro Tem Paul Davis, House Minority Leader
Kansas Legislative Research Department 300 SW 10th, Room 68-West, Statehouse Topeka, Kansas 66612-1504
Telephone: (785) 296-3181 FAX: (785) 296-3824 [email protected] http://www.kslegislature.org/klrd Special Committees; Selected Joint Committees; Other Committees, Commissions, and Task Forces
Corrections and Juvenile Justice Oversight Information Technology Kansas Security Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight
Capitol Preservation K-12 Student Performance and Efficiency Commission
Kansas Legislative Research Department 300 SW 10th, Room 68-West, Statehouse Topeka, Kansas 66612-1504
Telephone: (785) 296-3181 FAX: (785) 296-3824 [email protected] http://www.kslegislature.org/klrd Foreword
In the 2014 Interim, the Legislative Coordinating Council appointed two special committees to study five study topics. Legislation recommended by the committees will be available in the Documents Room early in the 2015 Session.
Joint committees created by statute met in the 2014 Interim as provided in the statutes specific to each joint committee. Several of the joint committees have reported on their activities, and those reports are contained in this publication. Legislation recommended by these committees will be available in the Documents Room early in the 2015 Session.
This publication also contains reports of other committees, commissions, and task forces that are not special committees created by the Legislative Coordinating Council or joint committees.
Reports of the following are not contained in this publication and will be published in a supplement: Special Committee on Ethics, Elections and Local Government Special Committee on Judiciary Legislative Budget Committee Pensions, Investments and Benefits Joint Committee State Building Construction Joint Committee Health Care Stabilization Fund Oversight Committee Telecommunications Study Committee
Minutes of the meetings of the special committees, joint committees, other committees, commissions, task forces, and panels are on file in the Division of Legislative Administrative Services. A summary of each reporting entity’s conclusions and recommendations may be found beginning on page i. TABLE OF CONTENTS
Joint Committee on Corrections and Juvenile Justice Oversight Report...... 1-1
Joint Committee on Information Technology Report...... 2-1
Joint Committee on Kansas Security Annual Report...... 3-1
Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight Annual Report...... 4-1
Capitol Preservation Committee Report...... 5-1
K-12 Student Performance and Efficiency Commission Report...... 6-1 Summary of Conclusions and Recommendations
Joint Committee on Corrections and Juvenile Justice Oversight
The Joint Committee recommends continued funding of SB 123 programs and greater oversight to ensure reports required to be submitted to the Joint Committee on Information Technology are submitted. Additionally, the Joint Committee recommends a legislative study of the Victim Information and Notification Everyday (VINE) program and how and whether it could be adopted; the law concerning minors in possession, especially as it pertains to persons 18-20 years old; and the shortage of correctional officers. Finally, the Joint Committee recommends legislation that would prohibit any juvenile offender convicted of misdemeanors from being committed to a juvenile correctional facility.
Joint Committee on Information Technology
The Committee recommended the executive branch Chief Information Technology Officer (CITO) develop an enterprise-level information technology security plan and provide recommendations to the Committee regarding which security functions should be performed by state agencies, and which security functions should be outsourced to the private sector. The Committee further recommended consideration of incorporating a return-on-investment component for proposed large information technology projects. The Committee also recommended each branch CITO identify security vulnerabilities regarding sensitive information and propose remediation actions. Additionally, the Committee recommended the branch CITOs identify critical systems lacking continuity of operations plans which would be utilized for disaster recovery purposes. The Committee recognized and commended the Legislative CITO on the progress made on legislative information technology projects.
Joint Committee on Kansas Security
The Joint Committee recommended the Kansas Center for Safe and Prepared Schools be moved from the Adjutant General’s Department to the Department of Education, funding for planning staff and recovery teams in the Division of Emergency Management, increased staffing for the Kansas Intelligence Fusion Center, training for lawmakers in emergency procedures to be used in the Capitol complex, amending state law so the state meets new federal law regarding in-state tuition for veterans, and exploration of ways to access revenues from Kansas Lottery sales for veterans’ programs. It also requests the Kansas Legislative Research Department research the governance structure of public safety communications policy.
Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight
The Committee recommended its two statutorily-required non-session meetings in different quarters to be scheduled for two days each. The Committee also recommended separate hearings
Kansas Legislative Research Department i Interim Committee Reports during the 2015 Legislative Session before the House Committee on Social Services Budget and the Senate Committee on Ways and Means’ Social Services Budget Subcommittee to address the March 2014 Legislative Post Audit Report CDDOs: Reviewing Issues Related to Community Services Provided for Individuals with Developmental Disabilities (R-14-006). In addition, the Committee recommended separate hearings before the House Committee on Health and Human Services and the Senate Committee on Public Health and Welfare to consider the repeal of KSA 2014 Supp. 39-7,121b for the purpose of allowing Kansas Medicaid to manage anti-psychotic medications similar to other drug classes. Further, the Committee recommended the Joint Committee on Information Technology hold a meeting to review software issues regarding data accuracy and reporting on waiting lists. No legislation was recommended for introduction.
Capitol Preservation Committee
The Committee heard testimony about kiosks for the Visitor Center, received mural proposals, reviewed draft request forms, and listened to a proposal to install a new plaque in the Capitol. Following its review, the Committee made no conclusions or recommendations.
K-12 Student Performance and Efficiency Commission
The Commission made recommendations in support of the Coalition of Innovative Districts Act; technical education programs; professional development for school district leadership and board members in finance, accounting, and budget management; the two-year budget cycle; and timely state aid payments. The Commission also recommended the study of funding of bond and interest state aid; development of long-range strategic plans for capital outlay expenditures at the district level; repeal of the 65.0 percent instruction expenditure public policy goal; completion of a cost and benefit analysis before any new state school district laws or regulations take effect; and consideration of unencumbered ending balances, including what would constitute a reasonable amount of carry forward balances. Finally, the Commission recommended legislation be introduced to establish a task force to set guidelines for efficient operation of school districts and a commission to study standards for measuring educational outputs and whether the Rose standards are sufficient and measurable.
Kansas Legislative Research Department ii Interim Committee Reports JOINT COMMITTEE
Report of the Joint Committee on Corrections and Juvenile Justice Oversight to the 2015 Kansas Legislature
CHAIRPERSON: Senator Carolyn McGinn
VICE-CHAIRPERSON: Representative John Rubin
OTHER MEMBERS: Senators Molly Baumgardner, Oletha Faust-Goudeau, Steve Fitzgerald, David Haley, Jacob LaTurner, and Greg Smith; and Representatives Stephen Alford, Sydney Carlin, Peter DeGraaf, Jerry Henry, Brett Hildabrand, and Jim Ward
CHARGE
● Monitor Inmate and Juvenile-Offender Populations;
● Review and Study Programs and Activities of the Department of Corrections;
● Review Policy Choices from Data on Recidivism and Effectiveness of Youth Residential Centers;
● Continue Efforts at Juvenile Justice Reform; and
● Study Victim Notification.
January 2015 Joint Committee on Corrections and Juvenile Justice Oversight
REPORT
Conclusions and Recommendations
The Joint Committee recommends:
● Greater oversight to ensure that reports required to be submitted to the Joint Committee on Information Technology are submitted and reviewed by the legislative Chief Information Technology Officer to make recommendations regarding each report’s merit and related appropriations;
● Senate Judiciary, House Corrections and Juvenile Justice, and budget committee study of the Victim Information and Notification Everyday (VINE) program, which already is in use in 40 states, and how and whether it could be adopted, beginning at the county level, including how the State could assist in paying for the cost of implementation and operation;
● Legislative study of the law concerning minors in possession, especially as it pertains to persons 18-20 years old, and whether it should be decriminalized for this age group, noting that, at 18 years old, a person can vote and serve in the military but cannot legally consume alcohol;
● Senate Ways and Means and House Appropriations Committeesʼ consideration of continued funding of SB 123 programs as the use of the General Fees Fund expenditures will not be possible in FY 2016; and
● Legislative review of the shortage of correctional officers, noting the starting salary is $13.61 per hour, which makes recruitment more difficult, and the lack of increases in salaries impacts retention.
● Proposed Legislation: The Joint Committee recommends the introduction of legislation that would prohibit any juvenile offender convicted of misdemeanors from being committed to a juvenile correctional facility, regardless of previous history.
BACKGROUND July 1, 2013, the jurisdiction, powers, functions, and duties of the JJA and the Commissioner of The 1997 Legislature created the Joint Juvenile Justice were transferred to KDOC and the Committee on Corrections and Juvenile Justice Secretary of Corrections. KDOC operates eight Oversight to provide legislative oversight of the correctional facilities: El Dorado Correctional Kansas Department of Corrections (KDOC) and Facility, Ellsworth Correctional Facility, the Juvenile Justice Authority (JJA). Pursuant to Hutchinson Correctional Facility, Lansing Executive Reorganization Order (ERO) 42, on Correctional Facility, Larned Correctional Mental
Kansas Legislative Research Department 1-1 2014 CJJO Health Facility, Norton Correctional Facility, reduction and prevention of juvenile crime and Topeka Correctional Facility (TCF), and Winfield delinquency, programs and activities of private Correctional Facility. KDOC also operates parole entities operating community juvenile programs offices throughout the state and is responsible for and facilities, and the condition and operation of the administration of funding and oversight of local governmental residential or custodial local community corrections programs. There are facilities for the care, treatment, or training of JOs. two operational juvenile correctional facilities (JCFs): Larned Juvenile Correctional Facility (LJCF) and Kansas Juvenile Correctional COMMITTEE ACTIVITIES Complex (KJCC). Individuals as young as 10 and as old as 17 years of age may be adjudicated as The Joint Committee requested five meeting juvenile offenders (JOs) and remain in custody in days and was granted three days by the Legislative a JCF to age 22.5 and in the community to age 23. Coordinating Council. In addition to its statutory duties, the Joint Committee was charged with The Joint Committee is composed of 14 studying juvenile justice reform, initial data members, with 7 members each from the House collected to determine recidivism rates and overall and Senate. In odd years, the chairperson and effectiveness of Youth Residential Centers ranking minority member are House members, and (YRCs), and victim notification. The Committee the vice-chairperson is a Senate member, while in met October 14 and November 5 and 6, 2014. even years, the chairperson and ranking minority member are Senate members, and the vice- October 14 chairperson is a House member. Overview of Adult Inmate Prison Population The Committee’s duties, as outlined in KSA 2014 Supp. 46-2801(k), are to monitor the inmate The Executive Director of the Kansas population and review and study KDOC’s Sentencing Commission (KSC) summarized the programs, activities, and plans regarding its adult prison population projections. The number of statutorily prescribed duties, including the offenders admitted to prison and the length of implementation of expansion projects; the sentence are the primary bases for the projections. operation of correctional, food service, and other In FY 2014, the prison population was 9,612, an programs for inmates; community corrections; increase of 31 inmates from 2013, or 0.3 percent. parole; and the condition and operation of the By FY 2024, the male inmate population will correctional institutions and other facilities under increase to 9,548 inmates, or 6.0 percent, from the the Department’s control and supervision. The FY 2014 population and will account for 92 Committee also is charged to review and study the percent of the forecast population. The female adult correctional programs and activities and inmate population will increase to 803, an increase facilities of counties, cities, and other local of 64 inmates or 9 percent by FY 2024. governmental entities, including the programs and activities of private entities operating community Information also was provided on prison correctional programs and facilities, and the admission trends by admission type for FY 2010 condition and operation of jails and other local through FY 2014. Finally, the Executive Director governmental facilities for the incarceration of updated the committee on the impact of State v. adult offenders. Murdock, the legislative agenda for 2015, and the Justice Reinvestment Initiative Update. Similarly, the Committee is charged to review and study programs, activities, and plans involving Overview of KDOC Operations JOs, including the responsibility for their care, custody, control, and rehabilitation, and the The Secretary of Corrections provided an condition and operation of the state JCFs. Further, overview of the agency. KDOC’s focus is to the Committee is charged to review and study the provide safe operations in the facilities, parole JO programs and activities and facilities of services, and the community; reduce recidivism; counties, cities, school districts, and other local enhance juvenile programs and services; ensure governmental entities, including programs for the
Kansas Legislative Research Department 1-2 2014 CJJO compliance with the federal Prison Rape findings are encouraging because KDOC’s highest Elimination Act (PREA) in correctional facilities; priority is to ensure the safety of staff and inmates. and continue to develop strategies to manage a growing prison population. The Office of Victim Services (OVS) sent 15,433 notification letters, and 9,601 victims and Kansas incurs high costs when offenders survivors of crime received a total of 27,429 commit new crimes and return to prison due to services from OVS between July 1, 2013, and June both criminal justice system expenses and the 30, 2014. Of these, 2,552 were first-time costs suffered by crime victims. The Secretary registrants. In a 2014 satisfaction survey, 98 stated 97 percent of Kansas’ incarcerated offenders percent of victims reported staff treated them with will be released back into the community and, of respect; 93 percent of respondents indicated staff that number, 65 percent will return to prison showed concern for their well-being and their within 36 months. Bed space expansion for FY safety was taken seriously; and 87 percent of 2011 through FY 2013 includes 668 permanent respondents indicated that, as a result of their beds and 204 temporary beds for a total of 872. contact with OVS, they felt more informed and able to plan for their safety. The Secretary stated KDOC is the largest mental health provider in the state, and substance KDOC is collaborating with the Kansas abuse or mental illness is a significant contributing Department of Administration to develop factor for 75 percent of parole violators returning recommendations to improve KDOC recruitment to prison. KDOC increased the number of and retention efforts for corrections employees. specialized beds for mentally ill inmates from 382 The Secretary responded to questions on to 553 but still must utilize a waiting list for uniformed staff not having a pay increase since placements. Approximately 126 more specialized 2007 and stated there was a 8 percent increase to beds are needed. KDOC has reduced the number bring staff up to market level and a one-time bonus of mentally ill inmates in restrictive housing by of $250. 350. These offenders are now assigned either to the general population or a treatment unit. About Overview of Contract Reviews 70 percent of the mentally ill people who are incarcerated possess cognitive defects and, as The Deputy Secretary for Facilities resources allow, are receiving “Thinking for a Management, KDOC, presented an overview of Change” (T4C) programming. Research has existing contracts. Aramark is the food services shown a 19 percent recidivism rate for successful provider for the adult prison program and is completers, compared to 35 percent for the overall responsible for labor, food, and supplies for all population. facilities except for Larned Correctional Mental Health Facility, where meals are prepared by The Secretary indicated the Aviands. Aramark employs 123 staff and 19 Mentoring4Success program continues to be inmate workers. Aramark provides a vocational successful. By the end of September 2014, a total program, Inmate to Work (IN2), which lasts six of 4,893 mentors were matched. The calendar year months and, upon completion, an Optional 2012 data show that offenders who had mentors at ServSafe certification is provided by the National release recidivated at 10 percent at 12 months post Restaurant Association. There are 125 participants release, compared to 21 percent for the overall with 34 completions. The contract also provides population. the Fresh Favorites incentive food program, which pays 15 percent commission from net sales to the Activities at the end of FY 2014 included the Inmate Benefit Fund for IN2. completion of PREA audits at TCF and LJCF. Both earned exceptionally high marks for Trinity Services Group is the food service complying with federal standards. Under PREA, provider for KJCC. It employs 7 staff, supervises 8 three correctional facilities will be audited once juvenile worker positions, and provides the Trinity every three years on a rotating cycle. The audit Takeout incentive food program, paying 15
Kansas Legislative Research Department 1-3 2014 CJJO percent commission from net sales to the Juvenile Overview of Juvenile Services Benefit Fund. Deputy Secretary of Juvenile Services, Corizon Health, Inc., provides medical KDOC, provided an update. Between FY 2009 and services for the adult and juvenile populations, FY 2014, there were decreases in all areas, including medical, dental, and mental health care including in intake and assessment events (23 services and 24-hour emergency care. Services are percent); JO case files (24 percent); juvenile provided at all adult and juvenile correctional intensive supervision probation admissions (25 facilities. Kansas University Physicians, Inc., percent); juvenile intensive supervision probation provides medically trained management average month-end population (25 percent); JCF consultants to assist in managing the health care admissions (29 percent); JCF average month-end contract for both the adult and juvenile population. population (13 percent); and juvenile custody KDOC works with the Kansas Department for population (14 percent, excludes JCF custody). Aging and Disability Services and Medicaid for those inmates who are under 18 years of age, over Admissions to JCFs for technical violations 65 years of age, pregnant, or disabled. were down by 3.5 percent from FY 2013 to FY 2014, and the percentage of JCF admissions with Overview of Community and Field Services only misdemeanor adjudications for FY 2014 was 15 percent. Both JCFs set goals to increase the The Deputy Secretary for Community and number of youth who earned a high school Field Services, KDOC, provided an update and diploma or GED. From FY 2011, the number of review of the Corrections Community and Field diploma and GED recipients increased by 11 Services Division, which includes Parole Services, percent. During the same time frame, the JCF Interstate Compact for Adult Offender population decreased by 8 percent. Both JCFs Supervision, and Community Corrections. surpassed goals to increase the number of Currently, 4,728 offenders are under parole postsecondary credit hours. supervision. The Parole services caseloads have dropped to 10 and 20 per officer, which allows the Juvenile Services invests significant resources officers to focus more closely on the high-risk in the community for out-of-home placement offenders, due in part to the enactment of 2013 HB costs. In FY 2012, nearly $32 million was spent 2170. for various residential placements; expenditures for FY 2014 were nearly $28 million. Roughly The Interstate Compact for Adult Offender $16.4 million was spent in FY 2014 on YRCs, the Supervision is mandated by federal and state law, largest model type. Kansas is a high consumer of and KDOC staff track all supervised offenders residential placements and has been working to be coming into Kansas for supervision and more in line with national averages and shift transferring from Kansas. The Community resources to Evidence Based Program models. Corrections Act, which is designed to divert KDOC’s Juvenile Services Division implemented offenders from state correctional facilities, a multi-systemic therapy pilot program to provide requires each of the 105 counties to participate. intensive family and community-based treatment There are 31 judicial districts and 30 programs. in Wyandotte County. This, with other KDOC The challenges to the community resources for efforts, resulted in a reduction of youth residential offenders are emergency housing, treating those placements of more than 11 percent. with mental illness, resources for substance- abusing offenders, and increasing sanction Review of Initial Data Concerning Youth utilization. The administrative challenges are high Residential Centers turnover of employees, staffing levels, and aging vehicles. The Secretary of Corrections provided a preliminary analysis on data collected for YRCs. New Section 3 of 2014 HB 2588 required the Secretary to do the following:
Kansas Legislative Research Department 1-4 2014 CJJO ● Conduct a cost study analysis of all YRCs assessed risk level conducted by community under contract with KDOC, including supervision agencies. allowable expenses necessary to meet minimum requirements and costs Partial results reflect that youth are engaged in associated with services provided beyond programming and completion rates are reasonable. minimum requirements; Preliminary analysis of need and performance shows a correlation with risk level—greater ● Evaluate YRC program needs, comparing success with low-risk youth, and less success with these needs with availability and high-risk youth. proposing modifications to align availability with needs; November 5
● Develop a fee schedule for youth Presentation of Additional Information residential services, including daily Requested at the October 14 Meeting payment rates for base services and rates for additions to base services; KDOC officials provided additional information in response to requests from the October meeting, including information on how ● Develop a plan for performance-based expanding Medicaid coverage could result in a incentive payment opportunities and a reduction of the cost of medical services. The plan for integration of these payment Director of Healthcare Services Family opportunities into the fee schedule; Medicine/KDOC/JJA Division, explained federal law prohibits Medicaid reimbursement to ● Develop a plan to measure performance incarcerated individuals unless they are admitted and evaluate effectiveness of JO service for treatment outside of a correctional facility for providers; and more than 24 hours. Currently, offenders who are under age 21, over age 64, pregnant, or seriously ● Ensure PREA compliance for the 15 group disabled meet Medicaid criteria while also still homes. meeting the criteria of indigence. This allows for annual reimbursements of $600,000, which is The Secretary also must report on those reduced from the KDOC budget. If Kansas law actions to the Legislature by January 15, 2015. allowed for expansion of Medicaid, approximately 90 percent of inpatient inmate hospitalizations The instructions and tool were sent to the 15 would be covered at a savings of $1.6 million contracted YRC facilities on August 1, 2014, annually, after hiring the two required full-time requesting a response by October 1, 2014. Two staff needed to manage the accounting and remain unresponsive and one requested an monitoring of the program. extension. The next step is the collection of actual expenditure and income data for two years. Presentation of State Agency Information Systems Audit – Executive Session At the time of the meeting, KDOC was identifying and addressing gaps in data. The level The Committee entered executive session for a of detail poses a challenge for centers, as not all discussion of the security of KDOC information data was previously tracked. Further, different systems presented by Division of Legislative Post accounting and business practices for each center Audit staff. may limit comparative data analysis. The performance data is collected on a monthly basis Overview of Programs for Adults and Juveniles from each provider and captures youth demographic information, program involvement, The Secretary of Corrections provided an program completion, YRC placement completion, overview of programs for adults and juveniles data supplemented by KDOC research, and within the correctional system. He explained offender assessment drives effective programs and
Kansas Legislative Research Department 1-5 2014 CJJO that programs are designed around empirical private firms located in or near KDOC facilities research. He added service delivery, disruption of pursuant to an agreement with KDOC. Private criminal networks, training and supervision of industries employ 577 inmates in prison-based staff, and program evaluation also are essential to industries and 363 inmates in non-prison-based effective programs. Program providers deliver industries. Correctional industry program services that allow 89 percent of eligible offenders participants have a recidivism rate of 18 percent. in adult correctional facilities to receive program credit, as authorized in 2008 SB 14. This reduces Offenders who participate in correctional the need for approximately 250 additional prison education have a 43 percent less chance of beds. returning to prison. GED programs reduce recidivism by 8 percent and vocational education T4C is a cognitive behavioral intervention reduces recidivism by 10 percent. developed by the National Institute of Corrections (NIC). In FY 2014, 734 moderate and high risk In FY 2015, $1.8 million was allocated for offenders completed T4C at a cost of $317 per juvenile prevention programs in all 31 judicial participant. Research shows the state saves $16.33 districts. KDOC estimates 9,324 youth were for every dollar spent on T4C completers. served. Prevention programming includes Big Brothers Big Sisters mentoring, truancy programs, Offender Workforce Development Services intervention programs, cognitive life skills (OWDS) was developed by the NIC and the courses, and youth support programs. National Career Development Association. Participants learn basic job search skills, build an Overview of Changes to Juvenile Services Since employment portfolio, and practice interview Implementation of ERO 42 skills in a 40-hour program. Findings show a 33 percent reduction of recidivism in the first year The Secretary provided an overview of following release. Partnering with education and changes to Juvenile Services since implementation vocational programs is important in addressing of ERO 42. Key benefits of the consolidation are long-term retention and career advancement. In in the areas of administration, enhanced focus on FY 2014, 988 moderate- and high-risk offenders programs, and security and safety. successfully completed OWDS at a cost of $317 per participant. November 6
Substance abuse programming uses a Presentation on Juvenile Justice Reform cognitive behavioral, skills-building curriculum from the University of Cincinnati. In FY 2014, a A representative of Federico Consulting, Inc., total of 413 inmates completed substance abuse who assists indirectly with the National Campaign programming at a cost of $3,338 per offender. to Reform State Juvenile Justice Systems on behalf of the John D. and Catherine T. MacArthur The KDOC Sex Offender Treatment Program Foundation appeared before the Committee. The (SOTP) is a facility-based program of cognitive- National Campaign does not come to the state with based, skills-building treatment. In FY 2014, a a specific agenda or “one size fits all” idea, nor total of 244 offenders completed sex offender does it have a product, system, or consulting treatment prior to release, an increase from the service to sell. The goal is to meet with key previous year of 192, at a cost per offender of policymakers to determine what changes are $3,381 for the prison portion of SOTP. Sex deemed important, necessary, and achievable, and offenders in the community receive treatment at 16 offer research and other resources to help the state parole offices. accomplish its objectives.
Kansas Correctional Industries (KCI) has two The Executive Director, Kansas Appleseed, components: traditional industries, which are provided testimony on supporting a stronger operated directly by KCI and employ 324 inmates; Kansas juvenile justice system, which includes and private industries, which are operated by improving public safety, getting Kansas’ youth
Kansas Legislative Research Department 1-6 2014 CJJO back on a path to thrive, and building a more Presentation on Current OVS Practices sustainable system. He studied the current system by interviewing stakeholders across the state and The Director of Victim Services, KDOC, reviewing Kansas data, along with policies and provided information on OVS, which serves as a outcomes from other states. To be successful, he liaison between victims and department staff, the noted, interventions must match assessments of a Prisoner Review Board, and victim service youth’s individual risks and needs, and providers. The Office of Victim Services is sustainability requires effective prevention and committed to providing crime victims the early intervention. The conferee provided opportunity to express their ideas and opinions. information about other states’ programs and steps Any victim is eligible to receive notification to implement similar programs in Kansas. services if the crime was committed by an offender in KDOC custody; witnesses and family Presentation on Victim Information and members also are eligible for victim services. Notification Everyday (VINE) Liaisons work specifically with crime victims to provide information, advocate for the right to The President of Public Safety Services, participate in decision-making, and assist with Appriss, presented information on the VINE safety concerns. All services are confidential, free, system. VINE is automated, but sensitivity-trained voluntary, and victim initiated. Brochures are service representatives are also available to assist provided in both English and Spanish. The victims. Automated calls allow staff to concentrate conferee provided information on KDOC victim on direct victim service contact and messaging is notification coordinators, feedback and results on consistent with every call. VINE repeats attempts a 2014 victim satisfaction survey, and future plans to reach the registrant (national average for calls is for the program. eight). It is not a “one and done” system. VINE provides: Presentation on SB 123 Programming
● A single point of access that follows The KSC Executive Director updated the offenders throughout the judicial system; Committee on 2003 SB 123 programming, which is designed to divert non-violent drug possession offenders out of the prison population and ● Anonymity for victims and multiple types provides state-funded drug treatment of up to 18 of notification methods to prevent victims months to reduce recidivism among this group of falling through the cracks; offenders. KSC performs program administration, acts as the centralized payment center for ● Support for multiple languages on both treatment provider invoices, and certifies the inbound and outbound lines; treatment providers. Community Corrections supervises offenders who are on probation and ● Free web portal for local victim advocates collaborate with KSC and treatment providers. to interact and assist victims; There are 30 community corrections agencies, which have contracts with more than 80 treatment ● Dual data center with redundant providers in most geographical areas and, through architecture at two physical locations; and this program, access to substance abuse treatment has increased throughout Kansas. ● Multi-location implementation and In FY 2015, KSC estimates the newly support. sentenced offenders will have higher treatment needs than in previous fiscal years due to changes VINE is successfully implemented in more to eligibility for the SB 123 program. Given the than 40 statewide programs, including 42 uncertainty of the effect of law changes, the departments of corrections. agency is conservatively projecting expenditure levels based on FY 2014. Of the $6.8 million in total expenditures, $6.3 million will be from SGF,
Kansas Legislative Research Department 1-7 2014 CJJO and the remaining $510,000 will be from the The Joint Committee also recommends the existing balance in the General Fees Fund. Use of Senate Judiciary, House Corrections and Juvenile the General Fees Fund expenditures for the SB Justice, and budget committees study the VINE 123 program will not be sustainable by FY 2016, program, which already is in use in 40 states, and however, due to an adjustment in the accounting of how and whether it could be adopted, beginning at reimbursements from insurance providers and the county level, including how the State could offenders. The KSC is requesting an enhancement assist in paying for the cost of implementation and of approximately $460,000 from the SGF to cover operation. expected payment needs for FY 2016, and $180,000 in FY 2017. Noting that at 18 years old, a person can vote and serve in the military but cannot legally Potential expansion options of the program consume alcohol, the Joint Committee include expanding to drug Level 4 small sales, recommends a legislative study of the law non-drug grid crimes (e.g., burglary and theft) that concerning minors in possession, especially as it can be proven to be substance abuse-related, or pertains to persons 18-20 years old, and whether it repealing a special rule for third-time possession should be decriminalized for this age group. The offenders that currently requires a presumptive study should include whether federal highway prison sentence rather than SB 123 treatment. funds would be lost if it were decriminalized. Similarly, a member suggested an analysis of minor-in-possession statistics in states where hard CONCLUSIONS AND RECOMMENDATIONS liquor and beer can be sold in grocery stores, where persons under 21 often are employed, to see The Joint Committee recommends whether there is a correlation between higher introduction of legislation that would prohibit instances of violations in these states compared to juvenile offenders convicted of misdemeanors states where it is not allowed. from being committed to juvenile correctional facilities, regardless of previous history. The Joint Committee recommends the Senate Ways and Means and House Appropriationsʼ Further, the Joint Committee recommends Committees consider continued funding of SB 123 greater oversight to ensure that reports required to programs as the use of the General Fees Fund be submitted to the Joint Committee on expenditures will not be possible in FY 2016. Information Technology are submitted and reviewed by the legislative Chief Information Finally, the Joint Committee recommends a Technology Officer to make recommendations legislative review of the shortage of correctional regarding each report’s merit and related officers, noting the starting salary is $13.61 per appropriations. hour, which makes recruitment more difficult, and the lack of increases in salaries impacts retention.
Kansas Legislative Research Department 1-8 2014 CJJO JOINT COMMITTEE
Report of the Joint Committee on Information Technology to the 2015 Kansas Legislature
CHAIRPERSON: Senator Mike Petersen
VICE-CHAIRPERSON: Representative Keith Esau
OTHER MEMBERS: Senators Marci Francisco, Tom Holland, Garrett Love, and Jeff Melcher; and Representatives Steven Johnson, Kevin Jones, Harold Lane, and Brandon Whipple
CHARGE
● Study computers, telecommunications, and other information technologies used by state agencies and institutions;
● Review proposed new acquisitions, including implementation plans, project budget estimates, and three-year strategic information technology plans of state agencies and institutions;
● Monitor newly implemented technologies of state agencies and institutions;
● Make recommendations to the Senate Committee on Ways and Means and the House Committee on Appropriations on implementation plans, budget estimates, and three-year plans of state agencies and institutions; and
● Report to the Legislative Coordinating Council and make special reports to other legislative committees, as deemed appropriate.
January 2015 Joint Committee on Information Technology
REPORT
Conclusions and Recommendations
The Committee recommends the executive branch Chief Information Technology Officer (CITO) develop an enterprise-level information technology security plan to determine which security functions should be centralized and which security functions should be performed by individual agencies. In addition, the CITO should bring back recommendations to the Committee regarding which security functions should be performed by state agencies, and which functions should be outsourced to the private sector.
The Committee further recommends consideration of incorporating a return-on-investment component for proposed large information technology projects. Each proposal for an information technology project should include a return-on-investment section, following a life-cycle methodology, and include all follow-up information documenting savings or efficiencies as part of project plans; that documentation should be maintained throughout changes and developments within each project’s life-cycle.
The Committee recommends each respective branch CITO identify security vulnerabilities regarding sensitive information and propose remediation actions. In addition, the Committee recommends the branch CITOs identify critical systems lacking continuity of operations plans which would be utilized for disaster recovery purposes.
The Committee recognizes and commends the Legislative CITO on the progress made on legislative information technology projects, in particular, the Kansas Legislative Information Systems and Services (KLISS) project, and his diligence in keeping the Committee apprised of the progress in development, phases, and implementation.
Proposed Legislation: None.
BACKGROUND ● Review proposed new acquisitions, including implementation plans, project The Joint Committee has statutory duties budget estimates, and three-year strategic assigned by its authorizing legislation in KSA 46- information technology plans of state 2102 as noted below, and the three statutory duties agencies and institutions. All state also defined its general areas of interim activity: governmental entities are required to comply with provisions of KSA 75-7209 et seq. in submitting such information for ● Study computers, telecommunications, review by the Joint Committee; and and other information technologies used by state agencies and institutions. The state governmental entities defined by ● Monitor newly implemented technologies KSA 75-7201 include executive, judicial, of state agencies and institutions. and legislative agencies and Regents institutions;
Kansas Legislative Research Department 2-1 2014 Information Technology The Joint Committee on Information Conclusions and Recommendations Technology (JCIT) met during the 2014 Interim, as authorized by the Legislative Coordinating The Committee recommends the Executive Council. branch CITO develop an enterprise-level information technology security plan to determine The Committee heard reports from the Chief which security functions should be centralized and Information Technology Officers (CITOs) for the which security functions should be performed by executive, judicial and legislative branches of individual agencies. In addition, the CITO should government, a special audit on security issues was bring back recommendations to the Committee also presented by the Legislative Division of Post regarding which security functions should be Audit staff, and specific project updates were performed by state agencies, and which functions heard on the executive branch enterprise email should be outsourced to the private sector. system, and the judicial branch electronic filing system. The Committee further recommends consideration of incorporating a return-on- The Committee had received a presentation investment component for proposed large regarding the executive branch enterprise email information technology projects. Each proposal for system at its April 2, 2014, meeting, in which it an information technology project should include a had also received reports that the system might return-on-investment section, following a life- present security and compatibility concerns for cycle methodology, and include all follow-up public safety agencies. The most recent report information documenting savings or efficiencies as received at the November 13, 2014, meeting noted part of project plans; that documentation should be that this issue was being addressed, and that the maintained throughout changes and developments system would be compatible with those public within each project’s life-cycle. safety agencies and for those systems that had initially expressed concerns. The Committee recommends each respective branch CITO identify security vulnerabilities In continued review of information security regarding sensitive information and propose the Committee held an executive session meeting remediation actions. In addition, the Committee on May 1, 2014. A Novacoast executive was recommends the branch CITOs identify critical available at that meeting in order to answer systems lacking continuity of operations plans questions and lead discussion regarding IT which would be utilized for disaster recovery security. These ideas were further explored at the purposes. November 13th meeting where Legislative Post Audit staff presented its report on: ‘State Agency The Committee recognizes and commends the Information Systems: Sensitive Datasets and IT Legislative CITO on the progress made on Security Resources’ (July 2014, R-14-007). legislative information technology projects, in particular the Kansas Legislative Information Systems and Services (KLISS) project, and his diligence in keeping the Committee apprised of the progress in development, phases, and implementation.
Kansas Legislative Research Department 2-2 2014 Information Technology JOINT COMMITTEE
Report of the Joint Committee on Kansas Security to the 2015 Kansas Legislature
CHAIRPERSON: Senator Greg Smith
VICE-CHAIRPERSON: Representative Mario Goico
OTHER MEMBERS: Senators Anthony Hensley, Mitch Holmes, Mike Petersen, Pat Pettey; and Representatives Carolyn Bridges, Stan Frownfelter, Peggy Mast, and Connie O’Brien
CHARGE
● Study the security for the Capitol complex; the current state of general emergency preparedness in Kansas, including the status of communications among local law enforcement and emergency agencies at the state and local levels; emergency preparedness at K-12 and post-secondary educational institutions; and federal moneys received for homeland security; and
● Hear an update on the reorganization of the Kansas Commission on Veterans’ Affairs.
December 2014 Joint Committee on Kansas Security
ANNUAL REPORT
Conclusions and Recommendations
The Joint Committee recommends the Kansas Center for Safe and Prepared Schools be incorporated into the Kansas Department of Education, with staff and other program expenses funded through the State General Fund.
The Joint Committee requests the Kansas Legislative Research Department conduct research on the governance structure of public safety communications policy and assets in similar states and report that information to this Committee and the Statewide Interoperable Executive Committee.
The Joint Committee recommends funding for planning staff and recovery teams in the Division of Emergency Management to assist local officials.
The Joint Committee recommends increased staffing for the Kansas Intelligence Fusion Center.
The Joint Committee recommends all legislators, and especially committee chairpersons, receive training on Statehouse emergency policies and procedures.
The Joint Committee recommends the state amend law as necessary so the state adheres to federal guidelines regarding in-state tuition for veterans.
The Joint Committee recommends the Legislature explore ways to access revenues from Kansas Lottery sales for veterans’ programs.
Proposed Legislation: None. However, the Committee expresses support for any legislative changes that may be needed to bring the state into compliance with federal requirements regarding in-state tuition for veterans.
BACKGROUND ● Matters relating to the security of a public body or agency, public building, or The 2004 Legislature created the Joint facility; Committee on Kansas Security (KSA 46-3301) to study, monitor, review, and make ● Matters relating to the security of the recommendations for the following: infrastructure of Kansas, including any information system; and ● Matters relating to the security of state officers and employees; ● Measures for the improvement of security for the state. ● Security of buildings and property under the ownership or control of the state; The Legislative Coordinating Council (LCC) also directed the Committee to study the security
Kansas Legislative Research Department 3-1 2014 Kansas Security for the Capitol complex; the current state of requirement that school personnel be trained in general emergency preparedness in Kansas, emergency preparedness, but the State Board of including the status of communications among Education can provide assistance in how to local law enforcement and emergency agencies at prepare and utilize the best plan in coordination the state and local levels; emergency preparedness with other agencies. at educational institutions; and federal moneys received for homeland security. It further directed Major General Tafanelli recommended the Committee to hear an update on the designating the Department of Education as the reorganization of the Kansas Commission on lead state agency for coordinating school safety Veterans’ Affairs. and preparedness activities and incorporating the Center into that agency.
COMMITTEE ACTIVITIES Emergency and interoperable communications. Colonel Chris Stratmann, Chief The Committee met November 7, 2014, to Information Technology Officer for the Adjutant hear information on Capitol complex security and General’s Department, Kansas National Guard, other topics as directed by the LCC. said the past few years have seen a vast improvement in public safety communications Emergency Preparedness in Kansas capabilities and that the growth in those capabilities will require enhanced state Major General Lee Tafanelli, Kansas Adjutant coordination. He discussed the work of the General, and members of his staff provided Statewide Interoperable Executive Committee information on various facets of emergency (SIEC), which was created by Executive Order 07- preparedness. 27, and the Office of Emergency Communications. He explained a Kansas Department of School emergency preparedness. Major Transportation (KDOT) radio system “backbone” General Tafanelli stated the Kansas Center for was leveraged by KDOT, the Kansas Highway Safe and Prepared Schools, launched five years Patrol, and the Adjutant General’s Department to ago, has emphasized training and collaborative build a statewide interoperable public safety radio partnerships between K-12 schools and emergency system. He said the statewide system is used by responders and other community leaders within nearly 1,200 agencies and jurisdictions and more their localities. Approximately 112 Kansas school than 28,000 users. The Adjutant General’s districts have completed formal emergency Department requested the Committee ask the operation plan training. He noted efforts to Kansas Legislative Research Department to enhance school safety and emergency explore governance structures related to public preparedness have involved not only the Center safety communications policy and assets in similar and other portions of the Adjutant General’s states and report to the Committee and the SIEC. Department but also the Attorney General’s Office, the Kansas Fire Marshal’s Office, the Kansas Colonel Stratmann also briefed the Committee Highway Patrol, the Kansas Department of Health on the First Responder Network Authority, also and Environment (KDHE), the Kansas Department known as FirstNet, created by Congress in of Education, the Kansas Association of School February 2012 to provide emergency responders Boards, the Governor’s Office, and many other with a nationwide high-speed, wireless broadband agencies and groups. network dedicated to public safety use. Kansas is in the second year of a three-year $2.3 million The Center’s Jerry Tenbrink provided grant to prepare for FirstNet, and representatives additional information, including that in the past of the Office of Information Technology Services, year the Center assisted with planning and hosting the Kansas Native American Affairs Office, and a statewide school safety conference attended by the 911 Coordinating Council were added to the more than 400 people. Brad Neuenswander, SIEC for this effort. It is estimated the actual Kansas Interim Commissioner of Education, request for proposals for buildout of the system answered questions and stated there is no will be issued in about two years.
Kansas Legislative Research Department 3-2 2014 Kansas Security Emergency management. Angee Morgan, Intelligence Fusion Center as the core of Kansas Deputy Director, Kansas Division of Emergency homeland security efforts. He stated the Fusion Management (KDEM), provided an overview on Center provides information vital to early emergency management in Kansas. Among the warnings, risk assessment, and decision-making topics she discussed were the role of the Governor by public officials by analyzing systems-level in an emergency; the phases of emergency threats to critical infrastructure, working with management: mitigation, preparedness, response, private industry to improve cyber security, and and recovery; training provided at the Eisenhower partnering with subject matter experts to identify Center for Studies and at the Crisis City complex bio-threats to animals, plants, and humans. He said near Salina; the formal Kansas Response Plan the multidisciplinary approach used in the Fusion (which is available on the Division’s website); the Center is economical and sustainable and provides role of the State Emergency Operations Center and timely information. Major General Tafanelli stated its related communications center in any an additional lead analyst position and individual emergency; and thresholds for receiving assistance analyst positions dedicated to the Center’s focus from the state and federal government after a teams, such as the Critical Infrastructure Focus disaster. She said the venues at Crisis City, which Team, are needed to address analysis needs and to include a locomotive and rail cars, a concrete keep pace with rapidly changing threats. rubble pile for practicing search and rescue, and a pipeline area, are frequently used for training. Homeland Security Funding Kansas incident management teams are well- respected nationally and asked to assist in other Captain Eric Pippin, Kansas Highway Patrol, states. She explained resources are coordinated explained the Patrol since 1999 has served as the through the Emergency Operations Center and state administrative agency (SAA) for the sent to localities only upon the locality’s request. Homeland Security Grant Program, which is funded through the U.S. Department of Homeland Ms. Morgan stated major emergency Security (DHS). That preparedness funding preparedness challenges include turnover at the awarded has ranged from a low of $670,000 in local level and maintaining emergency managers 1999 (its first year) to a high of $28.8 million in on that job full time, local elected officials not 2004 and now is approximately $3.5 million to understanding their emergency management $4.0 million a year. Beginning in federal fiscal responsibilities, and the likelihood of less federal year 2006, the SAA has administered funds for disaster assistance in the future. She stated the projects in the state’s seven homeland security threshold for a disaster to meet the federal regions; he stated regionalization works well for definition is likely to double or triple, meaning the the grants and for other emergency response state, localities, and individuals will have initiatives but the regional boundaries have begun additional responsibilities for disaster mitigation. to fade and be replaced with a shared focus on She also discussed the importance of opportunities statewide resources. State partners include the for youth to participate in emergency management Kansas Bureau of Investigation, the Kansas activities and career opportunities. The Adjutant Department of Agriculture, KDOT, KDHE, General requested consideration of funding for KDEM, and the Patrol. All projects are presented planning staff and recovery teams to assist local to and approved by the Commission on officials and the state leverage opportunities to Emergency Planning and Response. He provided encourage youth to participate in emergency examples of the 70 current year grant projects, management activities and career opportunities. such as the purchase of radios for various agencies; funding for active shooter training for Major General Tafanelli reported the first responders; purchase of deployment supplies, Department continues to work on formal equipment, and contractual training for incident conveyance of the Crisis City property from the management team members; funding of analyst Air Force to the state and hopes to complete that positions related to the Fusion Center; and process within 12-18 months. purchase of cattle panels to use during responses to overturned animal trailers. Kansas Intelligence Fusion Center. Major General Tafanelli described the Kansas
Kansas Legislative Research Department 3-3 2014 Kansas Security Kansas Commission on Veterans’ Affairs Office Department of Health and Human Services, the U.S. Environmental Protection Agency Gregg Burden, Director of the Kansas (contaminated suits worn by health workers and Commission on Veterans’ Affairs Office other supplies used are treated as medical waste), (KCVAO), described the changes to and within hospitals, and local health departments. He said that agency within the past year. The enactment of KDHE staff answer many questions and have Sub. for HB 2681 in April 2014 abolished the developed protocols for possibilities such as Kansas Commission on Veterans’ Affairs, which transfer of a confirmed Ebola patient to an had been governed by a commission, and created isolation unit in Nebraska. He reported the agency the KCVAO under the supervision of a director has created educational materials on Ebola. appointed by the Governor and subject to confirmation by the Senate. The bill also abolished State Epidemiologist Charlie Hunt provided the Veterans Claims Assistance Advisory Board background and updates on the country’s status in and replaced it with the Veterans Claims regard to Ebola infection. He reviewed what is Assistance Program. The Veterans Claims known about the disease, how the virus is spread, Assistance Program Advisory Board will advise treatment, and quarantine challenges. He said the the Director. preparedness plan for Kansas includes risk assessment, monitoring, special considerations for Director Burden said the Kansas Veterans’ health care workers, evaluation and management, Home in Winfield and the Kansas Soldiers’ Home and laboratory testing. at Fort Dodge have seen significant upgrades in servers and wireless systems in the past year that A handout on Kansas law regarding quarantine have enhanced patient security and capability and for infectious disease was distributed to the are used for paperless patient records and financial Committee. purposes. Construction projects completed at the homes include new roofs, window replacements, a Kansas Active Shooter Mitigation Program dining hall renovation, a water line replacement, and boiler replacements. Triplett Hall opened at Following introductory remarks by Colonel the Kansas Veterans Home. Ernest Garcia, Superintendent, Kansas Highway Patrol, Captain Robert Keener, commander of the The KCVAO also added four veteran service Patrol’s training academy, briefed the Committee representatives and opened new offices in on the Kansas Active Shooter Mitigation Program. Atchison and Manhattan, Director Burden said. This program trains school personnel and local law enforcement officers on how to think and react Challenges for the KCVAO include keeping to active shooter situations, understanding officers positions filled, due to low unemployment rates, likely will not be present in the first minutes of a lower pay, and local competition for nurses and situation and law enforcement’s priority will be to other skilled workers. stop the intruder, not attend to victims. Objectives for the training include how to develop a mindset Wayne Bolig, Deputy Director, KCVAO, told to address such a situation. The Program expects the Committee the state will need to comply with a to expand to training those who will train others. federal in-state tuition requirement for veterans The Program also has worked with the Kansas and certain dependents enacted as part of the Juvenile Officers Association and could be Veterans Access, Choice and Accountability Act of applicable to workplace violence situations, 2014. He also answered questions about judicial Captain Keener said. diversion available to some veterans. Capitol Complex Security Ebola Preparedness in Kansas A briefing on Capitol complex security was Aaron Dunkel, Deputy Secretary of Health presented in sessions closed to the public under and Environment, discussed how KDHE has KSA 2014 Supp. 75-4319(b)(13); that statute worked with partner organizations such as the U.S. permits closing portions of an open meeting so
Kansas Legislative Research Department 3-4 2014 Kansas Security members may discuss certain matters relating to policy and assets in similar states and security measures, if that discussion would report to the Committee and the SIEC; jeopardize such security measures. Only Committee members and Kansas Highway Patrol ● Provide funding for planning staff and staff were present at those closed sessions. recovery teams to assist local officials;
● Increase staffing levels at the Kansas CONCLUSIONS AND RECOMMENDATIONS Intelligence Fusion Center; and
● Leverage opportunities that encourage A motion carried to approve as Committee youth to participate in emergency recommendations those proposed by the Adjutant management activities and careers. General’s Department: The Committee recommends all legislators, ● Incorporate the Kansas Center for Safe and especially committee chairpersons, receive and Prepared Schools into the Kansas training on Statehouse emergency policies and Department of Education, with staff and procedures. other program expenses funded through the State General Fund; The Committee recommends the state amend law as necessary to adhere to federal law regarding ● Request the Kansas Legislative Research in-state tuition for veterans. It also recommends Department explore governance structures the Legislature explore ways to access revenues related to public safety communications from Kansas Lottery sales for veterans’ programs.
Kansas Legislative Research Department 3-5 2014 Kansas Security JOINT COMMITTEE
Report of the Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight to the 2015 Kansas Legislature
CHAIRPERSON: Representative David Crum
VICE-CHAIRPERSON: Senator Mary Pilcher-Cook
OTHER MEMBERS: Senators Jim Denning, Marci Francisco, Laura Kelly, and Michael OʼDonnell; and Representatives Barbara Ballard, Willie Dove, John Edmonds, Ron Ryckman, Jr., and Jim Ward
CHARGE
● The Committee is to oversee long-term care services, including home and community based services (HCBS). In its oversight role, the Committee is to:
○ Oversee the savings resulting from the transfer of individuals from state or private institutions to HCBS and to ensure that any proceeds resulting from the transfer be applied to services for long-term care and HCBS; ○ Review and study other components of the state’s long-term care system; and ○ Oversee the Children’s Health Insurance Program (CHIP), the Program for All- Inclusive Care for the Elderly (PACE), and the State Medicaid programs (KanCare); and monitor, and study the implementation and operations of these programs including access to and quality of services provided and any financial information and budgetary issues.
January 2015 Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight
ANNUAL REPORT
Conclusions and Recommendations
Based on testimony heard and Committee deliberations, the Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight makes the following conclusions and recommendations:
Committee Meeting Days
● The Committee recommends it meet twice during the legislative session and twice when the Legislature is out of session in different quarters, as required by statute, with the non- session meetings to be for two days each.
Hearings to Review the Legislative Post Audit Report on Community Developmental Disability Organizations (CDDOs)
● The Committee recommends separate hearings be scheduled during the 2015 Legislative Session before the House Social Services Budget Committee and the Senate Committee on Ways and Means’ Social Services Subcommittee to address the March 2014 Legislative Post Audit Report CDDOs: Reviewing Issues Related to Community Services Provided for Individuals with Developmental Disabilities (R-14-006).
Software Issues Regarding Data Accuracy and Reporting on Waiting Lists
● The Committee recommends a meeting of the Joint Committee on Information Technology be held to review software issues regarding data accuracy and reporting on waiting lists. The Committee noted concerns with the agency’s ability to provide accurate data and reporting on waiting lists and expressed it was important to investigate the issue.
Anti-psychotic Medications
● The Committee recommends separate hearings be scheduled during the 2015 Legislative Session before the House Committee on Health and Human Services and the Senate Committee on Public Health and Welfare to consider the repeal of KSA 2014 Supp. 39- 7,121b for the purpose of allowing Kansas Medicaid to manage anti-psychotic medications like other drug classes.
Proposed Legislation: None
Kansas Legislative Research Department 4-1 2014 HCBS and KanCare Oversight BACKGROUND As required by statute, at the beginning of each regular session, the Committee is to submit a The Robert G. (Bob) Bethell Joint Committee written report to the President of the Senate, the on Home and Community Based Services (HCBS) Speaker of the House of Representatives, the and KanCare Oversight operates pursuant to KSA House Committee on Health and Human Services, 2014 Supp. 39-7,159, et seq. The previous Joint and the Senate Committee on Public Health and Committee on HCBS Oversight was created by the Welfare. The report is to include the number of 2008 Legislature in House Sub. for SB 365. In HB individuals transferred from state or private 2025, the 2013 Legislature renamed and expanded institutions to HCBS, as certified by the Secretary the scope of the Joint Committee on HCBS for Aging and Disability Services, and the current Oversight to add the oversight of KanCare (the balance in the HCBS Savings Fund. (See state’s Medicaid managed care program). The Addendum A for the 2014 Report.) The report also Committee oversees long-term care services, is to include information on the KanCare Program including HCBS, which are to be provided through as follows: a comprehensive and coordinated system throughout the state. The system, in part, is ● Quality of care and health outcomes of designed to emphasize a delivery concept of self- individuals receiving state Medicaid direction, individual choice, services in home and services under KanCare, as compared to community settings, and privacy. The Committee outcomes from the provision of state also oversees the Children’s Health Insurance Medicaid services prior to January 1, Program (CHIP), the Program for All-Inclusive 2013; Care for the Elderly (PACE), and the state Medicaid programs. ● Integration and coordination of health care procedures for individuals receiving state The Oversight Committee is composed of 11 Medicaid Services under KanCare; members, 6 from the House of Representatives and 5 from the Senate. Members are appointed for ● Availability of information to the public terms that coincide with their elected or appointed about the provision of state Medicaid legislative terms. The Committee is statutorily services under KanCare including required to meet at least once in January and once accessibility to health services, in April when the Legislature is in regular session expenditures for health services, extent of and at least once during both the third and fourth consumer satisfaction with health services calendar quarters, at the call of the chairperson. provided, and grievance procedures, However, the Committee is not to exceed six total including quantitative case data and meetings in a calendar year, except additional summaries of case resolution by the meetings may be held at the call of the chairperson KanCare Ombudsman; when urgent circumstances exist to require such meetings. In its oversight role, the Committee is to oversee the savings resulting from the transfer of ● Provisions for community outreach and individuals from state or private institutions to efforts to promote public understanding of HCBS and to ensure proceeds resulting from the KanCare; successful transfer be applied to the system for the provision of services for long-term care and ● Comparison of caseload information for HCBS, as well as to review and study other individuals receiving state Medicaid components of the state’s long-term care system. services prior to January 1, 2013, to the Additionally, the Committee is to monitor and caseload information for individuals study the implementation and operations of the receiving state Medicaid services under HCBS programs, CHIP, PACE, and the state KanCare after January 1, 2013; Medicaid programs including, but not limited to, access to and quality of services provided and ● Comparison of the actual Medicaid costs financial information and budgetary issues. expended in providing state Medicaid services under KanCare after January 1,
Kansas Legislative Research Department 4-2 2014 HCBS and KanCare Oversight 2013, to the actual costs expended under KanCare overview and update. At the the provision of state Medicaid services January meeting, the Secretary of Health and prior to January 1, 2013, including the Environment provided an overview of the manner in which such cost expenditures KanCare goals of integrating public health with are calculated; primary care efforts across the whole spectrum of health to improve the health of the community, ● Comparison of the estimated costs with a focus on not just the medical model of expended in a managed care system of KanCare but on an integrated approach using a providing state Medicaid services under system of integrated resources. He explained the KanCare after January 1, 2013, to the State Quality Strategy, which includes the pay-for- actual costs expended under KanCare after performance approach and quality measures. The January 1, 2013; and Secretary explained, in 2014, KDHE shifted pay- for-performance measures from operational to outcomes, and he explained the outcomes All written testimony provided to the ● reporting timeline. Committee regarding the impact of the provision of state Medicaid services under At the April meeting, the Secretary for Aging KanCare upon residents of adult care and Disability Services updated the Committee on homes. statistics for the first year of KanCare and the benefits experienced by Kansans through care All written testimony provided to the coordination, in-lieu-of services, and value-added Committee is available at Legislative services. He stated there had been a large decrease Administrative Services. in emergency room usage for those on the Physical Disability (PD), Frail Elderly (FE), and In developing the Committee report, the Intellectual/Developmental Disability (I/DD) Committee also is required to consider the external waivers. The KDHE Division of Health Care quality review reports and quality assessment and Finance (DHCF) Director confirmed the reduction performance improvement program plans of each in emergency room usage would fall into the four managed care organization (MCO) providing main categories of calendar year 2013 population state Medicaid services under KanCare. expenditures.
The Committee report must be published on KanCare enrollment. The DHCF Director the official website of the Kansas Legislative provided information on the KanCare open Research Department (KLRD). Additionally, the enrollment process at the January meeting, noting Kansas Department for Aging and Disability KDHE had sent out approximately 330,000 Services (KDADS), in consultation with the enrollment packets and about 8,000 recipients had Kansas Department of Health and Environment changed plans as of that date. The Director also (KDHE), is required to submit an annual report on reviewed the KanCare Executive Summary. the long-term care system to the Governor and the Legislature during the first week of each regular At the April meeting, the DHCF Director session. stated KDHE continued to see an increase in enrollment through March 2014 and addressed an Aon Hewitt report that projected an increase of COMMITTEE ACTIVITIES 12,000 in Medicaid enrollment due to the woodwork effect. She noted, while most of the The Committee met twice during the 2014 anticipated growth had already been realized in Legislative Session (January 17 and April 29) and current enrollment, KDHE projected additional held two days of meetings during the 2014 Interim growth of 3,200 in the remainder of state fiscal (August 12 and November 18). In accordance with year (SFY) 2014 and 10,200 in SFY 2015. She its statutory charges, the Committee’s work also provided the calendar year 2013 Top Ten focused on specific topics described in the Population Expenditures. following sections.
Kansas Legislative Research Department 4-3 2014 HCBS and KanCare Oversight The DHCF Director noted at the August Insurance Marketplace and had been assessed by meeting the steady growth in enrollment in the Centers for Medicare and Medicaid Services Medicaid had leveled off over the previous (CMS) as possibly eligible for Kansas Medicaid months. She stated a slightly higher KanCare would have their applications transferred directly enrollment might be seen due to the woodwork to the Clearinghouse. He noted the process in the effect, but she believed most of those increases federal Marketplace allowed CMS to make an had been realized. The Director also indicated she initial assessment of possible applicant eligibility expected to see an increase in applications with the and electronically transfer the applicant’s account activation of the account transfer from the federal to Kansas for determination of actual eligibility. Health Insurance Marketplace relating to the He noted the CMS assessment did not result in Kansas Eligibility Enforcement System (KEES) automatic eligibility for Medicaid because states project that would be occurring later in August. are responsible for making the determination on eligibility, so it would not be proper for CMS to The KDHE Chief Information Technology make that determination. Officer (CITO) provided an update on the KEES project at the August meeting, noting the system At the August meeting, the KDHE CITO was had been built and tested, and the basic functions asked to address the letter from CMS placing of the system were working. He noted KDHE was Kansas on a “watch list” and whether that was due working on enhancements to help with worker to a backlog problem. The KDHE CITO stated efficiencies, to reduce error rates relating to CMS had not placed Kansas on a “watch list” but benefit enrollment, and to ensure the system had notified the state that its contingency plan, provided consumers with information with better approved prior to October 2013, needed to be quality, readability, and understandability. The updated and include a faster timeline to accept KDHE CITO stated KDHE also was working to account transfers. With regard to when the account ensure healthcare workers who would use the transfer part of the KEES system would be fully system had received adequate training. functional, he noted the agency was ready to start transferring accounts but had to go through a The KDHE Director of Finance provided cost formal protocol with CMS, so the agency was and enrollment comparisons of KanCare and working with CMS to complete that process in Medicaid pre-KanCare at the November meeting. August. The KDHE CITO said the agency would He also provided updated information on the put in a revised contingency plan on August 15, improvement in the financial positions for the 2014, that would allow the state to accept account three MCOs. transfers, which was not the full implementation of the KEES system. He noted full implementation Eligibility determinations. During the January was expected in November 2014, so the system meeting, the DHCF Director discussed the status would be in a pilot-program status during the of Kansans for whom KDHE had received general interim, allowing the agency to conduct training information from the federal Health Insurance and finish preparing for implementation. Marketplace regarding potential eligibility for services. She noted the information received for The KDHE CITO provided an update on these individuals was not complete enough to KEES at the November meeting, stating KDHE determine actual eligibility. The Director stated, as was then in Phase 3 Build 3 in system testing. He of January 14, 2014, KDHE had sent noted KDHE was in the final stages of identifying approximately 7,000 letters to these potentially and prioritizing change requests received from the eligible individuals for whom contact information KDHE program staff. was complete in order to proceed with eligibility determinations. Pay-for-performance measures. The KDHE Director of Finance addressed questions regarding At the August meeting, the KDHE CITO actual dollars for pay-for-performance measures explained KEES would implement an account during the August meeting. He noted, for the first transfer, which meant Kansans who had applied year of KanCare, these were operational for health insurance in the federal Health performance measures. He stated KDHE withheld approximately $62.4 million from the MCOs’
Kansas Legislative Research Department 4-4 2014 HCBS and KanCare Oversight capitation payments, and the MCOs had earned if necessary. The Secretary noted the OIG was back approximately two-thirds. However, the state placed directly under the Secretary of Health and had not released the funds back to the MCOs, as Environment during the recent agency an independent validation of the metrics was then reorganization, instead of within one of the underway. The Director indicated the review divisions of the agency, to ensure independence. should be completed and funds released later in 2014 in the amount of approximately $42.0 An update provided by the Acting Secretary of million and approximately $23.0 million would be Health and Environment at the November meeting held back and placed into general revenue. indicated the person selected for the IG position had not accepted the offer, so the search for a Affordable Care Act insurer’s fee. During the KanCare IG continued. April meeting, the DHCF Director discussed the Affordable Care Act (ACA) insurer’s fee, a new Kansas Health Information Technology Act fee being imposed on states by the federal update. The Deputy Secretary of KDHE provided government. The DHCF Director stated the ACA an oral briefing on the Kansas Health Information created an $8.0 billion annual fee on the health Technology Act and the secondary use of medical insurance industry nationwide starting in 2014, information. He explained a review process was in which will increase to $14.3 billion by 2018. She place to ensure organizations met the established explained the fee was allocated to qualifying criteria for receiving medical data. He also noted health insurers based on their respective market the agency wanted to ensure the way the data was shares of premium revenue in the previous year. shared or sold was fair, and universal access was She noted, while Medicaid managed care plans allowed for organizations that met the standards were not excluded, premiums associated with long for utilization. The Deputy Secretary also term services and supports (LTSS) were excluded. confirmed federal funding for health care providers for electronic health records equipment The DHCF Director stated the impact of the was independent of the state’s health information fee on the state Medicaid budget with regard to the network, as long as providers purchased certified State General Fund (SGF) would be $14,045,392 electronic health records and met the criteria. in SFY 2015, $19,545,760 in SFY 2016, and $18,268,476 in SFY 2017. In order to put the cost Health Homes implementation. During the into perspective, she provided a scale, noting January meeting, the KDHE Director of Medicaid $14.0 million SGF per year would remove 725 Services discussed the new Health Homes persons from the PD wait list and 375 from the program to be implemented on July 1, 2014, as a DD wait list. Medicaid State Plan option. She noted the Health Homes program was designed to provide KanCare inspector general position. At the coordination of physical and behavioral health August meeting, the Secretary of Health and care with LTSS and available to those who met the Environment discussed the status of the vacant eligibility criteria. The Director indicated 12 other KanCare inspector general (IG) position. He noted states were operating Medicaid Medical Health interviews would be scheduled for later in August Homes programs, and Kansas was one of three with plans to have a new IG in place by late states operating the model using two state plan October. The Secretary noted, based on existing amendments. She noted the two primary target statute, another vacant position in the Office of populations were individuals with serious mental Inspector General (OIG) could not be filled until illness and those with asthma or diabetes who also the new IG was hired. Concern was expressed by a were at risk for another chronic condition. The Committee member Kansas had had a KanCare Director discussed the enrollment process and [Medicaid] IG for only approximately one of the payment and project structures. past three years. The Secretary stated it had been difficult to recruit and maintain someone in the Health Homesʼ funding was discussed at the KanCare IG position. Discussion also was held on January meeting, with confirmation of a 90/10 the placement of the KanCare IG within KDHE split between federal and state funding. The and the measures implemented to ensure IG KDHE DHCF Director clarified each Health independence allowing for actions against KDHE,
Kansas Legislative Research Department 4-5 2014 HCBS and KanCare Oversight Homes member could receive eight quarters of the The Coordinator also explained at the August enhanced match that would begin from the meeting that implementation of the Health Homes implementation of the state plan amendments. She program for chronic conditions had been delayed noted if subsequent amendments of additional due to an insufficient number of primary care populations were added, the number of quarters providers interested in participating. She indicated for those populations could be extended. The KDHE was continuing to engage providers and Director stated, after the eight quarters of looking at networks to determine the possibility of enhanced match, the match would revert back to implementing in January 2015 or implementing the typical Medicaid match rate. She noted, with the program regionally for those areas with eight quarters of data, the state could determine sufficient primary care provider interest. whether the program reduced emergency department utilization and hospitalizations and The Acting Secretary of Health and could then decide if Health Homes was the model Environment provided a Health Homes update at desired moving forward. The Director also the November meeting. She stated at that time, clarified the 90/10 match applied to both current 25,630 persons were enrolled and more than 98 and newly added Medicaid recipients and only to public outreach events had taken place. Health Homes services. At the November meeting, the Secretary for During the Health Homes program update Aging and Disability Services discussed the state’s provided at the April meeting, the KDHE efforts to provide transparent and frequent Medicaid Initiatives Coordinator, DHCF, noted information regarding Health Homes. She noted KDHE intended to implement the Health Homes the federal rules regarding Health Homes state a program on July 1, 2014, for Kansans with serious member cannot be enrolled in a Health Home and mental illness and those with asthma or diabetes also have a targeted case manager who is not part who are at risk of another chronic condition. She of the member’s Health Home. The Secretary noted enrollment in the Health Homes program indicated Kansas designed its Health Home model was passive, with an option to opt out. She stated to provide I/DD consumers with the opportunity to those who were eligible would receive letters enroll in a Health Home but also keep their notifying them of their eligibility, but individuals targeted case manager. However, she noted the could opt out initially or at any time by calling or state cannot force or require third parties, such as returning a form included with the letter. She Health Home partners (HHPs) or I/DD TCM responded to questions regarding the cost of providers, to contract with each other. As a result, Health Information Technology technical if a targeted case manager is not contracted with a assistance and whether funding was available for HHP, the member may choose another HHP or opt consulting or for actual hardware and software, out of the Health Homes entirely. noting the grant funding was for consulting only. At the November meeting, a targeted case The KDHE Medicaid Initiatives Coordinator manager with Jenian, Inc., expressed concern the testified at the August meeting that the Health letters regarding Health Homes were sent to Homes for individuals with serious mental illness persons who cannot read or write, limiting their was implemented July 1, 2014. She indicated there ability to opt out. She also noted her organization had been an issue as CMS would not pay for wanted to become a HHP, but the cost of the duplicative services. CMS viewed targeted case required electronic health records software made it management (TCM) and some of the core services impractical. in Health Homes as being duplicative, so persons in Health Homes could not receive Medicaid TCM The KDHE Medicaid Initiatives Director services. The Coordinator indicated the state had responded to concerns regarding the receipt of the worked through the issue, so individuals would not Health Homes letters, or lack thereof, by stating have to choose between TCM and the Health CMS required letters be sent to the actual Homes program. She indicated about 17.0 percent beneficiaries, unless someone was listed as a of the 2,200 persons who opted out of Health responsible person in the Medicaid case file. She Homes were I/DD. noted KDHE would encourage families and
Kansas Legislative Research Department 4-6 2014 HCBS and KanCare Oversight guardians to be on file as responsible persons with Sunflower had issues early on, he anticipated it KDHE, so they would receive copies of letters as would take four or five months longer for well. Sunflower to see a change in its financial situation. A Committee member asked the MCO With regard to the availability of funds to help representatives how long their shareholders would those implementing electronic health records be willing to accept losses. The Sunflower systems, the KDHE Medicaid Initiatives Director representative indicated the trend line on the losses said the federal funds available were limited to was improving, that Kansas had done KanCare traditional healthcare providers. However, she right by selecting three companies with significant noted KDHE contracted with a company to financial assets in multiple states, and the MCOs provide technical assistance to those wanting to knew it would take time for these programs to become HHPs. stabilize.
Transition of LTSS for individuals on A Committee member requested confirmation HCBS I/DD waivers. The Secretary for Aging at the April meeting that the MCOs were required and Disability Services provided an update at the to provide services for the duration of the three- January meeting regarding delays in transitioning year contract with the state and could not back out LTSS for individuals on the HCBS I/DD waiver earlier due to the negative cash flow situation. The into KanCare. A detailed update was provided by Secretary for Aging and Disability Services stated the Secretary at the April meeting regarding the the MCOs had committed to three years. The LTSS transition and outlining provider payments, DHCF Director confirmed the same and clarified percent of claims denied, average turn-around time it was a three-year contract with two possible one- from claim submission to payment, reasons for year extensions, as determined by the state. With claim denials, education and outreach efforts, regard to whether the MCOs and the state were client obligation issues, and the process used to required to renegotiate after the initial three years, address the underserved I/DD waiting list. the Secretary stated rates were renegotiated every year, so at the end of the base contract the parties MCO financial losses during the first year would have to renegotiate the entire contract and of KanCare. At the April meeting, a Committee the rates. member posed questions regarding the financial losses experienced by the three MCOs during the The KDHE Director of Finance provided first year of KanCare and whether KDHE had a information shortly after the November meeting back-up plan if one of the MCOs pulled out of regarding the improved financial status of the KanCare. The Secretary of Health and MCOs during the first two quarters of calendar Environment stated the first year was expected to year 2014. be more costly, but the second and third years were expected to improve. He also noted the state KanCare Ombudsman. The Secretary for chose to contract with three MCOs to avoid some Aging and Disability Services updated the issues that occurred in other states when an MCO Committee on the organizational structure of the pulled out. Office of the KanCare Ombudsman at the January meeting. He noted the KanCare Ombudsman Representatives of the MCOs expressed would continue to be housed in KDADS and knowing at the start of KanCare the first-year costs would be independent from the MCOs and KDHE. might be an issue and loss could be expected, so He stated a Volunteer Director would be added in contingencies were put in place. The Chief the Ombudsman Office to develop a volunteer Executive Officer of Amerigroup stated one factor network across the state. contributing to the first-year losses by the MCOs was upfront costs due to “pent-up demand.” The The KanCare Ombudsman provided an update Sunflower Chief Executive Officer and Plan of statistics on case data and resolutions at the President indicated he usually expected it to take January meeting. He also informed the Committee about 18 months, assuming a good start, for a of a KanCare customer survey to be completed by program like KanCare to make money. Because
Kansas Legislative Research Department 4-7 2014 HCBS and KanCare Oversight Wichita State University, and some of the Group (TAG), which included representatives of proposed questions were included in his testimony. the KHA, the three MCOs, and KDHE. He noted the TAG addressed systemic issues hospitals were The new KanCare Ombudsman reviewed the seeing in the field, including a current issue KanCare Ombudsman Quarterly Report for the regarding accounts receivable that were more than first quarter of calendar year 2014 at the April 90 days past due. His written testimony included meeting. She reported the focus had been on statistics regarding this issue. accessibility and outreach, including revising the KanCare Ombudsman website. She noted the One Committee member expressed concern KanCare Ombudsman Office was in the process of the data in the KanCare Executive Summary hiring a volunteer coordinator, who would be indicated Sunflower, which was the major responsible for creating a volunteer program provider in the member’s district, seemed to have across the state. The KanCare Ombudsman also a negative upward trend in denied claims. The provided information on the Ombudsman’s role in DHCF Director responded the agency had the appeals process. discussed this matter with Sunflower, and she expected improvement. She responded the agency The KanCare Ombudsman provided continued to meet regularly with all of the MCOs Committee members with an update of office to discuss these issues and to develop corrective activities at the August meeting. She stated new action plans. tracker information was implemented in early June 2014 that would allow her to provide additional The Committee member asked why none of data in future reports. She also noted an the MCOs had met the measure regarding claims Ombudsman Volunteer Coordinator had been hired processing timelines and said it seemed to be a and would start within a couple of weeks. She problem. The DHCF Director replied each MCO provided an update on the third-quarter statistics at had different claims processing projects in place the November meeting. and KDHE was working to remedy the problem.
Provider reimbursement. With regard to A Committee member asked the Chief claims denials and increased timeliness of Executive Officer and Plan President of Sunflower payments, at the April meeting the Secretary for State Plan about the status of hospital Aging and Disability Services indicated the reimbursement. He responded accounts receivable agency was working closely through weekly issues mostly were resolved. He further indicated telephone calls with various stakeholders and with the other piece that was helping was the TAG outreach, training, and other matters. The group. Secretary stated denial rates and historical payment rates would continue to be monitored for Community Developmental Disability discrepancies. Organizations services. At the April meeting, the Secretary for Aging and Disability Services was In response to whether the change in rate asked to address the Legislative Post Audit (LPA) adjustments to semi-annual from quarterly being Community Developmental Disability considered for nursing homes was being Organization (CDDO) audit and the reworking of considered for other providers, the Secretary for the grant so as to draw down federal dollars to Aging and Disability Services stated consideration provide services to more of the DD community. was being given to making the rate adjustment The Secretary responded $5.0 million SGF was consistent for all providers. available to be used for persons who were Tier 0 DD-qualified, and there was ongoing discussion Hospital claims. At the August meeting, the about using $2.0 million to $3.0 million of these Committee heard concerns regarding hospital funds to draw down waivers that would result in claims processing timelines and delayed payments receipt of federal funds. He indicated he would of accounts receivable. A representative of the report back at the Committee meeting scheduled Kansas Hospital Association (KHA) discussed the for August 2014. KanCare Implementation Technical Advisory
Kansas Legislative Research Department 4-8 2014 HCBS and KanCare Oversight A Committee member noted at the April the MCOs to facilitate the members’ ability to meeting the LPA CDDO audit also discussed the remain in their homes, additional hours of care possibility of reducing the number of CDDOs to received, benefits provided to assist with weight align more closely with the number of Aging and loss, newly-added lung and heart transplant Disability Resource Centers (ADRCs) and asked surgeries and bariatric surgery, support provided in whether this had been discussed. The Secretary for addressing both physical and mental health Aging and Disability Services responded there problems, and appreciation for the MCOs’ goal of were 11 ADRCs and 27 CDDOs, but he was not finding employment for persons with disabilities. aware of any dialogue about adjusting the number of CDDOs. He further stated he would be hesitant Difficulties described by KanCare members to consider that at a time with many other ongoing and those on the waiting list for services included changes. the inability to obtain information regarding the basis for reductions in plans of care hours; lack of The Acting Secretary for Aging and Disability knowledge regarding the status of individuals on Services was asked at the August meeting about the waiting lists; difficulty navigating the system any discussion regarding the shifting of CDDO and administrative burdens; medication, treatment, grant funds to address the waiting lists, and she and extension of treatment denials; provider and replied it was not part of the ongoing conversation supply company changes; difficulty in with the CDDOs. understanding and navigating the appeals process; the type and limitations of the assistance provided A Principal Auditor with LPA briefed by the KanCare Ombudsman, including concerns members on the audit titled CDDOs: Reviewing about the placement of the Ombudsman Office; Issues Related to Community Services Provided the lack of dental care for individuals with I/DD; for Individuals with Developmental Disabilities and feeling intimidated by a care coordinator. (R-14-006). The auditor noted the report looked at two questions: whether the CDDOs have a Representatives of the following organizations substantial conflict of interest and how those and providers testified or provided written conflicts could be resolved, and how the testimony before the Committee at the four community services system could be changed to meetings: Kansas Home Care Association; Kansas maximize the amount of funding available to Council on Developmental Disabilities; provide services for individuals with DD. He LeadingAge Kansas; Newman Regional Health; indicated there was an inherent conflict of interest Children’s Mercy Hospital; Hillside Village, LLC; built into the system, but the audit did not find any Community Living Opportunities; Phoenix Home evidence CDDOs took advantage of the conflict. Care; Kansas Association of Centers for He indicated KanCare added oversight but did not Independent Living; Disability Rights Center; eliminate the inherent conflict of interest. The Briar Payne Meade Insurance; Johnson County auditor also stated the audit found steps could be Commission on Aging; Vintage Park Assisted taken to make the system more efficient. Living Facility; KHA; Kansas Action for Children; E.C. Tyree Health and Dental Clinic; Kansas Presentations on KanCare from individuals, Health Consumer Coalition; InterHab; Kansas providers, and organizations. The Committee Advocates for Better Care; Topeka Independent heard from multiple KanCare beneficiaries Living Resource Center; Kids TLC; Mercy Home regarding both favorable experiences and Care; AARP Kansas; Mosaic; Jenian, Inc.; Kansas difficulties faced in navigating the system. Neurological Institute Parent Guardian Group; Kansas Health Care Association; Oral Health Positive experiences were described by Kansas; Association of Community Mental Health multiple individuals receiving KanCare services. Centers of Kansas; Kansas Mental Health Among the favorable testimony heard were Coalition; National Alliance on Mental Illness comments related to the ease of navigating the Kansas; and Mental Health America of the process, valuable assistance provided by the Heartland. support teams and case manager, MCOs’ efforts at keeping members informed, services provided by Some organizations and providers praised KDHE and KDADS for the agencies’ willingness
Kansas Legislative Research Department 4-9 2014 HCBS and KanCare Oversight to work with them on issues that arose. The MCOs waiver to the FE waiver at age 65, resulting in the also received praise for their cooperative efforts direct care worker receiving a reduction in pay from organizations and providers, though some because reimbursements under the FE waiver are expressed difficulty with particular MCOs. It was lower than under the PD waiver. suggested greater latitude should be provided to the MCOs to be able to manage the care. Several Use of anti-psychotic drugs as chemical providers indicated progress had been made with restraints of elders with dementia. The payment issues, but encouraged continued Executive Director of Kansas Advocates for Better oversight. Other providers stated they had no Care testified at the August meeting regarding the issues with payments. need to address the use of anti-psychotic drugs as chemical restraints in the treatment of dementia in Various areas of concern or need expressed by the elder population. She noted Kansas was 47th organizations and providers included the potential out of 50 states in the use of anti-psychotic drugs. loss of needed services to a number of individuals The Executive Director stated the use of anti- on the PD waiting list because KDADS had been psychotic drugs for elders with dementia was not unable to contact them; confusion in navigating authorized, and the rest of the nation as a whole the process and the members’ lack of knowledge had reduced the use of anti-psychotic drugs, while as to available assistance; the limited nature of the the use in Kansas had increased. assistance provided by the KanCare Ombudsman; the proposed allocation of designated PD waiting At the August Committee meeting, the DHCF list funds to address the I/DD underserved waiting Director stated there was a state statute that would list; difficulty with the I/DD pilot billing system not allow KDHE to manage behavioral health and its impact on small providers with limited cash medicine, and she suggested the Legislature look flow; notice and due process problems, including at that issue during the 2015 Session. The misinforming or the failure to inform recipients of Secretary of Health and Environment added anti- reductions in services; increased costs and psychotic drugs were on a list used by the medical financial burdens for providers; problems with field that included drugs which may be more accounts receivable, slow payments, denials, and harmful to elderly people than others. He stated it inaccurate payments; challenges facing Financial was generally recommended anti-psychotics not Management Services (FMS) providers, such as be used for elders with dementia, but physicians the cost prohibitive nature of increasing worker’s may feel there were no other options and would compensation insurance and the inability to find use them although they would be going against the coverage with the standard insurance market; the general guidelines of care. The Acting Secretary need for more KanCare reports; concerns the PD for Aging and Disability Services stated, while waiver money may be affected in light of possible Kansas was doing very well on elder care overall, budget cuts and the impact of the U.S. Department KDADS was working across organizations on this of Labor (DOL) rule; the need for management particular issue. and control of waiting lists to be with the Centers for Independent Living; providing consumers who The Chief Executive Officer and Plan wanted to testify before the Committee with more President for Sunflower State Health Plan also time to speak; the need for support for older expressed concern about the use of anti-psychotic adults; concerns as to the use of anti-psychotic drugs and indicated he would like to see the state drugs as chemical restraints in the treatment of manage them. He indicated he had been talking to dementia in the elder population; ensuring the doctors about issues with the use of anti-psychotic availability of anti-psychotics for use in the drugs, and they had been very receptive. treatment of mental illness; the need for increased reimbursement rates for HCBS professional staff At the August meeting, the Chief Executive providing services and supports to those with Officer of Amerigroup Kansas Plan said the MCO disabilities; concern with the new DOL rules; the was in the process of looking at the frequency of need for expanded dental care for adults; request prescriptions by prescriber and geography with for enrollment data to be published monthly to regard to the use of anti-psychotic drugs, enable closer tracking of trends; and the particularly as it applied to children and the requirement to move individuals from the PD elderly.
Kansas Legislative Research Department 4-10 2014 HCBS and KanCare Oversight Agency responses to presentations by MCO testimony and responses to individuals, organizations, and providers. The presentations by individuals, organizations, and DHCF Director addressed concerns expressed providers. Representatives of the three MCOs regarding the appeals process during the January testified at the four Committee meetings. At the meeting. She indicated an inter-agency team was January meeting, representatives of the working on uniform language for the three MCOs Amerigroup Kansas Plan, Sunflower State Health to include in their notices and handbooks, with Plan, and UnitedHealthcare provided an update of stakeholder input to ensure language was each MCO’s experience during the first year of understandable, and the team also planned to KanCare. The representatives discussed the clarify other issues raised about the appeals preparation and readiness for inclusion of LTSS process. During the April meeting, she stated for the I/DD population, efforts taken to ensure no KDHE had worked with the MCOs and CMS to harm was caused to providers due to cash flow, develop one uniform Notice of Action form to be and the commitment to making the appeals and used by all MCOs to help avoid issues with access grievance process less confusing. to appeals and state fair hearings. A copy of the uniform notice was provided. The Chief Executive Officer of Amerigroup shared stories of individuals who had received With regard to issues expressed by providers, beneficial services under KanCare and the at the April meeting the DHCF Director noted implementation of hospital operational KDHE worked on a Provider Experience enhancements in response to concerns expressed Improvement Project to resolve provider-specific by the KHA at a previous meeting. The Chief issues. Executive Officer and Plan President of Sunflower State Health Plan discussed efforts to improve care During the August meeting, the DHCF for the individuals being served, especially in the Director addressed concerns regarding redaction area of diabetic care and treatment for alcohol and of information in KanCare reports. She noted other drug disorders. The Plan President of KDHE had to take into account the sample size of UnitedHealthcare discussed member programs and the data because, if the sample size was too small, engaging members in their own health, such as individuals might be identified. The DHCF encouraging pregnant mothers to complete Associate Chief Counsel expressed KDHE’s desire prenatal exams and adopt healthy habits and a to have the reports as transparent as possible. community-based weight management program. However, with regard to the timeliness of the He also shared information on a three-year $1.5 agency’s response to requests for information, the million commitment focused on finding Associate Chief Counsel noted KDHE had meaningful employment for the DD population. received requests for dozens and dozens of reports following the April Committee meeting, and the The representatives of the MCOs were asked volume of the requests had made it difficult to about each company’s policy of pursuing refunds respond quickly. He also noted the state and the from consumers who appealed decisions and MCOs had worked together to determine what maintained services pending the appeal, but should be redacted from the reports and believed ultimately lost the appeal. Confirmation was the information needed by the requestors would be subsequently provided that none of the MCOs available, but KDHE was glad to meet with sought refunds from members who lost on appeal. persons to discuss what had been redacted and work with the persons if they wanted to contest the At the August meeting, the Chief Executive redactions. Officer and Plan President of Sunflower State Plan responded to concerns expressed about At the August meeting, the DHCF Director Sunflower’s higher claim denial rate. He stated the informed the Committee KDHE had a request for higher denial rate was due to prescription drugs the reprocurement of the Medicaid management consumers attempted to refill prior to refill information system and the reprocurement of the eligibility, as each of these would show up as a data analytics interface, and part of that would denial. He indicated Sunflower’s denial rate include making available a public dashboard on without the medications was about eight percent. the website with information about KanCare. In response to a Committee member’s question
Kansas Legislative Research Department 4-11 2014 HCBS and KanCare Oversight regarding what made Sunflower different from the human services caseload expenditures for FY 2015 other two MCOs who also had prescription was an increase of $106.6 million from all funding medications, he responded Sunflower filled more sources and $46.2 million from SGF. She noted prescriptions than the other MCOs. the estimate for FY 2016 was an increase of $126.4 million from all funding sources and $76.6 The three MCOs provided updates at the from the SGF above the FY 2015 revised estimate. November meeting regarding achievements for the She stated the estimate for FY 2017 was an year. The Chief Executive Officer of Amerigroup increase of $31.9 million from all funding sources reported the MCO moved 119 persons from and $44.5 million from the SGF above the FY institutional care back into the community and 2016 estimate. The combined estimate for FY another 68 persons transitioned to employment. 2015, FY 2016, and FY 2017 was an all-funds She also noted seeing overall reductions in increase of $265.9 million and a SGF increase of emergency care and a decrease in in-patient $167.3 million. admissions for chronic care situations. The KLRD staff member noted the estimate Human Services Consensus Caseload for TAF in the FY 2015 revised estimate was a Spring Estimates. At the April meeting, a Kansas decrease of $200,000 from all funding sources and Legislative Research Department (KLRD) staff $3,437,508 from the SGF expenditures from the member presented an overview on the Human amount approved by the 2014 Legislature. She Consensus Caseload Estimates for FY 2014 and indicated the all funds decrease was due to a series FY 2015. She stated the combined impact for all of policy changes which began in fall 2011 and human services caseloads for both years is an all- resulted in a declining TAF population, and the funds increase of $38.0 million and an SGF SGF reductions were the result of meeting the decrease of $30.4 million. For FY 2014, the federal maintenance of effort requirements through revised estimate was a decrease of $17.1 million other allowable expenditures, mainly the from all funding sources and $24.5 million in SGF. refundable portion of the Earned Income Tax For FY 2015, the estimate is an all-funds increase Credit. of $55.2 million and a SGF decrease of $6.0 million, as compared to the Governor’s The KLRD staff member explained the recommended budget. estimate for contracted foster care services was anticipated to decrease by $300,000 from all In response to questions regarding the funding sources, and increase by $10.2 million decrease in funding for Temporary Assistance to from the SGF. She noted there was an ongoing Families (TAF) in spite of an increase in the conversation with the federal Administration for number of poor Kansans, a KLRD staff member Children and Families regarding expenditures explained policy changes had been implemented from the Title IV-E foster care funding source. The over the past couple of years regarding eligibility final decisions on the issue were not anticipated in for the TAF program, and the estimates would calendar year 2014, and the estimate for FY 2014 reflect those changes and any changes in law. The included the addition of $13.1 million, all from Committee was reminded the Spring Consensus SGF, to provide adequate cash flow to the Caseload Estimates are displayed as changes to the program. Fall estimates and may not indicate a decrease or increase in actual numbers. Requirements for TAF In addition, the KLRD staff member reported eligibility and the inability to precisely determine the FY 2015 estimate for KanCare Medical is $2.7 the amount of the caseload estimate attributable to billion from all funding sources, including $1.0 the woodwork effect also were discussed. billion from the SGF, reflecting an increase of $108.4 million from all funding sources and $39.0 Human Services Consensus Caseload Fall million from the SGF above the amount approved Estimates. At the November meeting, a KLRD by the 2014 Legislature. She noted the increase in staff member presented an overview on the Human KanCare Medical was largely attributable to a Consensus Caseload Estimates for FY 2015, FY slight growth in the population served and the 2016, and FY 2017. She reported the estimate on costs associated with the ACA insurerʼs fee
Kansas Legislative Research Department 4-12 2014 HCBS and KanCare Oversight included in the capitated rate payment (except for setting from an institutional setting and the bed is long-term care services and supports which are closed. As a result, she noted, despite individuals excluded from the federal requirements). The moving into community settings, which does have KDADS KanCare estimate included an addition the effect of cost avoidance, the current balance in for payments to the MCOs for mental health the KDADS HCBS Savings Fund was $0 (as of assessments for both the current year and prior November 13, 2014). years, which had not been previously included in the capitation payments. She stated the estimate The quarterly report provided at the November included funding from the Problem Gambling and meeting indicated during the fourth quarter of FY Addictions Grant Fund. 2014, 8,734 Kansans received I/DD waiver services per month. Also during the fourth quarter A Committee member asked for clarification of FY 2014, on average 5,443 Kansans received on FY 2017 estimates, with a rise of $21.0 million HCBS PD waiver services per month, 5,280 between FY 2016 and FY 2017, and the difference received HCBS FE waiver services per month, and between the All Funds and SGF. The KLRD staff 577 received HCBS Traumatic Brain Injury (TBI) member responded the report showed a change waiver services. from the FY 2016 estimate, which could be the result of Federal Medical Assistance Percentage At the November meeting, the Secretary for (FMAP) changes in 2016. Aging and Disability Services discussed Osawatomie State Hospital, which had a review by In clarifying the formula for FMAP, the staff CMS surveyors during which deficiencies were member stated the complicated formula was identified that required correction. She noted the developed and used by the federal government, hospital would be resurveyed by December 8, and it not only looked at Kansas numbers but how 2014. The Secretary explained Osawatomie also Kansas compared to other states. She noted the has had an issue with being over census as formula came from CMS, and additional compared to the license level. She stated one of information may be obtained from CMS. the challenges was, over the past few years, some community hospitals in Kansas and the The staff member responded to a request for surrounding region that had adult psychiatric beds clarification on the major areas driving changes in either were closing whole units or reducing the FY 2016, indicating the major areas were the number of beds. The Secretary noted this FMAP, the ACA insurer’s fee, and the extra week increased the pressure on the state hospitals. She of payments in FY 2016. She also indicated the addressed some of the steps being taken to deal IV-E funding was decreasing in FY 2016 because, with the census issue. A Committee member in FY 2015, the federal government withheld a expressed concern Medicare payments could be portion of the funds normally provided to the state terminated based on the deficiencies. and, for purposes of the report, an assumption was made the issue would be resolved by FY 2016. In Waiting list reduction. The Secretary for addition, she responded to a question about the Aging and Disability Services stated at the April DOL ruling, stating the ruling was not factored meeting an additional $52.6 million had been into the estimates. invested in the PD, DD unserved, and DD underserved waiting lists. He noted his staff was Quarterly HCBS report. At each Committee continuing efforts to verify current waiting list meeting, the Secretary for Aging and Disability information. He confirmed the state had agreed Services provided information on average monthly with CMS that, when DD LTSS were rolled into caseloads and average census for state institutions KanCare on February 1, 2014, part of the and long-term care facilities, savings on transfers transition plan would include elimination of the to HCBS waivers, and the HCBS savings fund DD underserved list. The Secretary stated at the balance. With regard to the savings fund balance August meeting the HCBS DD underserved list and money saved on transfers to the HCBS waiver, had been eliminated. the Secretary noted HCBS savings are realized only when an individual is moved to a community
Kansas Legislative Research Department 4-13 2014 HCBS and KanCare Oversight An update on efforts to reduce the waiting lists Kansas residents separating from military was provided by the Secretary for Aging and service and receiving Tricare Echo, with Disability Services at the November meeting. As the ability to receive HCBS and bypass of the meeting date, in calendar year 2014, the waiting list, if applicable. KDADS has offered services to more than 1,200 individuals on the PD waiting list (excluding The Secretary for Aging and Disability individuals in crisis) and would continue to make Services responded to concerns expressed at the offers to reach a target of 6,092 on the PD waiver November meeting about the requirement to move by the end of the year. She outlined the process individuals from the PD waiver to the FE waiver KDADS uses to contact individuals on the waiting at age 65. She stated this was proposed in the list, and the assistance provided through the waiver renewal, which was still out for public eligibility process for those who accepted PD comment. She also added the proposal services. The Secretary noted the MCOs had grandfathers those above 65 years of age currently assessed every individual on the PD waiting list. on the PD waiver, so it would apply only to those She stated, in 2014 through October, 167 who turn 65 years of age in the future. previously unserved PD waiting list consumers had been placed on HCBS services. U.S. Department of Labor HCBS setting rule. At the April meeting, the Secretary for Aging HCBS waiver renewal applications. At the and Disability Services provided information on August and November meetings, the Secretary for new HCBS rules from CMS effective March 17, Aging and Disability Services provided updates on 2014. He indicated his staff was working on a the renewal applications for I/DD, FE, and TBI transition plan because the rules would impact waivers. She noted CMS granted a temporary several areas, including changes in the extension on these waivers until December 31, characteristics for HCBS settings that might 2014. Public comment sessions on the proposed preclude any nursing home from having an changes to the waiver applications were held both assisted living facility in the same building. in person and by conference call. The public comment period was open until December 20, At the August meeting, the Secretary for 2014. A summary of transition plans and proposed Aging and Disability Services discussed the new changes to the HCBS programs could be found on DOL HCBS settings rule, which was intended to the KDADS website. ensure HCBS services were delivered in community-based settings and were not The Secretary provided a summary of the community-based in name only. She also proposed changes included in the waiver renewal expressed concern about a DOL ruling that applications at the November meeting, as follows: potentially would have significant impact on direct service workers serving HCBS self-directed ● A standardized definition of personal care clients in Kansas. The Secretary noted, in Kansas, services and clarification of informal the FMS model had provided administrative supports and the capable person policy; support to self-directed consumers (tax id number, workers compensation, and other administrative assistance), and the new rules changed the ● Standardized requirements for background definition of “employer” in a manner that would checks and adopting standard prohibited impact consumer choice and flexibility for direct offenses; support workers. ● A multi-functional eligibility instrument which was in the testing phase and review phase and a study of the Basic Assessment and Services Information System (BASIS) assessment which is to take place in 2015; and
● The creation of a military exception for
Kansas Legislative Research Department 4-14 2014 HCBS and KanCare Oversight The Secretary stated at the August meeting According to testimony provided by the KDADS had asked the DOL to delay Secretary for Aging and Disability Services at the implementation of the rule and requested an November meeting, the DOL announced on exemption specifically for Kansas self-directed October 7, 2014, its plan to not enforce the rule consumers. She indicated approximately 14,500 changes between January 1, 2015, and June 30, direct care workers would be impacted by the new 2015. She noted, except for egregious rule. The Secretary also noted the changes could circumstances, “back wage” liability is likely to result in a future budget impact, but how much and extend back to the effective date of enforcement, when was unknown. rather than to January 1, 2015.
The Secretary responded to a question at the Conflict of interest. A parent expressed August meeting regarding the effect on sleep-cycle concern at the November meeting regarding what support services if direct care workers were he deemed as a potential conflict of interest, as the limited to 40 hours or less per week by clarifying organization charged with saving money currently sleep-cycle support currently was not paid on an also determined the level of care provided. He hourly rate and that would change with the new noted the need to return to a disinterested third rule, so costs would be higher. The Secretary party who determined the level of care needed. stated there would need to be more attendants, so The individual also noted if he did not declare additional workers would have to be recruited. himself a guardian, he could not make decisions for his son but, if he declared himself a guardian, The Chief Executive Officer of Amerigroup he disqualified himself from the ability to Kansas Plan responded to questions regarding the determine the level of care his son received. DOL rulings, specifically sleep-cycle support at the August meeting. She noted sleep-cycle support The Secretary for Aging and Disability was paid by the case rate at a set fee and the Services stated at the November meeting the support could go from six to ten hours because the agency was looking at setting up a system with a care provider was allowed to sleep during that third party with guardian-like responsibilities who time. She indicated if the care providers would be could sign off on the plan of care. She noted this required to be paid an hourly rate instead of a case model already exists in other states and would rate, the cost of such support would really allow guardians to provide services. The Secretary increase. proposed using elements of the Oregon model.
At the November meeting, the Secretary for In response to questions regarding MCO Aging and Disability Services stated a hybrid FMS conflicts of interest expressed at the November model has been proposed to CMS that allows meeting, the Amerigroup Chief Executive Officer some features of Agency with Choice and Vendor indicated there were checks and balances in the Fiscal/Employer agent models. She noted one system and internal processes that looked for large model would be chosen on the waiver application, variances in support, and service coordinators did but elements of both would be described. The not benefit directly from services they approved or Secretary stated the new model would require the denied. She noted, while the MCO determined beneficiary or client to make decisions on worker who was paid, there was no benefit to the MCOs funds (range of pay, hourly rate, bonuses, and to deny services or claims. similar matters), while FMS agents would be asked to offer information and assistance. She also Historical spending for HCBS waivers and stated consumers would be required to obtain historical waiting lists. At the April meeting, a Federal Employer Identification Numbers. The KLRD staff member reviewed HCBS waiver FMS workgroup is to propose a transition plan to expenditures from all funding sources and from KDADS to comply with Internal Revenue Service SGF for FY 2008 through the agency’s estimate procedural requirements, with proposed for spending for FY 2015. She also reviewed the implementation by June 1, 2015. HCBS Historical Waiting List for each fiscal year and each Omnibus period from 2008 through 2014. With regard to Omnibus 2014 data, the staff
Kansas Legislative Research Department 4-15 2014 HCBS and KanCare Oversight member noted the most recent numbers available Hearings to Review the Legislative Post Audit for the waiting list from KDADS were for a varied Report on CDDOs time frame: the HCBS/DD numbers were as of December 2013; the PD numbers were estimated, The Committee recommends separate hearings as KDADS indicated the individuals on the be scheduled during the 2015 Legislative Session waiting list were undergoing verification; and the before the House Social Services Budget autism waiver waiting list number was as of April Committee and the Senate Committee on Ways 15, 2014. and Means’ Social Services Subcommittee to address the March 2014 Legislative Post Audit Federal Health Insurance Marketplace Report, CDDOs: Reviewing Issues Related to update. Information was provided by Community Services Provided for Individuals with representatives of the Kansas Insurance Developmental Disabilities (R-14-006). Department (KID) at each of the Committee meetings updating the members on the federal Software Issues Regarding Data Accuracy and Health Insurance Marketplace. At the April Reporting on Waiting Lists meeting, the KID Special Counsel and Director of Health Care Policy and Analysis noted the quality The Committee recommends a meeting of the of the federal exchange website and the enrollment Joint Committee on Information Technology be data being sent to the insurers was improving, held to review software issues regarding data although there continued to be some cases in accuracy and reporting on the waiting lists. The which the process was not working smoothly. Committee noted concerns with the agency’s ability to provide accurate data and reporting on waiting lists and expressed it was important to CONCLUSIONS AND RECOMMENDATIONS investigate the issue.
Based on testimony heard and Committee Anti-psychotic Medications deliberations, the Robert G. (Bob) Bethell Joint Committee on Home and Community Based The Committee recommends separate hearings Services and KanCare Oversight makes the be scheduled during the 2015 Legislative Session following conclusions and recommendations: before the House Committee on Health and Human Services and the Senate Committee on Committee Meeting Days Public Health and Welfare to consider the repeal of KSA 2014 Supp. 39-7,121b for the purpose of The Committee recommends meeting twice allowing Kansas Medicaid to manage anti- during the legislative session and twice when the psychotic medications like other drug classes. Legislature is out of session in different quarters, as required by statute, with the non-session Proposed Legislation meetings to be for two days each. The Committee did not propose legislation for consideration during the 2015 Legislative Session.
Kansas Legislative Research Department 4-16 2014 HCBS and KanCare Oversight ADDENDUM A
ROBERT G. (BOB) BETHELL JOINT COMMITTEE ON HOME AND COMMUNITY BASED SERVICES AND KANCARE OVERSIGHT
ANNUAL REPORT FOR THE 2015 LEGISLATIVE SESSION
The Robert G. (Bob) Bethell Joint Committee on Home and Community Based Services and KanCare Oversight is charged by statute to submit an annual written report on the statewide system for long-term care services to the President of the Senate and the Speaker of the House of Representatives at the start of each regular legislative session. The authorizing legislation (KSA 2014 Supp. 39-7,159) creating a comprehensive and coordinated statewide system for long-term care services became effective July 1, 2008.
The Committee’s annual report is to be based on information submitted quarterly to the Committee by the Secretary for Aging and Disability Services. The annual report is to provide:
● The number of individuals transferred from state or private institutions to home and community based services (HCBS), including the average daily census in state institutions and long-term care facilities;
● The savings resulting from the transfer of individuals to HCBS as certified by the Secretary for Aging and Disability Services; and
● The current balance in the Home and Community Based Services Savings Fund.
The following table and accompanying explanations are provided in response to the Committee’s statutory charge.
Number of individuals transferred from state or private institutions to home and community based services including the average daily census in state institutions and long-term care facilities:
Number of Individuals Transferred – The following table provides a summary of the number of individuals transferred from developmental disability (DD) institutional settings into home and community based services during state fiscal year 2014, together with the number of individuals added to home and community based services due to crisis or other eligible program movement during state fiscal year 2014. The following abbreviations are used in the table:
● ICF/MR — Intermediate Care Facility for the Mentally Retarded ● SMRH — State Mental Retardation Hospital ● MFP — Money Follows the Person program ● SFY — State Fiscal Year
Kansas Legislative Research Department 4-17 2014 HCBS and KanCare Oversight DD INSTITUTIONAL SETTINGS AND WAIVER SERVICES*
Private ICFs/MR: Avg. Mo. Caseload SFY 2014 143 State DD Hospitals – SMRH: Avg. Mo. Caseload SFY 2014 321 MFP: Number discharged into MFP program - DD 24 I/DD Waiver Community Services: Avg. Mo. Caseload SFY 2014 8,734
*Monthly averages are based upon program eligibility. Sources: SFY 2014 – Medicaid eligibility data as of November 10, 2014. The data includes people coded as eligible for services or temporarily eligible.
The following table provides a summary of the number of individuals transferred from nursing facility institutional settings into home and community based services during state fiscal year 2014. These additional abbreviations are used in the chart:
● FE – Frail Elderly Waiver ● PD – Physical Disability Waiver ● TBI – Traumatic Brain Injury Waiver
FE / PD / TBI INSTITUTIONAL SETTINGS AND WAIVER SERVICES*
Nursing Homes-Avg Mo Caseload SFY 2014 10,746 MFP FE: Number discharged into MFP program receiving FE Services 37 MFP PD: Number discharged into MFP program receiving PD Services 107 MFP TBI: Number discharged into MFP program receiving TBI Services 11 Head Injury Rehabilitation Facility 28 FE WAIVER: Avg. Mo. Caseload SFY 2014 5,280 PD WAIVER: Avg. Mo. Caseload SFY 2014 5,443 TBI WAIVER: Avg. Mo. Caseload SFY 2014 577
*Monthly averages are based upon program eligibility. Sources: SFY 2014 – Medicaid eligibility data as of November 10, 2014. The data includes people coded as eligible for services or temporarily eligible.
Kansas Legislative Research Department 4-18 2014 HCBS and KanCare Oversight Average Daily Census in State Institutions and Long-Term Care Facilities
Kansas Neurological Institute: Avg. Daily Census FY 2010 – 157 FY 2011 – 153
FY 2012 – 152
FY 2013 – 145
FY 2014 – 143
Parsons State Hospital: Avg. Daily Census FY 2010 – 186 FY 2011 – 186
FY 2012 – 175
FY 2013 – 176
FY 2014 – 174
Private ICFs/MR: Monthly Avg. FY 2010 – 194 FY 2011 – 188
FY 2012 – 166
FY 2013 – 155
FY 2014 – 143
Nursing Facilities: Monthly Avg. FY 2010 – 10,844 FY 2011 – 10,789
FY 2012 – 10,761
FY 2013 – 10,788
FY 2014 – 10,787
*Monthly Averages are based upon Medicaid eligibility data.
Savings Resulting from the Transfer of Individuals to HCBS
The “savings” through Money Follows the Person are realized only if and when an individual is moved into a community setting from an institutional setting and the bed is closed. This process would result in a decreased budget for private ICFs/MR and an increase in the MR/DD (HCBS/DD) Waiver budget as a result of the transfers.
For nursing facilities and state ICFs/MR, the process is consistent with regard to individuals moving to the community. The difference is seen in “savings.” As stated above, savings are seen only if the bed is closed. In nursing facilities and state ICFs/MR, the beds may be refilled when there is a request by an individual for admission that requires the level of care provided by that facility. Therefore the beds are not closed. Further, even when a bed is closed,
Kansas Legislative Research Department 4-19 2014 HCBS and KanCare Oversight only incremental savings are realized in the facility until an entire unit or wing of a facility can be closed.
As certified by the Secretary for Aging and Disability Services, despite individuals moving into community settings which does have the effect of cost avoidance, the savings resulting from moving the individuals to home and community based services, as of November 13, 2014, was zero dollars.
Current Balance in the KDADS Home and Community Based Services Savings Fund
The balance in the Kansas Department for Aging and Disability Services Savings Fund as of November 13, 2014, was zero dollars.
Kansas Legislative Research Department 4-20 2014 HCBS and KanCare Oversight COMMISSIONS, COMMITTEES, AND OTHER
Report of the Capitol Preservation Committee to the 2015 Kansas Legislature
CHAIRPERSON: Jennie Chinn, State Historical Society
SENATE PRESIDENT’S APPOINTEES: Senator Elaine Bowers; Ryan Gilliland
HOUSE SPEAKER’S APPOINTEES: Wade Hapgood; Lana Gordon, Secretary of Labor
SENATE MINORITY LEADER’S APPOINTEE: Tim Graham
GOVERNOR’S APPOINTEES: Landon Fulmer; Dr. Richard Kyle; Peggy Palmer
HOUSE MINORITY LEADER’S APPOINTEE: Representative Valdenia Winn
OTHER MEMBERS (EX OFFICIO): Barry Greis, Statehouse Architect; Peter Jasso, Kansas Creative Arts Industries Commission
CHARGE
● Finalize guidelines and request forms for temporary exhibits; ● Finalize guidelines and request forms for permanent displays, artwork, and architectural modifications; ● Select finalists for the Brown v. Board mural; and ● Consider submitted requests.
January 2015 Capitol Preservation Committee
REPORT
Conclusions and Recommendations
● The Committee makes no conclusions or recommendations.
Proposed Legislation: None.
BACKGROUND testimony about new information kiosks for the Visitor Center, received mural proposals, reviewed The Capitol Preservation Committee was draft request forms, and listened to a proposal to created by the Legislature in 2010 to: approve install a new plaque in the Capitol. renovation proposals in all areas of the Capitol, the Visitor Center, and the Capitol grounds to insure Information Kiosks for the Visitor Center that the historical beauty of the areas are preserved; preserve the proper décor of those The State Archivist with the Historical Society areas; ensure that any art or artistic displays are reported on the status of two electronic kiosks for historically accurate and have historic the Visitor Center. The kiosks, which were funded significance; approve the location and types of by a grant from the Information Network of temporary displays; and to oversee the Kansas, will assist visitors to navigate the building reconfiguration or redecoration of committee and learn about the functions of the Capitol. The rooms within the Capitol. As provided by KSA 75- kiosks will be a self-service information portal to 2269, the Division of Legislative Administrative be used by visitors and will serve as a supplement Services has the responsibility to implement the to the information desk staff. Four applications— recommendations of the Committee. consisting of building directory, calendar, find your legislator, and highlights tour—will be The Committee has 12 members, with the included in the kiosks. The target completion date Governor appointing three, the President of the is January 5, 2015. Senate and the Speaker of the House each appointing two, and the Minority Leaders of the Draft Forms to Request Changes at the Capitol House and Senate each appointing one. The Committeeʼs three ex-officio members are the The Committee reviewed the two draft forms, Statehouse Architect, the Executive Director of the the Request for Approval of Commissioned or Kansas State Historical Society (Historical Donated Exhibit or Artwork for Permanent Society), and the Director of the Creative Arts Display form and the Request for Approval of Industries Commission. The Governor has the Architectural Modifications form, which would be authority to appoint the chairperson from amongst used by the Committee when considering future the Committee’s membership. proposals. The forms reconcile current law regarding the responsibilities of the Legislature through the Legislative Coordinating Council, COMMITTEE ACTIVITIES Legislative Administrative Services, the Secretary of Administration, and the Capitol Preservation The Capitol Preservation Committee met on Committee. The Committee plans to define who November 13, 2014. The Committee heard would qualify as an appropriate sponsor (i.e., a
Kansas Legislative Research Department 5-1 2014 Capitol Preservation legislator, a state agency head, or an elected state provided testimony concerning aspects and official) to endorse a request. The Committee also elements to consider when reviewing the plans to specify when the architectural submitted entries. Those who view the mural need modification request form would be necessary. to understand that, above all other states in the nation, Kansas was at the forefront to end school KBI Plaque Proposal segregation. It would be better, in the conferees’s opinion, to not depict any of the living people A representative from the Kansas Bureau of unless all of the living people could be included. Investigation (KBI) requested the placement of a The U.S. Supreme Court combined cases from plaque in the Capitol to honor the 75th anniversary Delaware, Kansas, South Carolina, Virginia, and of the KBI. The KBI proposes a bronze plaque be Washington, DC. The conferee concluded that installed in the southwest corner of the first floor what the Committee is attempting to do is of the Capitol, either outside Committee Room difficult, because the story is so layered and there 152-S or on the exterior wall of the original offices are so many elements which could be conveyed in of the KBI. The plaque would be similar in size one artistic rendering. The final mural depiction and quality to other small plaques presently may come down to something simplistic, instead displayed on the Capitol walls. of failing to capture everything that Brown encompasses. The Committee will consider the proposal at its next meeting and may make suggestions for the Before evaluating the mural proposals, the plaque and its wording. If the Committee approves Committee plans to consider the uniqueness of the plaque proposal, then pursuant to KSA 75- Kansas in the struggle for school desegregation; 2269, a legislative bill would need to be enacted to the issue of living people, being either all included authorize its installation. or not at all; the role of the legal team and the recruitment of parents; and the historic continuum. Brown v. Board of Education Mural A representative from the Brown Mural Over 30 artists initially submitted their Project SB-54, Inc., a not-for-profit organization, credentials for the Committee to consider. From expressed hope for the muralʼs mission to be that group, 14 artists were selected as semi- accomplished, because it is long overdue. The finalists and invited to prepare a rendering. Artists community, state, and nation are ready for the had the choice of two locations for their mural mural to take place. proposals, one being on the third floor on the exterior wall of the Old Supreme Court Room and The Committee plans to request an additional the other being in an alcove area on the fourth meeting day, which would be used sometime floor leading to the House gallery. All but two of before the end of April 2015. At the next meeting, the artists selected the third floor location. The the Committee plans to hear from an art expert on deadline for the Committee to receive proposals the public aspect of murals. was April 1, 2014. Nine artists submitted renderings to the Committee. CONCLUSIONS AND RECOMMENDATIONS A representative from the Brown Foundation for Educational Equity, Excellence, and Research The Committee makes no conclusions or recommendations.
Kansas Legislative Research Department 5-2 2014 Capitol Preservation OTHER
Report of the K-12 Student Performance and Efficiency Commission to the 2015 Kansas Legislature
CHAIRPERSON: Sam Williams
VICE-CHAIRPERSON: Jim Hinson
OTHER MEMBERS: Dennis Depew, Janis Lee, Bev Mortimer, Mike OʼNeal, Ken Thiessen, Dave Trabert, John Vratil
NON-VOTING MEMBERS (EX OFFICIO): Scott Frank, Legislative Post Auditor; Raney Gilliland, Director of Legislative Research; Gordon Self, Revisor of Statutes; Brad Neuenswander, Interim Commissioner of Education; Shawn Sullivan, Director of the Budget
CHARGE
● Determine how school districts may be more cost effective in their operations; ● Review the differences in per pupil expenditures and administrative expenses among districts with similar enrollments, student demographics, and student assessment performance; ● Review recommendations by other efficiency task forces, such as the Governor’s School Efficiency Task Force; ● Determine how district administrative functions may be shared among multiple school districts; and ● Review district expenditures not directly related to the goal of providing each student with the educational capabilities set forth in KSA 2013 Supp. 72-1127 (Rose standards).
January 2015 K-12 Student Performance and Efficiency Commission
REPORT
Conclusions and Recommendations
The Commission makes the following recommendations or comments relating to its statutory charge:
● The Commission expects the Legislature to continue to fund the completion of high demand technical education programs as well as consider expansion of the program into other areas (This program was implemented via 2012 SB 155.);
● The Commission expects the Legislature to provide for a study of the obligation of the state to continue to fund bond and interest state aid, excluding from the study those school districts that do not receive any bond and interest state aid;
● The Commission expects school districts to develop long-range strategic plans for capital outlay expenditures;
● The Commission strongly endorses the state’s current two-year budgeting cycle and recommends its continuation, recognizing the Legislature can amend budgets during a legislative session;
● The Commission, to promote trust for those school districts relying on state aid to carry out operations, expects the state to continue making state aid payments in a timely manner, paying particular attention to early July payments and special education payments;
● The Commission expects the Legislature to repeal the 65.0 percent instruction expenditure public policy goal currently in statute (KSA 2014 Supp. 72-64c01 and 72- 6460 (c));
● The Commission recommends the Legislature require a cost and benefit analysis, examining the actual additional costs and actual expected benefits, be completed before any new state school district laws or regulations take effect;
● The Commission encourages continued support of the Coalition of Innovative Districts Act;
● The Commission applauds the State Board of Education for including finance, accounting, and budget management coursework in school district leadership licensing requirements. Furthermore, the Commission supports other entities in providing such continuing professional development;
● The Commission encourages inclusion of training in financial management for school district board members as an expectation to the newly developed school district accreditation requirements by the State Board of Education; and
Kansas Legislative Research Department 6-1 2014 K-12 Student Performance and Efficiency ● The Commission recommends the Legislature address the issue of good business practices supporting unencumbered ending balances in school districts, including establishing a reasonable amount of carry forward balances.
Proposed Legislation: The Commission recommends legislation be introduced to accomplish the following:
● Establish a task force to set guidelines for efficient operation of school districts, which would be used as benchmarks in annual performance audits conducted as part of the statutorily-required audits conducted by public accountants, repeal the law establishing a school district audit team within the Division of Post Audit requiring them to conduct three school district efficiency audits each fiscal year, and establish a School District Compliance Audit Fund in the State Treasury into which a demand transfer from the State General Fund will be made to pay school districts for expenses related to the audit; and
● Establish a study commission to study the standards for measuring educational outputs and whether the Rose standards are sufficient and measurable.
BACKGROUND ● Opportunities for school districts to be operated in a cost-effective manner; The K-12 Student Performance and Efficiency Commission (Commission) was created by 2014 ● Variances in per pupil and administrative Senate Sub. for House Bill 2506, Section 29. The expenditures among school districts with Commission is composed of the following comparable enrollment, demographics, members as required by the authorizing and outcomes on statewide assessments; legislation: ● Opportunities for implementation of any ● Six at-large members are appointed as recommendations made by any efficiency follows: Two by the President of the task forces established by the Governor Senate; one by the Minority Leader of the prior to July 1, 2014; Senate; two by the Speaker of the House of Representatives; one by the Minority ● Administrative functions that may be Leader of the House of Representatives; shared between school districts; and
Three at-large members are appointed by ● ● Expenditures that are not directly or the Governor; and sufficiently related to the goal of providing each and every child with the ● The Commissioner of Education, the capacities set forth in KSA 2014 Supp. 72- Director of the Budget, the Revisor of 1127: Statutes, the Legislative Post Auditor, and the Director of Legislative Research are ◌ Development of sufficient oral and nonvoting, ex officio members. written communication skills to enable students to function in a The 2014 Legislature charged the K-12 complex and rapidly changing society; Student Performance and Efficiency Commission with studying and reviewing the following areas: ◌ Acquisition of sufficient knowledge of economic, social and political systems
Kansas Legislative Research Department 6-2 2014 K-12 Student Performance and Efficiency to enable students to understand the ● Recommendations from the Governor’s issues that affect the community, state, School Efficiency Task Force, Ken and nation; Willard, Task Force Chairperson; and
◌ Development of students’ mental and ● Past years’ school data, Brad physical wellness; Neuenswander, Interim Commissioner of Education. ◌ Development of knowledge of the fine arts to enable students to appreciate August 19 and 20 the cultural and historical heritage of others; The Commission received presentations regarding student performance and school ◌ Training or preparation for advanced efficiency from the Kansas Association of School training in either academic or Boards, the United School Administrators, the vocational fields to enable students to Kansas-National Education Association, and the choose and pursue life work American Federation of Teachers-Kansas. The intelligently; Commission also received presentations from staff regarding the implementation of recommendations ◌ Development of sufficient levels of from Legislative Post Audit school district academic or vocational skills to enable efficiency audits and the Governor’s School students to compete favorably in Efficiency Task Force. The Commission received academics and the job market; and additional presentations on the Kansas Public Employees’ Retirement System and information regarding school district expenditures. ◌ Needs of students requiring special education services. September 3 and 4
COMMITTEE ACTIVITIES The Commission received presentations regarding student performance and school The Commission requested and was granted efficiency from superintendents of the following twelve meeting days by the Legislative school districts: USD 282-West Elk, USD 439- Coordinating Council. The Commission met July Sedgwick, USD 465-Winfield, USD 266-Maize, 18; August 19 and 20; September 3, 4, 18, and 19; USD 458-Basehor-Linwood, USD 233-Olathe, November 14; and December 15. USD 443-Dodge City, USD 273-Beloit, USD 490- El Dorado, USD 447-Cherryvale, and USD 259- Wichita. July 18 The Commission also received a presentation The Commission elected Sam Williams from Dr. Randy Watson, Chairperson of the Chairperson and Jim Hinson Vice-chairperson. Coalition of Innovative School Districts’ Board. Additionally, the Commission heard the following presentations: September 18 and 19 ● Commission charge and statutory The Commission received a presentation educational capacities, Jason Long, Office regarding the Legislative Post Audits of at-risk of Revisor of Statutes; funding from Scott Frank, Legislative Post Auditor. The Commission also received a ● School efficiency audit reports, Scott presentation on the services provided and benefits Frank, Legislative Post Auditor; offered by Jobs for America’s Graduates by Matthew Fearing.
Kansas Legislative Research Department 6-3 2014 K-12 Student Performance and Efficiency November 14 ● Establish a study commission to study the use of unencumbered cash The Commission received a presentation on balances by school districts and school district financial audits from Mark Dick of determine an appropriate amount of Allen, Gibbs & Houlik. The Commission received carry over for school districts across presentations regarding school district accounting fiscal years (a recommendation for systems from the Southeast Kansas Education legislative action was adopted Service Center and Harris School Solutions/Data instead); Team Systems. Staff presented information on surveys conducted by the Commission of school ● Establish a study commission to study district superintendents and an online survey open the reorganization of school district to the public. Finally, the Commission received administration; and presentations regarding the services offered by education service centers by representatives of Southwest Plains Regional Service Center, ● Require school districts to examine Southeast Kansas Education Service Center, and interlocal agreement opportunities Smoky Hill Education Service Center. every five years and report on whether those opportunities were pursued. December 15 January 6 The Commission reviewed all recommendations and bill drafts. The Commission The Commission reviewed revised bill drafts adopted the recommendations presented in the and determined not to introduce legislation that draft report and and determined not to include the would amend the current Professional following legislative proposals in its report: Negotiations Act.
Kansas Legislative Research Department 6-4 2014 K-12 Student Performance and Efficiency
Minority Report of the K-12 Student Achievement and Efficiency Commission
Submitted by: Dennis Depew, Mike O’Neal, Dave Trabert and Sam Williams
Date: January 9, 2015
The purpose of this minority report is to offer findings and recommendations we believe to be vital for the improvement of the K-12 system but that did not have the support of a majority of Commission members.
Inaccurate understanding of “efficient”
It was made clear by Chairman Williams (and echoed by other commission members) that “efficiency” is not simply about spending less money, but providing the same or better quality of service / function at a better price. Some efficiency actions have been implemented by school districts but many districts seem to believe that “efficient” simply means spending less money without regard to service impact.
Some districts also do not believe that efficiency can be mandated by the Legislature. We disagree. Indeed, we believe the Legislature has a general fiduciary responsibility to the citizens of Kansas to ensure that taxpayer money is efficiently spent and to specifically ensure that discretionary education dollars are maximized in the classroom. Decisions to spend more than necessary for a service or product, whether for the purpose of patronizing local merchants or acquiescing to district employees, undermine district claims of inadequate funding for instruction services and teacher salaries; such decisions also prioritize other interests above student needs.
School districts admit that they operate inefficiently
The Commission heard multiple reports of positive steps districts have taken to reduce costs and those efforts are greatly appreciated. However, we heard testimony from Legislative Post Audit confirming that each of their school efficiency audits found multiple opportunities to operate more efficiently; LPA also stated that their recommendations are often not acted upon. We also heard considerable testimony acknowledging that districts are still choosing to operate inefficiently in many ways.
For example, the Kansas Association of School Boards (KASB) said it may be more efficient to buy products or services through the state or some type of purchasing cooperative, but doing so erodes
Minority Report 6-5 2014 K-12 Student Performance and Efficiency local control. Regardless of the rationale, these are conscious decisions to divert discretionary spending from classroom instruction and place a lower priority on student outcomes.
Districts acknowledged that it would save money to purchase fuel, vehicles, insurance, communications, curriculum, technology, internet service, software, supplies and other commonly utilized products from a statewide bid; some even requested many more opportunities to purchase from statewide bids.
Districts seem generally opposed, however, to being required to participate in such efficiency opportunities. That position would make sense if districts were 100% funded by local patrons, but that is not the case. District administrators and local school board members are effectively forcing all Kansans to underwrite choices to operate inefficiently, and that is not appropriate.
Cherryvale-Thayer Superintendent Randy Wagoner said his district has considered outsourcing payroll but the proposal is “…getting little traction.”
El Dorado Superintendent Sue Givens said the district followed a Legislative Post Audit recommendation to outsource their food service and experienced cost savings and also saw “sizeable increases” in the number of meals served. Many districts, however, still have district-run food services.
Ms. Givens also testified that the construction of a new elementary school replacing two small buildings with less than 200 students each remedied inefficiencies in scheduling and time travel for staff. Other districts, however, said they choose to operate small facilities even though it is more expensive to do so. Winfield Superintendent J.K. Campbell testified that district administration and board members rejected a Legislative Post Audit recommendation to reduce space in its central office and consolidate enrollment by closing two schools with low enrollment, saying that the recommendation “…would not be supported locally or through our negotiated agreement.” Negotiating inefficiency into a union agreement is particularly noteworthy.
There are many opportunities for districts to operate more efficiently, including these two promising options.
1. Outsource maintenance, custodial, food service, payroll and other non-instructional functions. Some districts claim it is more cost effective to have these functions performed by staff but no documentation was offered to substantiate such claims. To the contrary, there is evidence that districts pay far more than market wages for some positions and costs for KPERS, payroll taxes, and benefits further increase costs, as well as associated costs for supplies and materials.
2. Consolidate non-instruction functions into regional service centers or statewide as appropriate. Several regional service centers provided testimony indicating that significant savings are available, including some instructional functions (notably on virtual education) and even professional development.
Minority Report 6-6 2014 K-12 Student Performance and Efficiency Districts do not understand how to measure and define the Rose standards
Individual school districts, United School Administrators (USA) and the Kansas Association of School Boards (KASB) presented testimony to the K-12 Student Achievement and Efficiency Commission that acknowledged their inability to measure and define the Rose standards and asked for assistance in doing so. The following quotes are taken from their written testimony.
On August 19, KASB asked the K-12 Commission to “Encourage the development of a system to define and measure the Rose student capacities….” KASB representative Mark Tallman emphasized that this is the position of their member districts and not just a position taken by the organization.
Dr. Cynthia Lane, superintendent of the Kansas City district testified on August 19 on behalf of USA, saying. “Once we define what it means to be a well-educated student in Kansas, we must determine how best to measure toward that goal.” She said being a well-educated student is the end target and that the Rose standards “provide some guidance” but acknowledged that there is uncertainty on how to measure success.
On September 3, Olathe Superintendent Marlin Berry said “…the Rose standards need to be well- defined so that school districts know what they mean.” He went on to say, “We need to better define the Rose standard capacities.”
Dodge City superintendent Alan Cunningham also testified on September 3, objecting to state intervention on “efficiencies” and said that the local school board and community should set public school priorities “…until such time as there is agreement on indicators for assessing a school’s, district’s or state’s performance relative to the Rose standards.”
Other districts expressed similar concerns and we learned that the Department of Education is conducting a series of discussions over the next six months to gather input on what the Rose standards mean and how they should be measured. We encourage the Legislature to take an active role in determining how the Rose standards should be interpreted and measured.
Further, we do not see how any court can measure whether or not the Rose standards are being met when all interested parties agree there is no established measurement criteria. We also note the districts’ inability to define and measure the Rose standards calls into question claims that schools are not adequately funded. The Supreme Court ruling on Gannon says the primary determination of adequate funding is whether students are meeting or exceeding the Rose standards. If districts cannot define or measure those standards, it seems that they have no basis for claiming to not have adequate funding to meet them.
Collective bargaining reform
In 2012, the Governor’s School Efficiency Task Force recommended that that the Legislature “Revise/narrow the Professional Negotiations Act to prevent it from hindering operational flexibility/resource assignment.” The Kansas Association of School Boards (KASB) encouraged this
Minority Report 6-7 2014 K-12 Student Performance and Efficiency K-12 Commission to “…recommend policies that empower local school leaders to make the best decisions for their community but with accountability for results." Recommendations under that heading included this statement: "...the number of items required for bargaining should be reduced."
KASB did indicate a preference for reaching mutual agreement with unions over revisions to the Professional Negotiation Act, but no such agreement has been reached.
We concur with the findings of the Governor’s School Efficiency Task Force and agree with KASB that there should be fewer mandatory subjects of bargaining. Accordingly, we encourage the Legislature to enact the attached proposed legislation 15rs0074 which would amend the Professional Negotiations Act for local school districts by limiting the mandatory subjects of bargaining to “salaries and wages, including pay for duties under supplemental contracts, and hours and amounts of work.”
All other mandatory subjects of bargaining currently in statute would become ‘permissive’ subjects of bargaining subject to mutual agreement of the negotiating parties. Those subjects are, vacation allowance, holiday, sick, extended, sabbatical, and other leave, number of holidays, retirement, insurance benefits, wearing apparel, pay for overtime, jury duty, grievance procedure, including binding arbitration of grievances, disciplinary procedure, resignations, termination and nonrenewal of contracts, reemployment of professional employees, terms and form of the individual professional employee contract, probationary period, professional employee appraisal procedures, employment incentive or retention bonuses authorized under K.S.A. 72-8246 and amendments thereto; and (b) matters which relate to privileges to be granted the recognized professional employees' organization including, but not limited to, voluntary payroll deductions, dissemination of information regarding the professional negotiation process and related matters to members of the bargaining unit on school or college premises through direct contact with members of the bargaining unit and reasonable leaves of absence for members of the bargaining unit for organizational purposes such as engaging in professional negotiation and partaking of instructional programs properly related to the representation of the bargaining unit.
Retain legislative policy on 65% of total spending going to Instruction
We disagree with the Commission’s recommendation to repeal the 65 percent instruction expenditure public policy goal currently in statute. (KSA 2014 Supp. 72-64c01 and 72-6460 (c)). The purpose of the 2006 statute was to signal legislative intent that Instruction spending post- Montoy should be much more heavily emphasized but districts have barely changed spending patterns. As noted earlier, there is even evidence that they are consciously diverting money away from Instruction by choosing to operate inefficiently in non-Instruction areas.
This table shows that districts allocated 54.2% of total spending to Instruction in 2005; nine years and nearly $1.7 billion later, Instruction accounts for just 55.1% of total spending. To put that in perspective, more than $5 billion dollars could have gone to Instruction if districts had followed the Legislature’s intent.
Minority Report 6-8 2014 K-12 Student Performance and Efficiency
The point of retaining the policy goal in statute is not that 65% is a ‘magic’ number, but to remind school districts and citizens that the Legislature believes students are better served by moving more discretionary spending to Instruction.
Note: Commissioner Depew voted to remove the 65% policy goal but would support retaining it if the definition of instructional expenses was reexamined.
Spending not directly or sufficiently related to improving academic outcomes
The Commission did not have time to investigate whether districts are spending money that is not directly or sufficiently related to improving outcomes, but we encourage the Legislature to take up that investigation.
Minority Report 6-9 2014 K-12 Student Performance and Efficiency 2015 PROPOSED BILL NO. ____
AN ACT concerning schools; relating to negotiable terms and conditions in the professional negotiations act; amending K.S.A. 2014 Supp. 72-5413 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2014 Supp. 72-5413 is hereby amended to read as follows: 72-5413.
As used in this act and in acts amendatory thereof or supplemental amendments thereto:
(a) The term "persons" includes one or more individuals, organizations, associations, corporations, boards, committees, commissions, agencies, or their representatives.
(b) "Board of education" means the state board of education pursuant to its authority under K.S.A. 76-1001a and 76-1101a, and amendments thereto, the board of education of any school district, the board of control of any area vocational-technical school and the board of trustees of any community college.
(c) "Professional employee" means any person employed by a board of education in a position which requires a certificate issued by the state board of education or employed by a board of education in a professional, educational or instructional capacity, but shall not mean any such person who is an administrative employee and, commencing in the 2006-2007 school year, shall not mean any person who is a retirant from school employment of the Kansas public employees retirement system, regardless of whether an agreement between a board of education and an exclusive representative of professional employees that covers terms and conditions of professional service provides to the contrary.
(d) "Administrative employee" means, in the case of a school district, any person who is employed by a board of education in an administrative capacity and who is fulfilling duties for
Minority Report 6-10 2014 K-12 Student Performance and Efficiency 15rs0074 - 2 - which an administrator's certificate is required under K.S.A. 72-7513, and amendments thereto; and, in the case of an area vocational-technical school or community college, any person who is employed by the board of control or the board of trustees in an administrative capacity and who is acting in that capacity and who has authority, in the interest of the board of control or the board of trustees, to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward or discipline other employees, or responsibly to direct them or to adjust their grievances, or effectively to recommend a preponderance of such actions, if in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.
(e) "Professional employees' organizations" means any one or more organizations, agencies, committees, councils or groups of any kind in which professional employees participate, and which exist for the purpose, in whole or part, of engaging in professional negotiation with boards of education with respect to the terms and conditions of professional service or for the purpose of professional development or liability protection.
(f) "Representative" means any professional employees' organization or any person it authorizes or designates to act in its behalf or any person a board of education authorizes or designates to act in its behalf.
(g) "Professional negotiation" means meeting, conferring, consulting and discussing in a good faith effort by both parties to reach agreement with respect to the terms and conditions of professional service.
(h) "Mediation" means the effort through interpretation and advice by an impartial third party to assist in reconciling a dispute concerning terms and conditions of professional service
Minority Report 6-11 2014 K-12 Student Performance and Efficiency 15rs0074 - 3 - which arose in the course of professional negotiation between a board of education or its representatives and representatives of the recognized professional employees' organization.
(i) "Fact-finding" means the investigation by an individual or board of a dispute concerning terms and conditions of professional service which arose in the course of professional negotiation, and the submission of a report by such individual or board to the parties to such dispute which includes a determination of the issues involved, findings of fact regarding such issues, and the recommendation of the fact-finding individual or board for resolution of the dispute.
(j) "Strike" means an action taken for the purpose of coercing a change in the terms and conditions of professional service or the rights, privileges or obligations thereof, through any failure by concerted action with others to report for duty including, but not limited to, any work stoppage, slowdown, or refusal to work.
(k) "Lockout" means action taken by a board of education to provoke interruptions of or prevent the continuity of work normally and usually performed by the professional employees for the purpose of coercing professional employees into relinquishing rights guaranteed by this act and the act of which this section is amendatory.
(l) (1) "Terms and conditions of professional service" means: (A) With respect to the board of control of any area vocational-technical school and the board of trustees of any community college: (A)(i) Salaries and wages, including pay for duties under supplemental contracts; hours and amounts of work; vacation allowance, holiday, sick, extended, sabbatical, and other leave, and number of holidays; retirement; insurance benefits; wearing apparel; pay for overtime; jury duty; grievance procedure; including binding arbitration of grievances;
Minority Report 6-12 2014 K-12 Student Performance and Efficiency 15rs0074 - 4 - disciplinary procedure; resignations; termination and nonrenewal of contracts; reemployment of professional employees; terms and form of the individual professional employee contract; probationary period; professional employee appraisal procedures; each of the foregoing being a term and condition of professional service, regardless of its impact on the employee or on the operation of the educational system; (B)(ii) matters which relate to privileges to be granted the recognized professional employees' organization including, but not limited to, voluntary payroll deductions; dissemination of information regarding the professional negotiation process and related matters to members of the bargaining unit on school or college premises through direct contact with members of the bargaining unit; reasonable leaves of absence for members of the bargaining unit for organizational purposes such as engaging in professional negotiation and partaking of instructional programs properly related to the representation of the bargaining unit; any of the foregoing privileges which are granted the recognized professional employees' organization through the professional negotiation process shall not be granted to any other professional employees' organization; and (C)(iii) such other matters as the parties mutually agree upon as properly related to professional service including, but not limited to, employment incentive or retention bonuses authorized under K.S.A. 72-8246, and amendments thereto.
(2)(B) With respect to the state board of education pursuant to its authority under
K.S.A. 76-1001a and 76-1101a, and amendments thereto, and the board of education of any school district: (i) Salaries and wages, including pay for duties under supplemental contracts, and hours and amounts of work; and (ii) such other matters as the parties mutually agree upon as properly related to professional service including, but not limited to: (a) Vacation allowance, holiday, sick, extended, sabbatical and other leave, number of holidays, retirement, insurance
Minority Report 6-13 2014 K-12 Student Performance and Efficiency 15rs0074 - 5 - benefits, wearing apparel, pay for overtime, jury duty, grievance procedure, including binding arbitration of grievances, disciplinary procedure, resignations, termination and nonrenewal of contracts, reemployment of professional employees, terms and form of the individual professional employee contract, probationary period, professional employee appraisal procedures, employment incentive or retention bonuses authorized under K.S.A. 72-8246, and amendments thereto; and (b) matters which relate to privileges to be granted the recognized professional employees' organization including, but not limited to, voluntary payroll deductions, dissemination of information regarding the professional negotiation process and related matters to members of the bargaining unit on school or college premises through direct contact with members of the bargaining unit and reasonable leaves of absence for members of the bargaining unit for organizational purposes such as engaging in professional negotiation and partaking of instructional programs properly related to the representation of the bargaining unit. Any of the foregoing privileges which are granted the recognized professional employees' organization through the professional negotiation process shall not be granted to any other professional employees' organization.
(2) Nothing in this act, and amendments thereto, shall authorize any professional employees' organization to be granted the exclusive privilege of access to the use of school or college facilities for meetings, the use of bulletin boards on or about the facility or the use of school or college mail systems.
(3) Nothing in this act, and amendments thereto, shall authorize the diminution of any right, duty or obligation of either the professional employee or the board of education which have been fixed by statute or by the constitution of this state. Except as otherwise expressly
Minority Report 6-14 2014 K-12 Student Performance and Efficiency 15rs0074 - 6 - provided in this subsection (l), the fact that any matter may be the subject of a statute or the constitution of this state does not preclude negotiation thereon so long as the negotiation proposal would not prevent the fulfillment of the statutory or constitutional objective.
(4) Matters which relate to the duration of the school term, and specifically to consideration and determination by a board of education of the question of the development and adoption of a policy to provide for a school term consisting of school hours, are not included within the meaning of terms and conditions of professional service and are not subject to professional negotiation.
(m) "Secretary" means the secretary of labor or a designee thereof.
(n) "Statutory declaration of impasse date" means June 1 in the current school year.
(o) "Supplemental contracts" means contracts for employment duties other than those services covered in the principal or primary contract of employment of the professional employee and shall include, but not be limited to, such services as coaching, supervising, directing and assisting extracurricular activities, chaperoning, ticket-taking, lunchroom supervision, and other similar and related activities.
New Sec. 2. Except as otherwise expressly provided, this act shall not operate so as to annul or modify any existing agreement between a board of education and a professional employees' organization or professional employee.
Sec. 3. K.S.A. 2014 Supp. 72-5413 is hereby repealed.
Sec. 4. This act shall take effect and be in force from and after its publication in the statute book.
Minority Report 6-15 2014 K-12 Student Performance and Efficiency Committee Reports to the 2015 Kansas Legislature
Supplement
Kansas Legislative Research Department March 2015 2014 Legislative Coordinating Council
Chairperson
Representative Ray Merrick, Speaker of the House
Vice-chairperson
Senator Susan Wagle, President of the Senate
Terry Bruce, Senate Majority Leader Anthony Hensley, Senate Minority Leader Jene Vickrey, House Majority Leader Peggy Mast, Speaker Pro Tem Paul Davis, House Minority Leader
Kansas Legislative Research Department 300 SW 10th, Room 68-West, Statehouse Topeka, Kansas 66612-1504
Telephone: (785) 296-3181 FAX: (785) 296-3824 [email protected] http://www.kslegislature.org/klrd Supplement
Special Committee on Ethics, Elections and Local Government Special Committee on Judiciary
Legislative Budget Committee Joint Committee on Pensions, Investments and Benefits Joint Committee on State Building Construction
Health Care Stabilization Fund Oversight Committee Telecommunications Study Committee
Kansas Legislative Research Department 300 SW 10th, Room 68-West, Statehouse Topeka, Kansas 66612-1504 Telephone: (785) 296-3181 FAX: (785) 296-3824 [email protected] http://www.kslegislature.org/klrd Foreword
This publication is the supplement to the Committee Reports to the 2015 Legislature. It contains the reports of the following committees: Special Committee on Ethics, Elections and Local Government; Special Committee on Judiciary; Legislative Budget Committee; Joint Committee on Pensions, Investments and Benefits; Joint Committee on State Building Construction; Health Care Stabilization Fund Oversight Committee; and Telecommunications Study Committee.
This publication is available in electronic format at http://kslegresearch.org/KLRD-web/Publications.html.
v TABLE OF CONTENTS
Special Committee on Ethics, Elections and Local Government Abandoned Properties...... 1-1 Combining Elections...... 1-4 Riley County Consolidated Law Enforcement...... 1-13
Special Committee on Judiciary Foster Parents Bill of Rights Act (2014 SB 394)...... 2-1 Responses to Kansas Supreme Court Decisions...... 2-8 Patent Infringement (2014 HB 2663)...... 2-11
Legislative Budget Committee Report...... 3-1
Joint Committee on Pensions, Investments and Benefits Report...... 4-1
Joint Committee on State Building Construction Annual Report...... 5-1
Health Care Stabilization Fund Oversight Committee Annual Report...... 6-1
Telecommunications Study Committee Report...... 7-1
vii Summary of Conclusions and Recommendations
Special Committee on Ethics, Elections and Local Government
Abandoned Properties. The Committee reviewed the current situation regarding municipalities’ ability and inability to address abandoned properties in the state. The Committee toured two such properties and received a summary of an additional property, selected to illustrate the different issues associated with vacant and abandoned properties. Experts testified, both from the perspectives of the municipalities and from that of property owners.
Combining Elections. Currently in Kansas, elections for officials of cities, school districts, and most additional smaller political subdivisions are held in the spring of odd-numbered years. Legislation has been attempted in recent years to move all such spring elections to the fall. The Special Committee studied the issue by examining election timing history and practices in other states, hearing from an elections specialist from the National Conference of State Legislatures; hearing directly from three other states’ experts on the challenges and benefits of combining elections, either completely or partially, in those states; and hearing a presentation by the author of a book on the subject of election timing and its relationship to turnout.
Consolidated Law Enforcement. The Committee received information as a follow-up to 2014 SB 436 which related to statutes that authorize counties meeting certain criteria to consolidate their law enforcement agencies and establish an alternative law enforcement authority rather than electing a sheriff. The Committee heard from Riley County and Manhattan City Commission officials, who indicated the current alternative system was working well in Riley County, the only county currently with such a system. A representative of the group that proposed SB 436 agreed with the other conferees and indicated the group has no interest in reintroducing the bill.
Special Committee on Judiciary Foster Parents Bill of Rights Act (2014 SB 394)
The Committee recommended introduction of a Senate bill containing language proposed by the Kansas Judicial Council based upon the Foster Parents’ Bill of Rights legislation considered in 2014 (Sub. for SB 394). The Committee recommended further consideration of the implementation of a grievance process.
The Committee recommended the introduction of two House bills: one addressing the out-of- state criminal history issue raised in State v. Murdock, 299 Kan. 312 (2014), and one addressing the search warrant issue raised in State v. Powell, 299 Kan. 690 (2014).
The Committee recommended the introduction of a Senate bill addressing patent infringement claim abuse. The Committee recommended the introduction of a House bill based upon 2014 HB 2711, the “Public Speech Protection Act.”
Kansas Legislative Research Department ix 2014 Interim Committee Reports Supplement Legislative Budget Committee
The Legislative Budget Committee is statutorily directed to compile fiscal information and to study and make recommendations on the state budget, revenues, and expenditures and on the organization and functions of the state, its departments, subdivisions, and agencies with a view of reducing the cost of sate government and increasing efficiency and economy. After receiving and reviewing information on topics including consensus revenue estimates, tax law changes, gaming revenues, expenditures for human services, education funding, agency budget requests, and the Governor’s allotment plan, the Committee made no conclusions or recommendations.
Joint Committee on Pensions, Investments and Benefits
The Joint Committee concludes the current break-in-service requirements for persons returning to work after retirement should be reviewed. The post-retirement provisions scheduled to sunset on June 30, 2015, should be addressed. The 2015 Legislature should consider the ability of Kansas Public Employees Retirement System (KPERS) to recapture benefits, if certain conditions are present.
The Joint Committee concludes members in the KPERS Correctional groups, along with local law enforcement personnel who meet the training requirements, should be enrolled in Kansas Police and Firemen’s Retirement System. The additional employer contribution funding for those who were in KPERS Correctional should come from the State General Fund.
The Joint Committee concludes pension obligation bonding and emerging retirement plan trends in the private sector should be reviewed during the 2015 Legislative Session.
Proposed Legislation: None.
Joint Committee on State Building Construction
The Committee recommended all agencies’ five-year capital improvement plans, leases, and sales of land or facilities reviewed by the Committee. The Committee also recommended supplemental projects for the Department of Corrections and the State Historical Society. The Committee capped the Salina Kansas Highway Patrol Training Academy retaining wall project costs at $631,300 and the Expo facility repair project for the Kansas State Fair at $5.5 million.
Health Care Stabilization Fund Oversight Committee
The Committee reviewed its statutory oversight role and the necessity for contracting for an independent actuarial review. The Committee continues in its belief that the Committee serves as a vital role as a link among the Health Care Stabilization Fund (HCSF) Board of Governors, the health care providers, and the Legislature and its oversight should be continued. The Committee recognized the additional analysis provided by the HCSF Board of Governors’ actuary to account for the legislative changes enacted in 2014, including new health care providers subject to the HCSF coverage requirements, the change in tail coverage compliance, and changes to the non-
Kansas Legislative Research Department x 2014 Interim Committee Reports Supplement economic damages cap specified in tort law; the Committee concluded there is no need to contract for an independent actuarial review in 2014. The Committee made other recommendations relating to the statutory reimbursement schedule created in 2010 for administrative services provided by the HCSF Board of Governors and inclusion of a statement regarding the HCSF and the purpose of and use for the Fund.
Telecommunications Study Committee
The Committee reaffirms existing state public policy regarding telecommunications but suggests House and Senate committees that work with utilities issues review the portion of the policy that addresses advancing the development of a statewide telecommunications infrastructure. The Committee recommends those committees receive presentations on the audit of the Kansas Universal Service Fund (KUSF) and study definitions of telecommunications terms in existing law with a focus on “future-proofing” the definitions to accommodate rapid changes in technology. The Telecommunications Study Committee may wish to meet at least once during Session to further consider issues raised during the KUSF audit.
Kansas Legislative Research Department xi 2014 Interim Committee Reports Supplement 2014 SPECIAL COMMITTEE
Report of the Special Committee on Ethics, Elections and Local Government to the 2015 Kansas Legislature
CHAIRPERSON: Senator Mitch Holmes
VICE-CHAIRPERSON: Representative Steve Huebert
OTHER MEMBERS: Senators Oletha Faust-Goudeau, Steve Fitzgerald, and Michael OʼDonnell; and Representatives John Barker, Keith Esau, Mike Kiegerl, and Tom Sawyer
STUDY TOPICS
● Review Issues Pertaining to Abandoned Properties. The study will include the following: ○ Review current statutes related to abandoned property; ○ Review economic and potential public safety issues for local communities; and ○ Review potential impact on state and local government revenues.
● Study Moving Elections to Fall and Consider 2014 SB 436 Concerning Consolidation of Law Enforcement Agencies ○ Study the subject of moving spring elections to the fall in order to increase voter turnout for local elections; and ○ Review 2014 SB 436 which addresses statutes that authorize Riley County to consolidate its law enforcement agencies and establish a Law Enforcement Director.
March 2015 Special Committee on Ethics, Elections and Local Government
ABANDONED PROPERTIES
Conclusions and Recommendations
The Committee makes no conclusions or recommendations.
Proposed Legislation: None.
BACKGROUND (1) Any residential real estate for which taxes are delinquent for the preceding two The Legislative Coordinating Council (LCC) years and which has been unoccupied in 2014 created the Special Committee on Ethics, continuously by persons legally in Elections and Local Government, which was possession for the preceding 90 days; or composed of nine members. The LCC charge to the Committee included the following: (2) commercial real estate for which the taxes are delinquent for the preceding two ● Review issues pertaining to abandoned years and which has a blighting influence properties. The study is to include on surrounding properties. “Commercial reviewing current relevant statutes, real estate” means any real estate for economic and potential public safety which the present use is other than one to issues for local communities, and potential four residential units or for agricultural impact on state and local government purposes. revenues; KSA 12-1751 grants cities the authority to do either of the following: ● Review 2014 SB 436 which addresses statutes that authorize Riley County to ● Cause the repair or removal of, or to consolidate its law enforcement agencies remove any structure located within the and establish a Law Enforcement city, which may have become unsafe or Director; and dangerous; or ● Study moving spring elections to the fall. ● Cause the rehabilitation of or to The Committee was granted three meeting rehabilitate any abandoned property days by the LCC. It met on October 10, November located within the city. 21, and December 12, 2014. The issue of abandoned properties was addressed during the first and second Committee meetings. The remaining statutes prescribe the hearing KSA 12-1750 through 12-1756g govern citiesʼ process and response and remediation action powers and duties regarding abandoned or process to be implemented and the time line of dangerous properties. KSA 2014 Supp. 12-1750, that process in the instance of a city’s finding of subsection (c), defines “abandoned property” as: unsafe or dangerous or abandoned property.
Kansas Legislative Research Department 1-1 2014 Ethics, Elections and Local Government COMMITTEE ACTIVITIES The second property, located in a low-income neighborhood ranking as “needing intensive care” The Committee toured vacant or abandoned in terms of neighborhood health, is vacant, has properties in Topeka and discussed with conferees been boarded up, and has been cited for 21 several issues with respect to the problem of violations since 2010. The house has been in vacant, unsafe, and abandoned property. Among foreclosure several times and the current mortgage the issues are the following: owner is in California and has not responded when contact attempts have been made. A neighbor indicated the property had been stripped of assets ● Property rights, both of the owners of the such as copper pipe, two doors were open, the vacant or abandoned property and of the cellar is not secure, and people have been seen neighbors; entering and leaving. City officials said there is a large homeless population in the area due to the ● Neighborhood safety, with respect to both proximity of the Rescue Mission, the house has police and fire protection; been used by people consuming alcohol and drugs, children might frequent the house in the summer, ● Property values; and and the property is unsafe for young children to walk by on their way home from school in large part due to danger of sexual assault. Also, the ● The definition of “abandoned” in statutes. second story is not structurally sound, the dilapidated structure hinders and endangers Led by a representative for the City of Topeka, firefighters, and neighboring structures are close the Committee visited two abandoned properties enough to be in danger if the property were to and also heard about issues regarding a third. The catch fire. Topeka city representative explained each of the properties was an example of the kinds of After the tour, Topeka city officials and problems abandoned housing represents. citizens emphasized the above-mentioned, as well as additional issues. For example, vacant and The first property was located in a moderate- abandoned properties involve the issue of private income neighborhood considered “healthy” by the property rights—of the owner, as well as of the city in terms of poverty, crime, and property owners of neighboring properties—and the values. However, the owner is deceased, there is a protection of neighbors. One official noted vacant reverse mortgage on the property, and the property and abandoned properties fall into several was foreclosed upon and sold in 2013. categories related to ownership and safety. For example, some, as indicated by the first property The first property did not meet the legal visited, do not meet the statutory definition of definition of “abandoned property” because a “abandoned.” The question of how to address the minimal amount of taxes had been paid. Topeka issues posed by such properties becomes city officials indicated the property is not complicated, and a property can be vacant for five inhabited, lighting around it is poor, vegetation or six years before a city can take action. A Topeka overgrowth makes it difficult to watch the neighborhood association representative stated, property, and police have no legal grounds to among other things, members of his association question trespassers because the property is not estimated three or four abandoned properties exist posted for no trespassing. Officials stated on each street in that Topeka area. A police homeless persons look for places to get out of the representative discussed crime prevention issues, weather, and, if someone were to light a fire inside such as partnering with neighbors and this vacant home, the fire could spread. They “environmental design” plans such as boarding up explained firefighters must fight a house fire windows and perhaps painting over such boarding assuming the structure is occupied. As of 2013, the to indicate the property is under care and make use appraised value had dropped by nearly 46 percent, of such a structure by unauthorized people easier and the condition of the house depreciates to detect. surrounding property values.
Kansas Legislative Research Department 1-2 2014 Ethics, Elections and Local Government A representative of the Topeka Police individuals to address the issue. Usually the city’s Department noted a Florida study indicates blocks inability to find the property owner is the biggest with abandoned properties have 3.2 times as many problem. The LKM representative reiterated an drug calls, 1.8 times as many theft calls, and twice earlier observation that owners will pay enough of the number of violence calls than neighborhood the delinquent tax bill so the property is not legally blocks without abandoned buildings. Each police abandoned, so no action can be taken, and stated a call means fewer resources available for other change in the definition of “abandoned property” parts of the city. could help the cities.
With respect to fires, a Topeka Fire A Kansas Association of Realtors Department representative stated in the past three representative testified from the perspective of years, there had been 41 fires in vacant structures property owners. In reference to KSA 12-1750, in Topeka—20 percent of all fires investigated. subsection (c), paragraph (1), he stated there Code violations are frequently sent after should always be two factors used to determine investigation of such fires; what happens after that whether a home is abandoned. He indicated depends on the extent of damage to the structure. support for continuing two years of delinquent ad valorem taxes as one factor; however, he A City of Wichita representative echoed the questioned the part of the “abandoned property” concerns explicated by the Topeka officials when definition stating the property must be vacant for he distributed a map of an area within Wichita 90 days, noting an owner could be absent for that with high incidence of delinquent property tax; the period of time on a work assignment, for example. map was color coded to show the varying amounts While agreeing the issues presented by city of taxes owed and time of delinquency status. He officials were problematic, the representative said there are some intense areas of blight. requested the Committee weigh carefully the need for an additional tool to address the issues related A League of Kansas Municipalities (LKM) to deteriorating properties against the potential representative summarized the findings of a survey erosion of private property rights. LKM distributed to Kansas municipalities. Forty- eight cities responded about the number of Representative Stan Frownfelter distributed a abandoned properties. The LKM representative copy of the aforementioned statutes (with said the respondent cities represented cities from language from proposed 2013 HB 2075 inserted) the smallest to the largest. The survey results and concluded the October hearing on this issue by constitute evidence abandoned properties appear quoting from a Kansas City Star editorial that to be a problem with cities of all sizes but stated vacant properties had become a major particularly in cities with declining populations. problem in Kansas City that “can create a chronic The median time of the respondent cities’ downdraft in property values,” as well as creating properties being abandoned was four years. other issues of safety and sanitation. Survey respondents indicated the most common type of owner was an individual who has moved away. Other owners were banks and mortgage CONCLUSIONS AND RECOMMENDATIONS companies, landlords, and non-local investors. The Committee makes no conclusions or The LKM representative testified this topic is recommendations. a priority with LKM, and organization representatives plan to meet with concerned
Kansas Legislative Research Department 1-3 2014 Ethics, Elections and Local Government Special Committee on Ethics, Elections and Local Government
COMBINING ELECTIONS
Conclusions and Recommendations
The Committee spent two of its three assigned days on the topic of combining elections. Presentations were received from experts from around the nation. The Committee heard directly from three other states’ experts on the challenges and benefits of combining elections, either completely or partially, in those states. The Committee also received a presentation from a staff representative of the National Conference of State Legislatures, regarding the history and current practice of election scheduling in the nation, and from Kansas election officials.
Following this review and Committee discussion, the Committee did not make any conclusions or recommendations.
Proposed Legislation: None.
BACKGROUND 21, and December 12, 2014. The issue of combining elections was addressed during the The Legislative Coordinating Council (LCC) second and third Committee meetings. in 2014 created the Special Committee on Ethics, Elections and Local Government, which was Article 4, Section 2 of the Kansas Constitution composed of nine members. The LCC charge to states, “General elections shall be held biennially the Committee included the following: on the Tuesday succeeding the first Monday in November in even-numbered years. Not less than three county commissioners shall be elected in ● Review issues pertaining to abandoned each organized county in the state, as provided by properties. The study is to include law.” No further constitutional direction is given reviewing current relevant statutes, regarding specific types of elections or their economic and potential public safety timing. issues for local communities, and potential impact on state and local government revenues; Kansas statutes require federal, state, and county elections be held in the fall of even- numbered years. Elections for officials of cities, ● Review 2014 SB 436 which addresses school districts, and all additional political statutes that authorize Riley County to subdivisions are held in the spring of odd- consolidate its law enforcement agencies numbered years. Special elections may be held at and establish a Law Enforcement other times. Director; and The first bill proposing moving spring ● Study moving spring elections to the fall. elections to the fall was introduced in the 2010 Legislative Session. The debate has continued. At The Committee was allowed three meeting least ten bills have been introduced on or amended days by the LCC. It met on October 10, November to include the topic, with seven of those offered in
Kansas Legislative Research Department 1-4 2014 Ethics, Elections and Local Government the 2013-2014 biennium. At the end of the 2014 increase voter turnout by combining local with Legislative Session, a study was requested on the higher visibility elections. topic. The NCSL staff representative presented information on election timing and voter turnout COMMITTEE ACTIVITIES for the 2012 election, which information was obtained from the book Timing and Turnout: How The Committee heard from several experts in Off-Cycle Elections Favor Organized Groups by the field of elections. For a broad, out-of-state Dr. Sarah Anzia. (Note: Dr. Anzia provided direct perspective, three individual conferees and two testimony, which is summarized later in this panels made presentations on the timing of report.) The NCSL representative noted the elections. A staff representative of the National following: Conference of State Legislatures (NCSL) presented information on election timing history ● Twelve states hold their school board as well as summarized several other states’ laws elections in November of even-numbered and practices. The former local election years, along with the general election; and administrator in Maricopa County, Arizona, (now a senior advisor to the Democracy Project of the Bipartisan Policy Center in Washington, D.C.) ● Turnout in 2012 in states with November provided extensive detail on Arizona’s experience even-year municipal elections was as with combining elections and the issues it follows: Oregon – 64 percent; Nebraska – presented. Panels of state and local election 61 percent; Rhode Island – 58 percent; officials from two other states with some level of Kentucky – 56 percent; and Arkansas – 51 combined elections (Utah and Nebraska) percent. (Information came from the 2012 addressed questions and discussed the issues in Elections Performance Index, created by detail. Finally, the author of the only published the Pew Charitable Trusts. The Index book on the topic of election timing and its effect listed Kansas’ rate as 58 percent.) on voter turnout made a presentation. The NCSL representative then summarized With respect to Kansas-specific information, nationwide election-date-related legislation. From Kansas Legislative Research Department (KLRD) 2010 through 2014, 125 bills were introduced in staff presented information summarizing 31 states. Of these, 13 bills (or 10 percent of the testimony received during the 2013-2014 total) were enacted in 11 states. The passage rate biennium. In addition, the Special Committee for election-date bills is about half of that for all Chairperson also arranged for testimony from bills regardless of subject matter (20 percent). Kansas state and local election officials, including Variations in the 125 proposed bills included the Secretary of State and election officials from setting uniform election dates; consolidating Johnson, Douglas, and Hodgeman counties. elections in November of even-numbered years; combining school and municipal elections in the Historical Background and Information on spring, or in November of odd-numbered years; Other States changing the schedule for specific classes of cities; and permitting (rather than requiring) jurisdictions to consolidate elections. The 13 enacted bills The NCSL staff representative stated, through th consolidated elections or created uniform dates, the 19 century, local government decisions as to and most addressed school district elections. whether to hold elections together with or separate from state elections varied. Generally speaking, over three decades beginning in the 1890s, local The NCSL representative indicated no state elections were separated from state and federal has revisited its decision to consolidate elections. elections. Over approximately the past generation, She then provided greater detail about recent when changes have occurred, the change has been changes made in several states, including the to combine election dates. The goals have been to following: save money by running fewer elections and
Kansas Legislative Research Department 1-5 2014 Ethics, Elections and Local Government ● New Jersey (made it optional to move the would increase turnout based on fall being annual school election to November in the customary voting season; odd-or even-numbered years; New Jersey elections for legislative and statewide ● Allow (instead of require) jurisdictions the offices are held in odd-numbered years); choice of consolidating their elections; and ● Michigan (took an incremental approach to consolidate elections over several years; ● Reduce the number of special elections. cost savings have been reported); If the decision is made to consolidate election ● Idaho (limited elections to two dates in dates, the NCSL representative suggested the each calendar year, allowed school following items to consider: districts two additional election dates, and allowed a portion of state sales tax to be used to reimburse counties); ● Whether the change would be workable in rural communities; ● Texas (reduced the number of election dates from four every two years to three, ● Who would pay the initial costs of and a proposal to reduce the number to changing; two might be offered in the 2015 Legislative Session); ● Whether constitutional or statutory changes need to be made; ● Kentucky (while November of even- numbered years is the norm, local entities ● Whether municipal charters have rules may choose another date if they pay the that align with state rules; cost); and ● How much transition time election ● New Mexico (an unsuccessful ballot officials would need to work out new measure would have permitted school plans and train poll workers; elections to be held at the same time as partisan elections). ● The fact voter education would be required; and Regarding voter drop-off, she reported studies are few but a study of California elections by the ● The possibility data about how the change Greenlining Institute compared turnout for is working are unreliable until the new elections in cities that consolidated elections with procedure becomes the norm. turnout in cities that did not choose to consolidate elections. The study found some drop-off but The NCSL representative also provided higher turnout for the last measure on the ballot in suggestions to make transition to a new system the cities with consolidated elections. easier, such as reducing the number of ballot styles required. Finally, she provided the following list of The NCSL representative then provided possible options to consolidating elections that several consolidation options, based on other might increase voter turnout: states’ laws: ● Using voting centers, where any voter in ● Move all or some of the municipal, the county could vote at any voting center; school, or other small elections to the fall of even years (most dramatic change); ● Conducting some or all elections entirely by mail; and ● Move smaller elections to November of odd-numbered years, which perhaps ● Increasing the availability of good voter information (such as providing
Kansas Legislative Research Department 1-6 2014 Ethics, Elections and Local Government information via direct mail from a public election. Some actions have been undertaken to office and making that official information mitigate this problem. For example, there are available also through newspapers and officials, such as precinct committee people, who political parties’ websites). She indicated have no opponent and therefore are “elected some states have requirements for voter outright.” In Maricopa County recently, there were information, which is delivered for every 639 uncontested races for which 724 ballot styles ballot, and a California political scientist otherwise would have been printed had it not been has shown a correlation between states for the practice of electing outright. The addition with robust statutes requiring voter of each added ballot style costs approximately information and high turnout. $45.
Election Consolidation Challenges and Another example was given of a decision Mitigations made to mitigate the number of ballot styles. In one Maricopa County area’s ballot, 24 precinct The former Maricopa County Election committee persons were to be elected out of 54 Administrator, who served in 2013 on the candidates. Space also was needed on the ballot Presidential Commission on Election for a write-in candidate for each of the 24 Administration and now is a senior advisor to the positions. However, it was decided write-in lines Democracy Project of the Bipartisan Policy would not be added because adding the lines Center, gave a detailed presentation on Arizona would have split the race between the front and election timing and turnout, with emphasis on the back of the ballot and dramatically increased the challenges and benefits of consolidating elections. length of the ballot, and there were no official write-in candidates. For a background on Arizona elections, she said Arizona has four consolidated election dates: The conferee stated a review was conducted in March, May, August, and November. All on voter fatigue, or voter drop-off to determine elections must fall on one of those dates. However, whether voters did finish ballot voting by municipalities’ requirements historically were comparing the top race and propositions at the based on population: any municipalities over bottom of the ballot by position. Graphs presented 175,000 in population were designated to have indicated the highest voter drop-off occurred in November elections while all others could choose 2004; she provided some detail regarding any of the four sanctioned dates. Municipalities variances in drop-off by type of precinct. increasingly have conducted their elections all by mail. The primary is semi-open; voters registered The conferee noted a long ballot will cause to a recognized party get that party’s ballot and voting issues for a large number of voters. Longer unaffiliated voters may select a party ballot for ballots take voters more time to read. For example, each primary election (except for Republican and one Arizona constitutional amendment was 600 Democrat precinct committee persons). Arizona words long. being an initiative and referendum state, there is a statutory requirement to mail voters a sample Sometimes it is difficult to find polling places, ballot and publicity pamphlet of voting and at least one state is now using a school in- information; in addition, pollworkers are trained service day for election day, she said. During these for each election. Voters may vote in person at an days, teachers are attending workshops and there early voting location, by mail (either for each is ample parking at the schools. election or as a permanent early voter), or at the polls on Election Day. As in Kansas, Arizona has a The conferee also noted election consolidation mix of partisan and nonpartisan office races. also raises a question as to whether terms of those elected should change in length. Maricopa County alone has 6,000-7,000 ballot styles, due to candidate position rotation within According to the conferee, the cities of Tucson each race for each voting precinct, the existence of and Phoenix, each chartered under home rule many districts, and voter eligibility in a primary authority, filed a lawsuit taking the position they
Kansas Legislative Research Department 1-7 2014 Ethics, Elections and Local Government were not required to hold elections in the fall of than Election Day) than on-cycle (Election Day) even-numbered years. The appeals court upheld elections. Turnout also depends on whether the the lower court ruling the Legislature could not tell election includes presidential candidates. Of 57 charter home rule cities when to hold elections; cities across the country, turnout was 29 percent thus, these cities were not required to hold their lower off-cycle than in cities that held elections on city elections in the fall of even-numbered years. Election Day. Incidentally, the ruling came out 6 days before the primary election date, 20 days after early voting The main argument of Dr. Anzia’s book is that started, and 39 days after mailing military and shifting from on-cycle to off-cycle elections overseas ballots. The Arizona Attorney General is increases the electoral presence of “the organized.” challenging the ruling, she said, but as of the That is, many people are members of organized conferee’s presentation there had been no decision. groups that have a large stake in an election turn The conferee added other home rule cities would out to vote regardless of timing, and off-cycle need to seek court approval individually to be election timing enhances the effectiveness of granted similar status. mobilization efforts by organized groups (such as teacher unions, employee unions, and political Election Timing and Its Effect on Voter parties). The impact of election timing on policy Turnout outcome is due largely to mathematics—with lower turnout, fewer votes are needed to sway an Sarah Anzia, Ph.D., Assistant Professor of election one way or the other. Hence, less effort is Public Policy of the University of California needed by organized groups to change the Berkeley, gave a presentation on election timing. outcome of an election. Her presentation was based in large part on her book, Timing and Turnout: How Off-Cycle Dr. Anzia stated officials elected in an off- Elections Favor Organized Groups (The cycle election should be more responsive to those University of Chicago Press, 2014), which, she organized groups. In support of this, she said, is the first and only book published on this summarized conclusions from an eight-state study subject. She also has published numerous articles. (2003-2004 data), reported also on 2006 and 2007 school board election turnout data from Data were collected on laws governing Minnesota, and reported on her study based on a elections in the states. Dr. Anzia noted there are recent change in Texas election timing law. In both more than 500,000 elected officials and most the Minnesota and the eight-state study, Dr. Anzia represent local government. Most are elected not examined the effect of voter turnout on average on “Election Day” (November of even-numbered teacher salary. She concluded school districts with years) but on other days. A table presented in her off-cycle elections pay higher teacher salaries and slides listed the timing for state, county, municipal, such salary premium is associated with lower and school elections in each state. For most state voter turnout. Dr. Anzia reported questions remain governments and counties, elections are held on regarding this study, such as whether all bias had Election Day. Municipal and school board been omitted when the study was conducted and elections mostly are held at other times. The whether school officials might choose election conferee stated for many cities, elections are held timing on the basis of anticipated outcomes. The when they are because American citizens want it summary of the Texas study was school trustees that way. Some people favor having local elections forced to switch to on-cycle elections gave smaller on different days than national elections because it salary raises to teachers, and the response was allows voters to focus on a shorter list of greater in districts in which teachers were more candidates and issues. Other people favor having highly organized. local elections on the same day as national elections because combining the elections boosts Her study of the effect of election timing on voter turnout for local elections. turnout in California city elections found the higher turnout of on-cycle elections is not Dr. Anzia stated information has been gathered eliminated by ballot drop-off. The effect of on- indicating voter turnout is lower in off-cycle (other cycle election timing on turnout dwarfs the effects
Kansas Legislative Research Department 1-8 2014 Ethics, Elections and Local Government of many other factors people consider to be nonpartisan offices will be missed on the paper important. ballot but not electronically, because the system prompts voters to continue down the ballot. This Dr. Anzia noted much more study is needed on issue does not affect primaries. Time constraints the effect of election timing on turnout as many are the biggest hurdle to the combined elections, questions still are unanswered. according to the officials.
Consolidated Elections in Utah and Nebraska According to its participants, nearly all of Nebraska’s elections are held in November of The following Utah and Nebraska election even-numbered years. This has been done for officials provided information to the Committee approximately 20 years statewide, and longer in regarding their experiences with consolidated several cities. elections: As with Utah, the Nebraska officials saw no ● Utah—The Deputy Director of Elections problem with its combined elections, again, for Utah, located in the Lieutenant largely because elections have been combined for Governor’s Office, and the county election a long time. Panelists saw no issues since officers for Tooele and Davis counties; Nebraska has a good voter registration system and which helps with ballot styles, poll worker training for election day regarding matching precincts to boundary lines, and other provisions in place. The ● Nebraska—The Deputy Secretary of State addition of a school district or city election is not for Elections and the county election the cause for voter fatigue, but rather amendments, officers for Lancaster, Wayne, and Hooker bond issues, sales tax increases, and other special counties. races.
According to the Utah panelists, Utah has Finally, many Nebraska elections, such as been on a cycle of odd- (municipal) and even- those for water, irrigation, and other small numbered year (all other, including school board) districts, are conducted at annual meetings. elections for a very long time. Voter turnout is Nebraska does allow special elections to be better in even-numbered years. The largest conducted, but they cannot be near other election numbers of voters turn out for presidential (70 to dates. 80 percent) and congressional elections. The municipal elections in odd-numbered years have Ballots on Demand about 20 percent turnout, and 5 or 6 percent turn out for the primaries. There is no desire to move Representatives of Election Systems and municipal elections to even-numbered years. Software (ES&S) presented information on and Special elections are held on either the primary or then demonstrated the company’s ballot on general election dates. demand (BOD) product. The Utah officials said the state has held even- According to the conferees, several issues numbered-year elections for school districts for so related to election consolidation include the time long, taking school boards off the ballots of even- and effort it takes to get all the information placed numbered years would not make the task easier. on the electronic ballot and the related high level Local and state school board members have of complexity. Some of the issues follow: staggered terms, so not all are up for election in the same year. When the state redrew legislative and related district boundaries, school districts ● Combining elections requires a longer were asked to match the precinct lines wherever ballot and, in many cases, a second page. possible for school board elections. The 2014 Longer ballots might cause voter drop-off; ballot was four pages, front and back, on 11-inch and by 17-inch paper. Given voters may choose a straight-party vote option, there is risk that
Kansas Legislative Research Department 1-9 2014 Ethics, Elections and Local Government ● Having more ballot styles adds to the ● Requiring certain elections to be complexity of ballot distribution, creates a conducted at-large rather than by member larger potential for error, and increases the district; and cost. ● Reducing the cost of the election of BOD originally was designed not only to political party precinct committeemen and eliminate printing waste, but also to automate the committeewomen at the August primary ballot selection process. BOD is connected to a election by extending their terms from two polling place, the voter is checked in, and the to four years and setting their elections in address of the voter determines the elections to be gubernatorial election years. voted (which ballot style the voter receives). A bar code obtained through an online program, Election turnout results by Kansas county for ExpressPass, can be used to further speed voting. elections in 2008 through 2014 were included in ExpressPass provides a sample ballot to the voter the Secretary’s presentation. Local spring election prior to the election on which the voter may make turnout (for 2009, 2011, and 2013) ranged from his or her selections. At the polling place, a bar 6.2 percent (Sedgwick – 2013) to 56.0 percent code identifies the ballot and the ballot can be (Sherman – 2011). Fall general election turnout produced onto which the voter enters his or her (for 2008, 2010, and 2012) ranged from 37.3 choices from the sample ballot rather than thinking percent (2010, a nonpresidential election year – through the ballot and then filling it out for the Cherokee) to 85.8 percent (2008, a presidential first time at the polling place. This process reduces election year – Logan). The average fall election the time spent in the voting booth. BOD is most turnout rate is lower in nonpresidential election useful where many ballot styles are voted, such as years than in presidential election years. Turnout advanced voting and consolidated polling places, rates vary due to many factors even for a single resulting in savings by using fewer machines, county, such as the specific election content. fewer polling places, and fewer poll workers. Urging an increase in advance voting was Kansas Election Official Issues and Cost given as a way to reduce polling place issues when Perspectives combining elections. The Secretary noted some states mail in advance to every voter a pamphlet Secretary of State. Secretary of State Kris describing each voting issue. Voter drop-off does Kobach stated he believes moving spring elections occur, he said, but at a fraction of a percent. to the fall of even-numbered years will increase voter turnout. He supports such a move only if the County election officers. The county election complexities of the resulting elections are reduced. officers for Johnson, Douglas, and Hodgeman Secretary Kobach called attention to examples of counties presented their perspectives on possible multiple ballot styles. With the addition of consolidation of elections. The Chairperson precinct, city, and school elections, complexity invited them not to opine on whether to combine and polling error potential increase. elections, but instead to discuss issues related to combining elections. The Secretary indicated his support of election consolidation legislation is conditional upon its The Johnson County Election Commissioner inclusion of four concepts: said several points should be considered in discussing consolidating elections. They included ● Making nonpartisan elections partisan, the following: and having a partisan primary and a separate ballot for people who are not ● Each election is unique; affiliated with major parties; ● Each election varies in complexity as there ● Simplifying ballots by reducing the were more than 1,500 ballot types, or number of different ballot rotations; styles, in the August election in Johnson County;
Kansas Legislative Research Department 1-10 2014 Ethics, Elections and Local Government ● Citizens have high expectations; Johnson cannot be used because of security issues, and County has been one of the top five most private places are refusing as well. Another highly regarded counties with regard to problem is adding technology to, for example, citizen services; township halls that were not built for so many computer hookups. The Douglas County Clerk reiterated BOD works best in voting centers. If the ● Growth provides scale issues; elections number of polling places were reduced and voting are expensive and in Johnson County, was moved to fewer voting centers with bigger there are 370,000 participants; spaces, fewer machines would be needed. Kansas law would need to be changed in order to allow all ● Of 60 elections in the past 10 years, 40 counties to use voting centers. have been special elections (mainly mail ballots) and spring primaries; The Hodgeman County Clerk provided a small-county perspective. Hodgeman County has a ● Voter turnout for special elections is population of fewer than 2,000, with 1,400 greater than for regular spring elections; registered voters. The number of polling places the worst turnout for mail ballot special recently has dropped from six to two. The county elections was better than the best turnout has two cities of the third class. It is a paper-ballot- in April; based county and it has backup for all documents. Voters may decide whether to vote by paper or ● Privacy and identity theft are voter electronically (touch screens are available). Each concerns; polling place serves multiple precincts. Ballot programming and ballot printing are outsourced; if the county decided to do its own programming ● Finding polling places and recruiting more staff would be required. As with Douglas election workers is becoming more County, school districts cause the biggest difficult; and complexity. In the 2012 primary election, there were 30 ballot styles. If school district elections ● Advance voting brings cost efficiencies were added, there would be 58 ballot styles at a (such as not renting polling places) and cost of $21 per voter. The county has a higher per- introduces other costs, such as BOD voter cost because of the number of precincts and machines. the small number of voters.
The Douglas County Clerk, who currently Election cost spreadsheets were provided for serves as president of the Kansas County Clerks each of these three counties. The same data also and Election Officials Association, provided a were provided by Stafford County, which is twice mid-sized county perspective. Douglas County has the size of Hodgeman County, and Barton County, 76,000 registered voters, 125 precincts (the largest which has a population ranking between those of with more than 2,700 voters and the smallest with the small rural county and Douglas County. For only one), 59 polling places, and all sizes of cities. the 2014 general election, the costs per ballot The largest number of ballot styles at one polling ranged from $1.81 in Johnson County to $7.23 in place is 14, and the county averages three Hodgeman County. elections a year. E-poll books are being added slowly; color coding on poll books and ballots is Summary of Bill Testimony in Favor Of and used to help with ballot accuracy. School district Opposed To Combining Elections elections present the biggest complexity. They require different ballots, particularly for school KLRD staff summarized “pro” and “con” districts that “finger” into Douglas County. The arguments that have been presented in testimony county also has drainage districts and, for them, on several previous election consolidation bills. As the definition of “qualified voter” is different: stated previously, since 2011 at least ten bills have landowners, not residents, are qualified to vote. been introduced on the topic or amended to Douglas County also is experiencing increasing include such content, and seven of those bills were difficulty in acquiring polling places. Schools
Kansas Legislative Research Department 1-11 2014 Ethics, Elections and Local Government active in the 2013-2014 biennium. The testimony ballots in a timely manner); and increase voter summary was considered a “working draft” and turnout without adding costs. input was sought if there appeared any dispute with the reported information. Those making arguments in opposition stated any voter turnout increase is pure conjecture and it Staff explained this topic began by would swap one freestanding election for another considering the move of spring elections to the fall while requiring entities to change the entire of even-numbered years, but auxiliary issues process for election terms and procedures. In moved into the discussion and changed the content addition, several arguments in opposition mirrored and testimony on the various bills. One of the the reasons for moving to the fall of even- auxiliary issues, i.e., the move would complicate numbered years but might not have applied the ballots, resulted in a recommendation to similarly. change nonpartisan elections to partisan. This recommendation then engendered additional As stated previously, some issues initially comments from conferees. considered to be auxiliary issues became policy issues, such as partisan versus nonpartisan Arguments made frequently in favor of elections. Another auxiliary issue addressed as a moving spring elections to the fall of even- policy issue by opponents was taking elections on numbered years were to improve voter turnout, a member district basis and mandating they reduce costs, and increase the visibility and become at-large. importance of elections resulting in more informed voters. CONCLUSIONS AND RECOMMENDATIONS Arguments in opposition were the following: combining elections would result in a lengthier The Committee spent two of its three assigned ballot; it would become more difficult to manage days on the topic of combining elections. elections, possibly resulting in problems at the Presentations were received from experts from polls and additional errors; it would add confusion around the nation. The Committee heard directly for voters; it could preclude voters from becoming from three other states’ experts on the challenges informed about all candidates; it would be more and benefits of combining elections, either costly for candidates; and it would shift – not completely or partially, in those states. The reduce – costs, resulting in every-other-year, feast- Committee also received a presentation from a or-famine budgets. staff representative of the National Conference of State Legislatures, regarding the history and Arguments in favor of moving the spring current practice of election scheduling in the elections to the fall of odd-numbered years were nation, and from Kansas election officials. these: it would offer a reasonable alternative to the even-numbered year option; increase voter Following this review and Committee turnout; eliminate the problem of providing an discussion, the Committee did not make any additional election year; spread out the election conclusions or recommendations. calendar; provide adequate ballot production time (to allow military and overseas voters to receive
Kansas Legislative Research Department 1-12 2014 Ethics, Elections and Local Government Special Committee on Ethics, Elections and Local Government
RILEY COUNTY CONSOLIDATED LAW ENFORCEMENT
Conclusions and Recommendations
The Committee made no conclusions or recommendations.
Proposed Legislation: None.
BACKGROUND article addresses the establishment, operation, and procedures for abandonment of a countywide law The Legislative Coordinating Council (LCC) enforcement department in counties meeting in 2014 created the Special Committee on Ethics, eligibility criteria. Elections and Local Government, which was composed of nine members. The LCC charge to Article 44 allows for consolidation of law the Committee included the following: enforcement in counties that meet eligibility criteria based on population and assessed ● Review issues pertaining to abandoned valuation. A bill to allow such consolidation was properties. The study is to include considered in 1969 and referred to an interim reviewing current relevant statutes, study subcommittee; the subcommittee members economic and potential public safety concluded Riley County should be a “pilot” issues for local communities, and potential county for consolidating law enforcement impact on state and local government activities. Several changes have been made to the revenues; law since then. The matter of consolidating law enforcement in Riley County was placed on the ● Review 2014 SB 436 which addresses Riley County ballot in 1972 and, due to sufficient statutes that authorize Riley County to local concern, again in 1974. consolidate its law enforcement agencies and establish a law enforcement director; The article currently contains four and consolidated law enforcement acts:
● Study moving spring elections to the fall. ● KSA 19-4401 through 19-4423;
The Committee was given three meeting days. ● KSA 19-4424 through 19-4445; It met on October 10, November 21, and ● KSA 19-4446 through 9-4467 (repealed in December 12, 2014. The issue of Riley County’s 1973); and consolidated law enforcement was addressed during the first Committee meeting. ● KSA 19-4468 through 19-4486.
The Kansas Statutes Annotated (KSA) Although the statutes originally were drafted Chapter 19, Counties and County Officers, to apply only to certain counties, criteria in current Articles 8 and 44 address law enforcement. Article law would allow 31 counties to consider the 8 addresses county sheriffs and applies to all question of a consolidated countywide law counties not covered by Article 44. The latter enforcement agency if 2013 population and county
Kansas Legislative Research Department 1-13 2014 Ethics, Elections and Local Government valuation data are considered. Those criteria, from the chairman of the Board of Riley County which are a combination of population and Commissioners, the Director of the Riley County assessed tangible valuation, are listed, followed by Police Department, a Manhattan city a listing of counties that appeared to qualify. commissioner, and a representative of the group Additional criteria were available under these that proposed 2014 SB 436. laws, but no counties appeared to meet them: The county officials provided information ● Population 20,000-23,000, valuation more about the law enforcement system in Riley than $70 million (KSA 19-4403): County. In the 1960s, one official said, there were Cherokee, Labette, and Pottawatomie; serious crimes in the county. Since consolidation, the officials stated, crime has decreased and law ● Population 3,000-4,000, valuation $28 - enforcement resources have been used more $50 million (KSA 19-4470): Jewell, efficiently. One official said the law enforcement Lincoln, Rush, Smith, and Woodson; “agency” (the term used in statute) is composed of seven members and acts similarly to a board of ● Population 5,000-12,000, valuation more directors. It consists of one county commissioner, than $75 million (KSA 19-4470): one county resident, one Manhattan commissioner, Anderson, Brown, Clay, Cloud, Coffey, two Manhattan residents, the Riley County Doniphan, Ellsworth, Grant, Gray, Harper, Attorney, and one additional appointee (appointed Kingman, Linn, Marshall, Nemaha, Pratt, alternately by the city and the county). Kansas Rice, Rooks, Russell, Scott, Stevens, State University maintains its own police Thomas, Wabaunsee, and Wilson. department. The testimony stated support for a law enforcement director not involved in politics and Riley County is the only county to have stated studies found per capita law enforcement consolidated under Article 44. The provisions expenditures lower than those of peer counties. applicable to Riley County, KSA 19-4424 through One Committee member noted the uniqueness of 19-4445, specify the appointed leader of the Manhattan was not addressed—it is situated in two consolidated department will be its director and counties, meaning both Pottawatomie County and abolish the office of sheriff. That is one of the few Riley County maintain some jurisdiction. ways this act differs from the other two. The Manhattan City Commissioner provided a In 2014, SB 436 was introduced and referred signed letter from the City Commissioners of to the Senate Committee on Ethics and Elections. Manhattan that stated, after the law was enacted to The bill, which died in Committee, would have allow consolidation by ballot, support was made the Riley County law enforcement agency received by a margin of nearly 70 percent. The director an elected, not an appointed, position. letter also stated the City believes it has quality, effective law enforcement services. COMMITTEE ACTIVITIES The representative of the group that proposed The Chairperson introduced the issue by SB 436 noted the consolidated law enforcement stating neither Riley County officials nor the Riley system does work well and is efficient. He agreed County legislative delegation are among those with the other conferees. The group has no interest seeking the statutory change. These groups believe in reintroducing the bill and is communicating and the current consolidated system works well, he discussing issues with the law enforcement said.1 agency.
After receiving background information from CONCLUSIONS AND RECOMMENDATIONS a staff member, the Committee heard testimony 1 The original Committee charge included the following The Committee made no conclusions or parenthetical statement, which was subsequently removed recommendations. by the LCC: “Other counties have not followed the example. Currently, representatives from Riley County are seeking a hearing on the possible repeal of the statutes.”
Kansas Legislative Research Department 1-14 2014 Ethics, Elections and Local Government SPECIAL COMMITTEE
Report of the Special Committee on Judiciary to the 2015 Kansas Legislature
CHAIRPERSON: Senator Jeff King
VICE-CHAIRPERSON: Representative Lance Kinzer
OTHER MEMBERS: Senators David Haley (replaced by Pat Pettey for November meeting), Forrest Knox, and Greg Smith; and Representatives Erin Davis, Annie Kuether, Janice Pauls, and John Rubin
CHARGE
● Foster Parents’ Bill of Rights Act (2014 SB 394), Juvenile Justice, Responses to Kansas Supreme Court Decisions ○ Consider 2014 SB 394, the Foster Parents’ Bill of Rights Act, and related reforms; ○ Consider juvenile justice in Kansas; ○ Consider possible responses to Kansas Supreme Court decisions from the end of the regular Session; and ○ Should any time remain during the authorized days, the Committee would discuss legislation and policies under consideration for the 2015 Session.
● Patent Infringement (2014 HB 2663) ○ Study enactments in other states regarding patent infringements; ○ Study and review 2014 HB 2663; and ○ Make recommendations for the Kansas Legislature to consider regarding patent infringements.
January 2015 Special Committee on Judiciary
FOSTER PARENTS’ BILL OF RIGHTS ACT (2014 SB 394)
Conclusions and Recommendations
The Committee recommends a Senate bill containing the Judicial Council proposed legislation based upon 2014 Sub. for SB 394 be introduced for the 2015 Session. The Committee also recommends, as the issue is further considered by the Legislature, additional consideration be given to the question of whether the grievance process should be adopted in statute or rule and regulation or implemented by agency policy.
Proposed Legislation: One bill.
BACKGROUND and several foster parents, testified in support of the bill. A representative of EmberHope submitted The charge to the Special Committee on written testimony supporting the bill. Judiciary was to consider and make recommendations on three assigned topics: the A representative of DCF testified as a neutral Foster Parents’ Bill of Rights Act (2014 SB 394); conferee, and a representative of KDHE submitted possible responses to Kansas Supreme Court written neutral testimony. decisions from the end of the 2014 Session; and patent infringement (2014 HB 2663). (Note: the The Senate Committee adopted a substitute charge to the Special Committee also directed it to bill suggested by the proponents and neutral consider juvenile justice in Kansas, but the Special conferees modifying the language in the Bill of Committee deferred to the work of the Joint Rights, removing a section to create a State Foster Committee on Corrections and Juvenile Justice Care and Adoption Board, and removing some Oversight on this topic.) changes to existing statutes proposed in the original bill. On the subject of the Foster Parents’ Bill of Rights Act (2014 SB 394), the Committee was The Senate Committee of the Whole amended directed to consider that proposed bill and related the substitute bill to remove a provision to allow reforms. foster parents to request all available information, when possible, before deciding whether to accept a The topic was requested by Senator Jeff King child for placement. as Chairperson of the Senate Judiciary Committee and was assigned by the Legislative Coordinating The bill passed the Senate on final action by a Council for study and review. vote of 34-3. It received a hearing in the House Judiciary Committee, where the same conferees 2014 SB 394. SB 394 would have enacted the provided testimony as in the Senate Committee, Kansas Foster Parents’ Bill of Rights Act within but no further action was taken on the bill and it the Kansas Code for Care of Children (Code). In died in House Committee. Representative Lance the 2014 Senate Committee on Judiciary, Kinzer, Chairperson of the 2014 House Judiciary representatives of Kansas Foster and Adoptive Committee, subsequently requested the Kansas Children Inc. and the Midwest Foster Care and Judicial Council conduct a study on the topic of Adoption Association, as well as a social worker the legal rights of foster parents, asking the
Kansas Legislative Research Department 2-1 2014 Judiciary Council to review the current legal rights of foster of the child, and to protect the foster parents and consider areas where those rights family to the extent allowed under state could be responsibly expanded, using Sub. for SB and federal law; 394 as a base, while keeping in mind possible unintended consequences. ● Required DCF to provide information to foster parents regarding the number of Sub. for SB 394, as amended, would have times a child has been removed and the done the following: reasons for removal, to the extent permitted by law, and allowed DCF to ● Recognized foster parents’ integral role in provide names and phone numbers of the effort to care for displaced dependent previous foster parents if authorized by the children, and declared that foster parents previous foster parents; have the right to be treated by DCF, KDHE, and other partners in the care of ● Required DCF to arrange for pre- abused and neglected children with placement visits between foster children dignity, respect, and trust. The bill would and family foster home parents, when have stated foster parents shall treat all appropriate and feasible; children in their care, each child’s birth family, and all members of the child ● Allowed foster parents to ask questions professional team with dignity and about the child’s case plan or to encourage respect; or refuse a placement. Such refusal could not serve as the sole determining factor in ● Required KDHE to provide foster parents subsequent placements if such placement with written notification of their rights is in the best interests of the child. After under the Act at the time of initial placement of a child with foster parents, licensure and license renewal; DCF would have been required to update the foster parents as new relevant ● Required DCF to publish the Prevention information about the child and the child’s and Protection Services Policy Procedure parents and other relatives is gathered; Manual on the DCF public website and require access for foster parents to DCF ● Required DCF to provide timely policies posted on the DCF website. notification to foster parents of all case Foster parents would have had access to plan meetings concerning children placed rules and regulations regarding their in their homes. Foster parents would have licensure which are posted on the KDHE been encouraged to participate in such website, and would have been required to meetings and provide input, and would comply with the licensure requirements have been informed by KDHE regarding and policies of their licensing agency and their family foster home licensure; child placing agency; ● Required DCF to, when appropriate and ● Required DCF to provide foster parents feasible, establish reasonably accessible with pre-service training and required respite care for children in short-term DCF, KDHE, or the child placement foster care, in consultation with the foster agency to provide training at appropriate parents. Foster parents would have been intervals to meet mutually assessed needs required to follow DCF policies and of the child and to improve foster parent procedures in requesting and using respite skills; care;
● Required DCF to provide to foster parents, ● Required foster parents to treat prior to and during placement, pertinent information received from DCF about the information regarding the care and needs child and child’s family as confidential,
Kansas Legislative Research Department 2-2 2014 Judiciary except necessary information provided to placed with such foster parents re-enters practitioners for the medical or psychiatric the child welfare system; care of the child or to school personnel in securing a safe and appropriate education. ● Required foster parents to inform the Foster parents would have been required caseworker in a timely manner if the to share information they learn about the foster parents desire to adopt a foster child child and child’s family, or concerns who becomes free for adoption. If the arising in the care of the child, with the foster parents did not choose to pursue caseworker and other members of the adoption, they would have been required child professional team; to support and encourage the child’s permanent placement, including providing ● Allowed foster parents to continue the certain information and accommodating practice of their own family values and transitional visitation; routines while respecting the child’s cultural heritage and cultural identity and ● Required advance notification to foster needs. DCF would have been required to parents of all court hearings and reviews provide foster parents with relevant pertaining to a child in their care and of information on specific religious or their right to attend and participate under cultural practices of the child; applicable state and federal law;
● Required all discipline and discipline ● Set forth the right of foster parents to methods to be consistent with state law complete and submit to the court the foster and rules and regulations, including those parent court report form; adopted by DCF and KDHE. ● Set forth foster parents’ access to the ● Stated visitations with the child’s siblings appeals and grievance processes pursuant or biological family should be scheduled to state law and regulations and policies of at a time meeting the needs of all parties, DCF and KDHE; and whenever possible; ● Set forth the foster parents’ right to contact ● Required foster parents to be flexible and DCF or KDHE regarding concerns or cooperate with family visits and provide grievances about management decisions or supervision and transportation for the delivery of service issues. child for such visits; The bill would have defined “foster parent” ● Required DCF to provide, upon a former and “family foster home.” foster parent’s request, general information, if available, on the child’s The bill would have amended the Code with progress if the child was in the custody of regard to access to information contained in law the Secretary for Children and Families enforcement records to remove licensed or and the child and child’s placement registered child care providers from the list of agreed; individuals or agencies entitled to access such information. ● Required 30-days’ advance notice to foster parents, in accordance with the statute The bill would have amended the statute governing change of placement; within the Code governing change of placement to require 30 days’ written notice of a planned ● Set forth the right of foster parents to be change in placement to various parties when a considered, when appropriate, as a child has been in the same foster home or shelter placement option when a child formerly facility for three months or longer. Under current law, such written notice is required if a child has
Kansas Legislative Research Department 2-3 2014 Judiciary been in the same placement for six months or if there are multiple provisions addressing the longer. same subject; and whether some proposals are consistent with best practices. The Advisory Finally, the bill would have updated agency Committee also recognized that the rights of foster references to reflect agency reorganization. parents must respect the rights and needs of other parties involved in the system, including the foster child or youth, the parents, and other relatives or COMMITTEE ACTIVITIES adults with close emotional ties to the child or youth. In November, the Special Committee received the written Report of Judicial Council Juvenile He then outlined the conclusions and Offender/Child in Need of Care Advisory recommendations the Advisory Committee Committee on Foster Parents’ Rights – 2014 SB reached with the above considerations in mind. 394 (“Judicial Council Report”). At its November The Advisory Committee concluded statutory meeting, the Committee heard an overview of the protections could provide security but must be Judicial Council Report from Judicial Council consistent with other law. While foster parents representatives and testimony on the issue from play an essential role in the system, they are not various stakeholders. equivalent to agency personnel, and changes should be avoided that would make them agents of the state. While information sharing with foster Overview of Judicial Council Report parents is adequately addressed under current law, notice could be strengthened for moving a child A representative of the Kansas Judicial (but is not feasible to provide for every meeting). Council presented the Committee with an Consideration for the relationship of a foster overview of the Judicial Council study and report. parent with a foster child or youth could be He reviewed the charge to the Judicial Council per improved, but not at the expense of other rights. Representative Kinzer’s request (described above) Access to an internal grievance process would and noted the Judicial Council Advisory help protect foster parents, but use of Foster Parent Committee added six temporary members to Allies or creation of a state board would not be ensure foster parents and other relevant desirable at this point. The Judicial Council stakeholders were part of its discussion and held representative noted the proposed legislation, three all-day meetings to study the issue. It modified from Sub. for SB 394, reflected the approved its final report in early November via conclusions outlined above, as well as made some teleconference. additional changes addressing specific issues.
Among those foster parent concerns In response to questions from the Committee, highlighted by the representative were these: status the Judicial Council representative noted the of foster parent as part of a team; improved foremost consideration for the Advisory information sharing; notice and participatory Committee was how to structure the system to rights for key decisions; consideration for produce the best results for the most children. He relationship in adoption, re-fostering, and updates emphasized the importance of the proposed on well-being; protection from retaliation and changes relating to strengthening notice for child complaint process; a need for Foster Parent Allies moves and the grievance procedure. He stated that, and State Foster Care and Adoption Board; and the moving forward, there would be value in desire for a comprehensive statutory statement of considering the rights of the foster child and rights and responsibilities. focusing on what foster children or foster youth might like to see as they move through the system. The Judicial Council representative noted the He also provided the Committee with a document concerns of state agencies involved in the foster comparing SB 394 with existing statutes and care system, including issues that currently are regulations. addressed elsewhere in detail by statute or regulation; the potential for conflict and confusion
Kansas Legislative Research Department 2-4 2014 Judiciary Judicial Council Proposed Legislation ● Clarifying language related to foster parents’ responsibility to support and [Note: because the Judicial Council’s proposed encourage permanent placement; legislation is based on Sub. for SB 394, the following describes only the differences between ● Removing definitions for “foster parent” the proposed legislation and the summary of Sub. and “family foster home” that are for SB 394 provided earlier in this report.] unnecessary or inconsistent with definitions found elsewhere; The Judicial Council proposed legislation modifies Sub. for SB 394 by: ● Restoring the six-month qualifying period to trigger the notice requirements for a ● Adding language recognizing training change in placement and requiring the provided by foster parent support groups; hearing to be held within seven days; and
● Adding language ensuring foster parents ● Adding language requiring 72 hours’ may ask questions about a case plan written notice to a foster parent of any without it serving as the determining plan to change placement of a child who factor for a subsequent placement; has been in the foster home for more than 30 days but less than 6 months, and ● Adding language encouraging foster requiring private child placing agencies to parents to participate in other placement develop and implement an internal meetings when appropriate and feasible; grievance process through which a foster parent can object to such placement change. ● Removing language regarding confidentiality of information that is not consistent with existing regulations; Stakeholder Testimony
● Restoring and clarifying language related The Assistant Director for Legal Services, to foster parents’ responsibility to seek Prevention and Protection Services at DCF information related to a placement; presented testimony to the Committee supporting the concept of a Foster Parents’ Bill of Rights. She noted her participation in the Judicial Council ● Removing the provisions related to Advisory Committee study and reported that DCF cultural heritage and identity, discipline, prepared a foster parents’ rights document during and visitation scheduling, which are the summer of 2014 and posted it to the DCF covered in detail in current regulations; website. DCF also appointed a Foster Parent and Youth Ombudsman in June 2014 to specifically ● Rewording the provision allowing DCF to address concerns of foster parents and youth. provide information on the well-being of a Information regarding these initiatives was sent to child to a former foster parent; every licensed Kansas foster home, and a copy of this information was provided to the Committee. ● Removing the language specifically giving foster parents the right to be considered as The Assistant Director noted a few suggested a placement option, adding language revisions by DCF to the Judicial Council proposed specifying that a person with whom a legislation and the ongoing efforts of a workgroup child has “close emotional ties” may made up of many stakeholders, agency include a foster parent for purposes of representatives, and other entities involved in the preferences in granting custody for Kansas child welfare system to address concerns adoption, and adding a reference to this and issues relating to foster parents’ rights. This preference language in the disposition workgroup prefers that foster parents rights statute; provisions be incorporated in policy rather than in
Kansas Legislative Research Department 2-5 2014 Judiciary statute, and plans to utilize the current DCF foster addressed in the Judicial Council proposed parents’ rights document in considering and legislation. KBORG also plans to focus on proposing further revisions or additions. identifying and developing specific trainings for foster parents, foster children, and child welfare In response to Committee questions, the workers. Assistant Director stated the contractual providers already have internal grievance procedures. The The Committee asked the KFAPA Executive Committee asked the Assistant Director to provide Director to try to provide feedback from KFAPA more information regarding these procedures for members regarding the Judicial Council report for the January meeting. the January meeting.
When asked if the primary goal is Committee Discussion reintegration or permanency, the Assistant Director responded that it depends on the facts and During discussion, Committee members raised circumstances in each case. The ultimate goal is to the following points: prevent removal in the first place, then to achieve reintegration with the original family. If it is not ● While the grievance process should not be feasible for the child to remain in or return to the micromanaged by the Legislature, it is home, then the goal is to move toward important to provide enough structure so reintegration as soon as possible. that foster parents think the review is meaningful; The President and CEO of the Midwest Foster Care and Adoption Association (MFCAA), and original drafter of the Foster Parent Bill of Rights ● When addressing foster parents’ rights, it as introduced in SB 394, reviewed some of the is necessary to balance the constitutional foster parent concerns and issues that led to the rights of the natural parents with the rights introduction of a Foster Parent Bill of Rights, provided to foster parents, which may including fear of retaliation and feeling unheard, look different depending on whether unsupported, and unable to voice opinions and parental rights have been terminated; concerns. Retention of foster parents is critical to the child welfare system. She also reviewed the ● While the proposed legislation is a good steps taken by DCF during the summer (as start, there will be further efforts made outlined by the Assistant Director) and the efforts during the 2015 Session to expand the of the Judicial Council Advisory Committee and scope of the examination of and reforms the workgroup (identified as the Kansas Bill of related to the foster care system, including Rights Group [KBORG]). She participated in both the roles that various state agencies play in the Advisory Committee study and in KBORG. the system. Also needing to be examined are cases that drag on in the courts, The MFCAA president stated her belief that it delaying permanency; is critically important for foster parents to have easy access to a bill of rights set forth in law, ● The scheme of definitions provided for which can be accomplished by enacting the elements of the foster care system, mainly Judicial Council proposed legislation. She asked in regulation, needs to be examined to the Committee to support the proposed legislation. ensure consistency and to determine whether definitions should be added to The Executive Director of the Kansas Foster statute; and and Adoptive Parent Association (KFAPA) reported her association initiated KBORG to work ● The causes leading children and youth to on a foster parent bill of rights, and a majority of enter the foster care system should be the group wants to pursue a bill of rights via DCF examined, as well as why children and policy. KBORG plans to continue working toward youth cannot be reintegrated with their that end, identifying gaps that may need to be families.
Kansas Legislative Research Department 2-6 2014 Judiciary Further Information and Discussion The KFAPA Executive Director submitted responses from a survey of KFAPA members In January, the Assistant Director for Legal regarding the Judicial Council proposed Services, Prevention and Protection Services at legislation. A Committee member noted that DCF provided the Committee with further nearly 90 percent of the respondents preferred a information about the grievance process for foster bill of rights be placed in law rather than in policy, parents when a change in placement is to be made and that a substantial percentage wanted to see for a child who has been in the foster home more more changes made beyond those in the proposed than 30 days but less than 6 months. At least 72- legislation. hours’ written notice is required, and the foster parent shall have a reasonable opportunity to express concerns to an agency representative other CONCLUSIONS AND RECOMMENDATIONS than the case manager or supervisor managing the case. An impartial internal committee of The Committee recommends a Senate bill experienced child welfare practitioners shall containing the Judicial Council proposed review the grievance and situation to determine legislation be introduced for the 2015 Session. The whether the change in placement is in the best Committee also recommends, as the issue is interests of the child, considering all relevant further considered by the Legislature, additional factors. The review decision shall be documented consideration be given to the question of whether and a verbal or written response shall be provided the grievance process should be adopted in statute to the foster family before any move occurs. or rule and regulation or implemented by agency policy. The Assistant Director indicated both contractual providers have agreed to implement this procedure to ensure a consistent grievance process in these situations.
Kansas Legislative Research Department 2-7 2014 Judiciary Special Committee on Judiciary
RESPONSES TO KANSAS SUPREME COURT DECISIONS
Conclusions and Recommendations
To address the out-of-state criminal history issue raised in State v. Murdock, 299 Kan. 312 (2014), the Committee recommends legislation be introduced in the House of Representatives for the 2015 Session making the amendments to KSA 2014 Supp. 21-6811(e), KSA 2014 Supp. 21- 6810(d), and KSA 22-3504 recommended by the Kansas County and District Attorneys Association (KCDAA), and that such legislation be referred to the House Committee on Corrections and Juvenile Justice.
To address the search warrant issue raised in State v. Powell, 299 Kan. 690 (2014), the Committee recommends legislation be introduced in the House of Representatives for the 2015 Session making the following amendment to KSA 2014 Supp. 22-2502, based upon the KCDAA recommendation: replace the current specific listing of things for which a magistrate may issue a search warrant with a general statement that a warrant may be issued for the search or seizure of any item that can be seized under the Fourth Amendment to the United States Constitution. The Committee recommends this legislation be referred to the House Committee on Corrections and Juvenile Justice.
Proposed Legislation: A House bill based upon KCDAA recommendations to address the Murdock issue and a House bill based upon KCDAA recommendations to address the Powell issue.
BACKGROUND The topic was requested by Senator Jeff King as Chairperson of the Senate Judiciary Committee The charge to the Special Committee on and was assigned by the Legislative Coordinating Judiciary was to consider and make Council for study and review. recommendations on three assigned topics: the Foster Parents’ Bill of Rights Act (2014 SB 394); possible responses to Kansas Supreme Court COMMITTEE ACTIVITIES decisions from the end of the 2014 Session; and patent infringement (2014 HB 2663). (Note: the In September, the Committee reviewed its charge to the Special Committee also directed it to charges and received an overview of three recent consider juvenile justice in Kansas, but the Special Kansas Supreme Court decisions from the Senior Committee deferred to the work of the Joint Deputy District Attorney with the Johnson County Committee on Corrections and Juvenile Justice District Attorneys’ Office. The three cases Oversight on this topic.) discussed were State v. Murdock, 299 Kan. 312 (2014); State v. Reiss, 299 Kan. 291 (2014); and On the subject of recent Kansas Supreme State v. Powell, 299 Kan. 690 (2014). Court decisions, the Committee was directed to consider possible responses to Kansas Supreme State v. Murdock. In Murdock, the Kansas Court decisions released near the end of or after Supreme Court held that a defendant’s out-of-state the 2014 regular legislative session. convictions occurring before enactment of the
Kansas Legislative Research Department 2-8 2014 Judiciary Kansas Sentencing Guidelines Act (KSGA) should requiring reasonable suspicion of criminal be scored as nonperson felonies, instead of as wrongdoing, and that such reasonable suspicion person felonies, for criminal history purposes did not exist under the facts of the case. Because because Kansas did not have a comparable person the Supreme Court relied heavily on Fourth crime designation before the KSGA. Amendment search and seizure protections in reaching its holding, the Johnson County Senior The Johnson County Senior Deputy District Deputy District Attorney noted it would be Attorney noted language in the opinion suggested difficult to take any legislative action in response the holding might apply to all pre-KSGA to the decision. convictions, both in-state and out-of-state, but there was a pending motion by the state for State v. Powell. In Powell, police obtained a rehearing to clarify the extent of the holding. search warrant for the defendant’s blood, hair, cheek cells obtained using oral swabs, and He further noted the opinion suggested the fingerprints. The Supreme Court held the district Legislature take action if the holding did not court erred in admitting this evidence because the comport with the Legislature’s intended affidavit used to obtain the warrant was classification of pre-KSGA convictions, and that insufficient. Although the defendant also argued the dissent stated the holding “completely the evidence should be suppressed because KSA overlooks [Kansas’] sentencing structure, purpose, 2014 Supp. 22-2502 does not authorize a search and design.” warrant for blood, hair, fingerprints, or cheek cells, the Supreme Court declined to reach this argument because it had reversed the district court on other The Johnson County Senior Deputy District grounds. However, the Court noted “the Attorney reviewed the Kansas Sentencing Legislature may wish to consider whether the Commission’s notice to criminal justice statute’s plain language appropriately addresses stakeholders advising them to adhere to the legislative intent.” The Johnson County Senior Murdock holding and treat all crimes committed Deputy District Attorney noted a number of prior to July 1, 1993, as nonperson crimes for questions asked by justices at oral argument criminal history purposes. related to this issue. In response to questions from the Committee, the conferee stated he thought the In response to questions from the Committee, Legislature could address the issue without he explained the practical effect of the Murdock causing harm to existing cases under the search holding would be to entitle some offenders to warrant statute. shorter sentences due to the lower severity of nonperson felonies in calculating criminal history. The Committee asked for information He reported the Attorney General’s office regarding how other states have addressed estimated the holding could affect up to 800-900 biological material in their warrant statutes. At the inmates. He noted proposed legislation could be November meeting, Committee staff presented explored once the pending motion for rehearing information on warrant statutes and rules in was resolved and the extent of the holding Colorado, Louisiana, Maine, Montana, and Rhode clarified. Island that include provisions related to biological materials. The Committee asked for more information regarding the possible impact of the Murdock Proposed Legislation and Testimony decision once the motion for rehearing was resolved. At the September meeting, the Committee asked the Johnson County Senior Deputy District State v. Reiss. In Reiss, the Kansas Supreme Attorney to work with the Kansas County and Court reversed a conviction for driving under the District Attorneys Association (KCDAA) to craft influence, holding that an incidental traffic stop proposed legislation to address the issues raised in had evolved into an investigative detention, Murdock and Powell and to present this proposed legislation at the next meeting.
Kansas Legislative Research Department 2-9 2014 Judiciary In November, the Johnson County Senior Committee Discussion Deputy District Attorney presented proposed legislation on behalf of the KCDAA. The KCDAA In January 2015, the Committee reviewed the recommended addressing the Murdock decision by material presented on the topic at the September amending KSA 2014 Supp. 21-6811(e) by and November meetings in 2014 and made the specifying the Kansas Criminal Code as the source following recommendations. for designating comparable offenses and modifying “comparable offense” by adding the phrase “an existing”; amending KSA 2014 Supp. CONCLUSIONS AND RECOMMENDATIONS 21-6810(d) to clarify that felony convictions or juvenile adjudications committed before July 1, To address the Murdock issue, the Committee 1993, shall be scored as person or nonperson using recommends legislation be introduced in the an existing comparable offense under the Kansas House of Representatives for the 2015 Session Criminal Code; and amending KSA 22-3504 to making the amendments to KSA 2014 Supp. 21- add time limitations for motions to correct illegal 6811(e), KSA 2014 Supp. 21-6810(d), and KSA sentences, allowing extensions only to prevent 22-3504 recommended by the KCDAA, and that manifest injustice. such legislation be referred to the House Committee on Corrections and Juvenile Justice. The KCDAA recommended addressing the The Committee has concerns with the proposed Powell decision by amending KSA 2014 Supp. 22- changes to KSA 22-3504, but wants to submit 2502 to add subsections specifically allowing them without recommending those changes search warrants to be issued for the search or favorably or unfavorably so that they may be seizure of any biological material, including but further considered by the Legislature. not limited to DNA (deoxyribonucleic acid), cellular material, bodily tissues, bodily fluids, To address the Powell issue, the Committee saliva, urine, blood, hair, fingernail clippings or recommends legislation be introduced in the scrapings, or fingerprints or palmprints; and any House of Representatives for the 2015 Session item that can be seized under the Fourth making the following amendment to KSA 2014 Amendment to the United States Constitution. Supp. 22-2502, based upon the KCDAA recommendation: replace the current specific A representative of the Kansas Association of listing of things for which a magistrate may issue a Criminal Defense Lawyers opposed the KCDAA’s search warrant with a general statement that a proposed amendment to KSA 22-3504 (motions to warrant may be issued for the search or seizure of correct illegal sentences) on the grounds the any item that can be seized under the Fourth amendment would not solve the perceived Amendment to the United States Constitution. The problem and could actually prevent the state from Committee recommends this legislation be filing a motion to correct an illegal sentence in referred to the House Committee on Corrections certain situations. and Juvenile Justice.
Kansas Legislative Research Department 2-10 2014 Judiciary Special Committee on Judiciary
PATENT INFRINGEMENT (2014 HB 2663)
Conclusions and Recommendations
The Committee recommends a Senate bill addressing patent infringement claim abuse be introduced in the 2015 Session using the language presented by the Kansas Bankers Association at the January meeting, but incorporating only the second of the two suggested exemptions (the pharmaceutical exemption referencing federal statutes).
Regarding anti-SLAPP (strategic lawsuit against public participation) legislation, the Committee recommends the language of 2014 HB 2711 be introduced as a House bill in the 2015 Session.
Proposed Legislation: Two bills.
BACKGROUND COMMITTEE ACTIVITIES
The charge to the Special Committee on In September, the Committee received an Judiciary was to consider and make overview of 2014 HB 2663 and other states’ recommendations on three assigned topics: the legislation and heard testimony from proponents Foster Parents’ Bill of Rights Act (2014 SB 394); and opponents of HB 2663. possible responses to Kansas Supreme Court decisions from the end of the 2014 Session; and Bad Faith Assertions of Patent patent infringement (2014 HB 2663). (Note: the Infringement charge to the Special Committee also directed it to consider juvenile justice in Kansas, but the Special Topic Overview: 2014 HB 2663. Committee Committee deferred to the work of the Joint staff explained HB 2663 arose in response to bad Committee on Corrections and Juvenile Justice faith assertions of patent infringement (often Oversight on this topic.) called “patent trolling”), in which firms purchase or license patents from inventors for the purpose On the subject of patent infringement (2014 of sending demand letters to companies that use HB 2663), the Committee was directed to study equipment incorporating technology allegedly enactments in other states regarding patent covered by the patents. These demand letters infringements, study and review 2014 HB 2663, threaten lawsuits unless “settlement” or and make recommendations for the Kansas “licensing” fees are paid. The legitimacy of the Legislature to consider regarding patent patents upon which such claims are made may be infringements. suspect, but it is often more economical for a company being threatened to just pay the The topic was requested by Representative “settlement” or “licensing” amount offered than to Lance Kinzer as Chairperson of the House contest the patent claim. Judiciary Committee and was assigned by the Legislative Coordinating Council for study and Committee staff provided a review of HB review. 2663, explaining the bill would have prohibited bad faith assertions of patent infringement, establishing definitions and factors to be
Kansas Legislative Research Department 2-11 2014 Judiciary considered as evidence of such bad faith A representative of the American Bankers assertions. The bill also would have established Association also appeared in support of the factors to be considered as evidence that an language of HB 2663. He presented an overview assertion of patent infringement was not made in of state legislation intended to address bad faith bad faith. The bill would have allowed any target patent infringement claims, the relationship of of the prohibited conduct to bring a civil action for such legislation to federal patent law, First equitable relief, damages, costs and fees, and Amendment concerns with such legislation, other exemplary damages in the amount of $50,000 or opposition to such legislation and how it can be three times the total of damages, costs, and fees, addressed, and the case law that is beginning to whichever is greater. Upon motion by the target develop around such legislation. and a showing of a reasonable likelihood of a bad faith assertion, the defendant would have been The Committee received written testimony required to post a bond of up to $250,000. The from representatives of the Kansas Attorney Attorney General also would have received General, Kansas Association of Realtors, and enforcement authority. Kansas Credit Union Association, as well as from a Kansas certified public accountant, encouraging The bill was patterned after legislation enacted the Committee and the Legislature to take action in Vermont. HB 2663 did not receive a hearing to address bad faith patent infringement claims. during the 2014 Session and died in the House Judiciary Committee. A representative of the Pharmaceutical Research and Manufacturers of America (PhRMA) Other states’ legislation. Committee staff presented testimony in opposition to the language reviewed legislation enacted in other states since of HB 2663, stating concerns that the law could 2013 intended to address bad faith assertions of conflict with federal regulation of patent law and patent infringement. Most of the bills (including run afoul of the Supremacy Clause, as well as HB 2663) have been patterned after the Vermont encroach on First Amendment rights. He stated legislation, which was the first to pass, although PhRMA supports reasonable efforts to stop patent many states have made modifications to the enforcement abuses. PhRMA is working with the Vermont model to add exemptions for certain KBA to develop amendments that would address types of notifications or patent holders or to limit its objections to the legislation and plans to enforcement to the state Attorney General. As of continue working with the KBA to resolve the September 2014 meeting, 18 total states had concerns. adopted patent trolling legislation. Legislation was pending in four additional states, while legislation The Committee received written testimony was introduced but died in seven states (including from a representative of The Innovation Alliance Kansas with HB 2663). opposing the language of HB 2663 and encouraging the Legislature to develop legislation Testimony. A representative of the Kansas that would address the abuses of mass mailing of Bankers Association (KBA) asked the Committee bad faith demand letters while protecting to recommend passage of the language of HB legitimate communications. 2663 to the 2015 Legislature. She stated the bill was drafted narrowly to help Kansas companies Committee discussion. The Committee respond promptly and efficiently to patent encouraged the parties to continue working toward infringement assertions against them, lessening the compromise legislation. The Committee also burden of potential litigation on such companies requested more information addressing whether and reducing the harm caused by bad faith the current Kansas Consumer Protection Act could infringement claims, while not interfering with the be used to curb patent trolling and how other states enforcement of good faith assertions of patent might be using existing consumer protection laws infringement. The KBA representative said that in this way. Committee members asked if bad faith association is willing to work with industries with litigation was limited to the patent context and concerns regarding the legislation. requested more information regarding an anti- SLAPP (strategic lawsuit against public
Kansas Legislative Research Department 2-12 2014 Judiciary participation) bill that was introduced in 2014 (HB required to send the ruling to the head of the 2711). relevant government agency doing business with the contractor. Further information. In November, the Committee received further information Representative Jan Pauls, who requested the responding to the questions raised in September. introduction of HB 2711 in 2014, told the Committee the bill was intended to provide a An assistant Kansas Attorney General timely remedy when frivolous lawsuits are filed to appeared before the Committee to explain that the intimidate and silence people with limited Kansas Consumer Protection Act could not be resources who exercise their First Amendment used in most patent trolling cases because it covers right to free speech. Such lawsuits and the only conduct in connection with “consumers” and prospect of expensive litigation can have a chilling “consumer transactions.” Bad faith assertions of effect on free speech. Representative Pauls patent infringement are more likely to arise in reported similar acts have been passed in 28 states, business-to-business transactions. the District of Columbia, and Guam, usually with widespread bipartisan support. Committee staff presented information on efforts in Minnesota, Nebraska, New York, and Updates and Discussion Vermont to combat patent trolling using existing consumer protection laws. Staff also provided In January 2015, Committee staff reviewed the examples of exemptions contained in some state information the Committee had received on the patent infringement abuse legislation and topic at the September and November meetings. information regarding the definition of the term “meritless” as it is used in the Vermont law and in A representative of the KBA presented the HB 2663. Committee with a clean draft of proposed legislation based upon 2014 HB 2663. She Anti-SLAPP Legislation explained the KBA had worked with PhRMA, Pfizer, and Caterpillar to develop the new draft, Topic overview: 2014 HB 2711. Also in which incorporated technical clarifications as well November, Committee staff presented an overview as two exemptions intended to address the of 2014 HB 2711, the anti-SLAPP “Public Speech concerns of various parties. Protection Act.” The bill would have required a party bringing a claim against a person arising According to the KBA representative, the first from that person’s “public participation and exemption was drawn from the Illinois version of petition,” as defined in the act, to verify the claim the legislation and clarified the bill was not to be is made in good faith and not to suppress free construed to deem it an unlawful practice to take speech. The bill would have allowed unverified certain steps in attempting to license or enforce a claims to be stricken and sanctions for verified patent in good faith. claims that violated the law. Additionally, the bill would have allowed a party to move to strike a She stated the second exemption was claim based upon an action of public participation requested by Pfizer and exempted demand letters and petition, with an automatic stay taking effect or patent infringement assertions arising under upon the filing of such a motion. A defending federal statutes dealing with pharmaceutical party would be entitled to costs and attorney fees regulation. if it was determined a claim was unverified or if a motion to strike was successful, and punitive A representative of PhRMA stated he had not damages could be awarded to deter repetition of heard from Pfizer regarding the exemptions, and the conduct. Similarly, costs and attorney fees that he had forwarded the new version of would have been awarded to a responding party if legislation to the companies involved in PhRMA a motion to strike was frivolous or intended to but had not yet heard back from them. He told the delay. If a government contractor was found to Committee that the interested companies would be have violated the act, the court would have been
Kansas Legislative Research Department 2-13 2014 Judiciary able to address any further concerns once the incorporating only the second of the two legislation was introduced. exemptions (the pharmaceutical exemption referencing federal statutes). Committee members Regarding the anti-SLAPP legislation, expressed support for the concept behind the first Representative Pauls reported the Kansas Supreme exemption (clarifying the bill was not to apply to Court currently has a committee studying possible certain patent enforcement actions taken in good filing restrictions for litigants who repeatedly file faith), but noted some concern with the wording of frivolous, malicious, or repetitive pleadings. She the exemption as presented and whether it would asked the Special Committee to consider render the rest of the bill meaningless. recommending introduction of the language of 2014 HB 2711 as a committee bill. Regarding anti-SLAPP legislation, the Committee recommends the language of 2014 HB 2711 be introduced as a House bill in the 2015 CONCLUSIONS AND RECOMMENDATIONS Session. Some Committee members noted their support of the concept of the bill despite concerns The Committee recommends a Senate bill with some of the specific language, including the addressing patent infringement claim abuse be language related to punitive damages, damages for introduced in the 2015 Session using the language failure to verify, and liberal construction of the presented by the KBA at the January meeting, but statute.
Kansas Legislative Research Department 2-14 2014 Judiciary LEGISLATIVE BUDGET COMMITTEE
Report of the Legislative Budget Committee to the 2015 Kansas Legislature
CHAIRPERSON: Senator Ty Masterson
VICE-CHAIRPERSON: Representative Gene Suellentrop
OTHER MEMBERS: Senators Jim Denning and Laura Kelly; and Representatives Jerry Henry, Marvin Kleeb, and Ron Ryckman, Jr.
CHARGE
The Legislative Budget Committee is statutorily directed to compile fiscal information, and to study and make recommendations on the state budget, revenues, and expenditures, and on the organization and functions of the state, its departments, subdivisions, and agencies with a view of reducing the cost of state government and increasing efficiency and economy.
ASSIGNED TOPICS:
● Study human services caseloads, historic trends, and the impact of KanCare;
● Review the budget and programs of the Department of Education;
● Review the Technical Education program’s projected use and expenditures, actual costs, and outcomes; and
● Study the new GED Accelerator program at the Board of Regents and its projected use and outcomes.
March 2015 Legislative Budget Committee
REPORT
Conclusions and Recommendations
The Committee makes no conclusions or recommendations.
● Proposed Legislation: None
BACKGROUND KLRD, the Division of the Budget, the Kansas Department of Revenue (KDOR), and three The Legislative Budget Committee is consulting economists from state universities. statutorily directed to compile fiscal information, Staff explained several tables that compared the and to study and make recommendations on the consensus estimates with the actual year-to-date state budget, revenues, and expenditures, and on figures. Staff noted the final FY 2014 revenue the organization and functions of the state, its estimates from April 2014, ended up being too departments, subdivisions, and agencies with a high because of the extent to which capital gains view of reducing the cost of state government and and other income had been accelerated into the increasing efficiency and economy. waning days of calendar year 2012—thereby accelerating into FY 2013 certain income tax receipts that otherwise would have been received The Committee’s intention was to gather in FY 2014. information to gauge where the State stands financially concerning consensus estimates and to formulate ideas for the remaining six months of Staff also distributed the KDOR’s estimates on the FY 2015 and going forward into FY 2016. the combined impact of 2012 Senate Sub. for HB 2117 and 2013 HB 2059, which made changes to the Kansas tax law, including an in-depth COMMITTEE ACTIVITIES breakdown of the changes these two bills had on Kansas income taxes. The Legislative Budget Committee met on November 11, 2014, to review fiscal information Staff from the KDOR presented information regarding revenues and expenditures and to that disaggregated the Kansas individual income specifically discuss the revenue estimates and tax components. The KDOR staff provided a what components comprise the state tax revenue, detailed breakdown of withholding, estimated humans services caseloads, technical education, payments, regular remittances, and tax refunds by and the GED Accelerator Program. fiscal year.
State Budget, Revenues, and Expenditures Staff from the KLRD, the Division of the Budget, Kansas Lottery, and Racing and Gaming Staff from the Kansas Legislative Research Commission met in October 2014, to project expanded gaming revenues from the three state- Department (KLRD) briefed the Committee on the Consensus Revenue Estimate Memorandum from owned and operated gaming facilities. The KLRD staff provided Committee members with a November 2014. Staff explained the consensus revenue adjustments and how consensus estimates summary of the revised revenues to the Expanded Lottery Act Revenues Fund (ELARF) and are developed. Staff stated the process involves the
Kansas Legislative Research Department 3-1 2014 Legislative Budget agencies’ requested transfers and expenditures expenditures for FY 2016, leaving a negative from the fund in FY 2015, FY 2016, and FY 2017. ending balance of $23.3 million.
Total transfers and expenditures from the Total transfers and expenditures from ELARF ELARF in FY 2015 are estimated to be $86.3 are estimated to be $106.3 million for FY 2016, million. The Department of Administration has which is unchanged from the FY 2016 request. requested $36.3 million, all for debt service Expanded gaming revenues transferred to the fund payments. This is a decrease of $479,000, or 1.3 are estimated to total $82.2 million, which is an percent, and is due to the FY 2013 refinancing of increase of $4.8 million, or 6.2 percent, above the bonds. The FY 2015 revised estimate for the FY 2016 request. The increase is largely ELARF includes $10.5 million for Kan-Grow attributable to the anticipated half-year operation Engineering Funds and $39.5 million for the of a gaming facility in the Southeast gaming zone. Department of Education to reduce the unfunded Revenues transferred to the ELARF are projected actuarial liability of KPERS, which is unchanged to be insufficient to cover requested transfers and from the FY 2015 approved amount. Expanded expenditures for FY 2017, resulting in a negative gaming revenues transferred to the fund are ending balance of $47.4 million. estimated to total $77.7 million, which is a decrease of $3.2 million, or 3.9 percent, below the Human Services Caseloads FY 2015 approved amount. The decrease is attributable to lower revenues in the Southwest Staff from KLRD explained the human and South-central gaming zones. Revenues services caseload impacts detailed in the Fall 2014 transferred to the ELARF are projected to be Human Services Consensus Caseload Estimates. insufficient to cover requested transfers and FY 2015, FY 2016, and FY 2017 impacts are expenditures. Pursuant to 2014 S. Sub for HB specified below. 2338, a State General Fund transfer will be issued in FY 2015 to cover the revenue shortfall to meet In 2015, the revised estimate for all human the Fund’s approved transfers and expenditures. It service caseloads is an all funds increase of $106.6 is anticipated the State General Fund transfer will million and a State General Fund increase of $46.2 total $8.5 million. million above the budget approved by the 2014 Legislature. Each program’s specific effect is as Total transfers and expenditures from ELARF follows. are estimated to be $106.3 million for FY 2016. Compared to the FY 2015 revised estimate, this is The estimate for Temporary Assistance to an increase of $20.0 million due to the Board of Families (TAF) is a decrease of $200,000 from all Regents’ request for $20.0 million for deferred funding sources and $3,437,508 from the State maintenance. Transfers and expenditures for General Fund expenditures from the amount Department of Administration debt service approved by the 2014 Legislature. The all funds payments, KPERS unfunded actuarial liability, and decrease is due to a series of policy changes which Kan-Grow Engineering Funds remain unchanged began in fall 2011 and resulted in a declining TAF from the FY 2015 revised estimate. Expanded population. The State General Fund reductions gaming revenues transferred to the fund are were the result of meeting the federal maintenance estimated to total $77.4 million, which is a of effort requirements through other allowable decrease of $316,000, or less than 1.0 percent, expenditures, mainly the refundable portion of the below the FY 2015 revised estimate. The decrease Earned Income Tax Credit. The estimate for is attributable to lower expanded gaming revenues contracted foster care services is anticipated to in the Northeast gaming zone, offset by higher decrease by $300,000 from all funding sources, revenues in the Southwest and South-central and increase by $10.2 million from the State gaming zones. The FY 2016 revenue transfers to General Fund. The increase in all funds is mostly the ELARF include the anticipated payment of a attributable to a slight decrease in the number of $5.5 million privilege fee by a gaming facility children anticipated to be in the foster care system. manager in the southeast gaming zone. Revenues In addition, there is an ongoing conversation with transferred to the ELARF are projected to be the federal Administration for Children and insufficient to cover requested transfers and
Kansas Legislative Research Department 3-2 2014 Legislative Budget Families regarding expenditures from the Title IV- The estimate for TAF caseloads has decreased E foster care funding source and the state is still by $1.1 million from all funding sources, with no waiting on ultimate decisions on the issue. The impact on State General Fund expenditures, from estimate in FY 2015 includes the addition of $13.1 the revised FY 2015 estimate. The number of million, all from the State General Fund, to individuals estimated to receive cash assistance provide adequate cash flow for the program. benefits from TAF is estimated to continue to decline. This results from a combination of lower The FY 2015 caseload estimate for the anticipated applications for assistance and an Department of Corrections’ Out of Home increase in the rate of denials of the applications. It Placements is $20.4 million. This is an overall is estimated the contracted foster care services will decrease from the FY 2015 approved amount of increase by $2.6 million from all funding sources, $300,000 partially offset by a State General Fund and decrease by $10.0 million from the State increase of $500,000. The all funds decrease is General Fund. This is due to the reduction of the attributable to fewer children in the system, one-time increase in State General Fund specifically in the Youth Residential Center II expenditures in FY 2015 to address the federal IV- facilities, and the State General Fund increase is E funding issue partially offset by the anticipated due to less available Title IV-E federal funding. increase in the number of children receiving services. The FY 2015 estimate for KanCare Medical is $2.7 billion from all funding sources, including The Department of Corrections (DOC) $1.0 billion from the State General Fund, expenditures for Out of Home Placements for FY reflecting an increase of $108.4 million from all 2016 are estimated to be $20.2 million from all funding sources and $39.0 million from the State funds. This is a decrease of $200,000 from all General Fund above the amount approved by the funds and $1.0 million from the State General 2014 Legislature. The increase in KanCare Fund, below the revised FY 2015 estimate. This is Medical is largely attributable to a slight growth in largely due to fewer children in the system, the population served and the costs associated with specifically in the Youth Residential Center II the Affordable Care Act Insurer Fee included in facilities, and increased federal Title IV-E funding. the capitated rate payment (except for long term care services and supports which are excluded The FY 2016 estimate for KanCare Medical is from the federal requirements). Kansas $2.8 billion from all funding sources, including Department for Aging and Disability Services’ $1.1 billion from the State General Fund. The new (KDADS) KanCare includes the addition of $6.3 estimate is higher than the revised FY 2015 million for payments to the MCOs for mental estimate by $124.7 million from all funding health assessments for both the current year and sources and $87.3 million from the State General prior years, which had not been previously Fund. The increase is largely attributable to a included in the capitation payments. The estimate slight growth in population and the increased costs includes funding of $4.0 million from the Problem associated with the Affordable Care Act Insurer Gambling and Addictions Grant Fund. Fee included in the capitation rates (except for long-term care services and supports which are The FY 2016 estimate is $3.0 billion from all excluded from the federal requirements) and the funding sources, including $1.2 billion from the fact that plan year 2016 includes 53 weeks of State General Fund. The estimate is an all funds payments, rather than the standard 52 weekly increase of $126.4 million and a State General payments. The FY 2016 estimate for KDADS’ Fund increase of $76.6 million above the FY 2015 KanCare Medical includes an increase of $7.1 revised estimate. The base Medicaid matching rate million, all from the State General Fund, to replace determined by the federal Centers for Medicare fee fund moneys which were no longer available. and Medicaid Services increased the required state The estimate also includes funding of $4.0 million share by 0.57 percent between FY 2015 and FY from the Problem Gambling and Addictions Grant 2016. The estimated impact of this adjustment in Fund. FY 2016 is $16.2 million in additional State General Fund required for caseload expenditures. The FY 2017 estimate is $3.1 billion, including $1.3 billion from the State General
Kansas Legislative Research Department 3-3 2014 Legislative Budget Fund. The estimate is an all funds increase of The Committee discussed at length the impact $32.9 million and a State General Fund increase of of the change in the Federal Medicaid Assistance $44.5 million above the FY 2016 estimate. The Percentage rate which will require additional state base Medicaid matching rate for federal funds for the program in FY 2016 and FY 2017 as contribution increased the state share by 0.16 well as the effect of the Insurer Fee required under percent between FY 2016 and FY 2017. The the Affordable Care Act. estimated impact of this adjustment in FY 2017 is $4.9 million in additional State General Fund Education required for caseload expenditures. Staff provided an overview of the K-12 State The estimate for TAF caseloads has decreased Aid and the consensus estimating process. The by $1.0 million from all funding sources, with no consensus estimating process was completed on impact on State General Fund expenditures, from November 10, 2014, subsequent to agencies the FY 2016 estimate. The number of individuals submitting budgets with revised expenditures for estimated to receive cash assistance benefits from the current fiscal year, including the Department TAF is estimated to continue to decline. This of Education. General and Supplemental General results from a combination of lower anticipated State School Aid and Capital Outlay State Aid are applications for assistance and an increase in the provided for each of the unified school districts in rate of denials of the applications. The estimate for Kansas through the Department of Education contracted foster care services is estimated to budget. increase by $2.3 million from all funding sources, and increase by $7.0 million from the State Estimates included the need for an increase in General Fund, due to an anticipated increase in the Supplemental General State Aid (Local Option number of children receiving services and the Budget (LOB) state aid) in the amount of $34.3 replacement of $5.3 million in fee funds utilized in million for FY 2015; $38.4 million for FY 2016 the previous year no longer being available. and FY 2017. The reason for the increase was due to an increase in the 81.2nd percentile of assessed The DOC expenditures for Out of Home valuation per pupil from $109,275 to $116,700. Placements for FY 2017 are estimated to be $19.5 million from all funds. This is a decrease of Estimates also included the need for an $700,000, all from the State General Fund below increase in Capital Outlay State Aid in the amount the FY 2016 estimate and largely is due to fewer of $19.8 million for FY 2015 and nearly $25.0 children in the system, specifically in the Youth million for FY 2016 and FY 2017. This was due to Residential Center II facilities. many school districts increasing their capital outlay mill levies to the maximum eight mills The FY 2017 estimate for KanCare Medical is because the full funding of LOB state aid allowed $2.9 billion from all funding sources, including districts to lower LOB mill levies freeing the $1.1 billion from the State General Fund. The new districts to increase the capital outlay mill levies. estimate is higher than the FY 2016 estimate by $32.3 million from all funding sources and $38.2 Because of an increase in revenues from the million from the State General Fund. The increase 20 mill levy and because the base state aid per is attributable to a slight growth in population and pupil continued to be based on $3,852 for FY the increased costs associated with the Affordable 2015, General State Aid realized a decrease of Care Act Insurer Fee included in the capitation State General Funds by $945,000, even though rates (except for long-term care services and enrollments increased by 1,375 students. supports which are excluded from the federal requirements). This is partially offset by the Finally, because of an increase in bonded elimination from the estimated expenditures of capital improvement projects, the estimate for risk corridor payments for the contractors. The capital improvement state aid (bond and interest original three year contract provisions will end in state aid) increased by $12.0 million for FY 2015. December 2015. The FY 2017 estimate includes The increase for FY 2016 was $20.0 million and $4.0 million, all from the Problem Gambling and for FY 2017 it increased by $27.5 million. Addictions Grant Fund.
Kansas Legislative Research Department 3-4 2014 Legislative Budget Staff provided a report on career technical 4.0 percent reduction over the last six education, which is a new innovative program months or 2.0 percent for the whole fiscal launched in 2012 to accelerate career technical year to Cabinet and other State General education as authorized under 2013 SB 155. The Funded agencies in FY 2015; report included a budget history of both the incentive to the school districts and the tuition ● Reduction of $2.9 million for bond assistance for the students. It was shown that refinancing; and participation in the program has more than doubled from the 2012 to the 2014 school years. Staff also provided a breakdown of 2013 SB 155 ● Reduction of $5.4 million due to the delay and the incentives by geographical region for FY of the Meyer Building Expansion at the 2014. Larned State Hospital.
Governor’s December 9, 2014, Allotment Agency Budget Requests for Current Year Plan 2015 and Budget Years 2016 and 2017
Staff gave an overview of the items outlined in The Committee received a copy of a the Governor’s December 9, 2014, allotment plan. compilation of the budget requests from State Staff noted the consensus revenue estimating agencies. The document included a summary process was completed on November 10, 2014, overview of the major items. Of note, the FY 2015 subsequent to agencies submitting budgets with revised agency estimate totals $15.7 billion, revised expenditures for the current fiscal year. including $6.4 billion from the State General The results of the new consensus revenue Fund. This is an all funds increase of $312.2 estimates identified a $278.7 million State General million, or 2.0 percent, and a State General Fund Fund shortfall in FY 2015. This prompted the increase of $61.1 million, or 0.97 percent, above Governor to address the shortfall with an allotment the FY 2015 approved budget. The request funds plan totaling $280.7 million which reduced State 36,859 FTE positions, a reduction of 573.5 FTE General Fund expenditures by $66.4 million. The positions, from the FY 2015 approved budget. The allotment plan also included recommendations to FTE reduction is attributable to reclassifying FTE transfer funds and adjust non-State General Fund positions as non-FTE unclassified positions. The expenditures an additional $214.3 million. The FY 2015 agency request does not include the adjustments included in the $214.3 million and the additional $106.6 million, including $46.2 million 4.0 percent Legislative Branch reduction will from the State General Fund, identified as needed require legislative approval to implement. to fully fund human service caseloads from the November 2014 consensus caseload estimating process. Among the significant items in Governor’s December 9, 2014, allotments are the following items: The FY 2016 agency request totals $16.3 billion, including $7.1 billion from the State General Fund. This is an all funds increase of ● Reduction of $40.7 million, as a result of $605.1 million, or 3.9 percent, and a State General decreasing the Kansas Public Employer Fund increase of $691.4 million, or 10.9 percent, Regular and School Member Employer above the FY 2015 revised agency estimate. The contribution rate (excluding KPERS Death request funds 36,925 FTE positions, an increase of and Disability) from 10.42 percent to 8.65 66 FTE positions, from the FY 2015 revised percent in FY 2015; estimate. The FY 2016 agency request does not include the additional $126.4 million, including $76.6 million from the State General Fund, ● Reduction of $6.3 million, as a result of a identified to fully fund human service caseloads decrease in the total FY 2015 State from the November 2014 consensus caseload General Fund reappropriation; estimating process.
● Reduction of $7.1 million, as a result of a
Kansas Legislative Research Department 3-5 2014 Legislative Budget The FY 2017 agency request totals $16.4 KPERS Securities Litigation Counsel billion, including $7.3 billion from the State General Fund. This is an all funds increase of A representative of the Kansas Retirement $152.4 million, or 0.9 percent, and a State General System for Public Employees (KPERS), explained Fund increase of $211.4 million, or 3.0 percent, the KPERS Request for Proposals for securities above the FY 2016 agency request. The request litigation counsel. Pursuant to KSA 2014 Supp. funds 36,916 FTE positions, a reduction of 9 FTE 75-37,135, these proposals must be reviewed by positions, from the FY 2016 agency request. The the Legislative Budget Committee when the legal FY 2016 agency request does not include the services exceed $1.0 million. additional $32.9 million, including $44.5 million from the State General Fund, identified to fully fund human service caseloads from the November CONCLUSIONS AND RECOMMENDATIONS 2014 consensus caseload estimating process. Following its review, the Committee makes no The document also included specific conclusions or recommendations. information on each state agency related to the budget requests.
Kansas Legislative Research Department 3-6 2014 Legislative Budget JOINT COMMITTEE
Report of the Joint Committee on Pensions, Investments and Benefits to the 2015 Kansas Legislature
CHAIRPERSON: Senator Jeff King
VICE-CHAIRPERSON: Representative Steven Johnson
OTHER MEMBERS: Senators Anthony Hensley, Mitch Holmes, Laura Kelly, and Ty Masterson; and Representatives John Edmonds, Daniel Hawkins, Charles Macheers, Gene Suellentrop, and Ed Trimmer
CHARGE
● Working after retirement;
● Future pension reforms for corrections workers; and
● Discuss legislation and policies under consideration for the 2015 Session.
January 2015 Joint Committee on Pensions, Investments and Benefits
REPORT
Conclusions and Recommendations
The Joint Committee concludes the current break-in-service requirements for persons returning to work after retirement should be reviewed. The post-retirement provisions which are scheduled to sunset on June 30, 2015, should be addressed. The 2015 Legislature should consider the ability of the Kansas Public Employees Retirement System (KPERS) to recapture benefits, if certain conditions are present.
The Joint Committee concludes members in the KPERS Correctional groups, along with local law enforcement personnel who meet the training requirements, should be enrolled in the Kansas Police and Firemen’s Retirement System (KP&F). The additional employer contribution funding for those who were in KPERS Correctional should come from the State General Fund.
● The Joint Committee concludes pension obligation bonding and emerging retirement plan trends in the private sector should be reviewed during the 2015 Legislative Session.
Proposed Legislation: None.
BACKGROUND The Legislative Coordinating Council charged the Joint Committee to study working The Joint Committee on Pensions, after retirement and pension reforms for Investments and Benefits was created in 1992 and corrections workers. is directed by KSA 46-2201 to:
COMMITTEE ACTIVITIES ● Monitor, review, and make recommendations relative to investment The Joint Committee met on November 17 policies and objectives formulated by the and December 19, 2014. It reviewed KPERS long- KPERS Board of Trustees; term funding, working after retirement, pension reforms for corrections workers, disability benefits ● Review and make recommendations for certain law enforcement officers, and the related to KPERS benefits; and Governor’s Allotment Plan.
● Consider and make recommendations on Review of KPERS Long-Term Funding the confirmation of members nominated by the Governor to serve on the KPERS The Joint Committee reviewed the valuation Board of Trustees. report of the KPERS actuary, which is a snapshot of the financial condition of the retirement plan as The Joint Committee may introduce of December 31, 2013. The actuarial valuation, legislation it determines to be necessary. which is different from the market valuation, was
Kansas Legislative Research Department 4-1 2014 Pensions, Investments and Benefits estimated to be $14.6 billion. Actuarial assets are years ($251.8 million in present value). Changes calculated by “smoothing” investment gains and do not reduce the unfunded actuarial liability, losses over a five-year period. A market value which means the majority of the cost savings are higher than the actuarial value means that deferred due to the lower normal cost rate after the investment gains will flow through valuations over unfunded actuarial liability is fully paid. the subsequent four years. There is an estimated $1.2 billion in deferred gains. Due to investment Working after Retirement gains over the past two years, the funding status has improved for all membership groups (KPERS Staff from the Office of Revisor of Statutes, state, school, and local groups; Kansas Police and the Kansas Legislative Research Department, and Firemen’s Retirement System; and Judges KPERS provided information, respectively, Retirement System). It is believed that legislative regarding the current law on working after reforms enacted in 2012, including increased retirement, the history of those policies, and employer and employee contributions, will statistics and options for future policy. continue to aid in improving funding. Assuming all actuarial assumptions are met in the future, Current Law KPERS will be fully funded at the end of the amortization period (FY 2033). Under KSA 2014 Supp. 74-4914, KPERS members are subject to a waiting period of 60 days Investment returns make up the largest source before a member may return to work for an of income for benefits distributed. KPERS’ employer who participates in KPERS. When investment portfolio had a 17.7 percent total return returning to work for the same employer, retirees for calendar year 2013. As of June 30, 2014, are subject to a $20,000 earnings limitation. The KPERS’ annualized, time-weighted total return State of Kansas is considered a single employer, over a 20-year period was 8.9 percent. but each school district is considered a different employer. The $20,000 cap does not apply to Recent Changes to Law retirees employed as substitute teachers or to officers, employees, or appointees of the A provision of 2012 HB 2333 requires any Legislature. Nurses who return to work for a state cost of legislation determined by KPERS’ institution are also exempt. There is no earnings consulting actuary be reported to the Joint limitation for a retiree who works for a different Committee. During the 2013-2014 Legislative participating employer, and no employee Biennium, two enacted bills were determined to contribution is required. However, the employer is affect the actuarial costs. The first bill, 2013 HB required to make a contribution at the actuarial 2213, changed the cap on the benefits for KP&F contribution rate plus the statutorily prescribed members from 80 percent of final average salary employee contribution rate (Tiers 1 and 2 = 6.0 to 90 percent. Based on the 2012 valuation, the percent, each). Retirees who provide service to a change increased the unfunded actuarial liability participating employer through a third-party of the KP&F plan by $13.3 million. KP&F contractor are still subject to restrictions. member contributions were increased from 7.0 percent for all years up to the benefit cap (32 Certain licensed school personnel, as specified years) and 2.0 percent thereafter to 7.15 percent in KSA 2014 Supp. 74-4937(3), are exempt from for all years of service, effective July 1, 2013. No the $20,000 cap. The participating employer of increase was necessary in employer contributions that retiree must pay to KPERS the actuarially to fund the actuarial cost of the change. The determined employer contribution based on the second bill, 2014 HB 2533, made changes to the retiree’s compensation during the period of KPERS Tier 3 cash balance plan including employment plus 8.0 percent. Retirees make no decreasing the guaranteed interest crediting rate employee contribution. This exemption expires on from 5.25 percent to 4.0 percent and eliminating July 1, 2015, and after that date KPERS and its the Board of Trustee’s role in granting dividend actuary are required to report the experience to the credits in favor of a formulaic dividend. The Joint Committee on Pensions, Investments and actuarial cost is an estimated nominal savings for Benefits. the State-School Group of $3.0 billion over 48
Kansas Legislative Research Department 4-2 2014 Pensions, Investments and Benefits History of Working After Retirement length of re-employment, the employer, the type of position, and employer contributions be The Legislature has alternated between a considered. policy of restrictions and a policy of no restrictions for certain retirees who go back to work for a Pension Reforms for Corrections Workers participating employer, including state agencies, local units of government, school districts, other Staff from the Office of Revisor of Statutes, governmental entities, and other educational the Kansas Legislative Research Department, and institutions. In the early 1960s when KPERS was KPERS, respectively, provided information established, there were restrictions on returning to regarding the current law on corrections workers, work after retirement if the employment was with the history of those policies, and the benefit a participating KPERS employer. Most of the post- structure for KPERS Correctional members. retirement restrictions were eliminated by the mid- 1980s. Starting in 1988, new restrictions were Current Law instituted. Since then, exceptions to the statutory restriction have been authorized gradually and Security officers of the Department of later revised. Corrections are members of KPERS. The officers are divided into two groups. Group A (C55) is for Statistics and Future Policy Options the security officers whose positions are classified as correction officers and their supervisors. Group KPERS staff and its actuary examined the B (C60) is for security officers who work within a employment records of over 6,600 individual correctional institution and have regular contact retirees who returned to work in one or more years with inmates but who are in positions not from calendar years 2007 through 2013. While the classified as corrections officers, such as support conferees cautioned that the data examined was personnel. The minimum retirement date for a not necessarily reliable enough to make person in Group A is either at age 55 with a conclusions about all post-retirement behavior, minimum of 3 consecutive years of experience or they observed school retirees made up the largest when the person has 85 points, which is the sum of group returning to work. Of the retirees returning years of service plus age. The minimum retirement to work for the state, for local governments, and in date for a person in Group B is either at age 60 non-licensed positions for school employers, with a minimum of 3 consecutive years of larger numbers were returning to the same experience or when the person has 85 points. Early employer, most likely on a part-time basis due to retirement for Group A is allowed at age 50 with the earnings cap. For local and school employers, 10 years of service, and for Group B it is allowed over 50 percent of retirees who returned to work at age 55 with years of 10 years of service. for the same employer did so within a few months of retiring. Those returning to state employment For security officers who are in Tier 2, the appeared to wait slightly longer. While it was normal retirement date for those in Group A is age difficult to quantify compensation after returning 55 with 10 years of service, including 3 years to work, due to a variety of job arrangements, it immediately preceding retirement. For Tier 2 was observed that the earnings cap may have members who are in Group B, the normal caused the average compensation to be less. On retirement age is 60 with 10 years of service, average, a licensed school retiree returning to including 3 years immediately preceding work for the same employer had significantly retirement. To be eligible for early retirement in lower compensation than one who worked for a Tier 2, Group A security officers must be age 50 different school district. with 10 years of experience, including 3 years immediately preceding retirement. For Group B When considering future policy options, it was the early retirement date is age 55 with 10 years of suggested post-retirement goals, the length of a service, including 3 years immediately preceding bona fide separation before returning to work, the retirement. Retirement benefits for security extent and quantity of benefits, the age of the officers are calculated in the same manner as for retiree, earnings, hours worked by the retiree,
Kansas Legislative Research Department 4-3 2014 Pensions, Investments and Benefits other KPERS members (1.85 percent x years of retirement plans offered to front-line staff, which service x final average salary). may impact recruitment, retention, or employee morale. According to the agency, transferring these Starting January 1, 2015, newly hired security officers to KPERS Corrections would impact 393 officers are exempted from the cash balance plan employees. Of this, 134 are currently participating and become members of KPERS Tier 2. in Tier 2. Currently 1,918 employees are in KPERS Corrections, with 745 of those employees History of KP&F Membership in Tier 2. The additional cost in employer contribution is estimated at $1.9 million, which the Prior to the establishment of KPERS in 1961, agency suggested come from the State General the Legislature created other retirement plans for Fund. certain governmental employees, including two plans for public safety (law enforcement) state The Joint Committee also received testimony employees. Both plans eventually merged with from individual corrections workers who either KPERS in some manner, either consolidating with supported or were opposed to the transition. A KPERS to provide membership for eligible representative of the Kansas Organization of State members or transferring the administration of the Employees encouraged the Joint Committee to continuing plans to the administration of the address pay and safety at the same time pension KPERS Board of Trustees. In 1968, employees of membership was considered. the State Highway Patrol and the Kansas Bureau of Investigation were authorized to participate in Other Issues the KP&F plan. The separate pension boards relating to those two agencies were abolished, and Definition of “police.” The Joint Committee the funds were transferred to KPERS for heard testimony from county law enforcement administration. KP&F membership was broadened officials regarding KPERS’ interpretation of the to include university police officers in 1988; definition of the term “police,” and variations of Capitol Police Officers and Motor Carrier the word, so as to deny KP&F disability benefits Inspectors in 2004, when the groups were to sheriffs’ deputies who worked in a jail or reorganized into the State Highway Patrol; detention center. A representative of the Kansas enforcement officers in the Office of State Fire Association of Chiefs of Police, the Kansas Peace Marshal in 2005; and firefighters serving the 190th Officers Association, and the Kansas Sheriffs Kansas Air National Guard as non-military Association proposed an amendment to the employees. definition, specifying that certified law enforcement officers who are assigned to a jail, Over the years various groups of state detention center, or other correctional facility shall employees have been unsuccessful in gaining not be denied benefits. KP&F membership: correctional security officers in the Department of Corrections, the Division of Governor’s Allotment Plan. The Director of Alcoholic Beverage Control of the Department of the Budget explained the portion of the Governor’s Revenue, the Kansas Lottery, the Kansas Racing Allotment Plan that would reduce the employer and Gaming Commission, the Office of Securities contribution rate to the FY 2012 level. The roll- Commissioner, Court Services Officers, and the back will be a reduction in employer contribution Enforcement Division of the Department of amounts for six months that will not be carried Wildlife, Parks and Tourism. forward into the Governor’s FY 2016 and FY 2017 budget proposals. The employer contribution rate Other Testimony will be restored to its statutorily set level. The Joint Committee was requested to study additional The Secretary of Corrections provided short-term reform options, such as revising the testimony supporting the transfer of juvenile method used to calculate asset valuations (moving correctional officers and parole officers to KPERS from an actuarial method to a market value Corrections, noting the creation of KPERS Tier 3 method) and considering the impact of will only further increase the disparity in the reamortization of the actuarial liability by
Kansas Legislative Research Department 4-4 2014 Pensions, Investments and Benefits extending the amortization period. The Director of The Joint Committee concludes the working- the Budget also requested three long-term options after-retirement provisions that are set to expire at be studied: the end of FY 2015 should be addressed by the 2015 Legislature. ● Issuing pension obligation bonds to reduce the unfunded actuarial liability with net The Joint Committee concludes the 2015 proceeds in the amounts of either $1.0 Legislature consider moving KPERS Correctional billion or $1.5 billion with debt service retirement from a subgroup of the KPERS plan to from a source other than employer a subgroup of the KP&F plan. contributions; The Joint Committee concludes the 2015 ● Revising the plan design for new hires and Legislature should review the possibility of non-vested KPERS members to include: including juvenile corrections and parole officers in the KPERS Correctional retirement plan and ◌ Member election of cash-balance or consider funding from the State General Fund for defined-contribution plan; or the additional employer contribution.
◌ A hybrid cash-balance, defined- The Joint Committee concludes the 2015 contribution plan; and Legislature should consider amending state law to allow sheriffs’ deputies who meet the training requirements of KP&F retirement, but whose ● Emerging trends in the private sector such primary job duties in local jails exclude them from as annuitization. KP&F eligibility, be enrolled as KP&F members.
CONCLUSIONS AND RECOMMENDATIONS The Joint Committee concludes the potential for bonding to increase the assets in the KPERS Trust Fund and for reamortizing the payment of The Joint Committee concludes the 2015 the unfunded actuarial liability should be reviewed Legislature should review the current break-in- by the 2015 Legislature. service requirements in concert with the ability for members to unretire without penalty; and it should consider the ability of KPERS to recapture The Joint Committee concludes the 2015 benefits, should a member return to employment Legislature should review, with the assistance of before the end of the break-in-service the KPERS Board and staff working with requirements. insurance companies, the emerging retirement plan trends in the private sector.
Kansas Legislative Research Department 4-5 2014 Pensions, Investments and Benefits JOINT COMMITTEE
Report of the Joint Committee on State Building Construction to the 2015 Kansas Legislature
CHAIRPERSON: Senator Kay Wolf
VICE-CHAIRPERSON: Representative Steve Brunk
OTHER MEMBERS: Senators Marci Francisco, Laura Kelly, Forrest Knox, and Larry Powell; and Representatives John Alcala, Steve Alford, Mark Hutton, and Jim Ward
STUDY TOPICS
● Study, review, and make recommendations on all agency five-year capital improvements plans, leases, land sales, and statutorily required reports by agencies;
● Review buildings within the Capitol Complex included in 2014 SB 423; and
● Travel throughout the state to observe the many state-owned buildings including the State’s veterans’ homes at Winfield and Dodge City, the State Hospital at Larned, the School for the Deaf and the School for the Blind.
January 2015 Joint Committee on State Building Construction
ANNUAL REPORT
Conclusions and Recommendations
The Joint Committee recommended all agencies’ five-year capital improvement plans, leases, and sales of land and facilities that came before the Committee. The Joint Committee recommends the following:
● Include the three proposed Private Industry Expansions by the Department of Corrections;
● Include the supplemental requests using private funding for the windows at Constitution Hall and roof at the State Archives Building for the State Historical Society;
● Cap the funding for the repairs to two retaining walls at the Salina Academy of the Kansas Highway Patrol to $631,300; and
● Cap the funding of the Expo facility repair and replacement at the Kansas State Fairgrounds to $5.5 million.
Proposed Legislation: None.
BACKGROUND Terms of office are until the first day of the regular legislative session in odd-numbered years. The Joint Committee was established during A quorum of the Joint Committee is six members. the 1978 Session. The Special Committee on Ways The Chairperson and Vice-chairperson are elected and Means recommended the bill creating the by the members of the Joint Committee at the Joint Committee, 1978 HB 2722, as a result of its beginning of each regular session of the interim study of state building construction Legislature and serve until the first day of the next procedures. regular session. In odd-numbered years, the Chairperson is to be a Representative and the Vice-chairperson is to be a Senator. In even- The Joint Committee was expanded from six numbered years, the Chairperson is to be a Senator members to ten members by 1999 HB 2065. It is and the Vice-Chairperson is to be a Representative composed of five members of the Senate and five (KSA 46-1701). members of the House of Representatives. Two members each are appointed by the Senate President, the Senate Minority Leader, the Speaker The Joint Committee may meet at any location of the House of Representatives, and the House in Kansas on call of the Chairperson and is Minority Leader. The Chairperson of the Senate authorized to introduce legislation. Members Committee on Ways and Means and the receive the normal per diem compensation and Chairperson of the House Committee on expense reimbursements for attending meetings Appropriations serve on the Joint Committee or during periods when the Legislature is not in appoint a member of such committee to serve session (KSA 46-1701). (KSA 46-1701).
Kansas Legislative Research Department 5-1 2014 State Building Construction The primary responsibilities of the Joint requirements were prescribed in 2002 for projects Committee are set forth in KSA 2014 Supp. 46- undertaken by the State Board of Regents for 1702. The Joint Committee is to review and make research and development facilities and state recommendations on all agency capital educational facilities (KSA 2014 Supp. 76-786), improvement budget estimates and five-year and in 2004 for projects undertaken by the Kansas capital improvement plans, including all project Bioscience Authority (KSA 2014 Supp. 74- program statements presented in support of 99b16). appropriation requests, and to continually review and monitor the progress and results of all state If the Joint Committee will not be meeting capital construction projects. The Joint Committee within 10 business days, and the Secretary of also studies reports on capital improvement budget Administration determines that it is in the best estimates that are submitted by the State Building interest of the state to approve a change order or Advisory Commission. The Joint Committee change in plans with an increase in project costs of makes annual reports to the Legislature through $125,000 or more, 2000 HB 2017 provided an the Legislative Coordinating Council (LCC) and alternative to prior approval by the Joint other such special reports to the appropriate Committee. Under these circumstances, a committees of the House of Representatives and summary description of the proposed change order the Senate (KSA 2014 Supp. 46-1702). or change in plans is mailed to each member of the Joint Committee, and a member may request a Each state agency budget estimate for a capital presentation and review of the proposal at a improvement project is submitted to the Joint meeting of the Joint Committee. If, within seven Committee, the Division of the Budget, and the business days of the date the notice was mailed, State Building Advisory Commission by July 1 of two or more members notify the Director of each year. Each estimate includes a written Legislative Research of a request to have a program statement describing the project in detail meeting on the matter, the Director will notify the (KSA 2014 Supp. 75-3717b). Chairperson of the Joint Committee, who will call a meeting as soon as possible. At that point, the The budget estimate requirement does not Secretary of Administration is not to approve the apply to federally funded projects of the Adjutant proposed action prior to a presentation of the General or to projects for buildings or facilities of matter at a meeting of the Joint Committee. the Kansas Correctional Industries of the Department of Corrections that are funded from the Correctional Industries Fund. In those cases, If two or more members do not request the the Adjutant General reports to the Joint proposed matter be heard by the Joint Committee, Committee each January regarding the federally the Secretary of Administration is deemed to have funded projects, and the Director of Kansas advised and consulted with the Joint Committee Correctional Industries advises and consults with and may approve the proposed change order, the Joint Committee prior to commencing such change in plans, or change in proposed use. projects for the Kansas Correctional Industries (KSA 2014 Supp. 75-3717b and 75-5282). The comprehensive energy bill 2009 Senate Sub. for HB 2369 required the state to establish The Secretary of Administration issues energy efficient performance standards for state- monthly progress reports on capital improvement owned and -leased real property, and for the projects including all actions relating to change construction of state buildings. State agencies are orders or changes in plans. The Secretary of required to conduct energy audits as least every Administration is required to first advise and five years on all state-owned property, and the consult with the Joint Committee on each change Secretary of Administration is prohibited from order or change in plans having an increase in approving, renewing or extending any building project cost of $125,000 or more, prior to lease unless the lessor has submitted an energy approving the change order or change in plans audit for the building. Each year, the Secretary of (KSA 2014 Supp. 75-1264). This threshold was Administration shall submit a report to the Joint increased from $25,000 to $75,000 in 2000 HB Committee that identifies properties where an 2017, and to $125,000 in 2008 HB 2744. Similar excessive amount of energy is being used.
Kansas Legislative Research Department 5-2 2014 State Building Construction COMMITTEE ACTIVITIES The Director of the Historical Society discussed the more than 50 buildings used for The LCC approved six meeting dates for the rehabilitation and repair. There was discussion on Joint Committee on State Building Construction, two supplemental projects—window repairs at of which three were to be travel days. Those Constitution Hall in Lecompton and a roof repair meetings were held September 9 and 10, October on the State Archives Building. The Committee 21, November 19 and 20, and December 15, 2014. recommended the five-year plan including the two One additional day was requested and granted by additional supplemental projects. the LCC. The Committee also met on January 12, 2015, prior to the beginning of the 2015 Session. The Deputy Superintendent of Operations for During the 2014 interim meetings, the Joint the Kansas Schools for the Deaf and Blind noted Committee reviewed agencies’ five-year capital they serve 1,700 Kansas residents. There are 70-80 improvement plans. All plans were approved. students residing at the School for the Blind and 120 reside at the School for the Deaf. Many Five-Year Plans administrative functions have been consolidated between the two schools. The Director of Public Works for the Adjutant General’s Department reviewed the rehabilitation The Director of the Kansas Commission on and repair projects for the 315 buildings under its Veterans Affairs Office discussed the projects at authority. A planned new State Emergency Fort Dodge, Winfield, and the cemeteries. There Management Operations and Training Center was are 135 residents at Fort Dodge and 120-140 at also discussed. This project will cost $5.9 million Winfield. The majority of residents now are in FY 2017 and consolidate Air and Army veterans of the Vietnam War. National Guard operations at Forbes Field in Topeka. The Committee expressed concern in The Director of the Bureau of Investigation recommending the $5.9 million and a motion was (KBI) updated the Committee on the three major made to recommend the agency’s five-year plan, offices for the KBI—the headquarters, the annex, but exclude the $5.9 million pending further and the office in Great Bend. There was also an information. update on the new forensic lab being built at Washburn University. The Adjutant General provided further testimony on the agency’s new Emergency The Comptroller for the Kansas Insurance Management Operations and Training Center and Department discussed routine maintenance and proposed Fusion Center addition and the repair projects. The Committee asked for and Committee recommended the $5.9 million received additional information on the specific expenditure for the project. projects for which the money would be used.
The Director of the Kansas Department of The Chief Fiscal Officer for the Kansas Corrections presented three proposed Private Department of Labor discussed the rehabilitation Industry Expansions along with the five-year plan and repair projects that are all paid with federal and all were approved. funds. They also discussed the white house at 427 SW Topeka Avenue that the agency had tried to The Director of Operations of the Kansas sell. The federal government has been satisfied Department of Transportation (KDOT) noted the with a payment for the property, and the agency agency’s 966 buildings to maintain. This includes will raze the building and is proposing a new subarea bay modernization and salt domes. maintenance facility on the site.
The Building Services Supervisor for the The Senior Operations Manager for the Department of Commerce discussed the agency’s Department for Children and Families explained seven workforce centers across the state. All the agency has no current capital improvement capital improvements are federally funded. projects scheduled for the one building it owns and all other agency buildings are leased.
Kansas Legislative Research Department 5-3 2014 State Building Construction The Director of Facilities Planning for The Chief Financial Officer for the Judicial Pittsburg State University reviewed the current Branch discussed the addition of two office suites projects. A future dorm project is using at the Judicial Center. construction manager design-build process at a guaranteed maximum cost. The Chief Fiscal Office from the Kansas Highway Patrol (KHP) discussed the Vehicle Fleet The Director of Facilities Planning with Fort Storage and Maintenance Facility at Billard Hays State University discussed current and future Airport, Topeka. There was a request for funding projects at the university. He noted that because of of two supplemental projects—replacing water leadership changes at the university, some projects mains at the KHP Training Academy in Salina and were being revisited and may change. paving at the new F Troop headquarters in Wichita. Also discussed was the deterioration of The Associate Director of Projects with the two retaining walls at the Salina Academy. The University of Kansas Medical Center discussed the Committee recommended the five-year plan Health Education building and parking garage. including the two supplemental projects. The The parking garage will be operational by motion also included a cap to the funding for the December 2016 and the building completed by retaining wall replacement at $631,300. December 2017. The Budget Director for the Kansas The Director of Facilities Planning for Wichita Department of Wildlife, Parks and Tourism State University discussed current and future reviewed new construction and additions for the projects and noted university officials are in agency. Also discussed was the rehabilitation and discussion with the city regarding street entrances. repair of current facilities. There are currently no plans to change the location of the football stadium. The Facilities Architect for the Kansas Department for Aging and Disability Services The Associate Vice President for Facilities at viewed the plans for the five state hospitals that Kansas State University discussed renovations, comprise 196 buildings. The rehabilitation and upgrades, improvements, and new construction. repair projects were discussed and it was noted University officials are coordinating plans with the there is a mounting amount of deferred federal National Bio and Agro-Defense Facility maintenance to many buildings. regarding Roberts Hall. The General Manager of the Kansas State Fair The University Architect/Director of Design noted the facility hosted 400 non-fair events and Construction Management for the University during the year and that the attendance at the 2014 of Kansas discussed current projects and the Fair was the fourth-highest in the Fair’s history. campus master plan. Also discussed was the $300,000 state matching contribution to be made annually. The Committee The Director of Facilities for the Board of recommended the five-year plan with a repair and Regents discussed the rehabilitation and repair replacement cap for the Expo facility of $5.5 fund and priority list at each university for the million. funding. He also discussed the need for additional funds for deferred maintenance at the universities. The Project Architect from the University of Kansas Medical Center presented a project to The Director of Facilities and Procurement construct a simulation center by renovating the Management commented on the methodology first floor of Sudler Hall. This project will be used for assessing building conditions and incorporated into the Health Education space that responded to questions about the demolition of the is currently under construction. Docking State Office Building.
Kansas Legislative Research Department 5-4 2014 State Building Construction Statutorily Required Reports The Deputy Secretary of Corrections alerted the Committee to possible litigation concerning a The KDOT Deputy Secretary and State lease for a parole office in Kansas City, Kansas. Transportation Engineer presented the agency’s inventory of surplus property. In FY 2014, 28 The Deputy Director of Design Construction, properties were sold. The Kansas Turnpike and Compliance, Office of Facilities and Authority and KDOT are co-locating in Emporia. Procurement Management for the Department of Administration discussed the plans to relocate the Leases and Sales Data Center currently in the Landon Building to the Burlington Northern Santa Fe building or The Deputy Director of the Office of Facilities Curtis State Office Building. and Procurement Management for the Department of Administration presented the following leases State Facility Tours and sales, all of which were recommended by the Committee: The Committee toured the four buildings the Department of Administration is authorized to sell ● Parole Office for the Department of under the terms of enacted 2014 SB 423. They Corrections in Hutchinson; include the Landon and Eisenhower buildings, currently owned by the state. The bill also ● Department of Corrections surplus farm provides for exercising the option of purchase and ground in north Topeka; selling the Curtis and Myriad buildings currently owned by the Topeka Public Building Commission ● Department of Children and Families and leased to the state. surplus warehouse in Wyandotte County; After the tour, the bonded indebtedness and ● KBI office in Lenexa; other relevant fiscal information was shared with the Committee and discussed. The debt for three of ● Kansas Department for Children and the buildings was greater than the assessed value. Families lease of the Athene Building in Topeka; The Committee toured Larned State Hospital. The superintendent explained the facility contains ● Department of Revenue lease of the Scott three hospitals including the State Security Building in Topeka; Program, the Department of Corrections facility for mental patients, and the Sexual Predator ● Department of Revenue lease of the Mills Treatment Program. The Committee toured the Building in Topeka; Meyer, Jung, and Issac Ray buildings.
● Department of Revenue Division of The Committee toured the Kansas Soldiers’ Vehicles lease of the former Dillons Home in Dodge City. The tour included the grocery store at 29th and Topeka Avenue in Veterans’ Cemetery, one of the cottages, the Topeka; historic Custer Building, Lincoln and Grant dormitories, the Eisenhower administration ● Kansas Corporation Commission office in building, and Halsey Hall, the long-term care Hays; facility.
● Office of the State Bank Commissioner in The Committee toured the Kansas Veterans’ Topeka; and Home at Winfield. The superintendent stated the facility has an average annual population of 91 ● Rainbow Mental Health was sold to the individuals in long-term care, 22 residents in University of Kansas Foundation. assisted living, and 18 beds in the Alzheimer’s Unit. The Committee was also shown the 40-bed expansion in the Triplett unit.
Kansas Legislative Research Department 5-5 2014 State Building Construction The Committee toured the School for the Deaf ● Include the three proposed Private in Olathe. The Committee was shown the current Industry Expansions by the Department of remodeling of the Roth Building and the upgrades Corrections; to the heating, ventilation, and air conditioning. ● Include the supplemental requests using The Committee toured the School for the private funding for the windows at Blind in Kansas City. The school serves 165 Constitution Hall and the roof at the State students on campus and approximately 1,100 Archives Building for the State Historical students statewide. The Information Resource Society; Office for both schools noted to the Committee that the schools are program centers and not enrollment centers. ● Cap the funding for the repairs to two retaining walls at the Kansas Highway Patrol’s Salina Academy to $631,300; and CONCLUSIONS AND RECOMMENDATIONS ● Cap the funding of the Expo facility repair The Joint Committee recommended all and replacement at the Kansas State agencies’ five-year capital improvement plans, Fairgrounds to $5.5 million. leases, and sales of land and facilities that came before the Committee. The Joint Committee recommended the following:
Kansas Legislative Research Department 5-6 2014 State Building Construction OTHER TASK FORCES, COMMISSIONS, AND COMMITTEES
Report of the Health Care Stabilization Fund Oversight Committee to the 2015 Kansas Legislature
CHAIRPERSON: Gary Hayzlett
LEGISLATIVE MEMBERS: Senators Laura Kelly and Vicki Schmidt; and Representatives David Crum and Jerry Henry
NON-LEGISLATIVE MEMBERS: Darrell Conrade; Dennis George; Dr. Jimmie Gleason; Dr. Paul Kindling; Dr. Terry "Lee" Mills; and Dr. James Rider
CHARGE
● The Committee annually receives a report on the status of the Health Care Stabilization Fund and makes recommendations regarding the financial status of the Fund.
January 2015 Health Care Stabilization Fund Oversight Committee
ANNUAL REPORT
Conclusions and Recommendations The Health Care Stabilization Fund Oversight Committee addressed the two statutory questions posed annually to the Committee. The Oversight Committee continues in its belief that the Committee serves a vital role as a link among the Health Care Stabilization Fund Board of Governors, the health care providers, and the Legislature and should be continued. Additionally, the Committee recognizes the important role and function of the Health Care Stabilization Fund (HCSF) in providing stability in the professional liability marketplace, which allows for more affordable professional liability coverage to health care providers in Kansas.
The Committee notes the enactment of 2014 legislation provides HCSF coverage requirements for five new categories of health care providers, impacts the short-term and long-term liabilities for the HCSF, including the provision of tail coverage and its availability to health care providers with less than five years of experience in the HCSF. Additionally, the current and future changes to the statutory cap on non-economic damages and the impact on claims filed and the associated dollar amount of the claims, will require continued monitoring. Committee oversight of impacts not only on the HCSF but also updates on new health care providersʼ experiences with the HCSF coverage will continue.
Actuarial Review. The Committee discussed its oversight of actuarial reporting provided by the HCSF Board of Governors and whether there was a need to contract for an independent actuarial review in 2015. The Committee recognized the additional analysis provided by the HCSF Board of Governors’ actuary to account for the legislative changes enacted by the 2014 Legislature, including new health care providers subject to the HCSF coverage requirements, the change in tail coverage compliance from a five-year waiting period to immediate coverage, and changes to the non-economic damages cap specified in tort law. Following discussion on the actuarial analysis provided to the Committee and the Board of Governors and the routine audits the Board as a state agency is subject to, the Committee concluded there is no need to contract for an independent actuarial review in 2015.
Other recommendations. The Committee then considered information presented by the HCSF Board of Governors’ representatives and health care provider and insurance company representatives. The Committee agreed to make the following recommendations:
● Reimbursement of the HCSF. The Committee notes the reimbursement schedule created by 2010 SB 414. This law allowed for the reimbursement of deferred payments to the HCSF for administrative services provided to the self-insurance programs at the University of Kansas Foundations and Faculty and the University of Kansas Medical Center (KUMC) and Wichita Center for Graduate Medical Education (WCGME) residents for state Fiscal Years 2010, 2011, 2012, and 2013. The Committee notes normal reimbursements occurred starting July 1, 2013; and, the HCSF Board of Governors have received 20 percent of the accrued receivables for the last two years in July. The HCSF received $1,544,084.43 reimbursement in July 2013, and $1,544,084.43 in July 2014. The remaining reimbursement receivables are $4,632,253.37.
Kansas Legislative Research Department 6-1 2014 Health Care Stabilization Fund Oversight ● Fund To Be Held in Trust. The Committee recommends the continuation of the following language to the Legislative Coordinating Council (LCC), the Legislature, and the Governor regarding the HCSF:
◌ The Health Care Stabilization Fund Oversight Committee continues to be concerned about and is opposed to any transfer of money from the HCSF to the State General Fund (SGF). The HCSF provides Kansas doctors, hospitals, and the defined health care providers with individual professional liability coverage. The HCSF is funded by payments made by or on the behalf of each individual health care provider. Those payments made to the HCSF by health providers are not a fee. The State shares no responsibility for the liabilities of the HCSF. Furthermore, as set forth in the Health Care Provider Insurance Availability Act (HCPIAA), the HCSF is required to be “. . . held in trust in the state treasury and accounted for separately from other state funds.”
◌ Further, this Committee believes the following to be true: All surcharge payments, reimbursements, and other receipts made payable to the Health Care Stabilization Fund shall be credited to the HCSF. At the end of any fiscal year, all unexpended and unencumbered moneys in such Fund shall remain therein and not be credited to or transferred to the SGF or to any other fund.
Proposed Legislation: None.
BACKGROUND subsequent analysis of legislative changes dated September 8, 2014. The actuary addressed The Committee was created by the 1989 forecasts of the HCSF’s position at June 30, 2014, Legislature and is described in KSA 40-3403b. and June 30, 2015. The forecast of the HCSF’s The 11-member Committee consists of 4 position at June 30, 2014, is as follows: the HCSF legislators; 4 health care providers; 1 insurance held assets of $261.88 million and liabilities of industry representative; 1 person from the public $190.26 million, with $71.62 million in reserve. at large, with no affiliation with health care The projection for June 30, 2015, is as follows: providers or with the insurance industry; and the assets of $265.89 million and liabilities of $194.04 Chairperson of the Board of Governors of the million, with $71.85 million in reserve. The report Health Care Stabilization Fund or another member notes the forecasts were based on a review of the of the Board designated by the Chairperson. The HCSF data as of December 31, 2013. The report law charges the Committee to report its activities states that in the 2013 study, the actuaries to the Legislative Coordinating Council and to forecasted higher levels of assets ($265.4 million) make recommendations to the Legislature and liabilities ($197.5 million) at June 2014, with regarding the Health Care Stabilization Fund. The a lower unassigned reserve ($67.8 million). reports of the Committee are on file in the Payment activity in calendar year 2013, however, Legislative Research Department. was higher than anticipated. The actuary stated based on the annual study, the overall conclusion The Committee met October 15, 2014. is the HCSF is in a very strong financial position with unassigned reserves at about $72 million and not changing much as a result of FY15 activity. COMMITTEE ACTIVITIES The actuary stated the forecasts assume there would be no change in surcharge rates for FY Report of Towers Watson 2015; $24.1 million in surcharge revenue in FY 2015; a 3.85 percent yield on the HCSF assets; The Towers Watson actuarial report serves as continued full reimbursement for University of an addendum to the report provided to the HCSF Kansas (KU)/WCGME claims, with continued Board of Governors dated March 20, 2014, and the payback of reimbursements from the state that
Kansas Legislative Research Department 6-2 2014 Health Care Stabilization Fund Oversight were delayed until FY 2014; no change in current indications assume a break-even target. The Kansas tort law; potential increase in claims due to actuary highlighted payments, with settlements Missouri’s 2012 overturn of non-economic and defense costs of about $28 million; change in damage caps. The actuary noted the HCSF Board liabilities, an increase of about $3.8 million; of Governors, at its March 2014 meeting, elected administrative expenses of about $1.6 million; and to make no change to the surcharge rates for FY transfers to the Health Care Provider Insurance 2015. Availability Plan (Availability Plan) and the Kansas Department for Aging and Disability The actuary next reviewed the HCSF’s Services (KDADS) are assumed to be $200,000 liabilities at June 30, 2014. The liabilities (assumes no Availability Plan transfer); totaling highlighted included claims made against active the cost for the HCSF to “break-even” for another providers as $79 million; associated defense costs year at $33.8 million. The actuary stated that the as $15.9 million; claims against inactive providers HCSF has two sources of revenue: investment reported by the end of FY 2014 as $7.1 million; income based on the 3.85 percent yield assumption tail liability of inactive providers as $75.2 million; of $9,898 million and surcharge from providers of future payments as $14.9 million; claims handling $23.905 million; therefore, the rate-level $5.5 million; and “other” which is mainly plaintiff indication is a slight increase of about 1 percent. verdicts on appeals as $.9 million; for a total of The actuary stated from their perspective, the gross liabilities of $198.4 million of which some HCSF’s rates are pretty close to adequacy – “what of the liabilities are for the KU and WCGME is needed.” The actuary then reviewed a 15-year programs that the HCSF is reimbursed for $8.2 history of what the HCSF’s indicated costs per million for a final net liability of $190.3 million. active provider have been for settlements and The actuary further detailed why the tail liability defense costs (less reimbursed amounts). He stated of inactive providers is such a high number, stating essentially there has been no inflation in the that as of June 2014, anyone who has been in the business over the last 15 years. HCSF for five years, does not have to pay the HCSF any more surcharge revenue to have the tail Impact of 2014 Legislation. The actuary also liabilities covered by the HCSF. He stated this is a discussed the effect of the changes made by the very long-term liability; a very big liability; and a 2014 Legislature in SB 311 and HB 2516. The very challenging liability to quantify, but one the actuary summarized the estimates of the HCSF’s actuaries believe is appropriate for the HCSF to financial position at June 30, 2015. The actuary recognize. The actuary emphasized this is the stated, prior to the legislative changes, the HCSF single biggest item affected in the short run by the would have an unassigned reserve of $71.85 2014 legislative changes. In response to a million. However, with the changes, it is believed question, the actuary explained they look at the there will be an impact to the liabilities of $27.8 history of inactive provider claims based on when million raising the liabilities from $194.04 million they occurred and when they are reported; they to $222.83 million. This would leave an have information about how long providers were unassigned reserve of $44.06 million. The actuary in the system before those providers left the indicated this projected $44 million still makes the system; and, with this provider data, they built a HCSF a financially stable environment. He stated model to figure out of the 10,000 or so providers the impact on these liabilities is largely a one-time in the system today and consider when they likely hit. The Committee and actuary discussed the level will retire and project when those retirees likely of reserves that would trigger a cause for concern will sustain claims. The model has a lot of for the actuaries. The actuary indicated less than assumptions, but estimates are made for health $20 million would start to be a concern. The care providers in the system: their future actuary also provided estimates of the legislative retirement dates; the potential for claims reported changes in the HCSF liabilities by specific change, against them; the resolution of those claims; and breaking out those changes by active providers the cost for resolution based on the year the versus inactive providers. potential claim(s) are resolved. The actuary concluded his remarks with a few The actuary next reviewed the HCSF’s Rate additional observations regarding the effect of the Level Indications for FY 2015 noting the 2014 legislative changes.
Kansas Legislative Research Department 6-3 2014 Health Care Stabilization Fund Oversight ● The increase in caps on non-economic contingency clause in its contract with Towers damages has only a modest initial impact Watson, in an effort to reanalyze liabilities. on the HCSF’s losses from active providers. That impact will grow over Comments time. Ultimately, we estimate the higher caps will increase the HCSF’s indicated In addition to the report from the HCSF Board rate level by 10 percent. of Governors’ actuary, the Committee received information from Committee staff detailing ● The changes relative to inactive providers resource materials provided for consideration cause an immediate and material increase including the bill summaries and copies of enacted in the HCSF’s liabilities. However, that legislation, 2014 HB 2516 and SB 311, the FY impact is virtually a one-time hit. 2014 and FY 2015 subcommittee and budget committee reports, and the Committeeʼs prior ● The changes cause additional uncertainty conclusions and recommendations from its most in estimates of the HCSF’s liabilities until recent annual report. The Committee analyst stated the effects can be quantified with HB 2516 is one of two bills that immediately subsequent experience. impacts the HCSF, its governance, the membership of the HCSF Board of Governors, Kansas Medical Mutual Insurance Company The Executive Director then spoke to (KaMMCO) and its ability to provide insurance discussion during the 2013 interim regarding the products, and changes the definition of “health Miller v. Johnson decision and potential care provider” in the HCPIAA. The second bill, legislation. He stated a number of groups, SB 311, is the other part of the Miller v. Johnson professions, and facilities not previously defined discussion before the Committee last year. She as health care providers had indicated renewed stated this was a measure advocated for by the interest as a result of the decision. When they KMS, Kansas Hospital Association, and a number learned the Kansas Medical Society (KMS) was of provider groups regarding a change in the non- planning to request introduction of a bill that economic damages limitations in statute. She also would amend that part of the HCPIAA, the HCSF highlighted a recommendation in the Board of Governors felt there were a couple of subcommittee reports made by both the House really important improvements that also should be Budget Committee and the Conference Committee addressed. One of those was to improve the tail regarding staffing at the HCSF Board of coverage. The Executive Director noted not only is Governors, specifically related to the it good for health care providers to be able to implementation of HB 2516. know their tail coverage will be provided immediately upon retiring from active practice or relocating out-of-state, a patient who is injured or A representative of the Revisor of Statutes’ experiences an unfortunate medical outcome will Office provided an overview of the 2014 have access to a reliable source of revenue in that legislation. The revisor first summarized SB 311, event. noting the bill amended the Code of Civil Procedure relating to the limits on recoverable damages for non-economic damages in personal The Executive Director addressed SB 311 and injury actions. For causes of actions accruing on or its impact, stating once those step-by-step after July 1, 2014, to July 1, 2018, the new limit is increases are analyzed, over an eight-year period $300,000. For causes of action accruing on or after of time, there is going to be a 40 percent increase July 1, 2018, to July 1, 2022, the limit will be in non-economic damages in the cap. He explained $325,000; for causes of action accruing on or after it does not necessarily mean there will be a 40 July 1, 2022, the limit will be $350,000. Prior to percent increase in every single professional enactment of the bill, the limit had been $250,000. liability claim, but it does mean there probably Additionally, the bill amended the rule of evidence will be some increase. The Executive Director concerning opinion testimony to clarify a person stated that is why upon passage of the two bills, not testifying as an expert witness may be the HCSF Board of Governors exercised the admitted if the judge finds such opinions or
Kansas Legislative Research Department 6-4 2014 Health Care Stabilization Fund Oversight inferences are: based on the perception of the condition of licensure to practice in the state for witness; are helpful to a clear understanding of the health care providers. Further, the bill clarified the testimony of the witness; and are not based on HCSF liability is based on the level of the HCSF scientific, technical, or other specialized coverage selected by a health care provider. The knowledge within the expertise of the expert. HCSF is not liable for any claim not normally Finally, the bill repealed statutes that allowed for covered by a medical professional liability evidence of collateral source benefits to be insurance policy. admissible in actions for personal injury or death. Additionally, inactive health care providers are HB 2516 related to the operation of mutual ensured of having the HCSF tail coverage equal to insurance companies organized to provide health the amount of such provider’s primary insurance care provider liability insurance and amends the coverage plus the amount of the HCSF coverage HCPIAA, which governs the operation of the selected and in effect at the time the event HCSF. The bill made continued HCSF coverage resulting in a claim of medical negligence for inactive health care providers (referred to as occurred. Beginning July 1, 2014, the five-year tail coverage) immediate upon cancellation or compliance period requirement prior to being inactivation of a Kansas license and professional eligible for tail coverage is removed. Now, any liability insurance and increases the level of tail health care provider has tail coverage immediately coverage available. The bill made tail coverage upon canceling or inactivating a Kansas license available for new professionals and facilities for and the provider’s professional liability insurance prior acts, limited disclosure of the HCSF claims policy. In lieu of a claims made policy otherwise information to the public, and made technical required under KSA 40-3402 (Section 6 of the amendments to the statutes. bill), a nonresident health care provider employed pursuant to a locum tenens contract to provide Among the provisions summarized, the revisor services in Kansas as a health care provider may noted in Section 5 of the bill, the definition of obtain basic coverage under an occurrence form “health care provider” is amended to include as of policy if such policy provides professional liability January 1, 2015, physician assistants, nursing insurance coverage and limits required by KSA facilities, assisted living facilities, resident health 40-3402. care facilities, and certain advanced practice registered nurses (who are certified in the role of Section 7 provided the HCSF Board of nurse midwife). The bill also clarified what Governors of is authorized to grant temporary “health care provider” does not include and added exceptions from the professional liability providers to the list of those excluded from this insurance and the HCSF coverage under definition due to an inactive license or a federally exceptional circumstances. The bill also provided active license that offers protection under the “in the event of a claim against a health care Federal Tort Claims Act. Definitions for “board” provider for personal injury or death arising out of and “board of directors” are added to distinguish the rendering of or the failure to render between the two distinct boards, and the professional services by such health care provider, appropriate new term replaces existing references the liability of the HCSF shall be limited to the to the two boards. The bill also provided a amount of coverage selected by the health care definition for “locum tenens contract,” which provider at the time of the incident giving rise to means a temporary agreement not to exceed 182 the claim.” The membership of the HCSF Board of days per calendar year that employs a health care Governors is increased from 10 to 11 members provider to actively render professional services in (The eleventh member is to be a representative of Kansas. The bill defined “professional services” to an adult care home.). All employees of the HCSF mean patient care or other services authorized employed by the Board of Governors are under the HCPIAA governing licensure of a health unclassified employees. care provider. Other changes in the bill required the Section 6 addressed professional liability Availability Plan to make available professional insurance coverage, clarifying professional liability insurance coverage for prior acts. Such liability insurance and the HCSF coverage are a policies are required to have limits of coverage not
Kansas Legislative Research Department 6-5 2014 Health Care Stabilization Fund Oversight to exceed $1 million per claim or $3 million claims resolved in FY 2014 including judgments annual aggregate liability for all claims made as a and settlements). The conferee began her result of personal injury within the state on or presentation by noting jury verdicts. Of the 27 before December 31, 2014. The tail coverage is cases involving 35 Kansas health care providers available only to new professionals and facilities tried to juries during FY 2014, 25 were tried to made part of the “health care provider” definition. juries in Kansas courts and two cases were tried to Such providers must be in compliance with the juries in Missouri. The largest number of trials coverage requirements on January 1, 2015. Time were held in the following jurisdictions: Sedgwick allowed for insurers providing basic professional County (8), Johnson County (6), Wyandotte liability insurance coverage to notify the HCSF County (3), Jackson County, Missouri (2), and Board of Governors of such coverage for the Reno County (2). Of those 27 cases tried, 23 purpose of hospital credentialing has been resulted in defense verdicts and 1 case resulted in shortened. Insurers failing to report a written or a mistrial. Juries returned verdicts for the plaintiffs oral claim or action for damages for malpractice to in 3 cases and resulted with expenditures from the the appropriate state health care provider HCSF, with 1 of those cases now on appeal. regulatory agency and the Board of Governors no longer face suspension, revocation, denial or The Chief Attorney then highlighted the renewal, or cancellation of the insurer’s certificate claims settled by the HCSF, noting in FY 2014, 63 of authority to do business in Kansas or certificate claims in 52 cases were settled involving HCSF of self-insurance. Instead the Board of Governors monies. Settlement amounts for the fiscal year will level a civil fine against the insurer for such totaled $24,005,914—these figures do not include violation. settlement contributions by primary or excess insurance carriers. The conferee stated this FY Following the briefing, the Committee and the data represents 16 fewer claims than the previous Executive Director, HCSF Board of Governors, year, and about $3.6 million less than the previous discussed the removal of the five-year compliance year. The conferee noted, in the last couple of period required prior to eligibility for tail years, the settlement amounts have been greater coverage. The Executive Director explained, in than the averages, reflecting a trend for higher 1988, the Legislature conducted an interim study settlements. Although there were 16 fewer and decided a good way to generate more settlements, more fell into the highest category of surcharge revenue would be to impose a five-year settlements. A big component to these amounts is requirement such that tail coverage would not be due to past and future medical expenses. Of the 63 available to physicians or other health care claims involving the HCSF monies, the HCSF providers unless they paid for it. He stated this has provided primary coverage for inactive health care presented administrative challenges for years, and providers in nine claims. The HCSF also “dropped also has created an extraordinary hardship for down” to provide first-dollar coverage for six young physicians. Another question raised by a claims in which aggregate primary policy limits Committee member was to verify the time period were reached. Primary insurance carriers tendered the insurer has to notify has been shortened by the their policy limits to the HCSF in 54 claims. In new law and also whether insurance companies addition to the $24,005,914 incurred by the HCSF, can face suspension, revocation, denial or renewal, primary insurers contributed $10,135,000 to these or cancellation. The Executive Director stated the settlements. Further, testimony indicated, four notification period was slightly shortened. He then claims involved contributions from an insurer indicated he was not sure he could respond fully to whose coverage was in excess of the HCSF the question because he is not affiliated with the coverage; the total amount of these contributions Insurance Department, but he believes the was $3,875,000. The Chief Attorney’s testimony Department has the authority to discipline an also indicated, in addition to settlements involving insurer that fails to comply. the HCSF contributions, the HCSF was notified primary insurance carriers settled an additional 97 Chief Attorney’s Update. The Deputy Director claims in 86 cases. The total amount of these and Chief Attorney for the HCSF Board of reported settlements was $8,909,740. The report Governors next addressed the FY 2014 medical included figures from FY 2000 to FY 2014 for professional liability experience (based on all comparison. The Chief Attorney’s testimony also
Kansas Legislative Research Department 6-6 2014 Health Care Stabilization Fund Oversight included a report of the HCSF total settlements reimbursed for expenses and costs of these and verdicts, FY 1977 to FY 2014. The Chief programs. Beginning FY 2014, two important Attorney next provided a report of new cases things would happen; normal reimbursements indicating there were 268 new cases during FY would happen for the HCSF; and the HCSF would 2014. She noted, for the previous five years in a start being repaid for those amounts for their row there was a decrease in the number of claims, accrued receivables. The conferee reported both of so it was not unexpected there was a moderate those things have happened; normal increase for FY 2014. She also stated, since reimbursements occurred starting July 1, 2013; Missouri found its cap on non-economic damages and, they have received 20 percent of the accrued unconstitutional a few years ago, she will be receivables for the last two years in July. The watching closely to see if the number of claims HCSF received $1,544,084.43 reimbursement in involved in the HCSF filed in Missouri increases. July 2013, and $1,544,084.43 in July 2014. The remaining reimbursement receivables are The Chief Attorney also addressed the self- $4,632,253.37. The conferee also provided insurance programs and reimbursements for the information about monies paid by the HCSF for KU Foundations and Faculty and residents. She those claims that are greater than the $200,000 highlighted the FY 2014 KU Foundations and primary coverage. She stated these are the claims Faculty, and KUMC and WCGME program costs. that involve the HCSF as an excess carrier. There The Chief Attorney stated the FY 2014 KU were no claims for the KU and WCGME residents, Foundations and Faculty program amount of although six of the nine claims against the faculty $2,749,707.77 increased considerably from FY members did involve the HCSF excess coverage 2013. The conferee stated there were 2 primary of $2.9 million. The Chief Attorney concluded her reasons for this increase. The first reason was presentation stating the one thing she is there were more settlements for KU Foundations monitoring, as Missouri no longer has a cap on its and Faculty at 9 settlements, compared to 5 the non-economic damages and KU has achieved previous year. The second reason was a very large National Cancer Center Designation, which means catastrophic damages case filed about 18 months a greater presence in the state (e.g. clinics and ago; 16 full-time faculty members and residents rotations), is the possibility more lawsuits were named as defendants. The Chief Attorney involving the KU Faculty Residents will be filed noted it is very expensive to defend 16 physicians in Missouri. in a high-dollar catastrophic damages case. She also noted two cases involving faculty members In answer to whether electronic medical went to trial as defense verdicts, which also is records are helping to keep settlements down due expensive and increases attorney’s fees and to better documentation, the Chief Attorney expenses. There were no FY 2014 settlements or responded she believes as residents in training are judgments for the KU and WCGME resident trained on the systems and the systems are more programs. She noted there was a decrease in the compatible with other systems, there are going to amount of attorneys’ fees and expenses incurred in be fewer and fewer claims that involve records defending the residents. kinds of issues.
The Chief Attorney’s report also listed the Medical Malpractice Insurance Marketplace. historical expenditures by fiscal year for the KU The Committee then reviewed the current Foundations and Faculty and the KU and marketplace for medical malpractice insurance. WCGME Residents since inception. She stated FY The Chief Executive Officer (CEO), KaMMCO, 2014 was an above-average year by about $1 stated, overall, the market in Kansas, much like million. She noted the KU and WCGME Residents the market across the country, is a very vibrant, program was a little below average for FY 2014. competitive marketplace. He stated, in many The Chief Attorney stated, for the last several cases, there are multiple options for providers and years, the HCSF stopped receiving rates are as low as they have been in many years, reimbursements due to budgetary concerns. The so it is an extremely good marketplace for health 2010 Legislature addressed this issue with a care providers purchasing malpractice insurance. compromise providing that for fiscal years 2010, The conferee stated market conditions are often 2011, 2012, and 2013, the HCSF would not be cyclical. Additionally, the numbers of claims have
Kansas Legislative Research Department 6-7 2014 Health Care Stabilization Fund Oversight fallen for a few years, and are at all-time lows, effort to maintain the cap indefinitely. She stated which has really helped from a pricing standpoint, KMS does believe the Committee should continue stability, and price competitiveness. The CEO and legislative oversight is appropriate and stated it is his expectation the issues anticipated necessary. The conferee concluded by stating for the nurse midwives, the physician assistants, KMS does not believe there needs to be an and adult care facilities are transitional issues independent actuarial review. regarding the way they used to buy it versus the way they now will need to buy it. The CEO The Executive Director, in response to a indicated the insurance industry is in the process question from the Committee regarding inactive of responding to those issues. He stated KaMMCO providers, clarified there are legal definitions of does insure physician assistants who are affiliated “inactive” that are extremely important. There are with KaMMCO physicians or hospitals, and the inactive licensees, which means providers who do company is committed to a market for long-term not provide any patient care. Under the HCPIAA, care facilities. The CEO stated any of those not only does the inactive provider no longer providers unable to acquire the required mandated provide patient care, but this provider no longer insurance from an admitted carrier in Kansas, have has liability insurance coverage. Regarding the tail the Availability Plan available to help them with coverage responsibility, this means the individual that transition if it becomes an issue. He also noted physician or other health care provider is no longer the Insurance Department is working with a seeing patients. He stated the one exception is the number of carriers to get these filings approved so exempt licensee who can continue to provide everyone can find a home in the admitted market patient care in a very limited context; typically, it under the new requirement by January 1, 2015. is at a clinic for medically indigent patients. The Executive Director also stated there is a source for In a response to a question, the CEO indicated recovery in the event one of those patients is KaMMCO is very active in the area of risk injured, because, if the inactive exempt physician management. He stated many carriers have some is a charitable health care provider, then the patient version of risk management loss prevention, and it has access to recover under the Kansas tort law. is expanding and growing because the nature of the risks are changing. The conferee further stated In response to a question from the Committee there are different providers to consider as regarding vicarious liability, the Chief Attorney traditionally care management has been provided responded there is a statute that provides one by a physician and now it is being provided by an defined health care provider is not vicariously APRN, a physician assistant, or some other liable for another health care provider. For physician extender, such as a hospitalist. He stated example, a doctor and a hospital are named in the the transitions of care provide opportunities for suit; since doctors and hospitals are both defined things to fall through the cracks, with information health care providers, the hospital is not not being transferred from place to place. The responsible for the doctor’s actions and vice versa. CEO stated, as electronic health records get better, Nurse midwives and physician assistants are not it is a great example of issues where information defined health care providers. So, a hospital or a will be able to be transferred easier and faster from professional corporation or a physician could be provider to provider as a patient goes from place found vicariously liable for a physician assistant’s to place. The CEO noted, over the course of the or nurse midwife’s actions. Starting in January 1, last five or six years, there has been a tremendous 2015, when these two groups become defined amount of changes in health care. The insurance health care providers, the physician or the hospital industry is trying to do what it can to make sure is not going to be vicariously liable for these the industry is responsive to the changes to groups. The Chief Attorney stated she anticipates provide the best opportunity to care for patients in there will be increased numbers of claims being a safe way and reduce adverse outcomes. made against physician assistants and nurse midwives. The Director of Government Affairs, KMS, was next recognized. She stated KMS introduced New Health Care Providers – Implementation SB 311 and HB 2516 in response to the Kansas Update. The Executive Director of the Kansas Supreme Court’s ruling (Miller v. Johnson) in an Academy of Physician Assistants (KAPA) was
Kansas Legislative Research Department 6-8 2014 Health Care Stabilization Fund Oversight recognized to provide input regarding the new ● Encourage the plans to report the markets legislation’s impact on KAPA’s membership. He and participation requirements in a stated, generally, the response by their members transparent manner; and has been very positive. The Executive Director stated there is one unintended consequence in ● Consideration of the inclusion of licensed regard to exempt licenses for physician assistants birth center facilities as a covered entity in providing charitable care at facilities not future revisions of the HCSF statute. specifically designated as “federally qualified” the KAPA will address by proposing legislation in the 2015 Legislative Session. The conferee concluded One of the conferees concluded by stating the his remarks noting the requirements for physician success of their business is highly dependent on assistants to have coverage in place do not take the HCSF and the Kansas malpractice market effect until July 1, 2015, so time remains to operating in an open and competitive manner address the exempt licensure provisions. especially for self-employed nurse midwives. A Committee member asked for clarification regarding if it was New Birth Center’s request to The President and CEO of the Kansas Health include licensed birth center facilities as a covered Care Association and Kansas Center for Assisted entity the next time the HCPIAA is opened. The Living, was recognized to provide input regarding conferees concurred. long-term facilities that will come into the HCSF. She stated they are working through some issues, noting many of their providers are not based in The Executive Director of the Kansas Kansas and have many different business practices Association of Osteopathic Medicine (KAOM) where their companies are based. The conferee’s submitted written testimony. His testimony testimony stated both associations have been indicated KAOM supported 2014 HB 2516 and educating and working with providers to SB 311 and the association has not received any understand the new law. She stated there have negative comments or concerns from osteopathic been a lot of changes over the last couple of years, physicians regarding the legislation. One so it is believed this coverage will give an improvement highlighted was the tail coverage opportunity for providers to have some stability in provision for retired physicians. The remarks one side of their practice. The conferee assured the indicate this provision has taken some of the worry Committee they are working with their providers about retirement from physicians who no longer on these risk management issues. She concluded intend to practice on a full-time basis, but would by stating they may have some more comments like to see patients on a part-time basis. and experience to address a year from now. The President of the Kansas Affiliate of the Two owners of the New Birth Center, American College of Nurse-Midwives (ACNM) Overland Park, were recognized to provide submitted written remarks, highlighting the variety comments on the inclusion of nurse midwives into of practice settings for nurse midwives – hospitals, the HCSF. One of the conferees noted two out of group practices, three freestanding birth centers, three birth centers in Kansas have non-physician homes, military bases, health departments, and owners. She stated they believe Kansas is ideal for health centers – and concerns about the cost of the growth of midwife owned birth centers and medical liability insurance coverage. Two provider their goal is to expand their business. She also issues included in the remarks were the case of a stated their model is highly dependent on the nurse-midwife, who is employed at a Federally malpractice insurance market that gives them Qualified Health Center, who works one day a competitive malpractice insurance options. The month at a health department, has been informed conferees encouraged the Committee to consider the health department will not purchase coverage the following: for the nurse-midwife. The other issue of concern is for nurse-midwives employed at birth centers or those who have a home birth business; only two ● The HCSF and its plan participants have insurance companies listed on the HCSF Board of the ability to create a market; Governors’ website offer basic coverage to “all health care providers.” While the Availability Plan
Kansas Legislative Research Department 6-9 2014 Health Care Stabilization Fund Oversight is an option, the application for this plan was not during FY 2014. Total claims paid during yet available. This lack of companies offering the fiscal year amounted to $25,029,266. basic policies to nurse-midwives, the remarks indicate, limits competition and may drive up the The Executive Director also submitted price of coverage. The president’s testimony historical information about the creation and concludes with information regarding evolution of the HCPIAA, highlighting three communications between ACNM, the Executive principle features of the HCPIAA that have Director for the HCSF Board of Governors, and remained intact since 1976, are interrelated and the Board of Nursing regarding nurse-midwives must be maintained: licensure status in instances where the nurse- midwife no longer renders professional services in ● A requirement that all health care Kansas (There is not currently an “inactive” providers, as defined in KSA 40-3401, license option for Kansas APRNs.). maintain professional liability insurance coverage as a condition of licensure; Statutory report, Fund history, and implementation of legislation. The Executive Director, provided the Board of Governor’s ● Creation of a Joint Underwriting statutory report (as required by KSA 40-3403(b)) Association, the “Health Care Provider for FY 2013. Among the items detailed in the Insurance Availability Plan,” to provide report: professional liability coverage for those health care providers who cannot purchase ● The balance sheet, as of June 30, 2014, coverage in the commercial insurance indicated assets of $265,988,612 and market; and liabilities amounting to $202,561,375. The Executive Director noted, however, with ● Creation of the Health Care Stabilization the July 1, 2014, implementation of 2014 Fund to, (a) provide supplemental legislation, the HCSF liabilities increased coverage above the primary coverage almost $28 million the next day. purchased by health care providers; and (b) serve as reinsurer of the Availability ● Net premium surcharge revenue Plan. collections amounted to $24,231,068. The report indicated the lowest surcharge rate The Executive Director noted the discussion for a health care professional was $50 before the Committee regarding the Miller v. (chiropractor, first year of Kansas Johnson decision at its last meeting. He stated a practice; opting for lowest coverage number of groups, professions, and facilities not option) and highest surcharge rate was previously defined as health care providers had $14,058 for a neurosurgeon with five or indicated renewed interest as a result of the more years of HCSF liability exposure decision. When they learned the KMS was (selected highest coverage option). It was planning to request introduction of a bill to amend noted application of the Missouri that part of the HCPIAA, the HCSF Board of modification factor would result in a total Governors felt there were a couple of really premium surcharge of $18,275 for this important improvements that also should be health care practitioner. addressed. One of those was to improve the tail coverage. He then addressed the Committee’s ● The average compensation per settlement discussion from last year regarding whether other (52 cases involving 63 claims were states employ an independent actuary to offer settled) was $381,046, a 9.0 percent second opinions and indicated the Board of increase compared to FY 2012. These Governors surveyed the other six states that amounts are in addition to compensation currently have some type of patient compensation paid by primary insurers (typically fund and have provided the results in this report $200,000 per claim). The report states (Indiana, Louisiana, Nebraska, New Mexico, amounts reported for verdicts and South Carolina, and Wisconsin). The Executive settlements were not necessarily paid Director stated, among the few states that do have
Kansas Legislative Research Department 6-10 2014 Health Care Stabilization Fund Oversight a patient compensation fund, the states are all Executive Director highlighted another issue: the different in various ways. He pointed out most of Board of Nursing does not have the authority to the states employ an independent actuary. He grant inactive licenses to APRNs. He explained, stated Kansas has always maintained the kind of fortunately the Legislature delegated authority to fiscal discipline necessary for a program like this the HCSF Board of Governors to grant temporary to be successful. exemptions to health care providers when there are exceptional circumstances. In these circumstances, The Executive Director next commented on an affidavit must be signed that swears the health the Medical Professional Liability Insurance (PLI) care provider will not provide patient care in the Market. He stated there has been a number of State of Kansas during the period of exemption. inquiries from insurance agents asking whether The Board of Nursing and the Board of Governors there is any way their clients (primarily adult care has agreed to accept that in those limited homes) can continue to purchase their basic circumstances. coverage from non-admitted carriers. The Executive Director stated the HCPIAA states The Executive Director also stated it has been health care providers must be insured by admitted suggested the Secretary for Aging and Disability carriers. The Executive Director’s report states, Services does not have sufficient authority to when the Legislature passed the original HCPIAA, enforce compliance with the HCPIAA. He stated the Legislature wanted to make certain health care they respectfully disagree with that suggestion, but providers were insured by companies subject to to be certain, they have corresponded with the regulatory oversight by the Insurance General Counsel at the KDADS, requesting his Commissioner. In addition, admitted carriers are opinion on this matter. Depending on the KDADS’ required to pay assessments into a guaranty fund response, a request for legislation delegating such that if an insurance company becomes necessary enforcement authority to the Secretary insolvent, any remaining claims for which the may be required. A Committee member later posed company would have been liable can be paid by a question about whether legislation should be the guaranty fund. He stated it is extremely introduced regarding delegating necessary important to have all the components in place so enforcement authority to enforce compliance with that if those health care providers cannot purchase the HCPIAA to the Secretary without awaiting a their coverage in the independent market, they response from the KDADS general counsel. The need that safety net to make certain they can Executive Director indicated their position will comply with the requirements of the HCPIAA. depend on the general counsel’s response since The Executive Director stated there are at least KDADS regulates these types of facilities. The seven insurance companies that have already Executive Director stated he believes the statute is obtained the authorization from the Insurance clear and if clarification is needed, he will Commissioner and have indicated an interest in communicate with the Legislature. selling coverage to the adult care facilities. The Executive Director responded to questions Finally, the Executive Director addressed “a following his presentation and first addressed the few unforeseen minor problems” in the new facilities that are becoming part of the HCSF, implementation of HB 2516. He stated there are stating the actuary will be continuously monitoring some physician assistants who continue to the loss experience of each category of health care maintain active licenses solely for the purpose of provider, so there is an entirely separate category providing charity care at clinics for medically exclusively for skilled nursing facilities and indigent patients. The Board of Healing Arts does another separate category exclusively for the not have authority to create an exempt license for assisted living and residential health care facilities. those physicians assistants and will be requesting If it is determined the loss experience is legislation to create an exempt license category for attributable to those categories of health care physician assistants. The legislation would allow providers, and the claims are extraordinary and for these physician assistants to continue providing some reason differ from other categories like charity care in those limited settings, and they hospitals and physicians, then the surcharge rates would be exempt from the professional liability collected from those categories will be increased. insurance requirements under the HCPIAA. The In answer to whether the adult care homes can
Kansas Legislative Research Department 6-11 2014 Health Care Stabilization Fund Oversight continue to purchase insurance from a non- a need to contract for an independent actuarial admitted carrier, the Executive Director stated review in 2015. The Committee recognized the those facilities must purchase their primary additional analysis provided by the HCSF Board insurance coverage from an admitted carrier (i.e. of Governors’ actuary to account for the legislative $100,000 from the HCSF) and then any additional changes enacted by the 2014 Legislature, amount of coverage from an Excess and Surplus including new health care providers subject to carrier; although he believes they will not get a HCSF coverage requirements, the change in tail better premium rate than what they can get by coverage compliance from a five-year waiting paying their surcharge to the HCSF. The Executive period to immediate coverage, and changes to the Director responded to the issue of whether there non-economic damages cap specified in tort law. should be a request for a statute to provide an Following discussion on the actuarial analysis exemption for APRNs not currently covered under provided to the Committee and the HCSF Board of the HCPIAA, stating they have an informal Governors and the routine audits the Board as a agreement with the Board of Nursing the next time state agency is subject to, the Committee the Board needs to amend the Nurse Practice Act, concluded there is no need to contract for an that will be one of the requested amendments. independent actuarial review in 2015.
Other recommendations. The Committee CONCLUSIONS AND RECOMMENDATIONS then considered information presented by the Board of Governors’ representatives and health The Health Care Stabilization Fund Oversight care provider and insurance company Committee addressed the two statutory questions representatives. The Committee agreed to make posed annually to the Committee. The Oversight the following recommendations: Committee continues in its belief that the Committee serves a vital role as a link among the ● Reimbursement of the HCSF. The HCSF Board of Governors, the health care Committee notes the reimbursement providers, and the Legislature and should be schedule created by 2010 SB 414. This continued. Additionally, the Committee recognizes law allowed for the reimbursement of the important role and function of the Health Care deferred payments to the HCSF for Stabilization Fund in providing stability in the administrative services provided to the professional liability marketplace, which allows self-insurance programs at the KU for more affordable professional liability coverage Foundations and Faculty and the KUMC to health care providers in Kansas. and WCGME residents for state Fiscal Years 2010, 2011, 2012, and 2013. The The Committee notes the enactment of 2014 Committee notes normal reimbursements legislation provides HCSF coverage requirements occurred starting July 1, 2013; and, the for five new categories of health care providers, HCSF Board of Governors have received impacts the short-term and long-term liabilities for 20 percent of the the accrued receivables the HCSF, including the provision of tail coverage for the last two years in July. The HCSF and its availability to health care providers with received $1,544,084.43 reimbursement in less than five years of experience in the HCSF. July 2013, and $1,544,084.43 in July Additionally, the current and future changes to the 2014. The remaining reimbursement statutory cap on non-economic damages and the receivables are $4,632,253.37. impact on claims filed and the associated dollar amount of the claims, will require continued ● Fund to be held in trust. The Committee monitoring. Committee oversight of impacts not only on the HCSF but also updates on new health recommends the continuation of the care providersʼ experiences with the HCSF following language to the Legislative coverage will continue. Coordinating Council, the Legislature, and the Governor regarding the HCSF: Actuarial review. The Committee discussed its oversight of actuarial reporting provided by the ◌ The Health Care Stabilization Fund HCSF Board of Governors and whether there was Oversight Committee continues to be
Kansas Legislative Research Department 6-12 2014 Health Care Stabilization Fund Oversight concerned about and is opposed to any is required to be “. . . held in trust in transfer of money from the HCSF to the state treasury and accounted for the State General Fund (SGF). The separately from other state funds.” HCSF provides Kansas doctors, hospitals, and the defined health care ◌ Further, this Committee believes the providers with individual professional following to be true: All surcharge liability coverage. The HCSF is payments, reimbursements, and other funded by payments made by or on receipts made payable to the Health the behalf of each individual health Care Stabilization Fund shall be care provider. Those payments made credited to the HCSF. At the end of to the HCSF by health providers are any fiscal year, all unexpended and not a fee. The State shares no unencumbered moneys in such Fund responsibility for the liabilities of the shall remain therein and not be HCSF. Furthermore, as set forth in the credited to or transferred to the SGF Health Care Provider Insurance or to any other fund. Availability Act (HCPIAA), the HCSF
Kansas Legislative Research Department 6-13 2014 Health Care Stabilization Fund Oversight OTHER TASK FORCES, COMMISSIONS, AND COMMITTEES
Report of the Telecommunications Study Committee to the 2015 Kansas Legislature
CO-CHAIRPERSON: Senator Mike Petersen
CO-CHAIRPERSON: Representative Joe Seiwert
OTHER MEMBERS: Senators Marci Francisco, Tom Hawk, Forrest Knox, Jeff Longbine, Julia Lynn, Ty Masterson, Robert Olson, and Greg Smith; and Representatives Rob Bruchman, Will Carpenter, John Doll, Randy Garber, Ramon Gonzalez, Annie Kuether, Ronald Ryckman, Sr., Scott Schwab, Jack Thimesch, and Brandon Whipple
CHARGE
● Study telecommunications and selected funding sources;
○ The Kansas Universal Service Fund; and
○ The Federal Universal Service Fund;
● The possibility of establishing a Kansas Broadband Fund; and
● Other issues determined by the Legislative Coordinating Council.
January 2015 Telecommunications Study Committee
ANNUAL REPORT
Conclusions and Recommendations
The Telecommunications Study Committee reaffirms the State public policy regarding telecommunications set out in KSA 66-2001, but suggests the Senate Utilities Committee and the House Utilities and Telecommunications Committee consider a review of subsection (d), which addresses advancing the development of a statewide telecommunications infrastructure.
The efficiency and effectiveness audit of the Kansas Universal Service Fund was extensive. The Senate Utilities Committee and the House Utilities and Telecommunications Committee should receive presentations by the audit firm during the 2015 Legislative Session.
Both the audit and other issues raised during the Committee’s meetings need to be further considered during the 2015 Legislative Session. Accordingly:
● The Committee may meet at least once during the Session; and
● The Senate Utilities Committee and the House Utilities and Telecommunications Committee should study the definitions of telecommunications terms in existing law with a focus on “future-proofing” those definitions to accommodate the rapid changes in technology. Terms to be reviewed should include broadband (currently defined as a specific speed of transmission), telecommunications services, and telecommunications infrastructure.
Proposed Legislation: None.
BACKGROUND effectiveness audit of the KUSF. The audit was to be administered by the Kansas Department of The Telecommunications Study Committee Revenue and submitted to the Committee by was created by 2013 HB 2201, a bill which also November 1, 2014. further deregulated telecommunications in Kansas, made changes to distributions from the Kansas The Committee is required to submit an Universal Service Fund (KUSF), and allowed the annual report to the Senate Committee on Utilities Board of Regents to charge fees for services and the House Committee on Utilities and provided by the Kan-Ed program. Telecommunications and to submit a report and policy recommendations for telecommunications The Committee’s charge is to study to those committees as well as to the Senate telecommunications issues, the KUSF, the Federal Committee on Ways and Means and the House Universal Service Fund (FUSF), the State’s public Committee on Appropriations, prior to December policy on telecommunications, the possibility of 31, 2014. The Telecommunications Study establishing a Kansas Broadband Fund, and other Committee sunsets on June 30, 2015. issues determined by the Legislative Coordinating Council. In addition, the Committee is charged The Committee met twice during the 2013 with determining the scope of an efficiency and Legislative Interim, November 6 and December
Kansas Legislative Research Department 7-1 2014 Telecommunications Study 12, 2013, and received presentations on topics this analysis in addition to a lengthy narrative. including the history of telecommunications Major audit findings are discussed below. legislation in Kansas from 1996 through 2013, an overview of the KUSF, state and federal Do-Not- Kansas statutes provide the KCC the Call legislation, the process for determining KUSF necessary authority to administer the KUSF in high-cost support, and changes to the FUSF. In an efficient and effective manner, but do not addition, the Committee received testimony from provide incentives for specific investments by industry groups on the effects of changes to the providers other than guaranteeing Rural Local KUSF and the FUSF, and determined the scope of Exchange Carriers (RLECs) can recover the an audit of the KUSF. costs of all regulated telephone plants. Part of the review of statutory authority involved an assessment of whether KUSF statutes offered a COMMITTEE ACTIVITIES balanced approach to investments while containing overall costs, and whether statutes The Committee met once during the 2014 allow for investment in technologies such as Legislative Interim, on December 16. The broadband and cable voice over internet protocol Committee received a presentation on the audit of (VoIP). the efficiency and effectiveness of the KUSF; discussed the State’s public policy on Kansas telecommunications statutes do not telecommunications, as set out in KSA 66-2001; address incentives to invest generally or to expand received a presentation on broadband funds in four advanced service capabilities beyond those states; and developed its recommendations. identified in 1996. The statutes do not address controls or limits on the amount of investment in Audit of the Efficiency and Effectiveness of network facilities and supporting expenses that are the Kansas Universal Service Fund eligible for KUSF support.
Representatives of QSI Consulting, Inc., The statutes are silent regarding the presented the results of the contracted audit of the relationship between KUSF cost-based support KUSF. This section summarizes their findings. and investment in broadband, cable VoIP, or other Overall, the auditor concluded the KUSF is well- services that may or may not be considered run, with audit and affiliate transaction procedures telecommunication services. Only a limited class in place to ensure the KUSF is appropriately sized, of broadband-capable facilities (schools, hospitals, contributions are collected from the correct libraries, and state and local government agencies) companies, and distributions to recipients are are included in the definition of universal service. effectively managed. The passage of 2013 HB 2201—which capped KUSF high-cost funding for Because Kansas statutes do not prohibit or certain types of carriers, eliminated KUSF funding limit investment in facilities for providing for certain others, and initiated a phase-out of broadband, cable VoIP, or other services that may funding for still other types of carriers—has not be considered telecommunication services ensured the KUSF will not grow out of control. from receiving KUSF support, the primary control mechanism is federal rules that govern cost The audit evaluated Kansas statutes and rules allocation, separations, and affiliate transactions. governing operation of the KUSF, reviewed the The effect of using these federal rules is discussed Kansas Corporation Commission’s (KCC) audit later in this report. processes for the KUSF, analyzed factors that determined the level of KUSF support received by Statutes do not directly address the impact of recipients from 1997 to 2013, and identified loss of lines on KUSF support, but they implicitly quantifiable benefits of the KUSF program. The account for these losses because RLECs’ audit scope statement developed by the Committee embedded costs, revenue requirements, identified specific analyses the auditors were to investments, and expenses are used to determine include in conducting the review, and the report support. As an RLEC’s revenue declines due to contains extensive appendix tables documenting line losses, its need for KUSF support is likely to
Kansas Legislative Research Department 7-2 2014 Telecommunications Study increase. However, support could be limited by the continue to overstate the cost of providing voice cap created in 2013 HB 2201. In contrast, the service. The audit offers three alternative statutory support mechanism for CenturyLink is approaches the KCC could use to allocate loop and structured in such a way that its KUSF funding other network costs between voice and broadband. decreases in proportion to line losses. KUSF support has dropped significantly The KCC follows standard processes when since its inception. Annual payouts dropped from auditing the RLECs that receive cost-based a high of $96.4 million in 1998 to $41.9 million in support. The auditors found the timeframe to 2013, largely because of the decline in support for complete audits is reasonable and audit processes Southwestern Bell beginning in 2000. were consistent across companies. Since 2002, CenturyLink has been the largest Kansas’ statutory framework historically recipient of KUSF support, with annual payments tied KUSF distribution payments to the cost of ranging from $9.5 million to $17.6 million. Within providing service. Support for the two carriers the RLECs, five carriers have received the most who chose price-cap regulation, Southwestern Bell funding: Rural Telephone Service Company, (now AT&T) and CenturyLink, was based on the Pioneer Telephone Association, Twin Valley number of supported lines served in high cost Telephone, Craw-Kan Telephone Cooperative, and areas. The per-line support was calculated using a Southern Kansas Telephone. None of the five have forward-looking cost model. KUSF support for the received more than $5 million per year. RLECs, who chose rate-of-return regulation, was based on each carrier’s embedded costs, revenue The number of voice lines for the local requirements, investments, and expenses. exchange carriers decreased by approximately 64 Competitive eligible telephone companies percent between 1997 and 2013 (an average (CETCs) were covered by an “identical support” decline of 6 percent per year), while broadband rule that provided them the same level of support service lines have increased by approximately 22 as the incumbent carrier. percent per year since 2003.
That framework changed with the passage of KUSF support payments comprise about 23 2013 HB 2201. Southwestern Bell, which chose to percent of the average recipient’s revenue. become an “electing carrier,” is no longer eligible Combined KUSF and FUSF payments comprise for KUSF support. CenturyLink’s annual KUSF about 51 percent of the average Kansas RLEC’s support has been capped – it is limited to the lesser total regulated revenues. of 90 percent of the support it received in the 12- month period ending February 28, 2013, or $11.4 From 1997 through 2013, the KUSF paid million. RLECs are subject to a $30 million annual out support of nearly $1 billion. Southwestern group cap. Payments to CETCs are being phased Bell and CenturyLink together received out over a four-year period. approximately 51 percent of the funding, while the RLECs received about 44 percent of the funding. The Federal Communications Commission On a net basis (when contributions are subtracted separations and cost allocation rules used to from distributions), the RLECs as a group determine KUSF support for rate-of-return RLECs benefited most. About 67 percent of KUSF are outdated. Under those rules, 75 percent of the contributions came from carriers that do not cost of local loop facilities is allocated to intrastate receive any KUSF support, including wireless jurisdiction, but because the rules were created carriers, VoIP providers, toll, and others. before voice and broadband services began sharing the network, the costs are treated as if the facilities Kansas also is a major beneficiary of the were used exclusively for voice service. To the FUSF. Statewide, between 1998 and 2013, Kansas extent the cost of loop facilities jointly used by received approximately $2.6 billion in funding, voice and broadband services is allocated only to while contributing only $0.9 billion to the FUSF. voice service, intrastate revenue requirement The RLECs again benefited most, receiving about calculations, which determine KUSF support, will 70 percent of the funding for Kansas.
Kansas Legislative Research Department 7-3 2014 Telecommunications Study The auditors noted it is difficult to determine “voice” transmissions are actually data; whether it the exact impact of the KUSF on local telephone is possible to determine the nature of rates, but concluded local rates likely would have transmissions passing through the networks; the been higher than actual rates if the KUSF subsidy difficulty of determining appropriate statutory was not available. Over the time period reviewed, terminology given the rapid changes in RLECs received an average subsidy of $23 per communications technology; and whether the line per month. phrase “advance development of a statewide infrastructure” was written to create Kan-Ed. Staff State Public Policy on Telecommunications were directed to explore the Kan-Ed issue and to request the KCC provide information on what is The Kansas Telecommunications Act of 1996 running through the networks. Committee set out a telecommunications policy framework members agreed all of the issues should be further which is codified in KSA 66-2001. The Act discussed in the standing committees. declares it to be the public policy of the State to: State Broadband Funds ● Ensure every Kansan has access to a first- class telecommunications infrastructure Staff from the Kansas Legislative Research that provides excellent services at an Department reviewed broadband funds created in affordable price; four states. Broadband was expanded in many states using federal moneys provided through the American Recovery and Reinvestment Act of Ensure consumers realize the benefits of ● 2009. More recently, some states have created or competition through increased services renewed funding for state broadband funds. Four and improved facilities and infrastructure state programs were reviewed as follows: at reduced rates; ● The California Advanced Service Fund Promote consumer access to a full range ● supports projects that provide broadband of telecommunications services, including to areas without access and, if funds are advanced services that are comparable in available, supports additional build-out in rural and urban areas throughout the state; underserved areas. The Fund is supported by a 0.464 percent surcharge on intrastate ● Advance development of a statewide telecommunications services. infrastructure capable of supporting Infrastructure grants are available for up to applications such as public safety, 70 percent of project costs in unserved telemedicine, services for persons with areas and 60 percent in underserved areas. special needs, distance learning, public Companion loans provide supplemental library services, access to internet financing for grant recipients of up to 20 providers, and others; and percent of project costs. The Fund also provides grants and loans to cover the ● Protect consumers of telecommunications costs of installing broadband in public services from fraudulent business housing. Eligible applicants include practices and practices that are telephone and wireless companies, as well inconsistent with the public interest, as governmental units in limited convenience, and necessity. circumstances. Public housing authorities can apply for public housing grants. Committee members discussed possible changes to the policy, which has not been ● The Maine ConnectME grants provide modified since it was adopted in 1996. Issues funding for last-mile infrastructure to debated included whether broadband and data are provide broadband in unserved areas. encompassed within the term Grants are funded by a 0.25 percent “telecommunications”; how to allocate costs surcharge on instate communications between data and voice; recognition that VoIP services. Grants provide up to 50 percent
Kansas Legislative Research Department 7-4 2014 Telecommunications Study of the cost, matched with funding from an CONCLUSIONS AND RECOMMENDATIONS internet service provider, of bringing affordable access to unserved homes and The Telecommunications Study Committee businesses which then pay a monthly reaffirms the State public policy regarding access fee to the service provider. Eligible telecommunications set out in KSA 66-2001, but applicants include local governments and suggests the Senate Utilities Committee and the authorities, private for-profit companies House Utilities and Telecommunications that provide broadband, and any other Committee consider a review of subsection (d), group deemed capable. which addresses advancing the development of a statewide telecommunications infrastructure. ● The Minnesota Border-to-Border Broadband Development grants provide The efficiency and effectiveness audit of the funding for middle-mile and last-mile KUSF was extensive. The Senate Utilities infrastructure that supports broadband Committee and the House Utilities and service scalable to speeds of at least 100 Telecommunications Committee should receive Mbps download and 100 Mbps upload in presentations by the audit firm during the 2015 unserved and underserved areas. Grants Legislative Session. are funded by a one-time appropriation of $20 million from the general fund and Both the audit and other issues raised during require matching funds equal to at least 50 the Committee’s meetings need to be further percent of the total project cost. Eligible considered during the 2015 Legislative Session. applicants include incorporated businesses Accordingly: or partnerships, political subdivisions, Indian tribes, and certain Minnesota nonprofit groups. ● The Committee may meet at least once during the Session; and ● The Connect New York Broadband Grant Program provides funding for last-mile ● The Senate Utilities Committee and the projects to expand broadband in unserved House Utilities and Telecommunications and underserved areas. The program is Committee should study the definitions of funded with $25 million in state funds, telecommunications terms in existing law and requires matching funds equal to 20 with a focus on “future-proofing” those percent of the total project cost. Eligible definitions to accommodate the rapid applicants include incorporated changes in technology. Terms to be organizations, tribal organizations, local reviewed include broadband (currently units of governments, cooperatives, defined as a specific speed of private corporations, and limited liability transmission), telecommunications organizations. services, and telecommunications infrastructure.
Kansas Legislative Research Department 7-5 2014 Telecommunications Study