Kentucky Statutes 210.440 – Allocation of funds — Withdrawal of funds or board recognition — Action by secretary when emergency exists — Appeal and hearing
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(1) At the beginning of each fiscal year, the secretary of the Cabinet for Health and Family Services shall allocate available funds to the boards for mental health or individuals with an intellectual disability or nonprofit organizations for disbursement during the fiscal year in accordance with approved plans and budgets. The secretary shall, from time to time during the fiscal year, review the operations, budgets, and expenditures of the various programs; and if funds are not needed for a program to which they were allocated or if the board has failed to pay employer contributions for which it is liable by its participation in the Kentucky Employees Retirement System, he may, after reasonable notice and opportunity for hearing, withdraw any funds that are unencumbered and reallocate them to other programs. He may withdraw funds from any program, or component part thereof:
(a) Which is not being operated and administered in accordance with its approved plan and budget, and the policies and administrative regulations of the cabinet promulgated pursuant to KRS § 210.370 to KRS § 210.480; or
(b) If the board has failed to pay employer contributions for which it is liable by its participation in the Kentucky Employees Retirement System.
(2) If the secretary finds at any time that a board for mental health or individuals with an intellectual disability or nonprofit organization to which funds have been allocated for the operation of a regional community program for mental health or individuals with an intellectual disability is not operating and administering its program in compliance and accordance with the approved plan and budget and the policies and administrative regulations of the cabinet, or if the board has failed to pay employer contributions for which it is liable by its participation in the Kentucky Employees Retirement System or if the board has filed for bankruptcy, he may withdraw his recognition of that board or organization as the local authority for the receipt of funds and the operation and administration of regional community programs for mental health or individuals with an intellectual disability.
(3) If the secretary finds at any time that an emergency situation exists with regard to the financial stability of any regional board for mental health or individuals with an intellectual disability or nonprofit organization, including a regional board’s inability to pay employer contributions to the Kentucky Employees Retirement System or a regional board’s actions to file for bankruptcy, which jeopardizes the continuation of programs and provision of services in the area served by that board or nonprofit organization, he may, other statutes to the contrary notwithstanding:
(a) Appoint a caretaker administrator who shall be authorized to direct the operation and administration of the board or nonprofit organization’s community programs for mental health or individuals with an intellectual disability including, but not limited to, their financial record keeping, their personnel management operations, and their financial and program reporting; and
(b) Make personnel changes deemed necessary to insure the continued operation of the board or nonprofit organization in compliance with its plan and budget
and the policies and regulations of the cabinet.
(4) Any community board for mental health or individuals with an intellectual disability to be affected by the provisions of subsections (2) and (3) of this section shall be notified by the secretary of the Cabinet for Health and Family Services thirty (30) days prior to the anticipated action by the secretary. The notification shall be by means of a letter from the secretary to the chairman of the board for mental health or individuals with an intellectual disability in question and shall state the reasons for the anticipated action. Following the notification, the board for mental health or individuals with an intellectual disability may:
(a) Comply with the secretary’s action without contesting it; or
(b) Request an administrative hearing before a hearing officer appointed by the secretary to show cause why the action should not stand. The application shall be made within seven (7) days of the receipt of the letter from the secretary, and the hearing shall be conducted in accordance with KRS Chapter 13B.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 28, sec. 16, effective June 24, 2015. — Amended
2012 Ky. Acts ch. 146, sec. 83, effective July 12, 2012. — Amended 2005 Ky. Acts ch. 99, sec. 333, effective June 20, 2005. — Amended 1998 Ky. Acts ch. 426, sec.
277, effective July 15, 1998. — Amended 1996 Ky. Acts ch. 318, sec. 101, effective July 15, 1996. — Amended 1990 Ky. Acts ch. 499, sec. 13, effective July 13, 1990. — Amended 1978 Ky. Acts ch. 396, sec. 9, effective June 17, 1978. — Amended 1974
Ky. Acts ch. 74, Art. VI, sec. 107(1), (8) and (21). — Amended 1968 Ky. Acts ch. 90, sec. 64(3). — Created 1964 Ky. Acts ch. 79, sec. 4.
Formerly codified as KRS § 203.480.
(a) Which is not being operated and administered in accordance with its approved plan and budget, and the policies and administrative regulations of the cabinet promulgated pursuant to KRS § 210.370 to KRS § 210.480; or
Terms Used In Kentucky Statutes 210.440
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Cabinet: means the Cabinet for Health and Family Services. See Kentucky Statutes 210.005
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Secretary: means the secretary of the Cabinet for Health and Family Services. See Kentucky Statutes 210.005
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
(b) If the board has failed to pay employer contributions for which it is liable by its participation in the Kentucky Employees Retirement System.
(2) If the secretary finds at any time that a board for mental health or individuals with an intellectual disability or nonprofit organization to which funds have been allocated for the operation of a regional community program for mental health or individuals with an intellectual disability is not operating and administering its program in compliance and accordance with the approved plan and budget and the policies and administrative regulations of the cabinet, or if the board has failed to pay employer contributions for which it is liable by its participation in the Kentucky Employees Retirement System or if the board has filed for bankruptcy, he may withdraw his recognition of that board or organization as the local authority for the receipt of funds and the operation and administration of regional community programs for mental health or individuals with an intellectual disability.
(3) If the secretary finds at any time that an emergency situation exists with regard to the financial stability of any regional board for mental health or individuals with an intellectual disability or nonprofit organization, including a regional board’s inability to pay employer contributions to the Kentucky Employees Retirement System or a regional board’s actions to file for bankruptcy, which jeopardizes the continuation of programs and provision of services in the area served by that board or nonprofit organization, he may, other statutes to the contrary notwithstanding:
(a) Appoint a caretaker administrator who shall be authorized to direct the operation and administration of the board or nonprofit organization’s community programs for mental health or individuals with an intellectual disability including, but not limited to, their financial record keeping, their personnel management operations, and their financial and program reporting; and
(b) Make personnel changes deemed necessary to insure the continued operation of the board or nonprofit organization in compliance with its plan and budget
and the policies and regulations of the cabinet.
(4) Any community board for mental health or individuals with an intellectual disability to be affected by the provisions of subsections (2) and (3) of this section shall be notified by the secretary of the Cabinet for Health and Family Services thirty (30) days prior to the anticipated action by the secretary. The notification shall be by means of a letter from the secretary to the chairman of the board for mental health or individuals with an intellectual disability in question and shall state the reasons for the anticipated action. Following the notification, the board for mental health or individuals with an intellectual disability may:
(a) Comply with the secretary’s action without contesting it; or
(b) Request an administrative hearing before a hearing officer appointed by the secretary to show cause why the action should not stand. The application shall be made within seven (7) days of the receipt of the letter from the secretary, and the hearing shall be conducted in accordance with KRS Chapter 13B.
Effective: June 24, 2015
History: Amended 2015 Ky. Acts ch. 28, sec. 16, effective June 24, 2015. — Amended
2012 Ky. Acts ch. 146, sec. 83, effective July 12, 2012. — Amended 2005 Ky. Acts ch. 99, sec. 333, effective June 20, 2005. — Amended 1998 Ky. Acts ch. 426, sec.
277, effective July 15, 1998. — Amended 1996 Ky. Acts ch. 318, sec. 101, effective July 15, 1996. — Amended 1990 Ky. Acts ch. 499, sec. 13, effective July 13, 1990. — Amended 1978 Ky. Acts ch. 396, sec. 9, effective June 17, 1978. — Amended 1974
Ky. Acts ch. 74, Art. VI, sec. 107(1), (8) and (21). — Amended 1968 Ky. Acts ch. 90, sec. 64(3). — Created 1964 Ky. Acts ch. 79, sec. 4.
Formerly codified as KRS § 203.480.