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Minutes for SB232 - Committee on Public Health and Welfare

Short Title

Amending provisions related to adult care home licensure and receivership.

Minutes Content for Wed, Mar 20, 2019

Chairperson Suellentrop opened the hearing on SB232.

Kimberly M.J. Lynch gave proponent testimony in support of SB232. In her testimony she stated that in the past year, Kansas Department of Aging and Disability Services (KDADS) has taken twenty-two adult care homes into receivership due to insolvency or because life-threatening or endangering conditions existed at the facility(ies). As a result of the receivership actions, KDADS recommends the following amendments to the Adult Care Home Act to ensure that the state of Kansas is able to adequately and efficiently protect vulnerable Kansans who reside in adult care homes from applicants and licensees who are unfit or unqualified to provide for the residents' care. I. Amendments to the initial licensure and change of ownership process. a) Increased scrutiny of initial application and change of ownership process; b) ineligibility for adult care home license for 10 years after receivership. II. Amendments to adult care home receivership statutes a) definition of insolvent, b) amendments to receiver's powers and duties and c) procedural amendments. (Attachment 1)

Jenna Moyer, Staff Revisor, gave an overview of the bill. Jenna Moyer and Kimberly M.J. Lynch then answered questions posed by committee members.

Cindy Luxem testified as a proponent of SB232. She stated that the issues around ownership and change of ownership with Adult Care Homes in Kansas has needed some updating for a while. She said that further clarification on what will be considered evidence of access to sufficient amount of working capital required might be needed, as well as the insertion of "placed in receivership"  in subsection (b) might be considered. She also would like to include a report on quality measures in any of the existing operations of applicant providers. (Attachment 2)

She took questions from committee members.

Rachel Monger, in her neutral testimony, supports the efforts by KDADS to amend adult care home statutes to update the receivership statutes and improve the adult care home licensing statutes to better safeguard the public. She does have serious concerns about the new definition of "insolvency" contained in the bill. She states the definition proposed is far too broad and ignores the unique financial situations of adult care home providers and asks that the committee remove the definition of insolvent from SB232. (Attachment 3)

Questions were posed by committee members.

Chairperson Suellentrop closed the hearing on SB232.