Ch. 118             1997 Session Laws of Kansas             419

An Act concerning the Kansas commission on veterans affairs; establishing the Kansas
veterans' home on the grounds of Winfield state hospital and training center; providing
for lease and operation of a long-term care annex in Wichita; authorizing certain con-
tracts for construction of dwellings at the Kansas soldiers' home and prescribing guide-
lines therefor; amending K.S.A. 73-1207, 73-1208b, 73-1210a and 75-3036a and K.S.A.
1996 Supp. 40-3414, 76-375 and 76-381 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

New Section 1. (a) On and after January 1, 1998, the Kansas com-
mission on veterans affairs shall operate a Kansas veterans' home to be
located on the grounds of Winfield state hospital and training center. The
commission on veterans affairs and the secretary of social and rehabili-
tation services shall enter into an agreement concerning property, prem-
ises, facilities, installations, equipment and records of Winfield state hos-

420             1997 Session Laws of Kansas             Ch. 118

pital and training center which will be transferred to the Kansas
commission on veterans affairs for the purpose of establishing and op-
erating the Kansas veterans' home. The agreement shall establish the
timing of any such transfers. Any conflict as to the proper disposition of
property or records arising under this section shall be determined by the
governor, whose decision shall be final.

(b) The Kansas commission on veterans affairs shall have full control
of the Kansas veterans' home, the property, effects, supervision and man-
agement of the home.

(c) The Kansas commission on veterans affairs may enter into an
agreement with the United States department of veterans affairs for the
use and operation of the nursing care unit of the Wichita veterans ad-
ministration medical center in Wichita, Kansas, as a long-term care unit
of the Kansas veterans' home, which shall be known as the Kansas vet-
erans' home long-term care annex. The Kansas veterans' home long-term
care annex shall be operated as a part of the Kansas veterans' home and
shall be construed to be part of the Kansas veterans' home for all purposes
under statutes governing or referring to the Kansas veterans' home.

(d) A superintendent of the Kansas veterans' home shall be appointed
by the Kansas commission on veterans affairs, and shall serve at the pleas-
ure of the commission. The superintendent shall be in the unclassified
service under the Kansas civil service act and shall receive an annual salary
fixed by the Kansas commission on veterans affairs, with the approval of
the governor. The superintendent of the Kansas veterans' home shall
perform such duties and exercise such powers as the commission may
prescribe, and such duties and powers as are prescribed by law.

New Sec. 2. The Kansas commission on veterans affairs shall estab-
lish rates of charges to be made to members and patients of the Kansas
veterans' home. The charges in the first year of operation of the Kansas
veterans' home shall not exceed an amount equal to the per diem cost of
care for the Kansas soldiers' home for the preceding year or the charge
made against patients under K.S.A. 59-2006 and amendments thereto,
whichever is less, and thereafter the charges shall not exceed an amount
equal to the per diem cost of care for the Kansas veterans' home for the
preceding year or the charge made against patients under K.S.A. 59-2006
and amendments thereto, whichever is the lesser amount. No action shall
be commenced by the Kansas commission on veterans affairs against a
member or patient or the estate of a member or patient for the recovery
of any such charges unless such action is commenced within five years
after the date such charges are incurred. The commission may compro-
mise and settle any claim for charges under this section, and may, upon
payment of a valuable consideration by the member or patient or the
estate of the member or patient, discharge and release such member,
patient or estate of any or all past liability incurred under this section due

Ch. 118             1997 Session Laws of Kansas             421

or claim to be due from a member or a patient or the estate of the
member or patient, no action shall thereafter be brought or claim made
for any amounts due for charges incurred prior to the effective date of
the agreement entered into, except for the amounts provided for in the
agreement. Nothing in this act shall be deemed to extend the period
specified in K.S.A. 59-2239 and amendments thereto for the purposes
therein specified.

New Sec. 3. The superintendent of the Kansas veterans' home shall
remit all moneys received by or for the superintendent under this act and
all moneys received from the United States department of veterans affairs
for reimbursements for the care of residents to the state treasurer at least
monthly. Upon receipt of any such remittance, the state treasurer shall
deposit the entire amount thereof in the state treasury and the same shall
be credited to the veterans' home fee fund which is hereby created. All
expenditures from such fund shall be made in accordance with appro-
priation acts upon warrants of the director of accounts and reports issued
pursuant to vouchers approved by the executive director of the Kansas
commission on veterans affairs or by a person or persons designated by
the executive director.

New Sec. 4. (a) The following, subject to the rules and regulations
that may be adopted by the Kansas commission on veterans affairs for
the management and government of the Kansas veterans' home, shall be
eligible to admission to the Kansas veterans' home:

(1) Any person who served in the active military service of the United
States during any period of war, or who served in the active military
service of the United States during peacetime and is entitled to veterans
affairs hospitalization or domiciliary care under title 38 of the United
States code and federal veterans affairs rules and regulations, and who
has been discharged or relieved therefrom under conditions other than
dishonorable, who may be disabled by disease, wounds, old age or oth-
erwise disabled, and who, by reason of such disability, is incapacitated
from earning a living; and

(2) the widow, mother, widower, father or minor child of any person
who qualified under paragraph (1) of subsection (a), if such widow,
mother, widower, father or minor child is incapable of self-support be-
cause of physical disability.

(b) No person shall be admitted to the veterans' home except upon
application to the commission and approval of the application by the com-
mission. No applicant shall be admitted to the veterans' home who has
not been an actual resident of the state of Kansas for at least two years
next preceding the date of application.

(c) No person shall be admitted to or retained in the veterans' home
who has been convicted of a felony, unless the commission finds that such

422             1997 Session Laws of Kansas             Ch. 118

person has been adequately rehabilitated and is not dangerous to oneself
or to the person or property of others.

(d) No child shall be admitted to or retained in the veterans' home
who is 16 years of age or over, unless such child is incapable of supporting
oneself.

(e) No child properly a member of the veterans' home shall be dis-
charged under 16 years of age.

(f) The Kansas commission on veterans affairs shall have authority by
resolution to discharge any member from the veterans' home on a show-
ing that the member has gained admittance into the veterans' home by
misrepresentation of the member's financial or physical condition, or a
showing that the financial or physical condition of such member has been
so altered since admittance so that the further maintenance of the mem-
ber in the veterans' home is not justified. No such member shall be dis-
charged without notice and opportunity to be heard in accordance with
the provisions of the Kansas administrative procedure act.

(g) The rules and regulations for admission of members to the Kansas
veterans' home:

(1) Shall require that a veteran who has no adequate means of sup-
port, and such members of the family as are dependent upon such person
for support, shall be given priority over other applicants for admission;
and

(2) shall require that an applicant for admission be given priority over
patients transferred from state institutions under the provisions of section
8 and amendments thereto.

New Sec. 5. (a) The Kansas commission on veterans affairs shall have
the authority to establish rules and regulations for the management and
operation of the Kansas veterans' home and governing conduct and dis-
cipline of the members of and other persons in the Kansas veterans'
home. Such rules and regulations shall be filed with the secretary of state
as provided by law.

(b) The superintendent of the Kansas veterans' home shall enforce
such rules and regulations, and the superintendent may furlough any
member for violation of such rules.

(c) The Kansas commission on veterans affairs may discharge any
member who violates such rules and regulations, except that no member
shall be discharged without notice to such member and a right to be heard
concerning such charges in accordance with the provisions of the Kansas
administrative procedure act.

(d) If any member shall seek an injunction or restraining order to
restrain the Kansas commission on veterans affairs or the officers of such
Kansas veterans' home from enforcing such rules and regulations or to
restrain disciplinary action, during the pendency of such legal proceed-

Ch. 118             1997 Session Laws of Kansas             423

ings, such member and the member's dependents, if any, shall not be
entitled to draw subsistence or rations as provided for by such home.

(e) If any member of such veterans' home shall refuse to vacate the
premises upon receiving a furlough from the officers designated to en-
force the rules and regulations, such refusal shall constitute a forfeiture
of such member's right to remain in the home and such member shall be
forthwith discharged by the Kansas commission on veterans affairs.

(f) If any member shall refuse to vacate the premises upon being
discharged by the Kansas commission on veterans affairs, such member
shall forthwith forfeit the member's right to subsistence and rations for
such member and dependents, if any, and the Kansas commission on
veterans affairs shall institute legal proceedings to force such member to
vacate the premises.

(g) The word ``member'' as used in this act shall refer to any person
legally admitted as a member or any dependent of such member, or any
person drawing subsistence or quarters in the Kansas veterans' home for
any reason whatsoever, except the employees of such veterans' home.
The word ``member'' shall not include any person transferred to the vet-
erans' home from any state hospital or training school.

New Sec. 6. The Kansas commission on veterans affairs shall desig-
nate a person at the Kansas veterans' home who shall be in charge of the
member funds at such veterans' home. The person so designated shall
have custody and charge of all moneys belonging to the members, or
patients residing in the Kansas veterans' home, which are held for their
use, benefit and burial. The Kansas commission on veterans affairs shall
designate the bank or banks, in which such moneys shall be deposited,
and shall provide that any sums in excess of $5,000 shall be deposited
with the state treasurer for safekeeping. Any fund so deposited with the
state treasurer shall be held by the state treasurer, separate and apart
from the other funds in the custody of the state treasurer, and may be
withdrawn by the person designated by the Kansas commission on vet-
erans affairs.

New Sec. 7. (a) The custodian of the members and patients trust
fund at the Kansas veterans' home shall notify the executive director of
the Kansas commission on veterans affairs of any moneys which are under
the custodian's charge belonging to members who have died intestate,
without known heirs or designated beneficiaries for funds on deposit, and
the executive director shall publish a notice for two consecutive weeks in
the Kansas register which shall state the name of each deceased member,
their last known home address and the amount of the deposit remaining
in the account of such former member; and such notice shall further state
that unless interested persons appear and file a legitimate claim therefor
within one year after the date of the last publication of such notice, such
amount or amounts will be transferred to the general fees fund of the

424             1997 Session Laws of Kansas             Ch. 118

veterans' home to help defray unrecovered costs connected with the
maintenance and operation of the veterans' home and for accounting,
auditing, budgeting, legal, payroll, personnel and purchasing services
which are performed on behalf of such agency by other state agencies.

(b) Unless a party entitled thereto makes claim within the time stated
in the notice, the balance in any former member's fund as so published
for which no claim is made as prescribed in this section shall be trans-
ferred as provided in this section. Thereafter, unless a claim is filed with
the commission on veterans affairs within two years after such transfer is
made, no claim may be made or filed for such former member's fund
except that a person under legal disability during the two-year period may
file a claim within one year after removal of the disability. The commission
on veterans affairs is hereby authorized to make payments to claimants it
shall determine are entitled thereto, if such claims otherwise comply with
the terms of this act; and such payments shall be authorized from the
general fees fund of the Kansas veterans' home to which the former mem-
ber's funds were transferred.

New Sec. 8. (a) The commissioner of mental health and develop-
mental disabilities of the department of social and rehabilitation services,
with the approval of the secretary of social and rehabilitation services and
the Kansas commission on veterans affairs, may transfer patients in the
state hospitals in Topeka, Osawatomie and Larned and patients in the
Rainbow mental health facility, the Parsons state hospital and training
center and the Winfield state hospital and training center who have served
in the military or naval forces of the United States or whose husband,
wife, father, son or daughter has served in the active military or naval
service of the United States during any period of any war as defined in
section 4 and amendments thereto, and was discharged or relieved there-
from under conditions other than dishonorable, to the Kansas veterans'
home. No patient who is such a mentally ill person, in the opinion of the
commissioner of mental health and developmental disabilities, that be-
cause of such patient's illness such patient is likely to injure oneself or
others shall be so transferred to such Kansas veterans' home, and no such
patient shall be so transferred if such transfer will deny admission to
persons entitled to admission under section 4 and amendments thereto
and rules and regulations promulgated thereunder. Persons so transferred
shall not be considered as members of the Kansas veterans' home but
shall be considered as patients therein.

(b) All of the laws, rules and regulations relating to patients in the
above-specified state hospitals and mental health facilities shall be appli-
cable to such patients so transferred insofar as the same can be made
applicable. Any patient so transferred who is found to be or shall become
such a mentally ill person, in the opinion of the commissioner of mental
health and developmental disabilities, that because of such patient's ill-

Ch. 118             1997 Session Laws of Kansas             425

ness such patient is likely to injure oneself or others or who is determined
to need additional psychiatric treatment, shall be retransferred by the
superintendent of the Kansas veterans' home, with the approval of the
commissioner of mental health and developmental disabilities, to the in-
stitution from which the patient was originally transferred.

New Sec. 9. (a) The Kansas commission on veterans' affairs may en-
ter into a written contract with any individual who is eligible for admission
to the Kansas soldiers' home under K.S.A. 76-1908, and amendments
thereto, to authorize the construction of a single-family dwelling for use
as a home for such individual and such individual's family members on
the real property of the Kansas soldiers' home in accordance with rules
and regulations adopted by the Kansas commission on veterans affairs
under this section. Each such dwelling shall be constructed and main-
tained (1) at the expense of the individual entering into a contract with
the commission under this section, including any required sewer, water
and utility connections, (2) at a location on the real property of the Kansas
soldiers' home approved in accordance with rules and regulations adopted
by the commission under this section, and (3) in accordance with the
building design, construction and materials standards as authorized or
prescribed by rules and regulations adopted by the commission under
this section.

(b) The Kansas commission on veterans affairs shall grant a life estate
to each individual who enters into a contract under this section and who
constructs a dwelling at the Kansas soldiers' home in accordance with this
section and the rules and regulations adopted by the commission under
this section. The life estate shall be for the dwelling and the tract of real
property that the dwelling is constructed on, as specified in the contract
entered into under this section, for the life of the individual and the lives
of such individual's family members who are residing in the dwelling.
Each life estate granted by the commission under this section shall be
approved as to form and legality by the attorney general.

(c) At the end of each life estate granted under this section, the dwelling
and real estate which is the subject of the life estate shall revert to the
Kansas soldiers' home and such dwelling and real estate shall be used for
housing of veterans and other eligible individuals admitted to the Kansas
soldiers' home as provided by statute.

(d) The Kansas commission on veterans affairs shall adopt rules and
regulations prescribing policies and procedures for the construction and
maintenance of single-family dwellings on the real estate of Kansas sol-
diers' home, prescribing building design, construction and materials stan-
dards for such dwellings, and for such other matters as may be required
for the implementation and administration of this section. No rule and
regulation shall be adopted by the Kansas commission on veterans affairs
under this subsection unless the Kansas commission on veterans affairs

426             1997 Session Laws of Kansas             Ch. 118

first has advised and consulted with the joint committee on state building
construction and has presented such proposed rule and regulation to the
joint committee on state building construction.

(e) As used in this section, ``family members'' includes the spouse of
an individual who has entered into a contract under this section, the
widow or widower of an individual who has entered into a contract under
this section, and the mother, father or minor child of an individual who
has entered into a contract under this section, if such mother, father or
minor child is incapable of self-support because of physical disability.

Sec. 10. On January 1, 1998, K.S.A. 1996 Supp. 40-3414 is hereby
amended to read as follows: 40-3414. (a) Any health care provider, or any
health care system organized and existing under the laws of this state
which owns and operates two or more medical care facilities licensed by
the department of health and environment, whose aggregate annual in-
surance premium is or would be $100,000 or more for basic coverage
calculated in accordance with rating procedures approved by the com-
missioner pursuant to K.S.A. 40-3413 and amendments thereto, may
qualify as a self-insurer by obtaining a certificate of self-insurance from
the board of governors. Upon application of any such health care provider
or health care system, on a form prescribed by the board of governors,
the board of governors may issue a certificate of self-insurance if the
board of governors is satisfied that the applicant is possessed and will
continue to be possessed of ability to pay any judgment for which liability
exists equal to the amount of basic coverage required of a health care
provider obtained against such applicant arising from the applicant's ren-
dering of professional services as a health care provider. In making such
determination the board of governors shall consider (1) the financial con-
dition of the applicant, (2) the procedures adopted and followed by the
applicant to process and handle claims and potential claims, (3) the
amount and liquidity of assets reserved for the settlement of claims or
potential claims and (4) any other relevant factors. The certificate of self-
insurance may contain reasonable conditions prescribed by the board of
governors. Upon notice and a hearing in accordance with the provisions
of the Kansas administrative procedure act, the board of governors may
cancel a certificate of self-insurance upon reasonable grounds therefor.
Failure to pay any judgment for which the self-insurer is liable arising
from the self-insurer's rendering of professional services as a health care
provider, the failure to comply with any provision of this act or the failure
to comply with any conditions contained in the certificate of self-insur-
ance shall be reasonable grounds for the cancellation of such certificate
of self-insurance. The provisions of this subsection shall not apply to the
Kansas soldiers' home, the Kansas veterans' home or to any person who
is a self-insurer pursuant to subsection (d) or (e).

(b) Any such health care provider or health care system that holds a

Ch. 118             1997 Session Laws of Kansas             427

certificate of self-insurance shall pay the applicable surcharge set forth in
subsection (c) of K.S.A. 40-3402 and amendments thereto.

(c) The Kansas soldiers' home and the Kansas veterans' home shall
be a self-insurer self-insurers and shall pay the applicable surcharge set
forth in subsection (c) of K.S.A. 40-3402 and amendments thereto.

(d) Persons engaged in residency training as provided in subsections
(r)(1) and (2) of K.S.A. 40-3401, and amendments thereto, shall be self-
insured by the state of Kansas for occurrences arising during such train-
ing, and such person shall be deemed a self-insurer for the purposes of
the health care provider insurance availability act. Such self-insurance
shall be applicable to a person engaged in residency training only when
such person is engaged in medical activities which do not include extra-
curricular, extra-institutional medical service for which such person re-
ceives extra compensation and which have not been approved as provided
in subsections (r)(1) and (2) of K.S.A. 40-3401, and amendments thereto.

(e) (1) A person engaged in a postgraduate training program ap-
proved by the state board of healing arts at a medical care facility or
mental health center in this state may be self-insured by such medical
care facility or mental health center in accordance with this subsection
(e) and in accordance with such terms and conditions of eligibility therefor
as may be specified by the medical care facility or mental health center
and approved by the board of governors. A person self-insured under this
subsection (e) by a medical care facility or mental health center shall be
deemed a self-insurer for purposes of the health care provider insurance
availability act. Upon application by a medical care facility or mental
health center, on a form prescribed by the board of governors, the board
of governors may authorize such medical care facility or mental health
center to self-insure persons engaged in postgraduate training programs
approved by the state board of healing arts at such medical care facility
or mental health center if the board of governors is satisfied that the
medical care facility or mental health center is possessed and will continue
to be possessed of ability to pay any judgment for which liability exists
equal to the amount of basic coverage required of a health care provider
obtained against a person engaged in such a postgraduate training pro-
gram and arising from such person's rendering of or failure to render
professional services as a health care provider.

(2) In making such determination the board of governors shall con-
sider (A) the financial condition of the medical care facility or mental
health center, (B) the procedures adopted by the medical care facility or
mental health center to process and handle claims and potential claims,
(C) the amount and liquidity of assets reserved for the settlement of
claims or potential claims by the medical care facility or mental health
center and (D) any other factors the board of governors deems relevant.
The board of governors may specify such conditions for the approval of
an application as the board of governors deems necessary. Upon approval

428             1997 Session Laws of Kansas             Ch. 118

of an application, the board of governors shall issue a certificate of self-
insurance to each person engaged in such postgraduate training program
at the medical care facility or mental health center who is self-insured by
such medical care facility or mental health center.

(3) Upon notice and a hearing in accordance with the provisions of
the Kansas administrative procedure act, the board of governors may
cancel, upon reasonable grounds therefor, a certificate of self-insurance
issued pursuant to this subsection (e) or the authority of a medical care
facility or mental health center to self-insure persons engaged in such
postgraduate training programs at the medical care facility or mental
health center. Failure of a person engaged in such postgraduate training
program to comply with the terms and conditions of eligibility to be
self-insured by the medical care facility or mental health center, the fail-
ure of a medical care facility or mental health center to pay any judgment
for which such medical care facility or mental health center is liable as
self-insurer of such person, the failure to comply with any provisions of
the health care provider insurance availability act or the failure to comply
with any conditions for approval of the application or any conditions con-
tained in the certificate of self-insurance shall be reasonable grounds for
cancellation of such certificate of self-insurance or the authority of a med-
ical care facility or mental health center to self-insure such persons.

(4) A medical care facility or mental health center authorized to
self-insure persons engaged in such postgraduate training programs shall
pay the applicable surcharge set forth in subsection (c) of K.S.A. 40-3402
and amendments thereto on behalf of such persons.

(5) As used in this subsection (e), ``medical care facility'' does not
include the university of Kansas medical center or those community hos-
pitals or medical care facilities described in subsection (r)(2) of K.S.A.
40-3401, and amendments thereto.

(f) For the purposes of subsection (a), ``health care provider'' may
include each health care provider in any group of health care providers
who practice as a group to provide physician services only for a health
maintenance organization, any professional corporations, partnerships or
not-for-profit corporations formed by such group and the health main-
tenance organization itself. The premiums for each such provider, health
maintenance organization and group corporation or partnership may be
aggregated for the purpose of being eligible for and subject to the stat-
utory requirements for self-insurance as set forth in this section.

(g) The provisions of subsections (a) and (f), relating to health care
systems, shall not affect the responsibility of individual health care pro-
viders as defined in subsection (f) of K.S.A. 40-3401 and amendments
thereto or organizations whose premiums are aggregated for purposes of
being eligible for self-insurance from individually meeting the require-
ments imposed by K.S.A. 40-3402 and amendments thereto with respect
to the ability to respond to injury or damages to the extent specified

Ch. 118             1997 Session Laws of Kansas             429

therein and K.S.A. 40-3404 and amendments thereto with respect to the
payment of the health care stabilization fund surcharge.

(h) Each private practice corporation or foundation and their full-
time physician faculty employed by the university of Kansas medical cen-
ter shall be deemed a self-insurer for the purposes of the health care
provider insurance availability act. The private practice corporation or
foundation of which the full-time physician faculty is a member shall pay
the applicable surcharge set forth in subsection (a) of K.S.A. 40-3404, and
amendments thereto, on behalf of the private practice corporation or
foundation and their full-time physician faculty employed by the univer-
sity of Kansas medical center.

Sec. 11. On January 1, 1998, K.S.A. 73-1207 is hereby amended to
read as follows: 73-1207. The purposes of this act are (1) to afford vet-
erans, their relatives and dependents information, advice, direction and
assistance through coordination of programs and services in the fields of
education, health, vocational guidance and placement, mental care and
economic security and (2) to provide a commission to furnish the services
described in clause (1) of this section and to manage, operate and control
the Kansas soldiers' home and Mother Bickerdyke annex and the Kansas
veterans' home.

Sec. 12. K.S.A. 73-1208b is hereby amended to read as follows: 73-
1208b. The commission shall hold regular monthly meetings and such
other meetings as the chairman of the commission shall deem advisable.
Such regular monthly meetings shall be held in regular offices to be es-
tablished and maintained at Topeka, Kansas, or shall be held at the Kansas
soldiers' home and Mother Bickerdyke annex or the Kansas veterans'
home.

Sec. 13. On January 1, 1998, K.S.A. 73-1210a is hereby amended to
read as follows: 73-1210a. (a) Except as otherwise provided by law, and
subject to the Kansas civil service act, the executive director of the Kansas
commission on veterans affairs shall appoint such subordinate officers and
employees, subject to the approval of the commission, as are necessary
to enable the commission to exercise or perform its functions, powers
and duties pursuant to the provisions of article 12 of chapter 73 of Kansas
Statutes Annotated, and amendments thereto. All such subordinate offi-
cers and employees shall be within the classified service under the Kansas
civil service act, shall perform such duties and exercise such powers as
the Kansas commission on veterans affairs and the executive director of
the commission may prescribe and such duties and powers as are desig-
nated by law, and shall act for and exercise the powers of the commission
and the executive director to the extent authority to do so is delegated by
such commission or director.

(b) Except as otherwise provided by law, and subject to the Kansas
civil service act, the executive director of the Kansas commission on vet-

430             1997 Session Laws of Kansas             Ch. 118

erans affairs shall appoint such subordinate officers and employees, sub-
ject to the approval of the Kansas commission on veterans affairs, as shall
be necessary to enable the commission to exercise or perform its func-
tions, powers and duties pursuant to the provisions of article 19 of chapter
76 of Kansas Statutes Annotated, and amendments thereto. All such sub-
ordinate officers and employees shall be within the classified service un-
der the Kansas civil service act, shall perform such duties and exercise
such powers as the commission, the executive director of the commission
and, the superintendent of the Kansas soldiers' home and the superin-
tendent of the Kansas veterans' home may prescribe and such duties and
powers as are designated by law, and shall act for and exercise the powers
of the commission, the executive director of the commission and, the
superintendent of the Kansas soldiers' home and the superintendent of
the Kansas veterans' home to the extent authority to do so is delegated
by such commission, executive director or superintendent.

(c) Nothing in this act shall be construed to affect the status, rights
or benefits of any officer or employee of the Kansas veterans' commission
employed by such commission on the effective date of this act.

Sec. 14. On January 1, 1998, K.S.A. 75-3036a is hereby amended to
read as follows: 75-3036a. No moneys appropriated from the general fund
for any correctional institution, as defined in K.S.A. 75-5202(d) and
amendments thereto, any institution, as defined in K.S.A. 76-12a01(b) and
amendments thereto, the Kansas soldiers' home, the Kansas veterans'
home, the Kansas state school for the visually handicapped, or the Kansas
state school for the deaf, shall be used for the purchase of identifiable
imported meats.

Sec. 15. On January 1, 1998, K.S.A. 1996 Supp. 76-375 is hereby
amended to read as follows: 76-375. (a) On or before December 31 in
each year, the chancellor of the university of Kansas, or the designee of
the chancellor, shall prepare a list of the areas of this state which the
chancellor, or designee of the chancellor, determines to be critically med-
ically underserved areas by specialty and the areas of this state which the
chancellor, or designee of the chancellor, determines to be medically
underserved areas by specialty. In preparing such a list the chancellor, or
designee of the chancellor, shall consult with the medical scholarship
advisory committee. All state medical care facilities or institutions, all
medical centers operated in the state of Kansas by the veterans admin-
istration of the United States, and all full-time faculty positions at the
university of Kansas school of medicine in family medicine or family prac-
tice are qualified for service in both service commitment area I and serv-
ice commitment area II without being determined medically underserved
areas. In preparing such a list, the portion of time of persons engaged in
the practice of medicine and surgery at any institution under the juris-
diction and control of the secretary of social and rehabilitation services

Ch. 118             1997 Session Laws of Kansas             431

shall not be included in determining whether an area is critically medically
underserved or medically underserved. Every such list shall note that all
state medical care facilities or institutions qualify for such service com-
mitments, in addition to listing those areas determined to be critically
medically underserved or medically underserved. Critically medically un-
derserved areas by specialty and medically underserved areas by specialty
established prior to the effective date of this act by the secretary of health
and environment shall continue in effect for the purposes of this act until
changed by the chancellor of the university of Kansas, or the designee of
the chancellor. The chancellor of the university of Kansas, or the designee
of the chancellor, upon a finding of exceptional circumstances may modify
areas or portions of areas determined to be critically medically underser-
ved or medically underserved by specialty.

(b) (1) A service commitment area shall be designated as a service
commitment area I or a service commitment area II. Service commitment
area I shall be any area determined by the chancellor of the university of
Kansas, or the designee of the chancellor, under subsection (a) to be, for
purposes of all agreements entered into under K.S.A. 76-374 and amend-
ments thereto, a medically underserved area or a critically medically un-
derserved area. Service commitment area II shall be, for purposes of all
agreements entered into under K.S.A. 76-374 and amendments thereto,
the state of Kansas.

(2) The service commitment area I or II for persons first awarded
scholarships after December 31, 1985, shall be an incorporated city of
this state as specified in subsection (d)(2) of K.S.A. 76-374 and amend-
ments thereto, all state medical care facilities or institutions, all medical
centers operated in the state of Kansas by the veterans administration of
the United States, and the full-time faculty positions at the university of
Kansas school of medicine in general internal medicine, general pediat-
rics, family medicine or family practice, except that, at the time any person
commences satisfying a service commitment under this subsection as a
full-time faculty member, the number of persons satisfying service com-
mitments or service obligations, pursuant to agreements under K.S.A. 76-
374 and amendments thereto or the medical student loan act, as full-time
faculty members pursuant to this subsection shall not exceed the number
equal to 25% of the total number of full-time faculty members of the
university of Kansas school of medicine in general internal medicine, gen-
eral pediatrics, family medicine or family practice.

(c) In selecting a service commitment area I or II, whichever is ap-
plicable, prior to the commencement of the full-time practice of medicine
and surgery pursuant to all agreements entered into under K.S.A. 76-374
and amendments thereto requiring service for a period of time in a service
commitment area I or II, whichever is applicable, the person so selecting
shall select such area from among those areas appearing on the list of
areas prepared by the chancellor of the university of Kansas, or the des-

432             1997 Session Laws of Kansas             Ch. 118

ignee of the chancellor, under this section. The service commitment area
selected shall have appeared on any such list not more than 36 months
prior to the commencement of such full-time practice of medicine and
surgery by the person selecting such service commitment area. Upon the
selection of such service commitment area, the person so selecting shall
inform the university of Kansas school of medicine of the area selected.

(d) A person serving in a service commitment area I or II, whichever
is applicable, pursuant to any agreement under this act may serve all or
part of any commitment in the service commitment area initially selected
by such person. If such person moves from one service commitment area
I or II to another service commitment area I or II, as applicable, such
person shall notify the university of Kansas school of medicine of such
person's change of service commitment area. Service in any such service
commitment area I or II, as applicable, selected from the appropriate lists
of service commitment areas, shall be deemed to be continuous for the
purpose of satisfying any agreement entered into under this act. Any
service commitment area I or II, as applicable, selected after the initially
selected service commitment area I or II shall have appeared on a service
commitment area I list or on a service commitment area II list, as appli-
cable, which shall have been prepared not more than 12 months prior to
the move by such person from one service commitment area I or II to
another service commitment area I or II, as applicable.

(e) (1) A person awarded a scholarship prior to January 1, 1986, may
satisfy the obligation to engage in the full-time practice of medicine and
surgery in a service commitment area I even though such person is en-
gaged in such practice in two or more locations within the state of Kansas,
at least one of which is not located in a service commitment area I, if the
person is engaged in the full-time practice of medicine and surgery in
such locations pursuant to a practice affiliation agreement approved by
the chancellor of the university of Kansas, or the designee of the chan-
cellor.

(2) A person awarded a scholarship prior to January 1, 1986, may
satisfy the obligation to engage in the full-time practice of medicine and
surgery in either service commitment area I or service commitment area
II by performing at least 100 hours per month of on-site primary care as
defined in K.S.A. 76-374 and amendments thereto at a medical facility
operated by a local health department or nonprofit organization in this
state serving medically indigent persons. As used in this paragraph, ``med-
ically indigent'' means a person: (A) Who is unable to secure health care
because of inability to pay for all or a part of the costs thereof due to
inadequate personal resources, being uninsured, being underinsured, be-
ing ineligible for governmental health benefits; or (B) who is eligible for
governmental benefits but is unable to obtain medical services.

(3) A person awarded a scholarship prior to January 1, 1986, may
satisfy the obligation to engage in the full-time practice of medicine and

Ch. 118             1997 Session Laws of Kansas             433

surgery in either service commitment area I or II by engaging in such
full-time practice of medicine and surgery, other than in a primary care
specialty, anywhere in the state of Kansas with the exception of the fol-
lowing counties: Douglas, Johnson, Leavenworth, Sedgwick, Shawnee or
Wyandotte, except that the full-time practice of medicine and surgery
within the six listed counties will qualify if the selected county is desig-
nated as a service commitment area I or II in accordance with the pro-
visions of this section, or whenever there are fewer than three persons
engaged in the full-time practice of medicine and surgery in a designated
specialty in the selected county. Any person who satisfies the obligation
to engage in the full-time practice of medicine and surgery in accordance
with this subsection (e)(3) shall remain obligated to repay the amounts
received for living expenses as prescribed in subsection (a)(5) of K.S.A.
75-376 and amendments thereto. As used in this subsection (e)(3), ``pri-
mary care'' means general pediatrics, general internal medicine or family
practice.

(f) A person awarded a scholarship in accordance with the provisions
of K.S.A. 76-373 through 76-377a and amendments thereto may satisfy
the obligation to engage in the practice of medicine and surgery, under
an agreement entered into pursuant to K.S.A. 76-374 and amendments
thereto even though such person is engaged in practice in an area not
designated a medically underserved area by specialty, or a critically med-
ically underserved area by specialty, through employment on a part-time
basis by the state of Kansas which has been approved by the chancellor
of the university of Kansas, or the designee of the chancellor, for the
practice of medicine and surgery at any state medical care facility or
institution.

(g) In connection with the determination of critically medically un-
derserved areas and medically underserved areas under this section, the
chancellor of the university of Kansas, or the designee of the chancellor,
shall assess annually the need in the state as a whole for medical services
provided by persons engaged in the practice of medicine and surgery and
shall report thereon annually to the legislature. Each report shall include
any recommendations for needed legislation, including any recom-
mended amendments to this act, which relate to the need for such med-
ical services in the various areas of this state.

(h) There is hereby established the medical scholarship advisory com-
mittee. Members of the medical scholarship advisory committee shall be
appointed by the chancellor of the university of Kansas as follows: (1)
One member shall be from the office of the chancellor of the university
of Kansas; (2) one member shall be a representative of the Kansas medical
society; (3) one member shall be a member of the Kansas legislature; (4)
one member shall be a student at the university of Kansas school of med-
icine; and (5) one member shall be a representative of the Kansas hospital
association. The medical scholarship advisory committee shall meet pe-

434             1997 Session Laws of Kansas             Ch. 118

riodically upon the call of the chancellor, or the designee of the chancel-
lor, and shall make recommendations to the chancellor, or the designee
of the chancellor, in regard to the administration of the provisions of this
act.

(i) The chancellor of the university of Kansas may appoint a medical
scholarship program coordinator for the purpose of planning and admin-
istering the provisions of this act. The coordinator shall be in the unclas-
sified service under the Kansas civil service act.

(j) For all purposes under this section, service or employment after
June 30, 1988, on a part-time basis (1) pursuant to a practice affiliation
agreement approved by the chancellor of the university of Kansas, or the
chancellor's designee, or (2) at a state medical care facility or institution,
shall be on the basis of at least the equivalent of 1/2 time in order to satisfy
the obligation to engage in the practice of medicine and surgery under
an agreement entered into pursuant to K.S.A. 76-374 and amendments
thereto.

(k) As used in this section, ``state medical care facility or institution''
includes, but is not limited to, the Kansas state school for the visually
handicapped, the Kansas state school for the deaf, any institution under
the secretary of social and rehabilitation services, as defined by subsection
(b) of K.S.A. 76-12a01 and amendments thereto or by subsection (b) of
K.S.A. 76-12a18 and amendments thereto, the Kansas soldiers' home, the
Kansas veterans' home and any correctional institution under the secre-
tary of corrections, as defined by subsection (d) of K.S.A. 75-5202 and
amendments thereto, but shall not include any state educational institu-
tion under the state board of regents, as defined by subsection (a) of
K.S.A. 76-711 and amendments thereto, except as specifically provided
by statute.

Sec. 16. On January 1, 1998, K.S.A. 1996 Supp. 76-381 is hereby
amended to read as follows: 76-381. As used in K.S.A. 1996 Supp. 76-
380 through 76-386:

(a) ``Act'' means the medical student loan act;

(b) ``approved postgraduate residency training program'' means a res-
idency training program in general pediatrics, general internal medicine,
family medicine, family practice or emergency medicine;

(c) ``service commitment area'' means (1) any community within any
county in Kansas other than Douglas, Johnson, Sedgwick, Shawnee or
Wyandotte county, (2) any state medical care facility or institution, (3)
any medical center operated by the veterans administration of the United
States, or (4) the full-time faculty of the university of Kansas school of
medicine in family medicine or family practice; and

(d) ``state medical care facility or institution'' includes, but is not lim-
ited to, the Kansas state school for the visually handicapped, the Kansas
state school for the deaf, any institution under the secretary of social and

Ch. 118             1997 Session Laws of Kansas             435

rehabilitation services, as defined by subsection (b) of K.S.A. 76-12a01
and amendments thereto or by subsection (b) of K.S.A. 76-12a18 and
amendments thereto, the Kansas soldiers' home, the Kansas veterans'
home and any correctional institution under the secretary of corrections,
as defined by subsection (d) of K.S.A. 75-5202 and amendments thereto,
but shall not include any state educational institution under the state
board of regents, as defined by subsection (a) of K.S.A. 76-711 and
amendments thereto, except as specifically provided by statute.

Sec. 17. On January 1, 1998, K.S.A. 73-1207, 73-1208b, 73-1210a
and 75-3036a and K.S.A. 1996 Supp. 40-3414, 76-375 and 76-381 are
hereby repealed.

Sec. 18. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 24, 1997.