210.440 Allocation of funds -- Withdrawal of funds or board recognition -- Action
702 words·~3 min read·
/ky/210-440A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
by secretary when emergency exists -- Appeal and hearing.
(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 or she 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 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 or she
may withdraw his or her 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 or she 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
Office of Administrative Hearings within the Department of Law 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.