2008 Kansas Legislative Update

The 2008 Kansas Legislature, though tied down during the session with budgetary and coal plant issues, nonetheless passed several laws impacting the University of Kansas Medical Center.  The Legislature passed several funding initiatives, but overall spending decisions left the state with only a 2% ending balance in the state general fund.  This ending balance level will affect lawmakers’ decisions for the next fiscal year, as well as for fiscal years beyond.  Below are several areas where legislative activity had an effect on KU Medical Center:

 

Appropriations and Funding

• University of Kansas Cancer Center:  The Legislature again appropriated $5 million directly to the KU Cancer Center through SB 534, the “mega budget” bill.  This is the third such annual appropriation by the Legislature to the KU Cancer Center.

• University of Kansas Pharmacy School expansion:  The Legislature provided funding mechanisms for the Pharmacy School expansion in its Omnibus Budget bill, S. Sub for HB 2946.  The bill provides a total of $50 million for the expansion – $20 million in bonding authority and $30 million from potential expanded lottery act revenues.  The funding will allow for pharmacy class space expansion at the KU School of Medicine in Wichita, as well as create new research and classroom space on the Lawrence campus.

• Kansas Board of Regents:  The Board of Regents received, by way of the mega budget bill, a $10 million “block grant” enhancement from the Legislature (though the Governor had originally recommended $20 million).  The Board will allocate the $10 million among the academic institutions under its supervision and control.  The Board also received approximately $15 million for pay raises through the passage of S. Sub for HB 2916, a bill that provides for state employee pay increases.  “Classified” employees will see a base salary adjustment, while “unclassified” employees will have pay increases determined by the Board from an overall merit pool.

• Wichita Center for Graduate Medical Education:  The Legislature appropriated an additional $2.5 million for graduate medical education in Wichita.  The appropriation includes $1 million in the mega budget bill and another $1.5 million in H. Sub for SB 81, the Health Reform Act of 2008.  The Act dictates that the $1.5 million may be used to help fund offsite or rural rotations that have had their Medicare funding terminated or be used for the purposes of attaining accreditation standards.  The $1.5 million appropriation is also contingent on the Wichita Center for Graduate Medical Education requesting an additional $7.1 million of research-oriented funding from the Kansas Bioscience Authority.  The Health Reform Act would also create the Physician Workforce and Accreditation Task Force, a 13-member board slated to make recommendations regarding maintaining accreditation standards and the physician workforce in Kansas.

 

Stem Cells

No restrictions of life sciences research were considered or enacted by the Legislature, including restrictions of stem cell research.

 

Health Care Reform Act of 2008

 

While H. Sub for SB 81 did pass both houses of the Legislature and was signed into law, the initiative was, in the end, largely unfunded and a shell of the initial Kansas Health Policy Authority health care reform plan.  The KHPA originally submitted to the Legislature in January a 21-point initiative that included measures geared to, among other things, implement a statewide indoor smoking ban, institute a 50-cent cigarette tax increase, and shift the state’s health care emphasis to prevention and wellness.  Ultimately, after rounds of negotiations, the only part of the plan to receive funding was the Coordinated School Health Program, a program designed to promote physical fitness, activity, and nutrition.  The Health Care Reform Act of 2008 does include provisions to force some insurers to provide the option of a premium-only cafeteria plan, and also includes provisions to expand eligibility under the State Children’s Health Insurance Program (SCHIP).  However, the SCHIP expansion is contingent on the federal government providing funding.

 

Clinical Trials Insurance

Senator Barbara Allen championed SB 629, a bill designed to clarify existing law and ensure patients would receive insurance coverage for routine care if they participated in a clinical trial.  The bill passed overwhelmingly in the Senate but did not make it out of committee in the House. 

 

Kansas Partnership for Faculty of Distinction Program

The Kansas Partnership for Faculty of Distinction Program was enacted in 2000 to assist public postsecondary educational institutions in attracting and retaining highly qualified faculty. Through a partnership among institutions, private donors, and the State of Kansas, qualified gifts to an endowment association are matched by the state at an interest earnings equivalent. The institutions also contribute endowment earnings to support the professorships.  The Legislature voted to continue this program by passing HB 2343, raising the cap on program funding $1 million per year for the next three fiscal years.

 

Property Tax Exemptions for Research and Development

Kansas lawmakers also introduced legislation designed to clarify existing tax law, addressing concerns that buildings owned by postsecondary educational institutions might lose tax-exempt status if the research conducted within their walls was sponsored by private entities.  The Legislature ultimately passed S. Sub for HB 2434 with the measure in place, and the Governor signed the bill into law.

 

Physician Disciplinary Measures

The Legislature also passed HB 2620, a bill that addresses the Kansas Board of Healing Arts, the body tasked with oversight of Kansas physicians.  The legislation arose out of recent public events in Kansas, passed overwhelmingly in both houses, and has been signed into law by the Governor.  The bill adjusts current law to allow the Board to pursue disciplinary or non-disciplinary measures after only one instance if a licensed member engages in unprofessional conduct or conduct that would give reason to believe the member is not practicing with the requisite skill or safety level.  The bill also requires the Board to develop a formal list of sanctions that can be used as a reference in future cases of misconduct.  Other provisions also dealt with licensing and background checks, as well as the development of a public web site to list certain licensee information.