210.440 Allocation of funds -- Withdrawal of funds or board recognition -- Action by secretary when emergency exists -- Appeal and hearing. - Kentucky Statutes

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210.440 Allocation of funds -- Withdrawal of funds or board recognition -- Action 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 mental health-mental
retardation boards 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, 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, 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. (2) If the secretary finds at any time that a mental health-mental retardation board or nonprofit organization to which funds have been allocated for the operation of a
regional community mental health and mental retardation program 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, 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 mental
health and mental retardation programs. (3) If the secretary finds at any time that an emergency situation exists with regard to the financial stability of any regional mental health-mental retardation board or
nonprofit organization, 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 mental health and mental retardation programs 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 mental health-mental retardation board 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 mental health-mental retardation board in
question and shall state the reasons for the anticipated action. Following the
notification, the mental health-mental retardation board 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 20, 2005
History: 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.