As Amended by House Committee
Session of 2025
HOUSE BILL No. 2217
By Committee on Health and Human Services
Requested by Representative Bryce on behalf of the Attorney General's Office
2-3
AN ACT concerning the attorney general; relating to the office of the
inspector general and the powers, duties and responsibilities thereof;
expanding the power of the inspector general to investigate and audit
all state cash, food and health assistance programs; amending K.S.A.
75-7427 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 75-7427 is hereby amended to read as follows: 75-
7427. (a) As used in this section:
(1) "Attorney general" means the attorney general of the state of
Kansas, employees of the attorney general or authorized representatives of
the attorney general.
(2) "Benefit" means the receipt of money, goods, items, facilities,
accommodations or anything of pecuniary value.
(3) "Cash assistance" means assistance that is administered and
provided by the secretary for children and families to individuals for a
family's ongoing basic needs.
(4) "Claim" means an electronic, electronic impulse, facsimile,
magnetic, oral, telephonic or written communication that is utilized to
identify any goods, service, item, facility or accommodation as
reimbursable to the any state medicaid cash, food or health assistance
program, or its the state's fiscal agents, the state mediKan program or the
state children's health insurance program or which that states income or
expense.
(4)(5) "Client" means past or present beneficiaries or recipients of the
any state medicaid cash, food or health assistance program, the state
mediKan program or the state children's health insurance program.
(5)(6) "Contractor" means any contractor, supplier, vendor or other
person who, through a contract or other arrangement, has received, is to
receive or is receiving public funds or in-kind contributions from the
contracting agency as part of the any state medicaid cash, food or health
assistance program,the state mediKan program or the state children's
health insurance program, and shall include includes any subcontractor.
(6)(7) "Contractor files" means those records of contractors which
that relate to the any state medicaid cash, food or health assistance
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program, the state mediKan program or the state children's health
insurance program.
(7)(8) "Fiscal agent" means any corporation, firm, individual,
organization, partnership, professional association or other legal entity
which that, through a contractual relationship with the state of Kansas,
receives, processes and pays claims under the state medicaid program, the
state mediKan program or the state children's health insurance
programcash, food or medical assistance programs.
(8)(9) "Food assistance" means assistance that is administered by the
United States department of agriculture and provided by the secretary for
children and families to individuals for eligible food products.
(10) "Health assistance" means the medicaid program, and the state
children's health insurance program and the state employee health
benefits plan as established by K.S.A. 75-37,162, and amendments thereto.
(11) "Health careHealthcare provider" means a health care healthcare
provider as defined under K.S.A. 65-4921, and amendments thereto, who
has applied to participate in, who currently participates in, or who has
previously participated in the state medicaid program, the state mediKan
program or the state children's health insurance health assistance program.
(9)(12) "Managed care program" means a program which that
provides coordination, direction and provision of health services to an
identified group of individuals by providers, agencies or organizations.
(10)(13) "Medicaid program" means the Kansas program of medical
assistance for which federal or state moneys, or any combination thereof,
are expended, or any successor federal or state, or both, health insurance
program or waiver granted thereunder.
(11)(14) "Person" means any agency, association, corporation, firm,
limited liability company, limited liability partnership, natural person,
organization, partnership or other legal entity, the agents, employees,
independent contractors, and subcontractors, thereof, and the legal
successors thereto.
(12)(15) "Provider" means a person who has applied to participate in,
who currently participates in, who has previously participated in, who
attempts or has attempted to participate in the state medicaid program, the
state mediKan program or the state children's health insurance program,
cash, food or health assistance programs by providing or claiming to have
provided goods, services, items, facilities or accommodations.
(13)(16) "Recipient" means an individual, either real or fictitious, in
on whose behalf any person claimed or received any payment or payments
from the state medicaid program cash, food or health assistance programs,
or its the state's fiscal agent agents, the state mediKan program or the state
children's health insurance program, whether or not any such individual
was eligible for benefits under the state medicaid program, the state
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mediKan program or the state children's health insurance program cash,
food or health assistance programs.
(14)(17) "Records" means all written documents and electronic or
magnetic data, including, but not limited to, medical records, x-rays,
professional, financial or business records relating to the treatment or care
of any recipient;, goods, services, items, facilities or accommodations
provided to any such recipient;, rates paid for such goods, services, items,
facilities or accommodations;, and goods, services, items, facilities or
accommodations provided to nonmedicaid recipients to verify rates or
amounts of goods, services, items, facilities or accommodations provided
to medicaid state cash, food or health assistance recipients, as well as any
records that the state medicaid cash, food or health assistance program, or
its the state's fiscal agents, the state mediKan program or the state
children's health insurance program require providers to maintain.
"Records" shall not include any report or record in any format which is
made pursuant to K.S.A. 65-4922, 65-4923 or 65-4924, and amendments
thereto, and which is privileged pursuant to K.S.A. 65-4915 or 65-4925,
and amendments thereto.
(15)(18) "State children's health insurance program" means the state
children's health insurance program as provided in K.S.A. 38-2001 et seq.,
and amendments thereto.
(b) (1) There is hereby established within the office of the attorney
general the office of inspector general. All budgeting, purchasing, related
management functions and personnel of the office of inspector general
shall be administered under the direction and supervision of the attorney
general. The purpose of the office of inspector general is to establish a full-
time program of audit, investigation and performance review to provide
increased accountability, integrity and oversight of the state medicaid
program cash, food or health assistance programs, the state mediKan
program and the state children's health insurance program and to assist in
improving agency and program operations and in deterring and identifying
fraud, waste, abuse and other illegal acts. The office of inspector general
shall be independent and free from political influence and in performing
the duties of the office under this section shall conduct investigations,
audits, evaluations, inspections and other reviews in accordance with
professional standards that relate to the fields of investigation and auditing
in government.
(2) (A) The inspector general shall be appointed by the attorney
general with the advice and consent of the senate and subject to
confirmation by the senate as provided in K.S.A. 75-4315b, and
amendments thereto. Except as provided in K.S.A. 46-2601, and
amendments thereto, no person appointed to the position of inspector
general shall exercise any power, duty or function of the inspector general
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until confirmed by the senate. The inspector general shall be selected
without regard to political affiliation and on the basis of integrity and
capacity for effectively carrying out the duties of the office of inspector
general. The inspector general shall possess demonstrated knowledge,
skills, abilities and experience in conducting audits or investigations and
shall be familiar with the programs subject to oversight by the office of
inspector general.
(B) No former or current executive or manager of any program or
agency subject to oversight by the office of inspector general may be
appointed inspector general within two years of that individual's period of
service with such program or agency. A former or current inspector
general shall not be employed as an executive or manager for any
program or agency subject to the oversight by the office of the inspector
general for a period of two years after such inspector general's period of
service as the inspector general has concluded. The inspector general shall
hold at time of appointment, or shall obtain within one year after
appointment, certification as a certified inspector general from a national
organization that provides training to inspectors general.
(C) A person appointed to the position of inspector general shall serve
for a term which that shall expire on January 15 of each year in which the
whole senate is sworn in for a new term.
(D) The inspector general shall be in the unclassified service and
shall receive an annual salary in an amount equal to the annual salary paid
by the state to a district court judge, except that such compensation may be
increased but not diminished during the term of office of the inspector
general. The inspector general may shall be removed from office prior to
the expiration of the inspector general's term of office by the attorney
general for cause. The inspector general shall exercise independent
judgment in carrying out the duties of the office of inspector general under
subsection (b). Appropriations for the office of inspector general shall be
made to the attorney general by separate line item appropriations for the
office of inspector general. The inspector general shall report to the
attorney general.
(E) Subject to subsection (b)(1), the inspector general shall have
general managerial control over the office of the inspector general and
shall establish the organization structure of the office as the inspector
general deems appropriate to carry out the responsibilities and functions of
the office.
(3) Within the limits of appropriations therefor, and as provided
further, the attorney general may hire such employees in the unclassified
service as are necessary to administer the office of the inspector general.
Such employees shall serve at the pleasure of the attorney general. Subject
to appropriations and to subsection (b)(1), the inspector general may
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obtain the services of certified public accountants, qualified management
consultants, professional auditors, or other professionals necessary to
independently perform the functions of the office.
(c) (1) In accordance with the provisions of this section, the duties of
the office of inspector general shall be to oversee, audit, investigate and
make performance reviews of the any state medicaid cash, food or health
assistance program, the state mediKan program and the state children's
health insurance program or their successor programs.
(2) In order to carry out the duties of the office, the inspector general
shall conduct independent and ongoing evaluation of such programs or
their successor programs, which. This oversight includes, but is not limited
to, the following:
(A) Investigation of fraud, waste, abuse and illegal acts directly
relating to such programs.
(B) Audits of state programs, contractors, vendors and health care
healthcare providers related to ensuring that appropriate payments are
made for services rendered and to the recovery of overpayments.
(C) Investigations of fraud, waste, abuse or illegal acts committed by
clients of the programs or by consumers of services of such programs.
(D) Monitoring adherence to the terms of any contract between a
state agency and an organization, if any, with which the state agency has
entered into a contract to make claims payments.
(3) Upon finding credible evidence of significant levels of fraud,
waste, abuse or other illegal acts, the inspector general shall report its the
findings to the attorney general.
(d) (1) The inspector general shall have access to all pertinent
information, confidential or otherwise, and to all personnel and facilities of
a state agency, state vendors, contractors and health care healthcare
providers and any federal, state or local governmental agency that are
necessary to perform the duties of the office as directly related to such
programs. Access to contractor or health care healthcare provider files
shall be limited to those files necessary to verify the accuracy of the
contractor's or health care healthcare provider's invoices or their
compliance with the contract provisions or program requirements. No
health care healthcare provider shall be compelled under the provisions of
this section to provide individual medical records of patients who are not
clients of the a state medicaid health assistance program, the state
mediKan program or the state children's health insurance program. State
and local governmental agencies are authorized and directed to provide to
the inspector general requested information, assistance or cooperation.
(e) Except as otherwise provided in this section, the inspector general
and all employees and former employees of the office of inspector general
shall be subject to the same duty of confidentiality imposed by law on any
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such person or agency with regard to any such information, and shall be
subject to any civil or criminal penalties imposed by law for violations of
such duty of confidentiality. The duty of confidentiality imposed on the
inspector general and all employees and former employees of the office of
inspector general shall be subject to the provisions of subsection (f), and
the inspector general may furnish all such information to the attorney
general, Kansas bureau of investigation or office of the United States
attorney in Kansas pursuant to subsection (f). Upon receipt thereof, the
attorney general, Kansas bureau of investigation or office of the United
States attorney in Kansas and all assistants and all other employees and
former employees of such offices shall be subject to the same duty of
confidentiality with the exceptions that any such information may be
disclosed in criminal or other proceedings which that may be instituted
and prosecuted by the attorney general or the United States attorney in
Kansas, and any such information furnished to the attorney general, the
Kansas bureau of investigation or the United States attorney in Kansas
under subsection (f) may be entered into evidence in any such
proceedings.
(f) All investigations conducted by the inspector general shall be
conducted in a manner that ensures the preservation of evidence for use in
criminal prosecutions, civil actions or agency administrative actions. If the
inspector general determines that a possible criminal act or false claim
relating to fraud in the provision or administration of such programs has
been committed, the inspector general shall immediately notify the
attorney general. If the inspector general determines that a possible
criminal act has been committed within the jurisdiction of the office, the
inspector general may request the special expertise of the Kansas bureau of
investigation. The inspector general may present for prosecution the
findings of any criminal investigation to the office of the attorney general,
applicable district or county attorney or the office of the United States
attorney in Kansas.
(g) (1) To carry out the duties as described in this section, the
inspector general and the inspector general's designees shall have:
(A) Original jurisdiction to investigate crimes related to public
assistance, including those found in K.S.A. 21-5926 through 21-5932, 39-
709, 39-720 and 75-726, and amendments thereto;
(B) the power to issue, serve or cause to be served subpoenas or
other process of service in aid of investigations;
(C) the power to compel by subpoena the attendance and testimony of
witnesses and the production of books, electronic records and papers as
directly related to such state cash, food or health assistance programs;
(D) the power to administer oaths and take sworn statements under
penalty of perjury;
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(E) the power to serve and execute in any county search warrants
that relate to investigations being executed by the office of the inspector
general. Access to contractor files shall be limited to those files necessary
to verify the accuracy of the contractor's invoices or its compliance with
the contract provisions. No health care provider shall be compelled to
provide individual medical records of patients who are not clients of such
a program or programs.
(2) Access to contractor files shall be limited to those files necessary
to verify the accuracy of the contractor's invoices or its compliance with
the contract provisions. No healthcare provider shall be compelled to
provide individual medical records of patients who are not clients of such
a program or programs.
(h) The inspector general shall report all convictions, terminations
and suspensions taken against vendors, contractors and health care
healthcare providers to any agency contracting with or responsible for
licensing or regulating those persons or entities. If the inspector general
determines reasonable suspicion exists that an act relating to the violation
of an agency licensure or regulatory standard has been committed by a
vendor, contractor or health care healthcare provider who is licensed or
regulated by an agency, the inspector general shall immediately notify
such agency of the possible violation, unless such notification would
jeopardize an ongoing criminal investigation.
(i) The inspector general shall make annual reports, findings and
recommendations regarding the office's investigations into reports of
fraud, waste, abuse and illegal acts relating to any such programs to the
appropriate state agency, the legislative post auditor, the committee on
ways and means of the senate, the committee on appropriations of the
house of representatives, the attorney general and the governor. These
Such reports shall include, but not be limited to, the following information:
(1) Aggregate provider billing and payment information;(2) The
number and type of audits of such programs administered by the
department of health and environment conducted and the dollar savings, if
any, resulting from those audits;
(3)(2) health carehealthcare provider sanctions, in the aggregate,
including terminations and suspensions; and
(4)(3) a detailed summary of the investigations undertaken in the
previous fiscal year, which summaries that shall comply with all laws and
rules and regulations regarding maintaining confidentiality in such
programs.
(j) Based upon the inspector general's findings under subsection (c),
the inspector general may make such recommendations to the state agency
or agencies which that administer such program or programs or the
legislature for changes in law, rules and regulations, policy or procedures
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as the inspector general deems appropriate to carry out the provisions of
law or to improve the efficiency of such programs. The inspector general
shall not be required to obtain permission or approval from any other
official or department prior to making any such recommendation.
(k) (1) The inspector general shall make provision to solicit and
receive reports of fraud, waste, abuse and illegal acts in such programs
from any person or persons who shall possess such information. The
inspector general shall not disclose or make public the identity of any
person or persons who provide such reports pursuant to this subsection
unless such person or persons consent in writing to the disclosure of such
person's identity. Disclosure of the identity of any person who makes a
report pursuant to this subsection shall not be ordered as part of any
administrative or judicial proceeding. Any information received by the
inspector general from any person concerning fraud, waste, abuse or
illegal acts in such programs shall be confidential and shall not be
disclosed or made public, upon subpoena or otherwise, except such
information may be disclosed if:
(A) Release of the information would not result in the identification
of the person who provided the information;
(B) the person or persons who provided the information to be
disclosed consent in writing prior to its disclosure;
(C) the disclosure is necessary to protect the public health; or
(D) the information to be disclosed is required in an administrative
proceeding or court proceeding and appropriate provision has been made
to allow disclosure of the information without disclosing to the public the
identity of the person or persons who reported such information to the
inspector general.
(2) No person shall:
(A) Prohibit any agent, employee, contractor or subcontractor from
reporting any information under subsection (k) paragraph (1); or
(B) require any such agent, employee, contractor or subcontractor to
give notice to the person prior to making any such report.
(3) Subsection (k)Paragraph (2) shall not be construed as:
(A) Prohibiting an employer from requiring that an employee inform
the employer as to legislative or auditing agency requests for information
or the substance of testimony made, or to be made, by the employee to
legislators or the auditing agency, as the case may be, on behalf of the
employer;
(B) permitting an employee to leave the employee's assigned work
areas during normal work hours without following applicable rules and
regulations and policies pertaining to leaves, unless the employee is
requested by a legislator or legislative committee to appear before a
legislative committee or by an auditing agency to appear at a meeting with
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officials of the auditing agency;
(C) authorizing an employee to represent the employee's personal
opinions as the opinions of the employer; or
(D) prohibiting disciplinary action of an employee who discloses
information which that:
(i) The employee knows to be false or which the employee discloses
with reckless disregard for its truth or falsity;
(ii) the employee knows to be exempt from required disclosure under
the open records act; or
(iii) is confidential or privileged under statute or court rule.
(4) Any agent, employee, contractor or subcontractor who alleges that
disciplinary action has been taken against such agent, employee, contractor
or subcontractor in violation of this section may bring an action for any
damages caused by such violation in district court within 90 days after the
occurrence of the alleged violation.
(5) Any disciplinary action taken against an employee of a state
agency or firm as such terms are defined under K.S.A. 75-2973, and
amendments thereto, for making a report under subsection (k) paragraph
(1) shall be governed by the provisions of K.S.A. 75-2973, and
amendments thereto.
(l) The scope, timing and completion of any audit or investigation
conducted by the inspector general shall be within the discretion of the
inspector general. Any audit conducted by the inspector general's office
shall adhere and comply with all provisions of generally accepted
governmental auditing standards promulgated by the United States
government accountability office.
(m) Nothing in this section shall limit investigations by any state
department or agency that may otherwise be required or permitted by law
or that may be necessary in carrying out the duties and functions of such
agency.
(n) No contractor who has been convicted of fraud, waste, abuse or
illegal acts or whose actions have caused the state of Kansas to pay fines
to or reimburse the federal government more than $1,000,000 in the
medicaid program shall be eligible for any state medicaid contracts
subsequent to such conviction unless the attorney general finds that the
contractor is the sole source for such contracts, is the least expensive
source for the contract, has reimbursed the state of Kansas for all losses
caused by the contractor, or the removal of the contractor would create a
substantial loss of access for medicaid beneficiaries, in which case, after a
specific finding to this effect, the prohibition of this subsection may be
waived by the attorney general. Nothing in this section shall be construed
to conflict with federal law, or to require or permit the use of federal funds
where prohibited.
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(o) All information and records of the inspector general that are
made, maintained, kept, obtained or received under any investigation or
audit under this section shall be confidential, except as required or
authorized pursuant to this section.
Sec. 2. K.S.A. 75-7427 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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