Kansas 2025-2026 Regular Session

Kansas House Bill HB2217 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	Session of 2025
2	2	HOUSE BILL No. 2217
3	3	By Committee on Health and Human Services
4	4	Requested by Representative Bryce on behalf of the Attorney General's Office
5	5	2-3
6	6	AN ACT concerning the attorney general; relating to the office of the
7	7	inspector general and the powers, duties and responsibilities thereof;
8	8	expanding the power of the inspector general to investigate and audit
9	9	all state cash, food and health assistance programs; amending K.S.A.
10	10	75-7427 and repealing the existing section.
11	11	Be it enacted by the Legislature of the State of Kansas:
12	12	Section 1. K.S.A. 75-7427 is hereby amended to read as follows: 75-
13	13	7427. (a) As used in this section:
14	14	(1) "Attorney general" means the attorney general of the state of
15	15	Kansas, employees of the attorney general or authorized representatives of
16	16	the attorney general.
17	17	(2) "Benefit" means the receipt of money, goods, items, facilities,
18	18	accommodations or anything of pecuniary value.
19	19	(3) "Cash assistance" means assistance that is administered and
20	20	provided by the secretary for children and families to individuals for a
21	21	family's ongoing basic needs.
22	22	(4) "Claim" means an electronic, electronic impulse, facsimile,
23	23	magnetic, oral, telephonic or written communication that is utilized to
24	24	identify any goods, service, item, facility or accommodation as
25	25	reimbursable to the any state medicaid cash, food or health assistance
26	26	program, or its the state's fiscal agents, the state mediKan program or the
27	27	state children's health insurance program or which that states income or
28	28	expense.
29	29	(4)(5) "Client" means past or present beneficiaries or recipients of the
30	30	any state medicaid cash, food or health assistance program, the state
31	31	mediKan program or the state children's health insurance program.
32	32	(5)(6) "Contractor" means any contractor, supplier, vendor or other
33	33	person who, through a contract or other arrangement, has received, is to
34	34	receive or is receiving public funds or in-kind contributions from the
35	35	contracting agency as part of the any state medicaid cash, food or health
36	36	assistance program,the state mediKan program or the state children's
37	37	health insurance program, and shall include includes any subcontractor.
38	38	(6)(7) "Contractor files" means those records of contractors which
39	39	that relate to the any state medicaid cash, food or health assistance
40	40	1
41	41	2
42	42	3
43	43	4
44	44	5
45	45	6
46	46	7
47	47	8
48	48	9
49	49	10
50	50	11
51	51	12
52	52	13
53	53	14
54	54	15
55	55	16
56	56	17
57	57	18
58	58	19
59	59	20
60	60	21
61	61	22
62	62	23
63	63	24
64	64	25
65	65	26
66	66	27
67	67	28
68	68	29
69	69	30
70	70	31
71	71	32
72	72	33
73	73	34
74	74	35 HB 2217 2
75	75	program, the state mediKan program or the state children's health
76	76	insurance program.
77	77	(7)(8) "Fiscal agent" means any corporation, firm, individual,
78	78	organization, partnership, professional association or other legal entity
79	79	which that, through a contractual relationship with the state of Kansas,
80	80	receives, processes and pays claims under the state medicaid program, the
81	81	state mediKan program or the state children's health insurance
82	82	programcash, food or medical assistance programs.
83	83	(8)(9) "Food assistance" means assistance that is administered by the
84	84	United States department of agriculture and provided by the secretary for
85	85	children and families to individuals for eligible food products.
86	86	(10) "Health assistance" means the medicaid program, the state
87	87	children's health insurance program and the state employee health
88	88	benefits plan as established by K.S.A. 75-37,162, and amendments thereto.
89	89	(11) "Health careHealthcare provider" means a health care healthcare
90	90	provider as defined under K.S.A. 65-4921, and amendments thereto, who
91	91	has applied to participate in, who currently participates in, or who has
92	92	previously participated in the state medicaid program, the state mediKan
93	93	program or the state children's health insurance health assistance program.
94	94	(9)(12) "Managed care program" means a program which that
95	95	provides coordination, direction and provision of health services to an
96	96	identified group of individuals by providers, agencies or organizations.
97	97	(10)(13) "Medicaid program" means the Kansas program of medical
98	98	assistance for which federal or state moneys, or any combination thereof,
99	99	are expended, or any successor federal or state, or both, health insurance
100	100	program or waiver granted thereunder.
101	101	(11)(14) "Person" means any agency, association, corporation, firm,
102	102	limited liability company, limited liability partnership, natural person,
103	103	organization, partnership or other legal entity, the agents, employees,
104	104	independent contractors, and subcontractors, thereof, and the legal
105	105	successors thereto.
106	106	(12)(15) "Provider" means a person who has applied to participate in,
107	107	who currently participates in, who has previously participated in, who
108	108	attempts or has attempted to participate in the state medicaid program, the
109	109	state mediKan program or the state children's health insurance program,
110	110	cash, food or health assistance programs by providing or claiming to have
111	111	provided goods, services, items, facilities or accommodations.
112	112	(13)(16) "Recipient" means an individual, either real or fictitious, in
113	113	on whose behalf any person claimed or received any payment or payments
114	114	from the state medicaid program cash, food or health assistance programs,
115	115	or its the state's fiscal agent agents, the state mediKan program or the state
116	116	children's health insurance program, whether or not any such individual
117	117	was eligible for benefits under the state medicaid program, the state
118	118	1
119	119	2
120	120	3
121	121	4
122	122	5
123	123	6
124	124	7
125	125	8
126	126	9
127	127	10
128	128	11
129	129	12
130	130	13
131	131	14
132	132	15
133	133	16
134	134	17
135	135	18
136	136	19
137	137	20
138	138	21
139	139	22
140	140	23
141	141	24
142	142	25
143	143	26
144	144	27
145	145	28
146	146	29
147	147	30
148	148	31
149	149	32
150	150	33
151	151	34
152	152	35
153	153	36
154	154	37
155	155	38
156	156	39
157	157	40
158	158	41
159	159	42
160	160	43 HB 2217 3
161	161	mediKan program or the state children's health insurance program cash,
162	162	food or health assistance programs.
163	163	(14)(17) "Records" means all written documents and electronic or
164	164	magnetic data, including, but not limited to, medical records, x-rays,
165	165	professional, financial or business records relating to the treatment or care
166	166	of any recipient;, goods, services, items, facilities or accommodations
167	167	provided to any such recipient;, rates paid for such goods, services, items,
168	168	facilities or accommodations;, and goods, services, items, facilities or
169	169	accommodations provided to nonmedicaid recipients to verify rates or
170	170	amounts of goods, services, items, facilities or accommodations provided
171	171	to medicaid state cash, food or health assistance recipients, as well as any
172	172	records that the state medicaid cash, food or health assistance program, or
173	173	its the state's fiscal agents, the state mediKan program or the state
174	174	children's health insurance program require providers to maintain.
175	175	"Records" shall not include any report or record in any format which is
176	176	made pursuant to K.S.A. 65-4922, 65-4923 or 65-4924, and amendments
177	177	thereto, and which is privileged pursuant to K.S.A. 65-4915 or 65-4925,
178	178	and amendments thereto.
179	179	(15)(18) "State children's health insurance program" means the state
180	180	children's health insurance program as provided in K.S.A. 38-2001 et seq.,
181	181	and amendments thereto.
182	182	(b) (1) There is hereby established within the office of the attorney
183	183	general the office of inspector general. All budgeting, purchasing, related
184	184	management functions and personnel of the office of inspector general
185	185	shall be administered under the direction and supervision of the attorney
186	186	general. The purpose of the office of inspector general is to establish a full-
187	187	time program of audit, investigation and performance review to provide
188	188	increased accountability, integrity and oversight of the state medicaid
189	189	program cash, food or health assistance programs, the state mediKan
190	190	program and the state children's health insurance program and to assist in
191	191	improving agency and program operations and in deterring and identifying
192	192	fraud, waste, abuse and other illegal acts. The office of inspector general
193	193	shall be independent and free from political influence and in performing
194	194	the duties of the office under this section shall conduct investigations,
195	195	audits, evaluations, inspections and other reviews in accordance with
196	196	professional standards that relate to the fields of investigation and auditing
197	197	in government.
198	198	(2) (A) The inspector general shall be appointed by the attorney
199	199	general with the advice and consent of the senate and subject to
200	200	confirmation by the senate as provided in K.S.A. 75-4315b, and
201	201	amendments thereto. Except as provided in K.S.A. 46-2601, and
202	202	amendments thereto, no person appointed to the position of inspector
203	203	general shall exercise any power, duty or function of the inspector general
204	204	1
205	205	2
206	206	3
207	207	4
208	208	5
209	209	6
210	210	7
211	211	8
212	212	9
213	213	10
214	214	11
215	215	12
216	216	13
217	217	14
218	218	15
219	219	16
220	220	17
221	221	18
222	222	19
223	223	20
224	224	21
225	225	22
226	226	23
227	227	24
228	228	25
229	229	26
230	230	27
231	231	28
232	232	29
233	233	30
234	234	31
235	235	32
236	236	33
237	237	34
238	238	35
239	239	36
240	240	37
241	241	38
242	242	39
243	243	40
244	244	41
245	245	42
246	246	43 HB 2217 4
247	247	until confirmed by the senate. The inspector general shall be selected
248	248	without regard to political affiliation and on the basis of integrity and
249	249	capacity for effectively carrying out the duties of the office of inspector
250	250	general. The inspector general shall possess demonstrated knowledge,
251	251	skills, abilities and experience in conducting audits or investigations and
252	252	shall be familiar with the programs subject to oversight by the office of
253	253	inspector general.
254	254	(B) No former or current executive or manager of any program or
255	255	agency subject to oversight by the office of inspector general may be
256	256	appointed inspector general within two years of that individual's period of
257	257	service with such program or agency. A former or current inspector
258	258	general shall not be employed as an executive or manager for any
259	259	program or agency subject to the oversight by the office of the inspector
260	260	general for a period of two years after such inspector general's period of
261	261	service as the inspector general has concluded. The inspector general shall
262	262	hold at time of appointment, or shall obtain within one year after
263	263	appointment, certification as a certified inspector general from a national
264	264	organization that provides training to inspectors general.
265	265	(C) A person appointed to the position of inspector general shall serve
266	266	for a term which that shall expire on January 15 of each year in which the
267	267	whole senate is sworn in for a new term.
268	268	(D) The inspector general shall be in the unclassified service and
269	269	shall receive an annual salary in an amount equal to the annual salary paid
270	270	by the state to a district court judge, except that such compensation may be
271	271	increased but not diminished during the term of office of the inspector
272	272	general. The inspector general may shall be removed from office prior to
273	273	the expiration of the inspector general's term of office by the attorney
274	274	general for cause. The inspector general shall exercise independent
275	275	judgment in carrying out the duties of the office of inspector general under
276	276	subsection (b). Appropriations for the office of inspector general shall be
277	277	made to the attorney general by separate line item appropriations for the
278	278	office of inspector general. The inspector general shall report to the
279	279	attorney general.
280	280	(E) Subject to subsection (b)(1), the inspector general shall have
281	281	general managerial control over the office of the inspector general and
282	282	shall establish the organization structure of the office as the inspector
283	283	general deems appropriate to carry out the responsibilities and functions of
284	284	the office.
285	285	(3) Within the limits of appropriations therefor, and as provided
286	286	further, the attorney general may hire such employees in the unclassified
287	287	service as are necessary to administer the office of the inspector general.
288	288	Such employees shall serve at the pleasure of the attorney general. Subject
289	289	to appropriations and to subsection (b)(1), the inspector general may
290	290	1
291	291	2
292	292	3
293	293	4
294	294	5
295	295	6
296	296	7
297	297	8
298	298	9
299	299	10
300	300	11
301	301	12
302	302	13
303	303	14
304	304	15
305	305	16
306	306	17
307	307	18
308	308	19
309	309	20
310	310	21
311	311	22
312	312	23
313	313	24
314	314	25
315	315	26
316	316	27
317	317	28
318	318	29
319	319	30
320	320	31
321	321	32
322	322	33
323	323	34
324	324	35
325	325	36
326	326	37
327	327	38
328	328	39
329	329	40
330	330	41
331	331	42
332	332	43 HB 2217 5
333	333	obtain the services of certified public accountants, qualified management
334	334	consultants, professional auditors, or other professionals necessary to
335	335	independently perform the functions of the office.
336	336	(c) (1) In accordance with the provisions of this section, the duties of
337	337	the office of inspector general shall be to oversee, audit, investigate and
338	338	make performance reviews of the any state medicaid cash, food or health
339	339	assistance program, the state mediKan program and the state children's
340	340	health insurance program or their successor programs.
341	341	(2) In order to carry out the duties of the office, the inspector general
342	342	shall conduct independent and ongoing evaluation of such programs or
343	343	their successor programs, which. This oversight includes, but is not limited
344	344	to, the following:
345	345	(A) Investigation of fraud, waste, abuse and illegal acts directly
346	346	relating to such programs.
347	347	(B) Audits of state programs, contractors, vendors and health care
348	348	healthcare providers related to ensuring that appropriate payments are
349	349	made for services rendered and to the recovery of overpayments.
350	350	(C) Investigations of fraud, waste, abuse or illegal acts committed by
351	351	clients of the programs or by consumers of services of such programs.
352	352	(D) Monitoring adherence to the terms of any contract between a
353	353	state agency and an organization, if any, with which the state agency has
354	354	entered into a contract to make claims payments.
355	355	(3) Upon finding credible evidence of significant levels of fraud,
356	356	waste, abuse or other illegal acts, the inspector general shall report its the
357	357	findings to the attorney general.
358	358	(d) (1) The inspector general shall have access to all pertinent
359	359	information, confidential or otherwise, and to all personnel and facilities of
360	360	a state agency, state vendors, contractors and health care healthcare
361	361	providers and any federal, state or local governmental agency that are
362	362	necessary to perform the duties of the office as directly related to such
363	363	programs. Access to contractor or health care healthcare provider files
364	364	shall be limited to those files necessary to verify the accuracy of the
365	365	contractor's or health care healthcare provider's invoices or their
366	366	compliance with the contract provisions or program requirements. No
367	367	health care healthcare provider shall be compelled under the provisions of
368	368	this section to provide individual medical records of patients who are not
369	369	clients of the a state medicaid health assistance program, the state
370	370	mediKan program or the state children's health insurance program. State
371	371	and local governmental agencies are authorized and directed to provide to
372	372	the inspector general requested information, assistance or cooperation.
373	373	(e) Except as otherwise provided in this section, the inspector general
374	374	and all employees and former employees of the office of inspector general
375	375	shall be subject to the same duty of confidentiality imposed by law on any
376	376	1
377	377	2
378	378	3
379	379	4
380	380	5
381	381	6
382	382	7
383	383	8
384	384	9
385	385	10
386	386	11
387	387	12
388	388	13
389	389	14
390	390	15
391	391	16
392	392	17
393	393	18
394	394	19
395	395	20
396	396	21
397	397	22
398	398	23
399	399	24
400	400	25
401	401	26
402	402	27
403	403	28
404	404	29
405	405	30
406	406	31
407	407	32
408	408	33
409	409	34
410	410	35
411	411	36
412	412	37
413	413	38
414	414	39
415	415	40
416	416	41
417	417	42
418	418	43 HB 2217 6
419	419	such person or agency with regard to any such information, and shall be
420	420	subject to any civil or criminal penalties imposed by law for violations of
421	421	such duty of confidentiality. The duty of confidentiality imposed on the
422	422	inspector general and all employees and former employees of the office of
423	423	inspector general shall be subject to the provisions of subsection (f), and
424	424	the inspector general may furnish all such information to the attorney
425	425	general, Kansas bureau of investigation or office of the United States
426	426	attorney in Kansas pursuant to subsection (f). Upon receipt thereof, the
427	427	attorney general, Kansas bureau of investigation or office of the United
428	428	States attorney in Kansas and all assistants and all other employees and
429	429	former employees of such offices shall be subject to the same duty of
430	430	confidentiality with the exceptions that any such information may be
431	431	disclosed in criminal or other proceedings which that may be instituted
432	432	and prosecuted by the attorney general or the United States attorney in
433	433	Kansas, and any such information furnished to the attorney general, the
434	434	Kansas bureau of investigation or the United States attorney in Kansas
435	435	under subsection (f) may be entered into evidence in any such
436	436	proceedings.
437	437	(f) All investigations conducted by the inspector general shall be
438	438	conducted in a manner that ensures the preservation of evidence for use in
439	439	criminal prosecutions, civil actions or agency administrative actions. If the
440	440	inspector general determines that a possible criminal act or false claim
441	441	relating to fraud in the provision or administration of such programs has
442	442	been committed, the inspector general shall immediately notify the
443	443	attorney general. If the inspector general determines that a possible
444	444	criminal act has been committed within the jurisdiction of the office, the
445	445	inspector general may request the special expertise of the Kansas bureau of
446	446	investigation. The inspector general may present for prosecution the
447	447	findings of any criminal investigation to the office of the attorney general,
448	448	applicable district or county attorney or the office of the United States
449	449	attorney in Kansas.
450	450	(g) (1) To carry out the duties as described in this section, the
451	451	inspector general and the inspector general's designees shall have:
452	452	(A) Original jurisdiction to investigate crimes related to public
453	453	assistance, including those found in K.S.A. 21-5926 through 21-5932, 39-
454	454	709, 39-720 and 75-726, and amendments thereto;
455	455	(B) the power to issue, serve or cause to be served subpoenas or
456	456	other process of service in aid of investigations;
457	457	(C) the power to compel by subpoena the attendance and testimony of
458	458	witnesses and the production of books, electronic records and papers as
459	459	directly related to such state cash, food or health assistance programs;
460	460	(D) the power to administer oaths and take sworn statements under
461	461	penalty of perjury;
462	462	1
463	463	2
464	464	3
465	465	4
466	466	5
467	467	6
468	468	7
469	469	8
470	470	9
471	471	10
472	472	11
473	473	12
474	474	13
475	475	14
476	476	15
477	477	16
478	478	17
479	479	18
480	480	19
481	481	20
482	482	21
483	483	22
484	484	23
485	485	24
486	486	25
487	487	26
488	488	27
489	489	28
490	490	29
491	491	30
492	492	31
493	493	32
494	494	33
495	495	34
496	496	35
497	497	36
498	498	37
499	499	38
500	500	39
501	501	40
502	502	41
503	503	42
504	504	43 HB 2217 7
505	505	(E) the power to serve and execute in any county search warrants
506	506	that relate to investigations being executed by the office of the inspector
507	507	general. Access to contractor files shall be limited to those files necessary
508	508	to verify the accuracy of the contractor's invoices or its compliance with
509	509	the contract provisions. No health care provider shall be compelled to
510	510	provide individual medical records of patients who are not clients of such
511	511	a program or programs.
512	512	(2) Access to contractor files shall be limited to those files necessary
513	513	to verify the accuracy of the contractor's invoices or its compliance with
514	514	the contract provisions. No healthcare provider shall be compelled to
515	515	provide individual medical records of patients who are not clients of such
516	516	a program or programs.
517	517	(h) The inspector general shall report all convictions, terminations
518	518	and suspensions taken against vendors, contractors and health care
519	519	healthcare providers to any agency contracting with or responsible for
520	520	licensing or regulating those persons or entities. If the inspector general
521	521	determines reasonable suspicion exists that an act relating to the violation
522	522	of an agency licensure or regulatory standard has been committed by a
523	523	vendor, contractor or health care healthcare provider who is licensed or
524	524	regulated by an agency, the inspector general shall immediately notify
525	525	such agency of the possible violation, unless such notification would
526	526	jeopardize an ongoing criminal investigation.
527	527	(i) The inspector general shall make annual reports, findings and
528	528	recommendations regarding the office's investigations into reports of
529	529	fraud, waste, abuse and illegal acts relating to any such programs to the
530	530	appropriate state agency, the legislative post auditor, the committee on
531	531	ways and means of the senate, the committee on appropriations of the
532	532	house of representatives, the attorney general and the governor. These
533	533	Such reports shall include, but not be limited to, the following information:
534	534	(1) Aggregate provider billing and payment information;(2) The
535	535	number and type of audits of such programs administered by the
536	536	department of health and environment conducted and the dollar savings, if
537	537	any, resulting from those audits;
538	538	(3)(2) health carehealthcare provider sanctions, in the aggregate,
539	539	including terminations and suspensions; and
540	540	(4)(3) a detailed summary of the investigations undertaken in the
541	541	previous fiscal year, which summaries that shall comply with all laws and
542	542	rules and regulations regarding maintaining confidentiality in such
543	543	programs.
544	544	(j) Based upon the inspector general's findings under subsection (c),
545	545	the inspector general may make such recommendations to the state agency
546	546	or agencies which that administer such program or programs or the
547	547	legislature for changes in law, rules and regulations, policy or procedures
548	548	1
549	549	2
550	550	3
551	551	4
552	552	5
553	553	6
554	554	7
555	555	8
556	556	9
557	557	10
558	558	11
559	559	12
560	560	13
561	561	14
562	562	15
563	563	16
564	564	17
565	565	18
566	566	19
567	567	20
568	568	21
569	569	22
570	570	23
571	571	24
572	572	25
573	573	26
574	574	27
575	575	28
576	576	29
577	577	30
578	578	31
579	579	32
580	580	33
581	581	34
582	582	35
583	583	36
584	584	37
585	585	38
586	586	39
587	587	40
588	588	41
589	589	42
590	590	43 HB 2217 8
591	591	as the inspector general deems appropriate to carry out the provisions of
592	592	law or to improve the efficiency of such programs. The inspector general
593	593	shall not be required to obtain permission or approval from any other
594	594	official or department prior to making any such recommendation.
595	595	(k) (1) The inspector general shall make provision to solicit and
596	596	receive reports of fraud, waste, abuse and illegal acts in such programs
597	597	from any person or persons who shall possess such information. The
598	598	inspector general shall not disclose or make public the identity of any
599	599	person or persons who provide such reports pursuant to this subsection
600	600	unless such person or persons consent in writing to the disclosure of such
601	601	person's identity. Disclosure of the identity of any person who makes a
602	602	report pursuant to this subsection shall not be ordered as part of any
603	603	administrative or judicial proceeding. Any information received by the
604	604	inspector general from any person concerning fraud, waste, abuse or
605	605	illegal acts in such programs shall be confidential and shall not be
606	606	disclosed or made public, upon subpoena or otherwise, except such
607	607	information may be disclosed if:
608	608	(A) Release of the information would not result in the identification
609	609	of the person who provided the information;
610	610	(B) the person or persons who provided the information to be
611	611	disclosed consent in writing prior to its disclosure;
612	612	(C) the disclosure is necessary to protect the public health; or
613	613	(D) the information to be disclosed is required in an administrative
614	614	proceeding or court proceeding and appropriate provision has been made
615	615	to allow disclosure of the information without disclosing to the public the
616	616	identity of the person or persons who reported such information to the
617	617	inspector general.
618	618	(2) No person shall:
619	619	(A) Prohibit any agent, employee, contractor or subcontractor from
620	620	reporting any information under subsection (k) paragraph (1); or
621	621	(B) require any such agent, employee, contractor or subcontractor to
622	622	give notice to the person prior to making any such report.
623	623	(3) Subsection (k)Paragraph (2) shall not be construed as:
624	624	(A) Prohibiting an employer from requiring that an employee inform
625	625	the employer as to legislative or auditing agency requests for information
626	626	or the substance of testimony made, or to be made, by the employee to
627	627	legislators or the auditing agency, as the case may be, on behalf of the
628	628	employer;
629	629	(B) permitting an employee to leave the employee's assigned work
630	630	areas during normal work hours without following applicable rules and
631	631	regulations and policies pertaining to leaves, unless the employee is
632	632	requested by a legislator or legislative committee to appear before a
633	633	legislative committee or by an auditing agency to appear at a meeting with
634	634	1
635	635	2
636	636	3
637	637	4
638	638	5
639	639	6
640	640	7
641	641	8
642	642	9
643	643	10
644	644	11
645	645	12
646	646	13
647	647	14
648	648	15
649	649	16
650	650	17
651	651	18
652	652	19
653	653	20
654	654	21
655	655	22
656	656	23
657	657	24
658	658	25
659	659	26
660	660	27
661	661	28
662	662	29
663	663	30
664	664	31
665	665	32
666	666	33
667	667	34
668	668	35
669	669	36
670	670	37
671	671	38
672	672	39
673	673	40
674	674	41
675	675	42
676	676	43 HB 2217 9
677	677	officials of the auditing agency;
678	678	(C) authorizing an employee to represent the employee's personal
679	679	opinions as the opinions of the employer; or
680	680	(D) prohibiting disciplinary action of an employee who discloses
681	681	information which that:
682	682	(i) The employee knows to be false or which the employee discloses
683	683	with reckless disregard for its truth or falsity;
684	684	(ii) the employee knows to be exempt from required disclosure under
685	685	the open records act; or
686	686	(iii) is confidential or privileged under statute or court rule.
687	687	(4) Any agent, employee, contractor or subcontractor who alleges that
688	688	disciplinary action has been taken against such agent, employee, contractor
689	689	or subcontractor in violation of this section may bring an action for any
690	690	damages caused by such violation in district court within 90 days after the
691	691	occurrence of the alleged violation.
692	692	(5) Any disciplinary action taken against an employee of a state
693	693	agency or firm as such terms are defined under K.S.A. 75-2973, and
694	694	amendments thereto, for making a report under subsection (k) paragraph
695	695	(1) shall be governed by the provisions of K.S.A. 75-2973, and
696	696	amendments thereto.
697	697	(l) The scope, timing and completion of any audit or investigation
698	698	conducted by the inspector general shall be within the discretion of the
699	699	inspector general. Any audit conducted by the inspector general's office
700	700	shall adhere and comply with all provisions of generally accepted
701	701	governmental auditing standards promulgated by the United States
702	702	government accountability office.
703	703	(m) Nothing in this section shall limit investigations by any state
704	704	department or agency that may otherwise be required or permitted by law
705	705	or that may be necessary in carrying out the duties and functions of such
706	706	agency.
707	707	(n) No contractor who has been convicted of fraud, waste, abuse or
708	708	illegal acts or whose actions have caused the state of Kansas to pay fines
709	709	to or reimburse the federal government more than $1,000,000 in the
710	710	medicaid program shall be eligible for any state medicaid contracts
711	711	subsequent to such conviction unless the attorney general finds that the
712	712	contractor is the sole source for such contracts, is the least expensive
713	713	source for the contract, has reimbursed the state of Kansas for all losses
714	714	caused by the contractor, or the removal of the contractor would create a
715	715	substantial loss of access for medicaid beneficiaries, in which case, after a
716	716	specific finding to this effect, the prohibition of this subsection may be
717	717	waived by the attorney general. Nothing in this section shall be construed
718	718	to conflict with federal law, or to require or permit the use of federal funds
719	719	where prohibited.
720	720	1
721	721	2
722	722	3
723	723	4
724	724	5
725	725	6
726	726	7
727	727	8
728	728	9
729	729	10
730	730	11
731	731	12
732	732	13
733	733	14
734	734	15
735	735	16
736	736	17
737	737	18
738	738	19
739	739	20
740	740	21
741	741	22
742	742	23
743	743	24
744	744	25
745	745	26
746	746	27
747	747	28
748	748	29
749	749	30
750	750	31
751	751	32
752	752	33
753	753	34
754	754	35
755	755	36
756	756	37
757	757	38
758	758	39
759	759	40
760	760	41
761	761	42
762	762	43 HB 2217 10
763	763	(o) All information and records of the inspector general that are
764	764	made, maintained, kept, obtained or received under any investigation or
765	765	audit under this section shall be confidential, except as required or
766	766	authorized pursuant to this section.
767	767	Sec. 2. K.S.A. 75-7427 is hereby repealed.
768	768	Sec. 3. This act shall take effect and be in force from and after its
769	769	publication in the statute book.
770	770	1
771	771	2
772	772	3
773	773	4
774	774	5
775	775	6
776	776	7