KRS 304.17B-003: Establishment of Kentucky Health Care Improvement Authority --

Members and meetings -- Programs and expenditure of funds -- Public

hearings -- Annual report to the Governor and the General Assembly --

Liabilities.

(1) There is hereby established the Kentucky Health Care Improvement Authority as an

agency, instrumentality, and political subdivision of the Commonwealth and a

public body corporate and politic with all the powers, duties, and responsibilities

conferred upon it by statute and nec essary or convenient to carry out its functions.

The authority shall be administered by a board of fifteen (15) members and is

created to perform the public functions of administering programs financed by the

funds appropriated to the authority in conforma nce with KRS 304.17B -001 to

304.17B-031 and any terms and conditions established by the General Assembly as

a part of the act appropriating the funds. The members of the board shall consist of

the following:

(a) The secretary of the Cabinet for Health and Family Services, or the secretary's

designated representative, who shall serve as chair;

(b) The commissioner of the Department of Insurance, or the commissioner's

designated representative, who shall serve as vice chair;

(c) Two (2) nonvoting members serv ing ex officio from the House of

Representatives, one (1) of whom shall be appointed by the Speaker of the

House and one (1) appointed by the minority floor leader, and who shall serve

a term of two (2) years;

(d) Two (2) nonvoting members serving ex offic io from the Senate, one (1) of

whom shall be appointed by the President of the Senate and one (1) appointed

by the minority floor leader, and who shall serve a term of two (2) years;

(e) The deans of the University of Louisville School of Medicine and the

University of Kentucky College of Medicine, or their designated

representatives;

(f) The commissioner of the Department for Public Health, or the commissioner's

designated representative;

(g) Two (2) representatives of Kentucky health care providers, who s hall be

appointed by the Governor; and

(h) Four (4) citizens at large of the Commonwealth, who shall be appointed by

the Governor.

(2) The terms of office of the initial appointments of the citizen at-large members of the

board shall expire one (1), two (2 ), three (3), and four (4) years respectively from

the expiration date of the initial appointment. One (1) of the initial terms of the

representatives of health care providers, at least one (1) of whom shall be male and

at least one (1) of whom shall be female, shall be for two (2) years and one (1) shall

be for four (4) years. All succeeding appointments shall be for four (4) years from

the expiration date of the term of the initial appointment. Two (2) of the citizens at

large shall be male and two (2) sh all be female. Board members shall serve until

their successors are appointed.

(3) In making private sector and citizen -at-large appointments to the board, the

Governor shall assure broad geographical and ethnic representation as well as

representation from consumers and the major sectors of Kentucky's health care and

health insurance businesses. Private sector and citizen -at-large members shall serve

without compensation but shall be reimbursed for reasonable and necessary

expenses.

(4) The authority shall establish procedures for accountability, including the review of

expenditures, and develop mechanisms to measure the success of programs that

receive allocated funds in accordance with any criteria or instructions provided by

the General Assembly. The authority shall be attached to the Cabinet for Health and

Family Services for administ rative purposes and shall establish advisory boards it

deems appropriate, which shall consist of health insurance consumers, health care

providers, and insurance company representatives, to assist with oversight of fund

expenditures.

(5) Grants and funds o btained under KRS 304.17B -001 to 304.17B -031 shall be used

for expenditures as follows:

(a) Seventy percent (70%) of all moneys in the fund shall be placed into the

Kentucky Access fund for the purpose of funding Kentucky Access;

(b) Twenty percent (20%) o f all moneys in the fund shall be spent on a

collaborative partnership between the University of Louisville and the

University of Kentucky dedicated to lung cancer research; and

(c) Ten percent (10%) of all moneys in the fund shall be used to discourage th e

use of harmful substances by minors.

(6) The authority shall ensure that a public hearing is held on the expenditure of funds

allocated under this section, except for funds allocated to the Kentucky Access

fund. Advertisement of the public hearing shall be published at least once but may

be published two (2) more times, if one (1) publication occurs not less than seven

(7) days nor more than twenty-one (21) days before the scheduled date of the public

hearing. The authority shall submit an annual report t o the Governor and the

General Assembly indicating how the funds were used and an evaluation of the

program's effectiveness in health care and access to health insurance for Kentucky

residents.

(7) Neither the authority nor its employees shall be liable fo r any obligations of any of

the programs established under KRS 304.17B -001 to 304.17B -031. No member or

employee of the authority shall be liable, and no cause of action of any nature may

arise against them, for any act or omission related to the performan ce of their

powers and duties under KRS 304.17B -001 to 304.17B -031, unless the act or

omission constitutes willful or wanton misconduct. The authority may provide in its

policies and procedures for indemnification of, and legal representation for, its

members and employees.

(8) The authority shall have all the powers necessary or convenient to carry out and

effectuate the purposes and provisions of KRS 304.17B -001 to 304.17B -031,

including, but not limited to, retaining the staff it deems necessary for the proper

performance of its duties.

(9) The authority shall meet at least quarterly and at other times upon call of the chair

or a majority of the authority.