{"data":{"id":"us-ky/krs-210.440","jurisdiction":"us-ky","citation":"KRS 210.440","heading":"Allocation of funds -- Withdrawal of funds or board recognition -- Action","body":"by secretary when emergency exists -- Appeal and hearing.\n(1) At the beginning of each fiscal year, the secretary of the Cabinet for Health and\nFamily Services shal l allocate available funds to the boards for mental health or\nindividuals with an intellectual disability or nonprofit organizations for\ndisbursement during the fiscal year in accordance with approved plans and budgets.\nThe secretary shall, from time to ti me during the fiscal year, review the operations,\nbudgets, and expenditures of the various programs; and if funds are not needed for a\nprogram to which they were allocated or if the board has failed to pay employer\ncontributions for which it is liable by i ts participation in the Kentucky Employees\nRetirement System, he or she may, after reasonable notice and opportunity for\nhearing, withdraw any funds that are unencumbered and reallocate them to other\nprograms. He may withdraw funds from any program, or component part thereof:\n(a) Which is not being operated and administered in accordance with its approved\nplan and budget, and the policies and administrative regulations of the cabinet\npromulgated pursuant to KRS 210.370 to 210.480; or\n(b) If the board has fa iled to pay employer contributions for which it is liable by\nits participation in the Kentucky Employees Retirement System.\n(2) If the secretary finds at any time that a board for mental health or individuals with\nan intellectual disability or nonprofit or ganization to which funds have been\nallocated for the operation of a regional community program for mental health or\nindividuals with an intellectual disability is not operating and administering its\nprogram in compliance and accordance with the approved p lan and budget and the\npolicies and administrative regulations of the cabinet, or if the board has failed to\npay employer contributions for which it is liable by its participation in the Kentucky\nEmployees Retirement System or if the board has filed for ba nkruptcy, he or she\nmay withdraw his or her recognition of that board or organization as the local\nauthority for the receipt of funds and the operation and administration of regional\ncommunity programs for mental health or individuals with an intellectual disability.\n(3) If the secretary finds at any time that an emergency situation exists with regard to\nthe financial stability of any regional board for mental health or individuals with an\nintellectual disability or nonprofit organization, including a regio nal board's\ninability to pay employer contributions to the Kentucky Employees Retirement\nSystem or a regional board's actions to file for bankruptcy, which jeopardizes the\ncontinuation of programs and provision of services in the area served by that board\nor nonprofit organization, he or she may, other statutes to the contrary\nnotwithstanding:\n(a) Appoint a caretaker administrator who shall be authorized to direct the\noperation and administration of the board or nonprofit organization's\ncommunity programs f or mental health or individuals with an intellectual\ndisability including, but not limited to, their financial record keeping, their\npersonnel management operations, and their financial and program reporting;\nand\n(b) Make personnel changes deemed necessary  to insure the continued operation\nof the board or nonprofit organization in compliance with its plan and budget\nand the policies and regulations of the cabinet.\n(4) Any community board for mental health or individuals with an intellectual\ndisability to be  affected by the provisions of subsections (2) and (3) of this section\nshall be notified by the secretary of the Cabinet for Health and Family Services\nthirty (30) days prior to the anticipated action by the secretary. The notification\nshall be by means of  a letter from the secretary to the chairman of the board for\nmental health or individuals with an intellectual disability in question and shall state\nthe reasons for the anticipated action. Following the notification, the board for\nmental health or individuals with an intellectual disability may:\n(a) Comply with the secretary's action without contesting it; or\n(b) Request an administrative hearing before a hearing officer appointed by the\nOffice of Administrative Hearings within the Department of Law to sh ow\ncause why the action should not stand. The application shall be made within\nseven (7) days of the receipt of the letter from the secretary, and the hearing\nshall be conducted in accordance with KRS Chapter 13B.","path":["KRS Chapter 210"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56582","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:11Z","sha256":"f7d01683916d40befbcdd576dc24686b36475b0ccf3bc157d936678af56adb51","source_id":"us-ky","stale":false,"prev":"us-ky/krs-210.430","next":"us-ky/krs-210.450"},"notice":"GroundRules: Original legal text. Not legal advice."}