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

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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 <br>retardation boards or nonprofit organizations for disbursement during the fiscal year <br>in accordance with approved plans and budgets. The secretary shall, from time to <br>time during the fiscal year, review the operations, budgets, and expenditures of the <br>various programs; and if funds are not needed for a program to which they were <br>allocated, he may, after reasonable notice and opportunity for hearing, withdraw any <br>funds that are unencumbered and reallocate them to other programs. He may <br>withdraw funds from any program, or component part thereof, which is not being <br>operated and administered in accordance with its approved plan and budget, and the <br>policies and administrative regulations of the cabinet promulgated pursuant to KRS <br>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 <br>regional community mental health and mental retardation program is not operating <br>and administering its program in compliance and accordance with the approved plan <br>and budget and the policies and administrative regulations of the cabinet, he may <br>withdraw his recognition of that board or organization as the local authority for the <br>receipt of funds and the operation and administration of regional community mental <br>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 <br>nonprofit organization, which jeopardizes the continuation of programs and <br>provision of services in the area served by that board or nonprofit organization, he <br>may, other statutes to the contrary notwithstanding: <br>(a) Appoint a caretaker administrator who shall be authorized to direct the operation and administration of the board or nonprofit organization's <br>community mental health and mental retardation programs including, but not <br>limited to, their financial record keeping, their personnel management <br>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 <br>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 <br>of the Cabinet for Health and Family Services thirty (30) days prior to the <br>anticipated action by the secretary. The notification shall be by means of a letter <br>from the secretary to the chairman of the mental health-mental retardation board in <br>question and shall state the reasons for the anticipated action. Following the <br>notification, the mental health-mental retardation board may: <br>(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 <br>be made within seven (7) days of the receipt of the letter from the secretary, <br>and the hearing shall be conducted in accordance with KRS Chapter 13B. Effective: June 20, 2005 <br>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 <br>ch. 318, sec. 101, effective July 15, 1996. -- Amended 1990 Ky. Acts ch. 499, <br>sec. 13, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 396, sec. 9, effective <br>June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. VI, sec. 107(1), (8) and (21). -<br>- Amended 1968 Ky. Acts ch. 90, sec. 64(3). -- Created 1964 Ky. Acts ch. 79, sec. 4. Formerly codified as KRS 203.480.