Read the full stored bill text
Session of 2026
HOUSE BILL No. 2463
By Representative Waymaster
1-15
AN ACT concerning rural health; creating the rural health transformation
fund; prescribing powers and duties of the state finance council
concerning such fund and the rural health transformation program;
crediting all federal moneys for the rural health transformation program
to such fund; making and concerning appropriations for the fiscal years
ending June 30, 2026, and June 30, 2027, for the state finance council
and other state agencies; authorizing certain transfers, imposing certain
restrictions and limitations and directing or authorizing certain receipts,
disbursements, procedures and acts incidental to the foregoing.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) Consistent with section 24 of article 2 of the
constitution of the state of Kansas and notwithstanding any other law, all
federal funds received by the state of Kansas from the centers for medicare
and medicaid services pursuant to section 71401 of public law 119-21 and
any other federal law that appropriates moneys to the state for the rural
health transformation program shall be available for expenditure only upon
an act of appropriation by the legislature.
(b) There is hereby established in the state treasury the rural health
transformation fund, which shall be administered by the state finance
council. All expenditures from the rural health transformation fund shall be
for the purposes of funding the rural health transformation program. All
expenditures from the rural health transformation fund shall be made in
accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
chairperson of the state finance council or the chairperson's designee
following the approval of such expenditure by the state finance council.
(c) All moneys received by the state of Kansas from the centers for
medicare and medicaid services pursuant to section 71401 of public law
119-21 for the rural health transformation program and any other federal
law that appropriates moneys to the state for the rural health
transformation program shall be deposited in the state treasury in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto, and credited to the rural health transformation fund.
(d) On or before the 10 th day of each month, the director of accounts
and reports shall transfer from the state general fund to the rural health
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
HB 2463 2
transformation fund interest earnings based on:
(1) The average daily balance of moneys in the rural health
transformation fund for the preceding month; and
(2) the net earnings rate of the pooled money investment portfolio for
the preceding month.
(e) The provisions of K.S.A. 75-3711a, and amendments thereto,
shall not apply to any moneys received by the state of Kansas from the
centers for medicare and medicaid services pursuant to section 71401 of
public law 119-21 for the rural health transformation program and any
other federal law that appropriates moneys to the state for the rural health
transformation program.
(f) As soon as practicable following the receipt of a grant application
from a partner, stakeholder or subawardee requesting moneys from the
rural health transformation fund and following review of such application
by the Kansas rural health innovation alliance, the authorized
organizational representative shall provide such application to the state
finance council. The council shall:
(1) Meet and review each grant application and request for funding
from the rural health transformation fund;
(2) confirm that such application and request are a permissible use of
funds that meet the required health-related activities provided in section
71401 of public law 119-21; and
(3) determine whether such grant shall be funded and the amount of
such funding.
(g) Concerning the redistribution of unexpended or unobligated funds
to be reviewed by the administrator not later than March 31, 2028, and
annually thereafter through March 31, 2032, pursuant to section 71401 of
public law 119-21, the council shall review and approve any submission
for such unexpended or unobligated funds by the authorized organizational
representative prior to submission to the administrator.
(h) Any report and other documentation required to be submitted by
the authorized organizational representative to the centers for medicare
and medicaid services pursuant to section 71401 of public law 119-21
shall be reviewed and approved by the council prior to submission.
(i) On October 1, 2032, the director of accounts and reports shall
return all unexpended or unobligated moneys in the rural health
transformation fund to the United States treasury pursuant to section
71401 of public law 119-21. On the date that all moneys in the rural health
transformation fund have been returned to the United States treasury or
expended, all liabilities of the rural health transformation fund are hereby
transferred to and imposed on the state general fund and the rural health
transformation fund is hereby abolished.
(j) All actions by the state finance council pursuant to this section are
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
HB 2463 3
hereby characterized as a matter of legislative delegation and subject to the
guidelines prescribed in K.S.A. 75-3711c(c), and amendments thereto,
except that such actions also may occur while the legislature is in session.
(k) As used in this section, "authorized organizational representative"
is the person designated with the authority to act on behalf of the state of
Kansas to apply for rural health transformation moneys from the centers
for medicare and medicaid services and handle grants and cooperative
agreements pursuant to section 71401 of public law 119-21.
Sec. 2.
STATE FINANCE COUNCIL
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Provided, That during the fiscal year ending June 30, 2026, all
expenditures made from and obligations incurred against the rural health
transformation fund shall be subject to the provisions of section 1, and
amendments thereto.
Sec. 3. On the effective date of this act, during the fiscal year ending
June 30, 2026, the provisions of section 214 of chapter 117 of the 2025
Session Laws of Kansas shall not apply to the rural health transformation
fund of the state finance council.
Sec. 4.
DEPARTMENT OF COMMERCE
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 5.
DEPARTMENT OF HEALTH AND ENVIRONMENT —
DIVISION OF PUBLIC HEALTH
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 6.
KANSAS DEPARTMENT FOR AGING AND DISABILITY SERVICES
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
HB 2463 4
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 7.
KANSAS DEPARTMENT FOR CHILDREN AND FAMILIES
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 8.
STATE DEPARTMENT OF EDUCATION
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 9.
DEPARTMENT OF CORRECTIONS
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 10.
DEPARTMENT OF TRANSPORTATION
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2026, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 11.
STATE FINANCE COUNCIL
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Provided, That during the fiscal year ending June 30, 2027, all
expenditures made from and obligations incurred against the rural health
transformation fund shall be subject to the provisions of section 1, and
amendments thereto.
Sec. 12.
DEPARTMENT OF COMMERCE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
HB 2463 5
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 13.
DEPARTMENT OF HEALTH AND ENVIRONMENT —
DIVISION OF PUBLIC HEALTH
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 14.
KANSAS DEPARTMENT FOR AGING AND DISABILITY SERVICES
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 15.
KANSAS DEPARTMENT FOR CHILDREN AND FAMILIES
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 16.
STATE DEPARTMENT OF EDUCATION
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 17.
DEPARTMENT OF CORRECTIONS
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 18.
DEPARTMENT OF TRANSPORTATION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
HB 2463 6
(a) There is appropriated for the above agency from the following
special revenue fund or funds for the fiscal year ending June 30, 2027, all
moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:
Rural health transformation fund......................................................No limit
Sec. 19. This act shall take effect and be in force from and after its
publication in the Kansas register.
1
2
3
4
5
6
7