59-2006. Duty to support patients; recovery; demand; time limitation; voluntary payments; compromise and settlement; bar to future recovery, when; contracts with attorneys or with debt collection agen

59-2006

Chapter 59.--PROBATE CODE
Article 20.--SUPPORT OF PATIENTS AT CERTAIN INSTITUTIONS

      59-2006.   Duty to support patients; recovery; demand; time limitation;voluntary payments; compromise and settlement; bar to future recovery,when; contracts with attorneys or with debt collection agencies forcollection services authorized, requirements; "state institution" defined;minor patient support rights assigned to institution.(a) A person's spouse and the parents of a personwho is a minor shall be bound by law to support the personif the person is committed to, admitted to, transferred to or receivedasa patient at a state institution. Payment for the maintenance, careand treatment of any patient in a state institution irrespectiveof the manner of such patient'sadmission shall be paid by the patient, by the conservator of suchpatient's estate or by any person bound by law tosupport such patient. The secretary of social andrehabilitation services may recover the basic maximum charge established asprovided for in subsection (a) of K.S.A. 59-2006b and amendmentsthereto, or the actual per patient costs established as provided insubsection (b) of K.S.A. 59-2006b and amendments thereto, ascompensation for the maintenance, care and treatment of a patient from suchpatient when no legal disability exists, or from the estate of such patientor from any person bound by law to support such patient.

      (b)   The secretary of social and rehabilitation services shall periodicallyand not less than once during each fiscalyear make written demand upon the patient orperson liable for the amount claimed by the secretary to haveaccrued since the last demand wasmade, and no action shall be commenced by the secretaryagainst such patient or such patient's responsiblerelatives for the recovery thereof unless such action is commenced withinthree years after the date of such written demand. When any part ofthe amount claimed to be due has been paid or any acknowledgment ofan existing liability,debt or claim, or any promise to pay the same has beenmade by the obligor, an action may be brought in such case within threeyears after suchpayment, acknowledgment or promise, but such acknowledgment or promise mustbe in writing signed by the party to be charged thereby. If thereare two or more joint debtors, no one of whom is entitled to act as theagent of the others, no such joint debtor shall lose the benefit of thestatute of limitations so as to be chargeable by reason of anyacknowledgment, promise or payment made by any other or others of them,unless done with the knowledge and consent of, or ratified by, thejoint debtor sought to be charged. The secretary may accept voluntarypayments from patients or relatives or from any source, even though thepayments are in excess of required amounts and shall deposit the same asprovided by law.

      (c)   The secretary of social and rehabilitation services shall havethe power to compromise and settle any claim due or claimed to be due fromsuch patient or such patient's relatives who areliable for the patient's care, maintenance and treatment and upon paymentof a valuable consideration by the patient or thepersons bound by law to support such patient, maydischarge and release the patient or relative of any or all pastliability herein. Whenever the secretary shall negotiate a compromiseagreement to settle any claim due or claimed to be due from a patient orsuch patient's relatives responsible under this act to supportthe patient, no action shall thereafter be brought or claim made for any amountsdue for the care, maintenance and treatment of such patient incurred priorto the effective date of the agreement entered into, except for the amountsprovided for in the agreement if the provisions of such compromiseagreement are faithfully performed. In the event the terms and conditionsof such compromise agreement are not complied with, such failure to complyshall serve to revive and reinstate the original amount of the claim duebefore negotiation of such compromise agreement, less amounts paid on the claim.

      (d)   The secretary of social and rehabilitation services may contractwith an attorney admitted to practice in this state or with any debt collectionagency doing business within or without this stateto assist in the collection of amounts claimed to be due under theprovisions of this section. The fee for services of such attorney or debtcollection agency shall be based on the amount of moneys actually collected. No feeshall be in excess of 50% of the total amount of moneys actually collected.All funds collected less the fee for services as provided in the contractshall be remitted to the secretary of social and rehabilitation serviceswithin 45 days from the date of collection.

      Contracts entered pursuant to this section may be negotiated by the secretaryof social and rehabilitation services and shall not be subject to the competitivebid requirements of K.S.A. 75-3739 through 75-3741 and amendments thereto.

      (e)   Before entering into a contract with a debt collection agency undersubsection (d), thesecretary of social and rehabilitation services shall require a bond fromthe debt collection agency in an amount not in excess of $100,000guaranteeing compliance with the terms of the contract.

      (f)   A debt collection agency entering into a contract with thesecretary of social and rehabilitation services for the collection ofamounts claimed to be due under this section shall agree that it isreceiving income from sources within the state or doing business in thestate for purposes of the Kansas income tax act.

      (g)   As used in this section, "state institution" has the meaning providedby K.S.A. 59-2006b and amendments thereto.

      (h)   When a minor becomes a patient of a state institution,an assignment of all past, present and future support rights of the minorwhich are possessed by either parent or any other person entitled to receivesupport payments for the minor is conveyed by operation of law to thesecretary of social and rehabilitation services. The assignment of supportrights shall be effective upon the minor's admission as a patient of any stateinstitution, regardless of the manner of admission, without the requirementthat any written assignment or similar document be signed by the parent orother person entitled to receive support payments for the minor. When aminor becomes a patient of a state institution, the parent or otherperson entitled to receive support payments for the minor is also deemed tohave appointed the secretary of social and rehabilitation services or thesecretary's designee, as attorney in fact to perform the specific act ofnegotiating and endorsing all drafts, checks, money orders or other negotiableinstruments representing support payments on behalf of the minor.This limited power of attorney shall remain in effect until the assignment ofsupport rights has been terminated in full. For any minorwho is a patient of a state institution on the effective date of this act andwhose past, present and future support rights are not assigned to the secretaryof social and rehabilitation services, the assignment of support rights andlimited power of attorney shall be effective on the effective date of this actif notice of the assignment is sent to the person otherwise entitled to receivesupport payments for the minor.

      The assignment of support rights provided in this section shall remain infull force and effect until the minor is no longer a patient ofa state institution. When the minor is no longer a patient of astate institution, the assignment shall remain in effect as to unpaid supportobligations due and owing as of the last day of the month in which the minorceases to be a patient, until the claim of the secretary of social andrehabilitation services for the maintenance, care and treatment of the minoris satisfied.Nothing in this section shall affect or limit the rights of the secretary ofsocial and rehabilitation services under any assignment pursuant to K.S.A.39-709 and amendments thereto.

      History:   L. 1939, ch. 180, § 170; L. 1941, ch. 284, § 18; L.1951, ch. 340, §2; L. 1958, ch. 52, § 1 (Budget Session); L.1965, ch. 349, § 1; L. 1967, ch. 474, § 1; L. 1969, ch. 281, § 1; L.1974, ch. 237, § 1; L. 1984, ch. 209, § 1;L. 1992, ch. 312, § 29; July 1.