SESSION OF 2019
SUPPLEMENTAL NOTE ON SENATE BILL NO. 231
As Recommended by Senate Committee on
Public Health and Welfare

Brief*
SB 231 would require all moneys received by the
Kansas Department of Health and Environment (KDHE) from
drug rebates associated with medical assistance enrollees to
be deposited to the credit of the State General Fund (SGF)
and would require the amount deposited to be included in
monthly SGF receipt reports published by the Legislative
Research Department.
The bill would require KDHE to remit all moneys
received from drug rebates associated with medical
assistance enrollees to the State Treasurer in accordance
with continuing law. Upon receipt of such remittance, the
State Treasurer would be required to deposit the entire
amount into the State Treasury to the credit of the SGF.
KDHE would be required to certify the amount received
from drug rebates associated with medical assistance
enrollees on a monthly basis and to transmit the certification
to the Director of Legislative Research and to the Director of
the Budget. The Director of Legislative Research would be
required to include the certified amount on any monthly report
prepared by the Legislative Research Department that details
SGF receipts as a separate line item titled “drug rebates”
under a category of other revenue sources.

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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Background
The bill was introduced by the Senate Committee on
Ways and Means at the request of Senator Denning. In the
Senate Committee on Public Health and Welfare hearing,
Senator Denning provided proponent testimony, stating the
bill was necessary to provide transparency and better track
the amount of drug rebate revenue received by KDHE. No
other testimony was provided.
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, KDHE indicates if the
agency receives a SGF appropriation to replace the fee fund
revenue, there would be no fiscal effect on expenditures of
the agency. Any fiscal effect associated with the bill is not
reflected in The FY 2020 Governor's Budget Report. The
fiscal note was issued after the Senate Committee took action
on the bill.


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