908 KAR 2:030. Board

structure and operation; eligibility for state grants.

 

      RELATES TO: KRS

210.400, 210.410, 210.450

      STATUTORY AUTHORITY:

KRS 210.450, EO 2004-726

      NECESSITY, FUNCTION,

AND CONFORMITY: EO

2004-726, effective July 9, 2004, reorganized the Cabinet for Health Services

and placed the Department for Mental Health and Mental Retardation within the

cabinet. KRS 210.450 authorizes the secretary of the cabinet to

promulgate administrative regulations governing eligibility of community mental

health boards to receive state funds. This administrative regulation

establishes the minimum eligibility requirements for receipt of state funds for

community mental health/mental retardation programs.

 

      Section 1.

Definitions. (1) "Board of directors" or "board" means the

group of persons vested with the management of the affairs of the corporation

regardless of the name by which the group is designated except as provided in

Section 8 of this administrative regulation.

      (2)

"Director" means a member of the "board of directors."

      (3) "Articles

of incorporation" means the original or restated articles of incorporation

or articles of consolidation and all amendments, including articles of merger.

      (4)

"Bylaws" means the codes or rules adopted for the administrative

regulation or management of the affairs of the corporation regardless of the

names by which the rules are designated.

 

      Section 2.

Requirements for Recognition. A nonprofit corporation requesting recognition

from the Secretary of the Cabinet as a district mental health/mental

retardation board for the purpose of obtaining state funds, shall annually

submit to the secretary, not later than the first day of April of the year

preceding the fiscal year for which applicant requests recognition, an

application approved by its board of directors, which contains documentation

and agreements satisfying the following requirements:

      (1) Articles of

incorporation as a nonprofit corporation in compliance with Kentucky statutes;

      (2) Written

statement by the applicant that it shall provide those service prerequisites

set forth in KRS 210.410, and that the services shall be available to each of

the geographic catchment areas, as established by the Cabinet for Human

Resources plan, in which the board proposed to provide service;

      (3) Written

agreements to operate in accordance with the administrative regulations and

statutes affecting operations, and to comply with Title VI of the 1964 Federal

Civil Rights Law; and

      (4) Articles of

Incorporation or corporate bylaws which meet the requirements of this

administrative regulation as set forth in this subsection:

      (a) A provision

establishing the location of a principal office of business of the

organization;

      (b) A provision

declaring the purposes of organization to include concern for mental illness,

mental health, mental retardation, alcoholism, drug abuse, or addiction, and

the implementation of all functions set forth in KRS 210.400 including that the

board will act as administrator of the program; and

      (c) A provision

setting forth the organization, duties and powers of the board of directors.

      (5) In the interim

period between annual requests for recognition from the cabinet, the board

shall submit, within ten (10) days after adoption, any additions, deletions,

and changes in their articles of incorporation or corporate bylaws;

      (6) Following the

election of any officer(s) of the board or selection of any new directors the

board shall submit to the Secretary of the Cabinet for Human Resources within

ten (10) days the names and addresses of the above, whenever it shall occur;

      (7) If an applicant

is not in conformity with these requirements, the applicant may be authorized

to receive state funds for a probationary period upon assurance of the

applicant that it shall bring its operations, bylaws and Articles of

Incorporation into compliance with the required standards. The duration of the

probationary period shall be set by the Secretary of the Cabinet for Human

Resources.

 

      Section 3.

Membership Criteria for the Board. (1) All nonprofit mental health/mental

retardation boards shall be appointed in accordance with KRS 210.380 and

applicable federal regulations.

      (a) The provisions

of paragraph (b) of this subsection notwithstanding, an individual board member

may represent more than one (1) category provided, however, in no event shall

he represent more than three (3) categories as specified in KRS 210.380 for the

purpose of certifying board composition.

      (b) A board shall be

deemed representative of each of the categories, organizations or associations

specified in KRS 210.380 provided there is on the board one (1) representative

of each category.

      (2) The board of a

nonprofit corporation, serving as administrator and not established by a

combination of either cities or counties shall number not less than fifteen

(15) nor more than forty (40) members (except in the case of multiple catchment

area boards). The members shall have demonstrated an interest in mental health,

mental illness, mental retardation, developmental disabilities, alcoholism,

drug abuse or addiction. At least one-fourth (1/4) of the members shall have

indicated their primary interest as mental retardation or developmental

disabilities.

      (3) All directors

shall reside within the geographic catchment areas; directors shall be selected

to provide at least one (1) representative from each county encompassed.

      (4) If an applicant

proposes to serve a district containing multiple catchment or grant areas, the

membership requirement of the board of directors shall be as follows:

      (a) Not less than

fifteen (15) nor more than forty (40) members.

      (b) All directors

selected shall reside within and represent the respective geographic catchment

areas.

      (c) The board of

directors shall contain at least one (1) director from each county in each

catchment area.

      (5) One-fourth (1/4)

of the membership of the board of directors shall be elected annually. A

maximum of two (2) consecutive four (4) year terms may be served by any

director.

      (6) No member of the

immediate family of a board member shall be employed in a service funded by the

board. Immediate family shall be construed to include a spouse, sons,

daughters, mother, father, brothers, sisters, and grandparents. This provision

shall not apply retroactively to the effective date of this administrative

regulation, nor to any person employed prior to the appointment of the board

member.

 

      Section 4. Conduct

of the Board. The board of directors shall:

      (1) Meet at least

twelve (12) times per year except that the regional board of a multiple

catchment area shall meet at least six (6) times per year;

      (2) Specify in the

minutes of the board an annual meeting date for election of officers;

      (3) Establish quorum

requirements for meeting of the board of directors;

      (4) Establish

restrictions on compensation of board members including the prohibition against

any board member contracting with the board to perform personal services; and

      (5) Establish

procedures for removal of directors who are excessively absent from board

meetings.

      (6) Establish

procedures for filling of vacancies at times other than annual meetings

including the role of the nominating committee.

 

      Section 5. Election

and Functioning of Officers. The selection and functioning of officers of the

applicant shall include the following:

      (1) Designation of

the officers of the applicant.

      (2) Specifications

of the duties and terms of officers.

      (3) Specifications

of the method by which officers shall be selected, including a requirement that

all officers be elected from the membership of the board of directors.

      (4) Designation of

dates for the assumption of duties by officers.

      (5) A restriction

prohibiting any board member participating in any matter in which he has a

potential conflict of interest or serving as chairman of more than one (1) of

the standing committees.

 

      Section 6. Standing

Committees. The board shall establish the following standing committees (as a

minimum), including a description of their functions and responsibilities,

meeting schedules, and the procedures for designating their members:

      (1) Executive

committee: composed of at least twenty-five (25) percent of the membership of

the board of directors and shall include all officers and chairmen of standing

committees of the board.

      (2) Finance

committee: composed of at least the treasurer and three (3) other members of

the board.

      (3) Personnel

committee: composed of at least twenty (20) percent of the membership of the

board. When a board operates multiple catchment area programs, the personnel

committee membership shall reflect as equal a representation of the catchment

areas as is mathematically possible.

      (4) Staff

development and training committee: composed of not less than three (3) nor

more than eleven (11) board members. The committee shall assure implementation

and development of individual and team in-service training in mental health,

mental retardation, alcoholism and drug addiction-related disciplinary skills.

      (5) At the

discretion of the board, the personnel committee and the staff development and

training committee may be combined into a single committee.

      (6) Nominating

committee: composed of not less than six (6) persons. The function and

responsibility of this committee shall include ensuring public advertisement of

the eligibility criteria and procedures for nomination for election to the

board and the setting of time schedules for such public announcement. The

committee shall present nominations for one-fourth (1/4) membership of the

board (annually or biennially) and shall present nominations to fill vacancies

as they occur. In addition to general nominating procedures and public

advertising the nominating committee shall establish procedures providing for

nominations by petition. Any person not placed in nomination by the committee

but who is qualified, may have his name placed on the list of nominees by

presenting a petition for nomination signed by twenty-five (25) registered

voters of the region. Applicants shall be allowed sufficient time to prepare

and execute petitions prior to the date of the election and after initial

public advertising has been placed. The board shall vote on a petitioning

nominee as well as on the slate placed nomination by the committee.

      (7) Program planning

and evaluation committee. In single catchment areas, the composition shall be

at least four (4) board members. In multiple catchment areas, the composition

shall be the chairmen of the catchment area boards and at least four (4) other

board members. The committee shall function as the overall committee concerned with

the efficacy of the existing program and the future service needs of the

regional programs in mental health, mental retardation, alcoholism and drug

abuse education and treatment, and the relationship of the regional program to

the regional community.

 

      Section 7. Special

and Ad Hoc Committees. Intermittently the board may establish special or ad hoc

committees it shall deem advisable and shall specify the charge and function of

the committees.

 

      Section 8. Catchment

Area Boards. If more than one (1) catchment area program shall be administered

by a single board of directors, this board may provide for one (1) catchment

area board for each geographic catchment area served. The catchment area board

shall meet at least twelve (12) times per year. Upon provision for catchment

area boards, the single board shall designate itself as the regional mental

health/mental retardation board and shall appoint an equal number of its

members to each separate catchment area board. No more than twenty-five (25)

percent of regional board members appointed to a catchment area board may

reside outside of the catchment area. Each catchment area board shall,

otherwise, be representative of the individuals who reside in the catchment

area, and at least fifty (50) percent of the catchment area board members shall

not be providers of health care. The catchment area board shall be responsible

for establishing general policies for the catchment area program, approving the

budget and expenditure of funds and approving the selection of the center

director. The regional mental health/mental retardation board shall be

responsible for reviewing and approving the annual plan and budget prepared by

a catchment area board and shall be responsible for all personnel policies,

contractual obligations and insurance of the quality of direct patient services

for the entire region. The catchment area board shall have authority and

responsibility as may be delegated to it by the board. The authority and

responsibility may include the following:

      (1) The general and

specific functions and responsibilities of the catchment area board;

      (2) The process by

which a representative catchment area board shall be selected and maintained;

      (3) The process by

which appropriate training shall be made available to catchment area board

members to enhance their effectiveness;

      (4) The

organizational and administrative relationships between the catchment area

board and the center director, the professional advisory council and any

superordinate governing structure;

      (5) The procedures

the catchment area board shall utilize to review the center program, the

quality of its services and the results of center evaluation data;

      (6) The procedures

the catchment area board shall utilize in reporting and disseminating to the

public information on the center's programs and services; and

      (7) The procedures

the catchment area board shall utilize to ensure that the governing body shall

have adequate administrative support and capacity to carry out its functions.

 

      Section 9. State and

Federal Funding. The cabinet may provide state and federal funding to mental

health/mental retardation boards by contract. (Recodified from 902 KAR 6:030,

3-7-89; Am. 20 Ky.R. 2259; 3-14-94.)