CABINET FOR HEALTH AND FAMILY SERVICES

Department for Community Based Services

Division of Family Support

(Amendment)

 

††††† 921 KAR 2:050. Time and manner of payments.

 

††††† RELATES TO: KRS 205.220, 205.245, 42 U.S.C. 601-619

††††† STATUTORY AUTHORITY: KRS 194A.050(1), 205.220, 205.245, 42 U.S.C. 601-619

††††† NECESSITY, FUNCTION, AND CONFORMITY: KRS 194A.050(1) requires the secretary to promulgate all administrative regulations authorized by applicable state laws necessary to operate the programs and fulfill the responsibilities vested in the cabinet or to qualify for the receipt of federal funds and necessary to cooperate with other state and federal agencies for the proper administration of the cabinet and its programs. KRS 205.220 prescribes who is eligible for public assistance and requires the cabinet to prescribe by administrative regulation the time and manner of payments of public assistance grants for eligible individuals. KRS 205.245 provides for a money payment to the needy aged, needy blind, and needy permanently and totally disabled. This administrative regulation establishes the time and manner of payments for the Kentucky Transitional Assistance Program (K-TAP) and the Kentucky Works Program (KWP) in conformity with the Social Security Act, 42 U.S.C. 601 - 619, and federal regulations. It also establishes the time and manner of State Supplementation Program (SSP) payments and Mental Illness or Intellectual Disability (MI/ID)[Mental Retardation (MIMR)] Supplement Program payments.

 

††††† Section 1. Authorization of K-TAP Payments. (1) Method of payment.

††††† (a) A payment shall be issued monthly by:

††††† 1. Check;

††††† 2. Electronic benefit transfer (EBT); or

††††† 3. Direct deposit into a recipient's checking account upon completion by the recipient of the "Direct Deposit Authorization, Form PA-63.

††††† (b) A payment shall be issued prospectively.

††††† (2) Initial payment.

††††† (a) A K-TAP approval shall not be made for a period prior to the date of application.

††††† (b) The effective date of an initial payment for a K-TAP approval shall be the date an application is filed if eligibility factors are met as of that date.

††††† (c) If eligibility factors are not met as of the day of application, the approval shall be effective the date on which all factors are met.

††††† (3) Subsequent and special payment.

††††† (a) Except in a situation pursuant to paragraph (b) of this subsection, a subsequent K-TAP payment shall be made for an entire month in which technical eligibility factors are met as of the first day of the month.

††††† (b) A special payment shall be issued:

††††† 1. If the regular monthly payment received is less than the entitled amount based on a household circumstance; and

††††† 2. For a period of up to twelve (12) months preceding the month of error correction, if the error existed in the preceding months.

††††† (4) Inalienability of payment.

††††† (a) A K-TAP payment shall be unconditional and exempt from a remedy for the collection of a debt, lien, or encumbrance from an individual or agency other than the Cabinet for Health and Family Services.

††††† (b) The Cabinet for Health and Family Services may initiate recoupment to recover overpayment of benefits pursuant to 921 KAR 2:016.

††††† (c) The Cabinet for Health and Family Services shall make adjustments to an EBT account to correct an auditable, out-of-balance settlement condition that occurs during the redemption process as a result of a system error.

††††† (5) EBT Account Inactivity.

††††† (a) If an EBT account has not been debited in 365 days, the cabinet shall:

††††† 1. Expunge a monthly benefit on a monthly basis as each individual benefit month reaches a date that is 365 days in the past; and

††††† 2. Notify the household in writing:

††††† a. That the householdís EBT account has not been debited in the last 365 days; and

††††† b. Of the amount of EBT benefits that have been expunged.

††††† (b) If a recipient debits the EBT account, the expungement process shall cease.

††††† (6) Eligible payee.

††††† (a) A money payment shall be issued in the name of the approved applicant.

††††† (b) Upon request of an individual specified in this subsection, a K-TAP payment for the month of death shall be reissued to the:

††††† 1. Widow or widower;

††††† 2. Parent;

††††† 3. Guardian; or

††††† 4. Executor or administrator of the estate.

††††† (c) If the payment is reissued to an executor or administrator, a copy of the appointment order shall be obtained as verification.

††††† (7) In accordance with 42 U.S.C. 608(a)(12), a K-TAP payment received on EBT shall not be accessed via an EBT transaction, such as a point-of-sale terminal or an automated teller machine, at a:

††††† (a) Liquor store;

††††† (b) Business that provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment;

††††† (c) Casino;

††††† (d) Gambling casino; or

††††† (e) Gaming establishment.

††††† (8) The terms used in subsection (7) of this section shall be defined in accordance with 42 U.S.C. 608(a)(12)(B).

 

††††† Section 2. Supportive Services for KWP Participants. A supportive services payment for a KWP participant shall be made according to the type of service provided, as follows:

††††† (1) A child care payment shall be issued pursuant to 922 KAR 2:160.

††††† (2) A transportation payment pursuant to 921 KAR 2:017 shall be made directly to the K-TAP recipient.

††††† (3) Other approved supportive services payments shall be made:

††††† (a) Directly to the provider; and

††††† (b) Within thirty (30) days of receipt of appropriate verification of service delivery of billing, pursuant to 921 KAR 2:017.

 

††††† Section 3. Authorization of an SSP payment. (1) Method of payment.

††††† (a) A payment shall be issued monthly by:

††††† 1. Check; or

††††† 2. Direct deposit into a recipientís checking account upon completion by the recipient of the PA-63, Direct Deposit Authorization form; and

††††† (b) A payment shall be issued prospectively.

††††† (2) Initial payment.

††††† (a) The effective date for SSP approval shall be the first day of the month in which:

††††† 1. An application is filed; and

††††† 2. Eligibility factors are met.

††††† (b) An SSP payment shall be made for the entire month of which eligibility factors are met.

††††† (3) Subsequent and special payment.

††††† (a) A subsequent SSP payment shall be made for an entire month in which eligibility factors are met as of the first day of the month.

††††† (b) A special payment shall be made:

††††† 1. If the regular monthly payment received is less than the entitled amount based on a household circumstance; and

††††† 2. For a period of up to twelve (12) months preceding the month of error correction, if the error existed in the preceding months.

††††† (4) Inalienability of a payment.

††††† (a) An SSP money payment shall be unconditional and is exempt from a remedy for the collection of a debt, lien, or encumbrance from an individual or agency other than the Cabinet for Health and Family Services.

††††† (b) The Cabinet for Health and Family Services shall initiate recoupment to recover overpayment of benefits.

††††† (5) Eligible payee.

††††† (a) A money payment shall be issued in the name of the eligible applicant except as provided in paragraph (b) of this subsection.

††††† (b) A money payment may be issued to the:

††††† 1. Legally appointed committee or guardian; or

††††† 2. Person serving as the representative payee for another statutory benefit such as Supplemental Security Income.

††††† (c) Upon request of an individual specified in this subsection, an SSP payment for the month of death shall be reissued to the:

††††† 1. Widow or widower;

††††† 2. Parent;

††††† 3. Guardian; or

††††† 4. Executor or administrator of the estate.

††††† (d) If the payment is reissued to an executor or administrator, a copy of the appointment order shall be obtained as verification.

 

††††† Section 4. Authorization of Persons with MI/ID[MIMR] Supplement Program Payment. (1) Method of payment.

††††† (a) The MI/ID[MIMR] supplement payment shall be made:

††††† 1. Quarterly;

††††† 2. By the last day of the month following the month that the certified quarter ends; and

††††† 3. Following receipt of appropriate documentation, pursuant to 921 KAR 2:015.

††††† (b) The training reimbursement payment for the MI/ID[MIMR] Supplement Program shall be made:

††††† 1. Quarterly;

††††† 2. By the last day of the month following the month that the certified quarter ends; and

††††† 3. Following receipt of appropriate documentation, pursuant to 921 KAR 2:015.

††††† (2) Initial payment.

††††† (a) Following the notification to the Cabinet for Health and Family Services by the personal care home (PCH) of its intent to participate, the effective date of the MI/ID[MIMR] supplement shall be the first day of a month that certification requirements pursuant to 921 KAR 2:015 are met.

††††† (b) If a Type A citation issued from the Office of Inspector General occurs, payment shall be made only for eligible months pursuant to 921 KAR 2:015.

††††† (3) A subsequent payment shall be made for a month within a quarter in which eligibility factors are met.

††††† (4) Eligible payee.

††††† (a) Payment for the MI/ID[MIMR] supplement shall be made to the participating PCH, meeting MI/ID[MIMR] certification requirements, for an eligible calendar quarter, pursuant to 921 KAR 2:015.

††††† (b) Payment for the MI/ID[MIMR] training reimbursement shall be made to the participating PCH.

 

††††† Section 5. Incorporation by Reference. (1) The "PA-63, Direct Deposit Authorization", 12/15[11/11], is incorporated by reference.

††††† (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, the Department for Community Based Services, 275 East Main Street, Frankfort, Kentucky 40621, Monday through Friday, 8 a.m. to 4:30 p.m.

 

TERESA C. JAMES, LCSW, Commissioner

AUDREY TAYSE HAYNES, Secretary

††††† APPROVED BY AGENCY: July 7, 2015†††††

††††† FILED WITH LRC: July 9, 2015 at 11 a.m.

††††† PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall, if requested, be held on August 21, 2015, at 9:00 a.m. in the Health Services Auditorium, Health Services Building, First Floor, 275 East Main Street, Frankfort, Kentucky. Individuals interested in attending this hearing shall notify this agency in writing by August 14, 2015, five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. The hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to attend the public hearing, you may submit written comments on the proposed administrative regulation. You may submit written comments regarding this proposed administrative regulation until August 31, 2015. Send written notification of intent to attend the public hearing or written comments on the proposed administrative regulation to:

††††† CONTACT PERSON: Tricia Orme, Office of Legal Services, 275 East Main Street 5 W-B, Frankfort, Kentucky 40601, phone 502-564-7905, fax 502-564-7573, email tricia.orme@ky.gov.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact person: Elizabeth Caywood

††††† (1) Provide a brief summary of:

††††† (a) What this administrative regulation does: This administrative regulation establishes the time and manner of payments made to Kentucky Transitional Assistance Program (K-TAP) recipients, Kentucky Works Program (KWP) participants for supportive services, and State Supplementation Program (SSP) recipients.

††††† (b) The necessity of this administrative regulation: This administrative regulation is necessary to establish the time and manner in which public assistance payments are issued.

††††† (c) How this administrative regulation conforms to the content of the authorizing statutes: This administrative regulation conforms to the content of the authorizing statutes by establishing the time and manner of K-TAP, KWP supportive services, and SSP payments.

††††† (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation assists in the effective administration of the statutes by establishing the time and manner of public assistance payments.

††††† (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

††††† (a) How the amendment will change this existing administrative regulation: The amendment to this administrative regulation incorporates changes on the PA-63, Direct Deposit Authorization, to align with the requirements of a new forthcoming web-based enrollment and eligibility system, and it updates references made to Mental Illness or Mental Retardation (MIMR) to Mental Illness or Intellectual Disability (MI/ID), as the program name has changed. The amendment also makes technical corrections in accordance with KRS Chapter 13A.

††††† (b) The necessity of the amendment to this administrative regulation: The amendment reflects necessary updates to the administrative regulation since its last amendment and aligns the administrative regulation with the new web-based eligibility and enrollment system. This new system promises further programmatic modernization, greater efficiency in the eligibility determination process and ongoing case maintenance, and enhanced reporting and archiving functionalities.

††††† (c) How the amendment conforms to the content of the authorizing statutes: The amendment conforms to the content of the authorizing statutes through its update to regulatory content and alignment with forthcoming business processes and technology.

††††† (d) How the amendment will assist in the effective administration of the statutes: The amendment to this administrative regulation will assist in the effective administration of the statutes by assuring process and policy alignment, resource maximization, and programmatic accountability.

††††† (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: In March 2015, there were 20,590 K-TAP families, 4,687 Kinship Care recipients, and 2,893 State Supplementation recipients.

††††† (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

††††† (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The amendment to this administrative regulation will require no new or additional action by regulated entities.

††††† (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The amendment to this administrative regulation will create no new or additional costs to regulated entities.

††††† (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): Regulated entities will benefit from the updates and clarity provided within the regulatory amendment and the enhanced programmatic efficiencies promised by the new web-based eligibility and enrollment system. The time and manner of payments have otherwise remained unchanged.

††††† (5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

††††† (a) Initially: The amendment to this administrative regulation is technical and conforming in nature and is anticipated to impose no new or additional cost to the administrative body to implement.

††††† (b) On a continuing basis: The amendment to this administrative regulation is technical and conforming in nature and is anticipated to impose no new or additional ongoing costs to the administrative body to implement.

††††† (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Federal Temporary Assistance for Needy Families (TANF) Block Grant funds under Title IV-A of the Social Security Act and General Funds used to meet Maintenance of Effort requirements are the funding sources for both K-TAP and Kinship Care. General Funds are the source of funding for the State Supplementation Program (SSP).

††††† (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: An increase in fees or funding will not be necessary to implement this amendment.

††††† (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This administrative regulation does not establish fees or directly or indirectly increase any fees.

††††† (9) TIERING: Is tiering applied? Tiering is not applied. This administrative regulation will be applied in a like manner statewide.

 

FEDERAL MANDATE ANALYSIS COMPARISON

 

††††† 1. Federal statute or regulation constituting the federal mandate.

42 U.S.C. 601-619

††††† 2. State compliance standards. KRS 194A.050(1), 205.220, 205.245

††††† 3. Minimum or uniform standards contained in the federal mandate. 42 U.S.C. 601-619

††††† 4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? This administrative regulation will impose no stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

††††† 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. This administrative regulation will impose no stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

††††† (1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Cabinet for Health and Family Services will be impacted by this administrative regulation.

††††† (2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 194A.050(1), 205.200, 205.245, 42 U.S.C. 601-619

††††† (3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

††††† (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation will not generate revenue for state or local government during the first year.

††††† (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation will not generate revenue for state or local government in subsequent years.

††††† (c) How much will it cost to administer this program for the first year? No new or additional costs are necessary to administer this program in the first year.

††††† (d) How much will it cost to administer this program for subsequent years? No new or additional costs are necessary to administer this program in any subsequent years.

††††† Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

††††† Revenues (+/-):

††††† Expenditures (+/-):

††††† Other Explanation: