921 KAR 2:050. Time and manner of payments

Link to law: http://www.lrc.ky.gov/kar/921/002/050reg.htm
Published: 2015

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 household’s 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 recipient’s 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:
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