N.Y. Comp. Codes R. & Regs. Tit. 18 § 381.4 - Restricted payments in ADC
(a)
The use of a protective payee, vendor or other restricted payment is required:
when the relative payee has demonstrated such inability to manage funds that
the best interest of the child is not served; or at the request of the
recipient.
(b) In making a
determination of mismanagement in ADC cases, the following considerations shall
apply:
(1) Methods shall be in effect to
identify children whose relatives have demonstrated such an inability to manage
funds that payments to the relative have not been or are not currently used in
the best interest of the child. This means that the relative has misused funds
to such an extent that allowing him or her to manage the ADC grant is a threat
to the health or safety of the child. Nonpayment of bills may be used as an
indication that mismanagement may exist. However, a determination of such
mismanagement shall not be made solely on the fact that bills are not paid on a
timely basis. All relevant considerations shall be taken into account
including, but not limited to the following:
(i) The fact that more than one month has
passed since the bill payment was due and payment has not yet been made or
notice of the termination of essential services for nonpayment of bills shall
be considered rebuttable presumptive evidence of inability to handle cash.
Examples of how this presumption may be rebutted include, but are not limited
to:
(a) where a recipient demonstrates that
the family has experienced some emergency or extraordinary event for which it
was appropriate for available funds to be spent;
(b) where a recipient demonstrates
extraordinary expenses for necessary items not normally provided for by the
public assistance grant or by the medical assistance program or for which
payment is not otherwise readily available from some other source;
(c) where a recipient demonstrates that the
family has withheld the payment of bills as a reasonable exercise of consumer
rights where there is a legitimate dispute as to whether the terms of an
agreement have been met.
(ii) When a recipient is more than one month
in arrears, and the vendor or his designated agent desires restricted payment,
the vendor or his designated agent must make such request in writing to the
local social services official. Prior to making such written request, the
vendor or his designated agent shall attempt to collect the overdue payments
from the recipient and shall provide evidence of such attempt to the social
services official when the written request is made.
(iii) The social services official shall
advise the recipient whenever a vendor or his designated agent requests
restricted payments.
(iv) The
social services official shall advise the recipient of the decision to restrict
payment by means of a timely and adequate notice detailing the reasons for the
proposed action or shall advise the recipient of a decision not to restrict
payment.
(v) When a decision to
make restricted payments is made, the decision shall be entered in the case
record and the reasons underlying the decision shall be fully
documented.
(vi) When a
determination is made to restrict payment as a result of an action by a vendor
or his designated agent, the rest of the grant will be paid as an unrestricted
money payment unless additional conditions provide for further
restrictions.
(2)
Criteria shall be established to identify the circumstances under which
restricted payments will be made in whole or in part directly to:
(i) another individual who is interested in
or concerned with the welfare of such child or relative; or
(ii) to a vendor or his designated agent,
that is, a person or persons furnishing food, living accommodations or other
goods, services or items to or for the child, relative or essential
person.
(3) Procedures
shall be established for making restricted payments. Under this provision, part
of the payment may be made to the family and part may be made as restricted
payments.
(4) When necessary, under
appropriate circumstances, foster care shall be provided.
(5) When problems and needs for services and
care of the recipients are manifestly beyond the ability of the protective
payee to handle, responsibility shall be assumed by the social services
official for appropriate action to protect the recipients.
(c) In those ADC cases where an
applicant/recipient requests a vendor or protective payment, the following
considerations shall apply:
(1) the local
social services district may use any combination of protective, vendor or two-
party payment;
(2) the request
shall be in writing from the recipient to whom payment would otherwise be made
in an unrestricted manner and shall be recorded or retained in the case
record;
(3) the restriction shall
be discontinued promptly upon written request of the recipient who initiated
it; and
(4) the social services
official shall send an adequate notice to the recipient no later than the date
of commencement or discontinuance of a restricted payment pursuant to this
subdivision.
Notes
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