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.


N.Y. Comp. Codes R. & Regs. Tit. 18 § 381.4

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