Sec.17b-198-12. Issuance of benefits

(a) Definitions. As used in this section, "electronic benefits transfer account" means an account in a financial institution into which the department may deposit benefit payments that may be accessed by an appropriate payee, as described in subsection (b) of this section, by means of a debit card and personal identification number issued by the department.

(b) Determining the appropriate payee. The department shall make payment of any benefit issued pursuant to SAGA to the assistance unit member in whose name assistance is requested, except that when:

(1) Such member has appointed an authorized representative and has notified the department that such authorized representative should receive such payment on his or her behalf, payment shall be made to such authorized representative;

(2) Such member is an unmarried person between the ages of eighteen and twenty-one who lives with a TFA assistance unit under the circumstances described in subparagraph (A) of subdivision (2) of subsection (b) of section 17b-198-10 of the Regulations of Connecticut State Agencies, payment shall be made to the TFA assistance unit's head of household;

(3) Such member has a legally appointed conservator, guardian or other legal representative, payment shall be made to such conservator, guardian or other legal representative;

(4) Such payment is for a special benefit authorized pursuant to section 17b-198-11 of the Regulations of Connecticut State Agencies, payment shall be made in accordance with subsection (l) of said section;

(5) Such member resides in a rated housing facility or a licensed residential care home, payment shall be made to such facility or home and the department shall notify such member that payment in his or her name has been made to such facility or home; or

(6) DMHAS, or its designee, or the department determines that there has been financial mismanagement pursuant to subsection (e) of this section, the department may appoint a protective payee to receive and manage such payments or a portion thereof on behalf of the assistance unit.

(c) Method of payment. The department shall issue payment to (1) any assistance unit eligible for assistance pursuant to SAGA by electronically depositing benefits into an appropriate payee's personal banking account held at a financial institution or into an electronic benefits transfer account that is accessible to an appropriate payee, or, (2) if the appropriate payee is a rated housing facility, licensed residential care home or a vendor, contractor or other person providing goods or services to the assistance unit, such payment may be issued to the appropriate payee in the form of a check or, if possible, by electronic means. The department shall, at the time eligibility for assistance pursuant to SAGA is established, issue a debit card associated with an electronic benefits transfer account to any appropriate payee who elects to receive payment by deposit into such an account. Such debit card shall be accompanied by instructions for selecting a personal identification number by use of an automated telephone system. Any payment deposited into an electronic benefits transfer account may be accessed by an appropriate payee at the financial institution where such payment was deposited or by using such debit card and personal identification number at any location that accepts such debit cards, including an automatic teller machine, a point of banking terminal and any point of sale device, including a point of sale device that is located at a retail or merchant establishment or used by a public housing authority for the payment of bills or monthly rent. The assistance unit shall be responsible for any fees charged by a financial institution in conjunction with the use of a debit card associated with an electronic benefits transfer account.

(d) Expiration of payments. Any check issued as payment pursuant to subsection (c) of this section shall expire three calendar months after the day following the date such check is issued and may not be negotiated after such expiration date. Any benefit payment deposited into an electronic benefits transfer account may be accessed by an appropriate payee at any time, except that any benefits deposited in such a manner shall be expunged from such account whenever no withdrawals are made from such account for a period of twelve months.

(e) Financial mismanagement. (1) Whenever DMHAS, or its designee, or the department believes and verifies that there has been financial mismanagement of benefits issued to an appropriate payee, the department may appoint a protective payee to receive and manage benefit payments on behalf of and in the best interest of the assistance unit, make such payments to a vendor or other person providing services to or for such assistance unit or issue such payments by virtue of a combination of such methods. In determining which of these methods to use in a particular case, the department shall consider the extent to which the appropriate payee is able or unable to manage such benefit payments, the availability of a person authorized to serve as a protective payee pursuant to subdivision (2) of this subsection and the method of payment that is most conducive to rehabilitating the appropriate payee. The department shall make a finding of financial mismanagement whenever (A) a person who would otherwise be an appropriate payee demonstrates an inability to manage benefit payments because such person has not or is not using such payments in the best interest of the assistance unit, and (B) allowing such person to continue to manage such benefit payments would pose a threat to the health or safety of an assistance unit member. Evidence relied upon by the department to verify a finding of financial mismanagement shall be documented and maintained with the case file. Whenever financial mismanagement is determined to exist, the department shall refer the assistance unit to a social worker for assistance with financial management.

(2) The department shall involve the assistance unit member in the selection of a protective payee to the greatest extent possible, but may select a protective payee based solely on the judgment of the department. The protective payee (A) shall be (i) a relative of the assistance unit member, (ii) a member of the clergy, (iii) a close friend of the assistance unit member, (iv) a volunteer from a community social services agency, or (v) a department employee who is duly delegated to serve as a conservator by the commissioner, and (B) shall (i) have an interest in or concern about the welfare of the assistance unit beyond that which would be expected of a friend or neighbor, (ii) be able to manage funds effectively, (iii) be available to assist the assistance unit with household planning, budgeting and home management problems, (iv) be capable of establishing and maintaining a good working relationship with the assistance unit member, and (v) be responsible and dependable, as evidenced by positive character references. The department shall verify a person's identity, relationship to the assistance unit member, qualifications and occupation or other means of subsistence prior to such person's appointment as a protective payee. In no event shall a protective payee be a department employee who has not been delegated to serve as a conservator by the commissioner, a landlord, grocer or other vendor of goods or services who has direct dealing with the assistance unit member, or a staff member of a public or private agency or organization that assists in the determination of the assistance unit's financial eligibility for department assistance, performs investigative or resource duties for the department or handles fiscal processes related to the assistance unit.

(3) Whenever the department appoints a protective payee, the department shall develop a written plan to govern the protective payee's responsibilities. Such plan shall be signed by the protective payee and notarized, and copies of such plan shall be provided to the protective payee and the assistance unit. Such plan shall include provisions concerning:

(A) The assistance unit's primary financial obligations and how money paid to the protective payee should be spent;

(B) The primary objectives of such plan;

(C) Methods to increase the ability of the assistance unit member to handle assistance payments in the future;

(D) Reporting requirements to which the protective payee and assistance unit member must adhere;

(E) The rights of the assistance unit member and the need to maintain confidentiality of personal information concerning such member;

(F) Any other provisions the department deems necessary to assure the health and safety of the assistance unit member and the proper use of assistance payments; and

(G) A description of legal penalties that may be imposed on the protective payee for misuse of assistance payments.

(4) Payments to a protective payee shall continue for a period no longer than twenty-four months and shall be discontinued prior to the expiration of such twenty-four month period (A) upon the advice of an appropriate social service agency that is assisting the assistance unit, (B) when the appropriate payee to whom payments were discontinued due to financial mismanagement demonstrates an increased ability to manage funds such that the assistance unit member's health or safety is not threatened by renewed payment to such appropriate payee, or (C) upon the appointment of a guardian or other legal representative for the assistance unit member, in which case payment shall be made to such guardian or other legal representative. The department shall seek judicial appointment of a guardian or other legal representative whenever the need for a protective payee will or is likely to continue beyond a period of twenty-four months or when the physical or mental condition of the appropriate payee is such that appointment of a legal representative is essential immediately.

(5) Notwithstanding the provisions of subdivision (2) of this subsection, when a finding of financial mismanagement is made pursuant to subdivision (1) of this subsection and the assistance unit member is entitled to a special benefit pursuant to section 17b-198-11 of the Regulations of Connecticut State Agencies, the department may issue the special benefit payment directly to the vendor, contractor or other person providing goods or services to such member.

(6) Any case involving a finding of financial mismanagement shall be reviewed as frequently as the department deems necessary due to the circumstances, but in no event shall such review occur less frequently than once every twelve months.

(7) An appropriate payee may request a fair hearing in response to the department's finding of financial mismanagement. The department may initiate or continue to make assistance payments to a protective payee while a decision stemming from such fair hearing remains pending.

(f) Payment cycle. (1) The first payment shall be issued not later than the first business day after the date on which eligibility for assistance pursuant to SAGA is determined and shall include any retroactive payment to which the assistance unit is entitled. The second payment shall be made on the first day of the month following the month in which the first payment was made and subsequent payments shall be issued on a monthly basis.

(2) Notwithstanding the provisions of subdivision (1) of this subsection:

(A) Any payment made to a rated housing facility or a licensed residential care home shall be issued in the month following the month in which the eligible assistance unit member resided in such facility or home, due to the department's need to determine the appropriate payment standard, as described in subsection (b) of section 17b-198-10 of the Regulations of Connecticut State Agencies, on a per diem basis;

(B) Any special benefit payment, as described in section 17b-198-11 of the Regulations of Connecticut State Agencies, shall be made as a supplemental payment to the appropriate payee as soon as possible when eligibility for such special benefit is verified, and shall be made on a recurring or non-recurring basis, as specified in said section; and

(C) Any corrective payment shall be made (i) not later than the next monthly assistance payment after the date on which such corrective benefit payment is approved for any assistance unit whose case remains open, and (ii) as soon as possible for any assistance unit whose case has been closed.

(3) The department shall provide notice to the appropriate payee describing the frequency with which benefit payments shall be made, the period such payments are intended to cover and the amount in which such payments shall be issued.

(g) Determining the effective date for the start of assistance. The effective date for the start of assistance shall be:

(1) The date the department received a signed application for assistance if:

(A) The assistance unit complies with all obligations for eligibility set forth in section 17b-198-6 of the Regulations of Connecticut State Agencies during the application process;

(B) All eligibility criteria set forth in sections 17b-198-5 and 17b-198-7 of the Regulations of Connecticut State Agencies are met on the date of application; and

(C) All financial eligibility criteria, as set forth in sections 17b-198-8 and 17b-198-9 of the Regulations of Connecticut State Agencies, are met during the month of application;

(2) The date all eligibility factors are satisfied if:

(A) The assistance unit complies with all obligations for eligibility set forth in 17b-198-6 of the Regulations of Connecticut State Agencies during the application process; and

(B) The assistance unit was ineligible for assistance on the date of application solely due to the assistance unit's failure to satisfy one or more of the eligibility requirements set forth in sections 17b-198-5 and 17b-198-7 of the Regulations of Connecticut State Agencies, but satisfies such requirement or requirements at a later date during the application process; or

(3) The first day of the month following the month of application if:

(A) The assistance unit complies with all obligations for eligibility set forth in 17b-198-6 of the Regulations of Connecticut State Agencies during the application process;

(B) The assistance unit's assets or income exceeded the limits for financial eligibility set forth in sections 17b-198-8 and 17b-198-9 of the Regulations of Connecticut State Agencies in the month of application; and

(C) The assistance unit's assets and income no longer exceed the limits for financial eligibility set forth in sections 17b-198-8 and 17b-198-9 of the Regulations of Connecticut State Agencies in the month following the month of application and all other eligibility criteria are met at such time.

(Effective October 11, 2016)