KRS 205.940: Representative payee fund.

(1) A representative payee fund shall be created for the purpose of providing grants to

public or private organizations who provide representative payee services. The fund

shall consist of moneys appropriated by the General Assembly. These moneys may

also be supplemented by funds obtained from other sources for the fund as provided

in this section.

(2) The fund shall be administered by the Cabinet for Health and Family Services.

(3) Application for moneys from the fund may be made to the cabinet, on forms

prescribed by administrative regulation. The awarding of grants shall be based upon

the availability of funds. Grants shall be given to nonprofit organizations or

agencies providing representative payee services to more than ten (10) persons who

are mentally impaired, homeless or at risk of being homeless, or substance abusers

in area development districts created pursuant to KRS 147A.050. The cabinet shall

endeavor to fund an applicant where an eligible applicant exists. Health -care

facilities or other institut ions, who serve as representative payees for persons

residing therein, shall not be eligible to receive funds under this section.

(4) In determining the amount of each grant, the cabinet shall consider the number of

persons receiving representative payee s ervices from an applicant, the amount

necessary to reimburse the applicant for all or a portion of the administrative costs

incurred in providing representative payee services, and any fee charged by an

applicant for the provision of representative payee services.

(5) The cabinet shall require applicants receiving funds pursuant to this section to be

bonded, and to file an annual report with the cabinet providing an accounting of all

funds expended on behalf of persons for whom representative payee services are

provided. The cabinet shall promulgate administrative regulations providing for the

termination of a grant if it determines a representative payee is not serving in the

best interests of a client. If a grant is terminated, the cabinet shall report the

termination to the agency who appointed the representative payee and recommend

the appointment of a new representative payee. If financial exploitation is indicated,

the termination shall also be reported to the Department for Community Based

Services for investigation pursuant to KRS Chapter 209.

(6) The cabinet may provide training for persons serving as representative payees and

may provide technical assistance to applicants awarded a grant.

(7) The cabinet may apply for any grants that may be used to s upplement the

representative payee fund, and may accept gifts or donations to the fund.