(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.
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