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AN ACT relating to public assistance. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 3
READ AS FOLLOWS: 4
For the purposes of Sections 3, 12, 17, 18, 19, 20, 21, and 22 of this Act, unless context 5
requires otherwise: 6
(1) "Cash assistance": 7
(a) Means cash benefits provided under this chapter, including via an 8
electronic benefit transfer card; and 9
(b) Does not include foster care payments, kinship care payments, fictive kin 10
care payments, or relative placement payments made by the cabinet; and 11
(2) "Public Assistance" has the same meaning as in KRS 205.010 but does not 12
include foster care payments, kinship care payments, fictive kin care payments, or 13
relative placement payments made by the cabinet. 14
SECTION 2. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 15
READ AS FOLLOWS: 16
(1) Within ninety (90) days of the effective date of this Act and in each biennium 17
thereafter, the cabinet shall conduct an analysis of state expenditures related to 18
the provision of services, support, and assistance under 42 U.S.C. sec. 601 et seq. 19
The analysis conducted pursuant to this section shall include identification of 20
any unobligated funds and actions necessary to access those funds. 21
(2) If the cabinet, through the analysis required by this section, identifies any 22
unobligated funds, those funds shall be allocated to: 23
(a) The job placement assistance program established in Section 16 of this Act; 24
and 25
(b) Additional work supports and supportive services as permitted under 42 26
U.S.C. sec. 601 et seq. 27 UNOFFICIAL COPY 22 RS HB 7/GA
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SECTION 3. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 1
READ AS FOLLOWS: 2
(1) As used in this section: 3
(a) "Alcoholic beverage" has the same meaning as in KRS 241.010; 4
(b) "Cash recipient of public assistance benefits" means any individual who 5
receives cash assistance via an electronic benefit transfer card or any other 6
form of cash assistance under Title IV of the Social Security Act, the 7
Supplemental Nutrition Assistance Program, or any other public assistance 8
program administered by the cabinet; 9
(c) "Tobacco product" has the same meaning as in KRS 438.305; and 10
(d) "Vapor product" has the same meaning as in KRS 438.305. 11
(2) A cash recipient of public assistance benefits shall not use any portion of his or 12
her benefits to purchase alcoholic beverages, tobacco products, vapor products, 13
or lottery tickets, or to purchase any goods or services in a casino, an 14
establishment that provides adult-oriented entertainment in which performers 15
disrobe or perform in an unclothed state, a tattoo or body piercing facility, or a 16
retail establishment the primary purpose of which is the sale of alcoholic 17
beverages, tobacco products, or vapor products. 18
(3) If a cash recipient of public assistance benefits uses an automated teller machine 19
or any other means or device to withdraw cash using an electronic benefit 20
transfer card issued by the cabinet, that cash may only be used for goods and 21
services necessary for the welfare of the family, including but not limited to food, 22
clothing, housing, utilities, child care, transportation, medicine, and medical 23
supplies. 24
(4) Any person who violates subsection (2) or (3) of this section shall be subject to the 25
following sanctions: 26
(a) Upon the first violation, the recipient shall be disqualified from receiving 27 UNOFFICIAL COPY 22 RS HB 7/GA
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public assistance benefits by means of a direct cash payment or an 1
electronic benefits transfer card for one (1) month; 2
(b) Upon the second violation, the recipient shall be disqualified from receiving 3
public assistance benefits by means of a direct cash payment or an 4
electronic benefits transfer card for three (3) months; and 5
(c) Upon the third violation, the recipient shall be disqualified from receiving 6
public assistance benefits by means of a direct cash payment or an 7
electronic benefits transfer card for a period of five (5) years. 8
(5) The cabinet shall: 9
(a) Within ninety (90) days after the effective date of this Act, to the extent it is 10
feasible and except at provided in subparagraphs 1., 2., and 3. of this 11
paragraph, begin utilizing a single benefit card for each cash recipient of 12
public assistance benefits administered under this chapter regardless of in 13
which public assistance programs the individual is enrolled. The single 14
benefit card required by this paragraph shall be an electronic benefit 15
transfer card and shall, at a minimum, be utilized for Supplemental 16
Nutrition Assistance Program benefits and the state's medical assistance 17
program benefits. The single benefit card required by this paragraph shall 18
not be utilized for: 19
1. Foster care payments, kinship care payments, fictive kin care 20
payments, or relative placement payments made by the cabinet; 21
2. Public assistance benefits provided to women, infants, and children 22
under 42 U.S.C. sec. 1786; or 23
3. Cash assistance benefits paid directly to a third party on behalf of a 24
public assistance benefit recipient, including but not limited to child-25
care subsidies paid pursuant to KRS 199.899; 26
(b) Through any means practical, inform all applicants for and cash recipients 27 UNOFFICIAL COPY 22 RS HB 7/GA
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of public assistance benefits of the restrictions and sanctions contained in 1
this section; 2
(c) Monitor the use of electronic benefit transfer cards to withdraw cash and 3
investigate cases in which it believes cash benefits may be being used in 4
violation of subsection (3) of this section; and 5
(d) Within ninety (90) days after the effective date of this Act, promulgate 6
administrative regulations in accordance with KRS Chapter 13A necessary 7
to administer this section. 8
SECTION 4. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) The General Assembly hereby affirms the mission of the Supplemental Nutrition 11
Assistance Program, formerly known as the federal food stamp program, to 12
supplement the food budgets of needy families so that they can purchase healthy 13
food and move toward self-sufficiency. To that end, the General Assembly 14
recommends that Supplemental Nutrition Assistance Program beneficiaries use 15
at least seventy-five percent (75%) of their monthly benefits to purchase healthy 16
foods, including fresh fruits, fresh vegetables, and whole grains, and that 17
beneficiaries utilize the Kentucky Double Dollars program to enhance the 18
purchasing power of their Supplemental Nutrition Assistance Program benefits 19
by purchasing fresh produce from local farmers' markets. 20
(2) To the extent that surplus Supplemental Nutrition Assistance Program Education 21
funds are available at the end of each federal fiscal year, the cabinet shall 22
coordinate with the Department of Agriculture to provide support to expand 23
access by Supplemental Nutrition Assistance Program beneficiaries to farmers' 24
markets across the Commonwealth. 25
SECTION 5. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 26
READ AS FOLLOWS: 27 UNOFFICIAL COPY 22 RS HB 7/GA
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In order to improve access to the Supplemental Nutrition Assistance Program, reduce 1
administrative costs associated with the program, and enhance program integrity, the 2
cabinet shall: 3
(1) Within one hundred eighty (180) days after the effective date of this Act: 4
(a) Establish a transitional benefit alternative as described in 7 C.F.R. secs. 5
273.26 to 273.32; 6
(b) Request a waiver from the United States Department of Agriculture to 7
implement: 8
1. An Elderly Simplified Application Project for individuals who have no 9
earned income and who are over sixty (60) years of age or who are 10
disabled; and 11
2. A standard medical deduction waiver for individuals who are over 12
sixty (60) years of age or are disabled; 13
(c) Establish procedures to allow Supplemental Nutrition Assistance Program 14
beneficiaries to recertify eligibility online; 15
(d) To the extent permitted under federal law, develop and implement an online 16
employment and training program, as defined in 7 U.S.C. sec. 2015(d)(4), 17
for any individual that is subject to work requirements under 7 U.S.C. sec. 18
2015(d)(1); 19
(e) Request a waiver from the United States Department of Agriculture relating 20
to Supplemental Nutrition Assistance time limit exception established in 7 21
C.F.R. sec. 273.24(c)(4); and 22
(f) Promulgate administrative regulations in accordance with KRS Chapter 23
13A necessary to administer this section; and 24
(2) Within ninety (90) days after the effective date of this Act, require all households 25
receiving Supplemental Nutrition Assistance benefits, except for those 26
households described in subsection (1)(b) of this section, to comply with the 27 UNOFFICIAL COPY 22 RS HB 7/GA
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certified change reporting requirements established in 7 C.F.R. sec. 273.12(a). 1
SECTION 6. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 2
READ AS FOLLOWS: 3
(1) The cabinet, to the extent permitted under federal law, shall implement a 4
community engagement program that requires all able-bodied adults without 5
dependents who have been enrolled in the state's medical assistance program for 6
more than twelve (12) months to participate in at least eighty (80) hours of 7
qualifying community engagement activities each month. 8
(2) If the federal Centers for Medicare and Medicaid Services approves the 9
implementation of a community engagement program pursuant to subsection (1) 10
of this section: 11
(a) The program shall, for the purpose of defining qualifying community 12
engagement activities, utilize the work requirements established in 7 C.F.R. 13
sec. 273.24; 14
(b) Participation in the job placement assistance program established in 15
Section 16 of this Act shall constitute qualifying community engagement 16
activities; and 17
(c) The cabinet shall, on a monthly basis, provide the Education and 18
Workforce Development Cabinet with the name and contact information of 19
each individual required by subsection (1) of this section to participate in 20
community engagement activities. 21
(3) As used in this section "able-bodied adult without dependents" means an 22
individual who is: 23
(a) Over eighteen (18) years of age but under sixty (60) years of age; 24
(b) Physically and mentally able to work as determined by the cabinet; and 25
(c) Not primarily responsible for the care of a dependent child under the age of 26
eighteen (18) or a dependent disabled adult relative. 27 UNOFFICIAL COPY 22 RS HB 7/GA
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SECTION 7. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 1
READ AS FOLLOWS: 2
Notwithstanding any provision of law to the contrary, the cabinet shall not exercise the 3
state's option to develop a basic health program as permitted under 42 U.S.C. sec. 4
18051 without first obtaining specific authorization from the General Assembly to do 5
so. 6
SECTION 8. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) When the Department for Medicaid Services receives federal funding for the 9
state's medical assistance program which is contingent on temporary 10
maintenance of effort restrictions, such as those restrictions imposed under Pub. 11
L. No. 116-127 sec. 6008, or is, for any reason, limited in its ability to disenroll 12
individuals from the state's medical assistance program, the department shall: 13
(a) Continue to conduct eligibility redeterminations as in the normal course of 14
business; and 15
(b) Act on those redeterminations to the fullest extent permitted under federal 16
law. 17
(2) Following the expiration of any federally imposed restrictions described in 18
subsection (1) of this section, the department shall conduct a full audit in which 19
the department shall: 20
(a) Within sixty (60) days, request approval from the federal Centers for 21
Medicare and Medicaid Services to conduct and act on eligibility 22
redeterminations for each individual who was enrolled during the period of 23
federally imposed restrictions and has been enrolled for more than three (3) 24
months; and 25
(b) Within twelve (12) months: 26
1. Complete and act on eligibility redeterminations for all cases that have 27 UNOFFICIAL COPY 22 RS HB 7/GA
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not had a redetermination within the previous twelve (12) months; and 1
2. Complete and act on eligibility redeterminations for individuals 2
described in paragraph (a) of this subsection, if the department 3
receives the federal approval requested pursuant to this paragraph (a) 4
of this subsection. 5
SECTION 9. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 6
READ AS FOLLOWS: 7
Unless expressly required under federal law, neither the cabinet nor the Department 8
for Medicaid Services shall be designated as a qualified health entity for the purpose of 9
making presumptive eligibility determinations for the state's medical assistance 10
program. 11
SECTION 10. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 12
READ AS FOLLOWS: 13
(1) As used in this section: 14
(a) "Department" means the Department for Medicaid Services; 15
(b) "Period of presumptive eligibility" has the same meaning as in 42 C.F.R. 16
sec. 435.1101; and 17
(c) "Qualified hospital" has the same meaning as in 42 C.F.R. 435.1110(b). 18
(2) If a qualified hospital determines that an individual meets the criteria for 19
presumptive eligibility, the hospital shall: 20
(a) Notify the department of the determination within five (5) business days 21
from the date of determination in a form prescribed by the department; 22
(b) Provide a written eligibility notice to the individual. The written eligibility 23
notice shall, at a minimum, include the following information in plain 24
language and large print: 25
1. The beginning and end dates of the period of presumptive eligibility; 26
2. Notification that the individual is required to make an application for 27 UNOFFICIAL COPY 22 RS HB 7/GA
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Medicaid benefits through the individual's local Department for 1
Community Based Services office; 2
3. The location of the individual's local Department for Community 3
Based Services office; 4
4. Notification that if the individual does not file a full Medicaid 5
application before the last day of the following month, the period of 6
presumptive eligibility coverage will end on that day; and 7
5. Notification that if the individual does file a full Medicaid application 8
before the last day of the following month, presumptive eligibility 9
coverage will continue until an eligibility determination is made on 10
the application by the department; 11
(c) Issue a presumptive eligibility identification card or document to the 12
presumed eligible individual; 13
(d) Maintain a record of the presumptive eligibility screening for each 14
application; and 15
(e) Assist presumptively eligible individuals in completing a full Medicaid 16
application and understanding any documentation requirements. 17
(3) If a qualified hospital determines that an individual does not meet the criteria for 18
presumptive eligibility, the hospital shall provide the individual with written 19
notification of: 20
(a) The reason for the determination; 21
(b) Notification that the individual may file a full Medicaid application through 22
the individual's local Department for Community Based Services office if 23
the individual wishes to have a formal determination of eligibility made by 24
the department; and 25
(c) The location of the individual's local Department for Community Based 26
Services office. 27 UNOFFICIAL COPY 22 RS HB 7/GA
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(4) Notwithstanding any other provision of law to the contrary and to the extent 1
permitted under federal law, a pregnant individual shall be limited to one (1) 2
period of presumptive eligibility per pregnancy. 3
(5) (a) The department shall provide training on all applicable state and federal 4
laws related to presumptive eligibility to all qualified hospitals. 5
(b) Prior to conducting presumptive eligibility screenings and determinations, a 6
qualified hospital's staff, contractor, or vendor responsible for presumptive 7
eligibility screenings and determinations shall be required to complete 8
presumptive eligibility training provided by the department. 9
(6) If a qualified hospital uses a contractor or other vendor for the purpose of 10
conducting presumptive eligibility screenings and determinations, the hospital 11
shall be responsible for monitoring the contractor's or vendor's compliance with 12
all applicable state and federal laws related to presumptive eligibility. 13
(7) Within ninety (90) days after the effective date of this Act, the department shall 14
promulgate administrative regulations in accordance with KRS Chapter 13A that 15
are necessary to administer this section. 16
SECTION 11. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 17
READ AS FOLLOWS: 18
To the extent permitted under federal law, the state's medical assistance program shall 19
provide coverage for substance use disorder treatment, including peer support services 20
and substance use disorder treatment and patient navigation provided by a licensed 21
clinical social worker, for incarcerated individuals. 22
SECTION 12. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 23
READ AS FOLLOWS: 24
(1) If a custodial parent of a dependent child is disqualified from receiving cash 25
assistance benefits pursuant to Section 3, 18, or 19 of this Act, the dependent 26
child's eligibility and any other adult family member's eligibility for cash 27 UNOFFICIAL COPY 22 RS HB 7/GA
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assistance benefits shall not be affected, and the custodial parent may choose to 1
designate another person as a protective payee to receive benefits on behalf of the 2
dependent child. The protective payee shall be an adult immediate family member 3
of the dependent child, if such a person is available. The protective payee shall be 4
approved by the cabinet. 5
(2) Within ninety (90) days after the effective date of this Act, the cabinet shall 6
promulgate administrative regulations, in accordance with KRS Chapter 13A, 7
necessary to administer this section. 8
SECTION 13. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 9
READ AS FOLLOWS: 10
The cabinet shall coordinate with the Department of Correction's Victim Information 11
and Notification Everyday network in order to accurately identify public assistance 12
beneficiaries who have been incarcerated or released from incarceration in as timely a 13
manner as is feasible. 14
SECTION 14. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 15
READ AS FOLLOWS: 16
The Cabinet for Health and Family Services shall report to the Public Assistance 17
Oversight and Advisory Committee, established in Section 17 of this Act, on efforts to 18
implement Sections 2, 3, 5, 6, 8, 10, 11, 12, 13, 18, 19, and 22 of this Act no later than 19
December 1, 2022, within one (1) year after the effective date of this Act, and at any 20
time thereafter upon request from the Public Assistance Oversight and Advisory 21
Committee or any other legislative committee. 22
SECTION 15. A NEW SECTION OF KRS CHAPTER 205 IS CREATED TO 23
READ AS FOLLOWS: 24
The Attorney General shall: 25
(1) On behalf of the Commonwealth of Kentucky, have jurisdiction to enforce this 26
chapter; and 27 UNOFFICIAL COPY 22 RS HB 7/GA
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(2) Bring an action against the Cabinet for Health and Family Services if any 1
provision of Section 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 18, 19, 21, 22, or 24 of this 2
Act are not fully implemented as required by this Act or for any violation thereof. 3
SECTION 16. A NEW SECTION OF KRS CHAPTER 151B IS CREATED 4
TO READ AS FOLLOWS: 5
The Education and Workforce development Cabinet is hereby directed to establish, 6
within one hundred twenty (120) days of the effective date of this Act, a job placement 7
assistance program to assist individuals enrolled in the state's medical assistance 8
program established in KRS Chapter 205 in finding employment. 9
(1) The assistance program shall: 10
(a) Be available to: 11
1. Any individual enrolled in the state's medical assistance program who 12
is required to participate in community engagement activities 13
pursuant to Section 6 of this Act, if the federal Centers for Medicare 14
and Medicaid Services approves the implementation of a community 15
engagement program; or 16
2. Any able-bodied adult enrolled in the state's medical assistance 17
program, if the federal Centers for Medicare and Medicaid Services 18
does not approve the implementation of a community engagement 19
program pursuant to Section 6 of this Act; 20
(b) Provide one-on-one job placement coaching and support; and 21
(c) Prioritize job placement with an employer who offers comprehensive health 22
insurance coverage for medical and surgical services as an employee 23
benefit. 24
(2) The Education and Workforce Development Cabinet shall contact each 25
individual who, pursuant to subsection (1)(a) of this section, is eligible to 26
participate in the job placement assistance program and provide them with 27 UNOFFICIAL COPY 22 RS HB 7/GA
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information on the program and services provided. 1
(3) As used in this section "able-bodied adult" means an individual who is: 2
(a) Over eighteen (18) years of age but under sixty (60) years of age; and 3
(b) Physically and mentally able to work as determined by the cabinet. 4
Section 17. KRS 6.940 is amended to read as follows: 5
(1) There is hereby established a Public Assistance[Medicaid] Oversight and Advisory 6
Committee, consisting of ten (10) members appointed as follows: four (4) members 7
of the Senate appointed by the President of the Senate; one (1) member of the 8
minority party in the Senate appointed by the Minority Floor Leader in the Senate; 9
four (4) members of the House of Representatives appointed by the Speaker of the 10
House of Representatives; and one (1) member of the minority party in the House of 11
Representatives appointed by the Minority Floor Leader in the House of 12
Representatives. 13
(2) Members appointed from each chamber shall elect one (1) member from their 14
chamber to serve as co-chair. The co-chairs shall have joint responsibilities for 15
committee meeting agendas and presiding at committee meetings. 16
(3) The committee shall meet at least four (4) times annually. 17
(4) The committee[ and] shall provide oversight on the implementation and 18
administration of all public assistance programs[Medicaid] within the 19
Commonwealth, including access to services and benefits, utilization of services 20
and benefits, quality of services and benefits, and cost containment. The committee 21
shall also examine strategies to promote participation in the workforce by public 22
assistance beneficiaries. 23
(5)[(2)] A majority of the entire membership of the Public Assistance[Medicaid] 24
Oversight and Advisory Committee shall constitute a quorum, and all actions of the 25
committee shall be by vote of a majority of its entire membership. 26
Section 18. KRS 205.178 is amended to read as follows: 27 UNOFFICIAL COPY 22 RS HB 7/GA
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(1) At a regularly scheduled interval, each enrollment or benefit tracking agency 1
associated with the Medicaid program or the Supplemental Nutrition Assistance 2
Program [food stamps program ]of the cabinet shall receive and review information 3
from the Kentucky Lottery Corporation concerning individuals enrolled as 4
recipients in the Medicaid program or the Supplemental Nutrition Assistance 5
Program[food stamps program] that indicates a change in circumstances that may 6
affect eligibility, including but not limited to changes in income or resources. 7
(2) On at least a monthly basis, each enrollment or benefit tracking agency associated 8
with the Medicaid program or the Supplemental Nutrition Assistance Program 9
[food stamps program ]of the cabinet shall receive and review information from the 10
Vital Statistics Branch concerning individuals enrolled in the Medicaid program or 11
the Supplemental Nutrition Assistance Program [food stamps program ]that 12
indicates a change in circumstances that may affect eligibility. 13
(3) On at least a quarterly basis, each enrollment or benefit tracking agency 14
associated with the Supplemental Nutrition Assistance Program of the cabinet 15
shall receive and review information from the Administrative Office of the Courts 16
concerning individuals enrolled in the Supplemental Nutrition Assistance 17
Program that indicates a change in circumstances that may affect eligibility, 18
including but not limited to incarceration status. 19
(4) On at least a quarterly basis, each enrollment or benefit tracking agency associated 20
with the Medicaid program or the Supplemental Nutrition Assistance Program 21
[food stamps program] of the cabinet shall receive and review information from the 22
Kentucky Office of Unemployment Insurance concerning individuals enrolled in the 23
Medicaid program or the Supplemental Nutrition Assistance Program [food 24
stamps program ]that indicates a change in circumstances that may affect eligibility, 25
including but not limited to changes in employment or wages. 26
(5)[(4)] On at least a quarterly basis, each enrollment or benefit tracking agency 27 UNOFFICIAL COPY 22 RS HB 7/GA
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associated with the Medicaid program or the Supplemental Nutrition Assistance 1
Program[ food stamps program] of the cabinet shall receive and review information 2
concerning individuals enrolled in the Medicaid program or the Supplemental 3
Nutrition Assistance Program[ food stamps program] that indicates a change in 4
circumstances that may affect eligibility, including but not limited to potential 5
changes in residency as identified by out-of-state electronic benefit transfer 6
transactions. 7
(6) On at least a quarterly basis, each enrollment or benefit tracking agency 8
associated with the Supplemental Nutrition Assistance Program of the cabinet 9
shall receive and review information from the Department of Revenue 10
concerning individuals enrolled in the Supplemental Nutrition Assistance 11
Program that indicates a change in circumstances that may affect eligibility, 12
including but not limited to changes in income, wages, or residency as identified 13
in tax records. 14
(7)[(5) (a)] Notwithstanding any other provision of law to the contrary:[,] 15
(a) Each enrollment or benefit tracking agency associated with the Medicaid 16
program or the Supplemental Nutrition Assistance Program [food stamps 17
program ]of the cabinet shall enter into a memorandum of understanding with 18
any department, agency, or division for information detailed in this section; 19
and[.] 20
(b) [Notwithstanding any other provision of law to the contrary, ]Any department, 21
agency, or division for information detailed in this section, including but not 22
limited to the Kentucky Lottery Corporation, the Vital Statistics Branch, the 23
Office of Unemployment Insurance, and the Department for Community 24
Based Services, shall enter into any necessary memoranda of understanding 25
with the enrollment or benefit tracking agency associated with the Medicaid 26
program or the Supplemental Nutrition Assistance Program [food stamps 27 UNOFFICIAL COPY 22 RS HB 7/GA
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program ]requesting an agreement pursuant to paragraph (a) of this 1
subsection. 2
(8)[(6)] Each enrollment or benefit tracking agency associated with the Medicaid 3
program or the Supplemental Nutrition Assistance Program[ food stamps 4
program] of the cabinet may contract in accordance with KRS Chapter 45A with 5
one (1) or more independent vendors to provide additional data or information that 6
may indicate a change in circumstances that may affect eligibility. 7
(9)[(7)] Each enrollment or benefit tracking agency associated with the Medicaid 8
program or the Supplemental Nutrition Assistance Program [food stamps program 9
]of the cabinet shall explore joining any multistate cooperative to identify 10
individuals who are also enrolled in public assistance programs outside of this state. 11
(10)[(8)] If an enrollment or benefit tracking agency associated with the Medicaid 12
program or the Supplemental Nutrition Assistance Program [food stamps program 13
]of the cabinet receives information concerning an individual enrolled in the 14
Medicaid program or the Supplemental Nutrition Assistance Program [food 15
stamps program ]that indicates a change in circumstances that may affect eligibility, 16
the enrollment or benefit tracking agency or other appropriate agency shall review 17
the individual's case. 18
(11) (a) Unless expressly required by federal law, the cabinet shall not seek, apply 19
for, accept, or renew any waiver of work requirements established by the 20
Supplemental Nutrition Assistance Program under 7 U.S.C. sec. 2015(o) 21
without first obtaining specific authorization from the General Assembly to 22
do so. 23
(b) The cabinet shall not exercise the state's option under 7 U.S.C. sec. 24
2015(o)(6). 25
(c) The cabinet shall assign all individuals who are subject to work 26
requirements under 7 U.S.C. sec. 2015(d)(1) to an employment and training 27 UNOFFICIAL COPY 22 RS HB 7/GA
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program as defined in 7 U.S.C. sec. 2015(d)(4). 1
[(9) The food stamps program of the cabinet shall not seek, apply for, accept, or renew 2
any waiver of requirements established under 7 U.S.C. sec. 2015(o) unless there is 3
an economic downturn resulting in an unemployment rate of ten percent (10%) or 4
more or the Cabinet for Health and Family Services determines an increase in the 5
unemployment rate in any particular county is severe enough to necessitate a 6
waiver.] 7
(12)[(10)] The cabinet shall, in accordance with KRS Chapter 13A, promulgate all rules 8
and administrative regulations necessary for the purposes of carrying out this 9
section. 10
(13)[(11)] Upon request from the Legislative Research Commission, the Cabinet for 11
Health and Family Services shall submit a report relating to the number of 12
individuals discovered utilizing services inappropriately, the number of individuals 13
who were removed from one (1) or more public assistance programs as a result of a 14
review pursuant to this section, and the amount of public funds preserved in total 15
and by public assistance program and aggregated by prior years. 16
Section 19. KRS 205.200 is amended to read as follows: 17
(1) A needy aged person, a needy blind person, a needy child, a needy permanently and 18
totally disabled person, or a person with whom a needy child lives shall be eligible 19
to receive a public assistance grant only if he or she has made a proper application 20
or an application has been made on his or her behalf in the manner and form 21
prescribed by administrative regulation. No individual shall be eligible to receive 22
public assistance under more than one (1) category of public assistance for the same 23
period of time. 24
(2) The secretary shall, by administrative regulations, prescribe the conditions of 25
eligibility for public assistance in conformity with the public assistance titles of the 26
Social Security Act, its amendments, and other federal acts and regulations. The 27 UNOFFICIAL COPY 22 RS HB 7/GA
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secretary shall also promulgate administrative regulations to allow for between a 1
forty percent (40%) and a forty-five percent (45%) ratable reduction in the method 2
of calculating eligibility and benefits for public assistance under Title IV-A of the 3
Federal Social Security Act. In no instance shall grants to families with no income 4
be less than the appropriate grant maximum used for public assistance under Title 5
IV-A of the Federal Social Security Act. As used in this section, "ratable reduction" 6
means the percentage reduction applied to the deficit between the family's countable 7
income and the standard of need for the appropriate family size. 8
(3) The secretary may by administrative regulation prescribe as a condition of eligibility 9
that a needy child regularly attend school, and may further by administrative 10
regulation prescribe the degree of relationship of the person or persons in whose 11
home such needy child must reside. 12
(4) The secretary may by administrative regulation prescribe conditions for bringing 13
paternity proceedings or actions for support in cases of out of wedlock birth or 14
nonsupport by a parent in the public assistance under Title IV-A of the Federal 15
Social Security Act program. 16
(5) Public assistance shall not be payable to or in behalf of any individual who has 17
taken any legal action in his or her own behalf or in the behalf of others with the 18
intent and purpose of creating eligibility for the assistance. 19
(6) The cabinet shall promptly notify the appropriate law enforcement officials of the 20
furnishing of public assistance under Title IV-A of the Federal Social Security Act 21
in respect to a child who has been deserted or abandoned by a parent. 22
(7) No person shall be eligible for public assistance payments if, after having been 23
determined to be potentially responsible, and afforded notice and opportunity for 24
hearing, he refuses without good cause: 25
(a) To register for employment with the state employment service, 26
(b) To accept suitable training, or 27 UNOFFICIAL COPY 22 RS HB 7/GA
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(c) To accept suitable employment. 1
The secretary may prescribe by administrative regulation, subject to the provisions 2
of KRS Chapter 13A, standards of suitability for training and employment. 3
(8) To the extent permitted by federal law, scholarships, grants, or other types of 4
financial assistance for education shall not be considered as income for the purpose 5
of determining eligibility for public assistance. 6
(9) To the extent permitted by federal law, any money received because of a settlement 7
or judgment in a lawsuit brought against a manufacturer or distributor of "Agent 8
Orange" for damages resulting from exposure to "Agent Orange" by a member or 9
veteran of the Armed Forces of the United States or any dependent of such person 10
who served in Vietnam shall not be considered as income for the purpose of 11
determining eligibility or continuing eligibility for public assistance and shall not be 12
subject to a lien or be available for repayment to the Commonwealth for public 13
assistance received by the recipient. 14
(10) (a) For the purpose of determining eligibility for medical assistance under Title 15
XIX of the Social Security Act, the cabinet shall not, unless expressly 16
required by federal law, accept self-attestation of income, residency, age, 17
household composition, caretaker or relative status, or receipt of other 18
coverage without verification prior to enrollment, and the cabinet shall not 19
request federal authorization or approval to waive or decline to periodically 20
check any available income-related data source to verify eligibility. 21
(b) This subsection shall not apply to any individual who is a resident of an 22
assisted-living community as defined in KRS 194A.700 or a long-term care 23
facility as defined in KRS 216A.010. 24
(11) When determining whether an applicant for services or assistance provided under 25
this chapter meets the applicable income eligibility guidelines, the cabinet shall 26
only use the most recent income verification data available. 27 UNOFFICIAL COPY 22 RS HB 7/GA
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(12) To the extent permitted under federal law, if an individual traffics, sells, 1
distributes, gives, or otherwise transfers an electronic benefit transfer card issued 2
by the department for money, service, or other valuable consideration, the 3
individual may be deemed ineligible for all public assistance programs 4
administered by the cabinet under this chapter for a period of not more than six 5
(6) months for a first offense and may be deemed permanently ineligible for all 6
public assistance programs administered by the cabinet under this chapter for 7
subsequent offenses. 8
(13)[(10)] (a) Notwithstanding any other provision of Kentucky law, the following 9
shall be disregarded for the purposes of determining an individual's eligibility 10
for a means-tested public assistance program, and the amount of assistance or 11
benefits the individual is eligible to receive under the program: 12
1. Any amount in an ABLE account; 13
2. Any contributions to an ABLE account; and 14
3. Any distribution from an ABLE account for qualified disability 15
expenses. 16
(b) For purposes of this subsection: 17
1. "ABLE account" means an account established within any state having a 18
qualified ABLE program as provided in 26 U.S.C. sec. 529A, as 19
amended; 20
2. "Kentucky law" includes: 21
a. All provisions of the Kentucky Revised Statutes: 22
b. Any contract to provide Medicaid managed care established 23
pursuant to this chapter; 24
c. Any agreement to operate a Medicaid program established 25
pursuant to this chapter; and 26
d. Any administrative regulation promulgated pursuant to this 27 UNOFFICIAL COPY 22 RS HB 7/GA
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chapter; and 1
3. "Qualified disability expenses" means expenses described in 26 U.S.C. 2
sec. 529A of a person who is the beneficiary of an ABLE account. 3
Section 20. KRS 205.231 is amended to read as follows: 4
(1) The secretary shall appoint one (1) or more impartial hearing officers to hear and 5
decide upon appealed decisions. 6
(2) Any applicant or recipient who is dissatisfied with the decision or delay in action on 7
his or her application for public assistance or the amount granted to him or her and 8
any applicant or recipient who was deemed ineligible or disqualified from public 9
assistance benefits under Section 3, 18, or 19 of this Act may appeal to a hearing 10
officer, except that an appeal and a hearing need not be granted if the sole issue is a 11
federal or state law requiring an automatic change adversely affecting some or all 12
recipients of the Kentucky medical assistance program so long as advance notice of 13
the change, with an explanation of appeal rights, is provided to all affected 14
recipients. However, a recipient may appeal whether the cabinet is accurately 15
interpreting a change in federal or state law which may adversely affect the 16
recipient. On receipt of an appeal, an administrative hearing shall be conducted in 17
accordance with KRS Chapter 13B. 18
(3) The secretary may appoint an Appeal Board for Public Assistance composed of the 19
secretary and two (2) other members. The secretary shall be chairman, and he or she 20
and one (1) other member constitute a quorum. 21
(4) Any applicant or recipient who is dissatisfied with the decision of a hearing officer 22
may appeal to the appeal board in the manner and form prescribed by administrative 23
regulation. The board may on its own motion affirm, modify, or set aside any 24
decision of a hearing officer on the basis of the evidence previously submitted in the 25
case, or direct the taking of additional evidence, or may permit any of the parties to 26
the decision to initiate further appeals before it. The board may remove itself or 27 UNOFFICIAL COPY 22 RS HB 7/GA
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transfer to another hearing officer the proceedings on any appeal pending before a 1
hearing officer. The board shall promptly notify the parties to any proceedings of its 2
findings and decisions. 3
(5) The manner in which appeals are presented and hearings and appeals conducted 4
under subsection (4) of this section shall be in accordance with administrative 5
regulations promulgated by the secretary. 6
(6) After a decision by the appeal board, any party aggrieved by the decision may seek 7
judicial review of the decision by filing a petition in the Circuit Court of the county 8
in which the petitioner resides, in accordance with KRS 13B.140, 13B.150, and 9
13B.160. 10
Section 21. KRS 205.525 is amended to read as follows: 11
(1) Concurrent with submitting an application for a waiver or waiver amendment or a 12
request for a plan amendment to any federal agency that approves waivers, waiver 13
amendments, and plan amendments, the cabinet[ for Health and Family Services] 14
shall provide to the Interim Joint Committee on Health,[ and] Welfare, and Family 15
Services, [and ]to the Interim Joint Committee on Appropriations and Revenue, and 16
to the Public Assistance Oversight and Advisory Committee a copy, summary, and 17
statement of benefits of the application for a waiver or waiver amendment or 18
request for a plan amendment. 19
(2) The cabinet shall provide an update on the status of the application for a waiver or 20
waiver amendment or request for a plan amendment to the Legislative Research 21
Commission upon request. 22
(3) If the cabinet is expressly directed by the General Assembly to submit an 23
application for a waiver or waiver amendment or a request for a plan amendment 24
to any federal agency that approves waivers, waiver amendments, or plan 25
amendments for public assistance programs administered under this chapter and 26
that application or request is denied by the federal agency, the cabinet shall 27 UNOFFICIAL COPY 22 RS HB 7/GA
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resubmit the application for a waiver or waiver amendment or request for a plan 1
amendment within twelve (12) months of each denial. 2
Section 22. KRS 205.725 is amended to read as follows: 3
(1) Whenever the cabinet receives an application for public assistance on behalf of a 4
needy dependent child or reviews the records of those currently receiving public 5
assistance on behalf of a needy dependent child and it appears to the satisfaction of 6
the cabinet that either or both parents have failed to provide support to the child, the 7
cabinet shall[may] take appropriate action under this chapter, or any other 8
appropriate state and federal laws and regulations including but not limited to 9
enforcement of 7 C.F.R. sec. 273.11(o) and (p), to assure that the responsible 10
parent or parents provide support to the child. 11
(2) Subsection (1) of this section shall not apply if the: 12
(a) Cabinet has reason to believe allegations of child abuse or domestic 13
violence and that enforcement of subsection (1) of this section could be 14
harmful to the custodial parent or needy dependent child; 15
(b) Cabinet believes that enforcement of subsection (1) of this section may not 16
be in the best interest of the needy dependent child; or 17
(c) Custodial parent is the needy dependent child's mother, and she did not 18
identify a father on the child's birth certificate at the time of birth. 19
(3) The cabinet may, pursuant to 7 C.F.R. sec. 273.11(q), disqualify an individual 20
from public assistance granted under this chapter during any month in which the 21
individual is delinquent in any payment due under a court order for the support 22
of a child of the individual. 23
(4) As used in KRS 205.730, 205.735, 205.765, and 205.785, the term "child" includes 24
a child of an individual who is not receiving public assistance and who is eligible to 25
receive child support services in accordance with Title IV-D of the Social Security 26
Act. 27 UNOFFICIAL COPY 22 RS HB 7/GA
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Section 23. Within 90 days after the effective date of this Act, the Cabinet for 1
Health and Family Services shall report the following information to the Interim Joint 2
Committee on Health, Welfare, and Family Services and the Public Assistance Oversight 3
and Advisory Committee: 4
(1) The number of additional families served by the Child Care Assistance 5
Program following the increase in eligibility to 200% of the federal poverty level; 6
(2) An assessment of the additional cost incurred by the state due to increasing 7
Child Care Assistance Program eligibility to 200% of the federal poverty level; and 8
(3) An assessment of what the fiscal impact of discounting multiple copayments 9
for families with more than one child in the Child Care Assistance Program would be. 10
Section 24. If the Cabinet for Health and Family Services determines that a state 11
plan amendment, waiver, or any other form of approval or authorization from a federal 12
agency is necessary prior to the implementation of any provision of this Act, the cabinet 13
shall, within 120 days after the effective date of this Act unless otherwise specified, 14
request the state plan amendment, waiver, approval, or authorization and shall only delay 15
full implementation of those provisions for which a state plan amendment, waiver, 16
approval, or authorization was deemed necessary until the state plan amendment, waiver, 17
approval, or authorization is granted. The cabinet shall, in accordance with KRS 205.525, 18
provide a copy of any state plan amendment, waiver, or other approval or authorization 19
application submitted pursuant to this Section to the Interim Joint Committee on Health, 20
Welfare, and Family Service, the Interim Joint Committee on Appropriations and 21
Revenue, and the Public Assistance Oversight and Advisory Committee and provide an 22
update on the status of any application submitted pursuant to this section upon request. 23
Section 25. The General Assembly hereby directs the Education and Workforce 24
Development Cabinet to design and launch an online portal or Web site where private 25
employers in the Commonwealth can post available job openings. Employment 26
opportunities posted to the portal or Web site shall be accessible and searchable by the 27 UNOFFICIAL COPY 22 RS HB 7/GA
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general public. 1
Section 26. The Legislative Oversight and Investigations Committee shall 2
conduct an in-depth analysis of Temporary Assistance for Needy Families (TANF) and 3
the Kentucky Transition Assistance Program (K-TAP) spending by the Cabinet for Health 4
and Family Services and seek to identify alternative sources of funding for child welfare 5
programs and services currently funded by the federal TANF block grant and state 6
maintenance-of-effort dollars, including possible strategies for securing additional Title 7
IV-E funds, so that future K-TAP expenditures may be allocated in a manner that 8
prioritizes assisting recipients of public assistance in transitioning off of public assistance 9
by finding and maintaining sustainable, gainful employment. 10
Section 27. The Legislative Research Commission shall establish a Benefits 11
Cliff Task Force to study the phenomenon commonly known as the benefits cliff and 12
make recommendations for strategies that the state might employ to address the benefits 13
cliff. The duties of the task force shall include but are not limited to making 14
recommendations for: 15
(1) Monthly premiums and co-payments associated with a health insurance option for 16
low-income individuals who have become ineligible for the state's medical 17
assistance program on the basis of an increase in income; 18
(2) Eligibility guidelines for a health insurance option for low-income individuals who 19
have become ineligible for the state's medical assistance program on the basis of an 20
increase in income; and 21
(3) Strategies to ensure continued access to child care assistance as a parent's income 22
increases above the current threshold for eligibility for the Child Care Assistance 23
Program. 24
Section 28. The Benefits Cliff Task Force shall be composed of the following 25
members with final membership of the task force being subject to the consideration and 26
approval of the Legislative Research Commission: 27 UNOFFICIAL COPY 22 RS HB 7/GA
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(1) Four members of the House of Representatives appointed by the Speaker of 1
the House of Representatives, one of whom shall be designated by the Speaker of the 2
House of Representatives as a co-chair of the task force; 3
(2) One member of the House of Representatives appointed by the Minority Floor 4
Leader of the House of Representatives; 5
(3) Four members of the Senate appointed by the President of the Senate, one of 6
whom shall be designated by the President of the Senate as a co-chair of the task force; 7
and 8
(4) One member of the Senate appointed by the Minority Floor Leader of the 9
Senate. 10
Section 29. The task force shall meet at least four times during the 2022 Interim 11
of the General Assembly, and the task force shall submit its findings and 12
recommendations to the Legislative Research Commission by December 1, 2022. 13
Section 30. Provisions of Sections 27 to 29 of this Act to the contrary 14
notwithstanding, the Legislative Research Commission shall have the authority to 15
alternatively assign the issues identified therein to an interim joint committee or a 16
subcommittee thereof, and to designate a study completion date. 17
Section 31. Sections 26 to 31 of this Act shall have the same legal status as a 18
House Concurrent Resolution. 19
Section 32. If any section, any subsection, or any provision of this Act is found 20
by a court of competent jurisdiction in a final, unappealable order to be invalid or 21
unconstitutional, the decision of the court shall not affect or impair any of the remaining 22
sections, subsections, or provisions of this Act. 23