Vote Smart's Synopsis:

Vote to pass a bill that amends state public assistance laws and regulations.

Highlights:

• Requires a cash recipient of public assistance who uses an automatic teller machine to withdraw cash using an electronic benefit transfer card issued by the Cabinet for Health and Family Services, to use the cash only for goods and services necessary for the welfare of the family, including food, clothing, housing, utilities, childcare, transportation, medicines, and medical supplies (Sec. 2).

• Prohibits a cash recipient of public assistance benefits to use any portion of the benefits to purchase alcoholic beverages, tobacco products, vapor products, lottery tickets, or to purchase any goods or services in a casino, an adult-entertainment establishment, a tattoo or body piercing facility, or a liquor or tobacco retail establishment (Sec. 2).

• Specifies that any person who violates the above public assistance rules is subject to the following sanctions (Sec. 2):

• For a first violation the recipient will be disqualified from receiving public assistance benefits by means of a direct cash payment or an electronic benefits transfer access card for one month; 

• For a second violation, the recipient will be disqualified from receiving public assistance benefits by means of a direct cash payment or an electronic benefits transfer access card for 3 months; and

• For a third violation, the recipient will be permanently disqualified from receiving public assistance benefits by means of a direct cash payment or an electronic benefits transfer access card. 

• Requires the Cabinet to (Sec. 2):

• Inform all applicants for and recipients of public assistance benefits of the restrictions and sanctions contained in this act; 

• Monitor the use of electronic benefit transfer cards to withdraw cash and investigate cases in which it believes cash benefits may be being used in violation of the established rules; and 

• Promulgate administrative regulations necessary to implement this act. 

• Requires the Cabinet to do the following in order to improve access to Supplemental Nutrition Assistance Program (SNAP) benefits and reduce administrative costs (Sec. 3):

• Establish a transitional benefit alternative; 

• Request an Elderly Simplified Application Project demonstration waiver of the United States Department of Agriculture (USDA) Food and Nutrition Service (FNS); 

• Request a Standard Medical Deduction waiver from the USDA-FNS; 

• Establish procedures to allow SNAP beneficiaries to recertify eligibility online; 

• Join and fully participate in the SNAP National Accuracy Clearinghouse; and

• Prepare and pursue federal approval of a waiver from the USDA-FNS relating to SNAP.

• Defines “cash recipient of public assistance benefits” as an individual who receives cash assistance via an electronic benefit transfer card or any other form of cash assistance under the Social Security Act, SNAP, or another public assistance program administered by the Cabinet (Sec. 2).

• Requires the Cabinet to coordinate with the USDA to provide support to expand access to farmers’ markets across the state (Sec. 3).

• Specifies that if at any time after this bill’s effective date 50 percent of the general fund budget request for the provision of Medicaid services is needed to provide the state match required to support the expanded Medicaid population, the Cabinet will implement a community engagement program that requires individuals in the expanded Medicaid population who have been in the expanded Medicaid population for one year or more to participate in at least 80 hours of qualified activities each month (Sec. 4).

• Requires the Cabinet to design and develop a health insurance option for individuals who become ineligible to participate in Medicaid due to an increase in income (Sec. 5).

• Specifies that an individual will not be eligible to participate in the newly designed health insurance option for up to 12 months from the date of original eligibility if they (Sec. 5):

• Were eligible for Medicaid at any time on or after July 1, 2019; 

• Earn between 138 percent and 200 percent of the federal poverty level; and

• Meets all other Medicaid eligibility guidelines.

• Requires the health insurance option designed and developed by the Cabinet to include monthly premiums and cost-sharing which will be established on a sliding scale and increase by 25 percent with each 15 percent increase in income above 138 percent of the federal poverty level (Sec. 5).

• Requires the Cabinet to verify the income of an individual participating in the health insurance option on a quarterly basis and adjust premiums and cost-sharing accordingly (Sec. 5).

• Authorizes the Cabinet to, on a case-by-case basis, extend an individual's eligibility to participate in the health insurance option for an additional 12 months (Sec. 5).

• Establishes a Public Assistance Oversight and Advisory Committee to provide oversight on the implementation and administration of all public assistance programs, including access to services and benefits, utilization of services, quality of services and benefits, cost containment, and to examine strategies to promote participation in the workforce by public assistance beneficiaries (Sec. 9).

• Specifies that if a custodial parent of a dependent child is disqualified from receiving public assistance benefits the dependent child’s or other adult family member’s eligibility for public assistance will not be affected, and the custodial parent may choose to designate another person as a protective payee to receive benefits for the minor child, upon approval by the Cabinet (Sec. 14).

Full Bill Text