256.81 County agency, duties. 

    (1) The county agency shall keep such records, accounts, 
 and statistics in relation to aid to families with dependent 
 children as the state agency shall prescribe.  

    (2) Each grant of aid to families with dependent children 
 shall be paid to the recipient by the county agency unless paid 
 by the state agency.  Payment must be in the form of a warrant 
 immediately redeemable in cash, electronic benefits transfer, or 
 by direct deposit into the recipient's account in a financial 
 institution, except in those instances in which the county 
 agency, subject to the rules of the state agency, determines 
 that payments for care shall be made to an individual other than 
 the parent or relative with whom the dependent child is living 
 or to vendors of goods and services for the benefit of the child 
 because such parent or relative is unable to properly manage the 
 funds in the best interests and welfare of the child.  There is 
 a presumption of mismanagement of funds whenever a recipient is 
 more than 30 days in arrears on payment of rent, except when the 
 recipient has withheld rent to enforce the recipient's right to 
 withhold the rent in accordance with federal, state, or local 
 housing laws.  In cases of mismanagement based solely on failure 
 to pay rent, the county may vendor the rent payments to the 
 landlord.  At the request of a recipient, the state or county 
 may make payments directly to vendors of goods and services, but 
 only for goods and services appropriate to maintain the health 
 and safety of the child, as determined by the county.  

    (3) The state or county may ask the recipient to give 
 written consent authorizing the state or county to provide 
 advance notice to a vendor before vendor payments of rent are 
 reduced or terminated.  Whenever possible under state and 
 federal laws and regulations and if the recipient consents, the 
 state or county shall provide at least 30 days notice to vendors 
 before vendor payments of rent are reduced or terminated.  If 30 
 days notice cannot be given, the state or county shall notify 
 the vendor within three working days after the date the state or 
 county becomes aware that vendor payments of rent will be 
 reduced or terminated.  When the county notifies a vendor that 
 vendor payments of rent will be reduced or terminated, the 
 county shall include in the notice that it is illegal to 
 discriminate on the grounds that a person is receiving public 
 assistance and the penalties for violation.  The county shall 
 also notify the recipient that it is illegal to discriminate on 
 the grounds that a person is receiving public assistance and the 
 procedures for filing a complaint.  The county agency may 
 develop procedures, including using the MAXIS system, to 
 implement vendor notice and may charge vendors a fee not 
 exceeding $5 to cover notification costs. 

    (4) A vendor payment arrangement is not a guarantee that a 
 vendor will be paid by the state or county for rent, goods, or 
 services furnished to a recipient, and the state and county are 
 not liable for any damages claimed by a vendor due to failure of 
 the state or county to pay or to notify the vendor on behalf of 
 a recipient, except under a specific written agreement between 
 the state or county and the vendor or when the state or county 
 has provided a voucher guaranteeing payment under certain 
 conditions.  

    (5) The county shall be paid from state and federal funds 
 available therefor the amount provided for in section 256.82.  

    (6) Federal funds available for administrative purposes 
 shall be distributed between the state and the counties in the 
 same proportion that expenditures were made except as provided 
 for in section 256.017. 

    (7) The affected county may require that assistance paid 
 under the emergency assistance program in the form of a utility 
 deposit or rental unit damage deposit, less any amount retained 
 by the landlord to remedy a tenant's default in payment of rent 
 or other funds due to the landlord pursuant to a rental 
 agreement, or to restore the premises to the condition at the 
 commencement of the tenancy, ordinary wear and tear excepted, be 
 returned to the county when the individual vacates the premises 
 or paid to the recipient's new landlord as a vendor payment.  
 The vendor payment of returned funds shall not be considered a 
 new use of emergency assistance. 

    HIST: (8688-15) 1937 c 438 s 13; 1943 c 619 s 2; 1951 c 229 s 
 5; 1963 c 794 s 6; 1967 c 885 s 5; 1969 c 451 s 1; 1969 c 749 s 
 4; 1985 c 248 s 70; 1988 c 719 art 8 s 5; 1990 c 568 art 4 s 19; 
 1992 c 513 art 8 s 12; 1995 c 178 art 2 s 20; 1996 c 465 art 3 s 
 26; 1997 c 85 art 3 s 7 

*   NOTE:  This section is repealed by Laws 1997, chapter 85, 
*article 1, section 74, effective July 1, 1998.  From January 1, 
*1998, to March 31, 1998, the statutory sections listed in Laws 
*1997, chapter 85, article 1, section 74, paragraph (a), apply 
*only in counties that operate an MFIP field trial and that 
*continue to provide project STRIDE services to members of the 
*MFIP comparison group, and in those counties that have not 
*completed conversion to MFIP-S employment and training 
*services.  From April 1, 1998, through June 30, 1998, the 
*sections listed in paragraph (a) are effective only in counties 
*that operate an MFIP field trial and that continue to provide 
*project STRIDE services to members of the comparison group.