(1) Money payments of aid with respect to the temporary assistance for needy families program, including payments to meet the needs of the relative, and the relative’s spouse, with whom a dependent child is living, may be made to an individual other than such relative or spouse if it is determined by the department that the relative to whom such payments are made has such inability to manage funds that continuation of such payments to the relative would be contrary to the welfare of such child and that, therefore, it is necessary to provide such aid through payments in the manner authorized by this section. Such determination shall be subject to review and hearing, upon application of such relative, in the manner prescribed pursuant to ORS 412.069. However, the pendency of such application, review or hearing shall not stay the effect of such determination.

(2) The department may designate any responsible individual, including any public officer or employee, as a representative payee if such individual is willing to act in such capacity. Representative payees shall receive no compensation for their services, but shall be allowed expenses actually and necessarily incurred by them in the performance of their duties under ORS 412.029. Such expenses shall be paid from funds appropriated to the department for administrative expenditures.

(3) During the time payments of aid pursuant to the temporary assistance for needy families program with respect to a dependent child or relative are made to a representative payee, the department shall:

(a) Undertake and continue special efforts to develop greater ability on the part of such relative to manage funds in such manner as to protect the welfare of the relative and the family of the relative; and

(b) Periodically review the determination made pursuant to subsection (1) of this section and terminate payments to the representative payee if it is established by such review that the conditions justifying such determination no longer exist. [Formerly 418.050]