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Ohio Laws and Rules
(A) As used in this section:
(1) “Applicant” or “recipient” means an applicant for or participant in the Ohio works first program established under Chapter 5107. of the Revised Code or an applicant for or recipient of disability financial assistance under Chapter 5115. of the Revised Code.
(2) “Voluntary direct deposit” means a system established pursuant to this section under which cash assistance payments to recipients who agree to direct deposit are made by direct deposit by electronic transfer to an account in a financial institution designated under this section.
(3) “Mandatory direct deposit” means a system established pursuant to this section under which cash assistance payments to all participants in the Ohio works first program or recipients of disability financial assistance, other than those exempt under division (E) of this section, are made by direct deposit by electronic transfer to an account in a financial institution designated under this section.
(B) A board of county commissioners may by adoption of a resolution require the county department of job and family services to establish a direct deposit system for distributing cash assistance payments under Ohio works first, disability financial assistance, or both, unless the director of job and family services has provided for those payments to be made by electronic benefit transfer pursuant to section 5101.33 of the Revised Code. Voluntary or mandatory direct deposit may be applied to either of the programs. The resolution shall specify for each program for which direct deposit is to be established whether direct deposit is voluntary or mandatory. The board may require the department to change or terminate direct deposit by adopting a resolution to change or terminate it. Within ninety days after adopting a resolution under this division, the board shall certify one copy of the resolution to the director of job and family services and one copy to the office of budget and management. The director of job and family services may adopt rules governing establishment of direct deposit by county departments of job and family services.
The county department of job and family services shall determine what type of account will be used for direct deposit and negotiate with financial institutions to determine the charges, if any, to be imposed by a financial institution for establishing and maintaining such accounts. Under voluntary direct deposit, the county department of job and family services may pay all charges imposed by a financial institution for establishing and maintaining an account in which direct deposits are made for a recipient. Under mandatory direct deposit, the county department of job and family services shall pay all charges imposed by a financial institution for establishing and maintaining such an account. No financial institution shall impose any charge for such an account that the institution does not impose on its other customers for the same type of account. Direct deposit does not affect the exemption of Ohio works first and disability financial assistance from attachment, garnishment, or other like process afforded by sections 5107.75 and 5115.06 of the Revised Code.
(C) The county department of job and family services shall, within sixty days after a resolution requiring the establishment of direct deposit is adopted, establish procedures governing direct deposit.
Within one hundred eighty days after the resolution is adopted, the county department shall:
(1) Inform each applicant or recipient of the procedures governing direct deposit, including in the case of voluntary direct deposit those that prescribe the conditions under which a recipient may change from one method of payment to another;
(2) Obtain from each applicant or recipient an authorization form to designate a financial institution equipped for and authorized by law to accept direct deposits by electronic transfer and the account into which the applicant or recipient wishes the payments to be made, or in the case of voluntary direct deposit states the applicant’s or recipient’s election to receive such payments in the form of a paper warrant.
The department may require a recipient to complete a new authorization form whenever the department considers it necessary.
A recipient’s designation of a financial institution and account shall remain in effect until withdrawn in writing or dishonored by the financial institution, except that no change may be made in the authorization form until the next eligibility redetermination of the recipient unless the department feels that good grounds exist for an earlier change.
(D) An applicant or recipient without an account who either agrees or is required to receive payments by direct deposit shall have ten days after receiving the authorization form to designate an account suitable for direct deposit. If within the required time the applicant or recipient does not make the designation or requests that the department make the designation, the department shall designate a financial institution and help the recipient to open an account.
(E) At the time of giving an applicant or recipient the authorization form, the county department of job and family services of a county with mandatory direct deposit shall inform each applicant or recipient of the basis for exemption and the right to request exemption from direct deposit.
Under mandatory direct deposit, an applicant or recipient who wishes to receive payments in the form of a paper warrant shall record on the authorization form a request for exemption under this division and the basis for the exemption.
The department shall exempt from mandatory direct deposit any recipient who requests exemption and is any of the following:
(1) Over age sixty-five;
(2) Blind or disabled;
(3) Likely, in the judgment of the department, to be caused personal hardship by direct deposit.
A recipient granted an exemption under this division shall receive payments for which the recipient is eligible in the form of paper warrants.
(F) The county department of job and family services shall bear the full cost of the amount of any replacement warrant issued to a recipient for whom an authorization form as provided in this section has not been obtained within one hundred eighty days after the later of the date the board of county commissioners adopts a resolution requiring payments of financial assistance by direct deposit to accounts of recipients of Ohio works first or disability financial assistance or the date the recipient made application for assistance, and shall not be reimbursed by the state for any part of the cost. Thereafter, the county department of job and family services shall continue to bear the full cost of each replacement warrant issued until the board of county commissioners requires the county department of job and family services to obtain from each such recipient the authorization forms as provided in this section.
Effective Date: 06-26-2003