(a) Payment to an individual other than the eligible relative in ADC (i.e., to a protective payee) shall be made only with the participation and consent of recipient or his eligible relative whenever such participation and consent normally may be obtained. After the obtaining of participation and consent, or if participation and consent is not obtained and protective payment is nonetheless deemed appropriate, payment may be made to:

1. (1) an interested individual concerned with the welfare of the child or relative in ADC;
2. (2) a staff member of a private agency, a public social services agency or any other appropriate organization;
3. (3) a staff member of a social services district. Selection shall be made preferably from the staff providing protective services. Such staff shall be utilized only to the extent that the social services district has adequate staff for this purpose. The social services district shall employ such additional staff as may be necessary to provide protective payees, in accordance with department regulations; and

4. (4) the superintendent, or his designee, of a public institution for mental diseases or a public institution for the mentally retarded, provided:

   1. (i) no other suitable protective payee can be found; and
   2. (ii) there are appropriate staff available to assist the superintendent in carrying out the protective payment function.

(b) Protective payment may not be made to:

1. (1) the social services commissioner; or

2. (2) the following staff members of a social services district:

   1. (i) an executive member of his staff;
   2. (ii) a person determining financial eligibility for the family;
   3. (iii) special investigative or resource staff or staff handling fiscal processes related to the recipient; or
3. (3) landlords, grocers, or other vendors of goods or services dealing directly with the recipient except as provided in paragraph (a)(4) of this section.