(1) Payments of public assistance grants for eligible individuals shall be made at the time and in the manner prescribed by regulation to:
(a) The needy aged or needy blind or needy permanently and totally disabled person or recipient; or (b) The parent or relative with whom a needy child lives; or (c) The parent or legal guardian of a blind minor; or (d) The legal guardian of (a) or (b) above; or (e) Such other persons on behalf of an eligible person as may be prescribed by regulation; or (f) Committees appointed by the court and approved for payment purposes by the secretary according to prescribed regulations.
(2) Any person who is receiving and disbursing public assistance grants on behalf of another individual eligible under this chapter shall upon request make an accounting of such funds to the cabinet in accordance with regulations. If a public assistance grant made on behalf of a needy individual is not used for the benefit of such individual, such payment shall be suspended pending reasonable assurance that future grants will benefit the individual on whose behalf such payments are made.
(3) Public assistance shall not be assignable and shall be exempt from levy or execution. Furthermore, no assignment, pledge or encumbrance of any right to benefits due or payable under this chapter shall be valid. Public assistance benefits, as long as they are not mingled with other funds of the recipient, shall be exempt from any remedy for the collection of all debts, liens and encumbrances. No waiver of any exemption provided for in this subsection shall be valid.