Summary:

 Senate Bill 283 (SB 283) requires the Children, Youth and Families Department (Department) to determine federal benefits eligibility for children in its custody, apply for federal benefits, and either act as the child's representative payee or determine an appropriate alternative; sets forth the Department's obligations when acting as the child's representative payee; prohibits the use of federal benefits to pay the Department for the child's care; requires the Department to provide financial literacy and planning tools; and sets forth provisions for the release of federal benefits provided to children in legal custody of the state. 

Legislation Overview:

 Senate Bill 283 (SB 283) enacts new sections of the Children’s Code as follows:

The "Federal Benefits for Children in State Custody Act" is enacted.

A definition is provided for "representative payee," meaning a person appointed by a federal agency to manage the benefits provided to a child.

Within sixty days after a child enters the Department's legal custody, and annually thereafter, the Department must determine whether the child is currently receiving or is eligible to receive federal benefits. If it is determined that a child in the legal custody of the department is already receiving federal benefits, the department must: (1) in consultation with the child and the following individuals, identify the child's representative payee, or 2) apply to become the child's representative payee; provided that no other candidate is available. If the Department determines that a child is eligible for benefits administered by the federal government, the department must apply: (1) for those benefits on behalf of the child; and (2) to become the child's representative payee if no other candidate is available.

If the Department becomes the representative payee of a child, it must: 

A. establish an appropriate account to use and conserve the child's federal benefits, in the child's best interest, for current unmet needs and future needs according to the requirements of the funding source and any applicable asset and resource limits; 

B. annually determine whether a person, other than the Department, is available to assume the role of representative payee and could better serve in that role, in the child's best interest;

C. notify the child and the following individuals of any application, decision or appeal related to a child's federal benefits: the child's attorney; the child's custodian; the child's guardian; the child's guardian ad litem; or the child's Indian tribe, if the child is known to be an Indian child. In providing notice of any denial of benefits, the Department must consult with the child's attorney and appeal the denial if it is in the child's best interest; 

D. provide an annual accounting as to the use, application or conservation of the child's federal benefits to the child and the aforementioned individuals; 

E. avoid receiving overpayment of federal benefits and pay any discovered overpayment to the appropriate federal agency; and 

F. before the child leaves the custody of the Department, provide the child with financial literacy and planning tools to assist them in aligning conserved benefits with their transition plan.
If the Department is the child's representative payee, the Department may not use a child's federal benefits to pay for or reimburse the department for any of the costs of the child's care. Further, if the Department is the child’s representative payee, upon termination of the Department's legal custody, they must release any remaining funds to the child's credit according to the requirements of the funding source. In the absence of any requirements, the Department must release the funds to: A. the child, if the child is at least eighteen years old or emancipated; or B. the child's parent or guardian, if the child is younger than eighteen years old or not emancipated.

Beginning September 1, 2026 and annually thereafter, the Department must submit a report to the Legislative Health and Human Services Committee that includes: A. the number of children in its custody who receive federal benefits; B. the type of federal benefits; C. the manner in which those benefits are conserved; and D. the amounts of federal benefits used and conserved.
 

Current Law:

 Current law does not stipulate the proposed requirements to this level of detail.