Bill Text: MI SB0872 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Children: foster care; conditions on the use of certain benefits for a child in foster care; provide. Amends 1994 PA 203 (MCL 722.951 - 722.960) by adding sec. 8f.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced) 2024-05-15 - Reassigned To Committee On Housing And Human Services [SB0872 Detail]
Download: Michigan-2023-SB0872-Introduced.html
SENATE BILL NO. 872
A bill to amend 1994 PA 203, entitled
"Foster care and adoption services act,"
(MCL 722.951 to 722.960) by adding section 8f.
the people of the state of michigan enact:
Sec. 8f. (1) The department shall do both of the following:
(a) Apply for and secure all income and funds available to a child in foster care, including any unqualified benefits for which a child in foster care is eligible.
(b) Screen a child in foster care for unqualified benefits within 60 days after the child enters foster care, and annually if the child remains in foster care.
(2) Beginning not later than October 1, 2024, and except as provided in this subsection, this state shall not use the unqualified benefits of a child in foster care, or any other assets or income that the child has earned, owned, or received, as reimbursement for the cost of care for the child. The department may do 1 or more of the following if the department determines that it is in the child's best interests:
(a) Use the child's unqualified benefits for special needs services for the child that are not otherwise provided by the department.
(b) Conserve the unqualified benefits for reasonably foreseeable future special needs services for the child.
(3) If the department applies for federal benefits for a child in foster care, the department shall, in cooperation with the child's guardian ad litem, if one has been appointed, identify a representative payee or fiduciary in accordance with the requirements of 20 CFR 404.2021 and 416.621, as applicable.
(4) Not later than January 1, 2026, and consistent with federal law, if the department serves as the representative payee or in any other fiduciary capacity for a child in foster care that receives federal benefits, the department shall do all of the following until the department no longer serves as the representative payee or fiduciary:
(a) Conserve the federal benefits in the child's best interests or use the federal benefits as authorized under subsection (2).
(b) Subject to subsection (2), appropriately monitor any federal asset or resource limits for the federal benefits and ensure that the child's best interests are served by using or conserving the federal benefits in a way that avoids violating any federal asset or resource limits that would affect the child's eligibility to receive the federal benefits, including any of the following:
(i) Applying to the United States Social Security Administration to establish a plan for achieving self-support (PASS) account for the child under the social security act, 42 USC 301 to 1397mm, and determining whether it is in the best interests of the child to conserve all or part of the federal benefits in the PASS account.
(ii) Establishing a plan for the child under section 529A of the internal revenue code of 1986, 26 USC 529A, and conserving the child's federal benefits in a manner that appropriately avoids any federal asset or resource limits.
(iii) Establishing an individual development account for the child and conserving the child's federal benefits in that account in a manner that appropriately avoids any federal asset or resource limits.
(iv) Establishing a special needs trust for the child and conserving the child's federal benefits in the trust in a manner that is consistent with federal requirements for the trust and that appropriately avoids any federal asset or resource limits. As used in this subparagraph, "special needs trust" means a trust described in section 1917(d)(4)(A), (B), or (C) of title XIX of the social security act, 42 USC 1396p.
(v) If federal law requires certain back payments of unqualified benefits to be placed in a dedicated account, complying with the requirements for dedicated accounts under 20 CFR 416.640(e).
(vi) Applying any other exclusions from federal asset or resource limits available under federal law and using or conserving the child's federal benefits in a manner that appropriately avoids any federal asset or resource limits.
(c) Provide an annual accounting to the child and the child's guardian ad litem, if one has been appointed, of how the child's unqualified benefits have been used or conserved in accordance with this section.
(5) Not later than January 1, 2026, if a child in foster care is 14 years of age or older and is able to receive financial literacy training, the department shall provide the child with financial literacy training.
(6) The department shall immediately notify a child in foster care, through the child's guardian ad litem, if one has been appointed, of any of the following:
(a) An application for federal benefits made on the child's behalf or any application to become representative payee for federal benefits on the child's behalf.
(b) A decision or communication from the federal government regarding an application for federal benefits described under subdivision (a).
(c) An appeal or other action requested by the department with regard to an application for federal benefits described under subdivision (a).
(7) Not later than January 1, 2026, if the department serves as the representative payee or otherwise receives unqualified benefits on behalf of a child in foster care, the department must provide notice to the child, through the child's guardian ad litem, if one has been appointed, of all of the following before each juvenile court hearing regarding the child:
(a) The amount of unqualified benefits received on the child's behalf since any previous notification to the child's guardian ad litem, if one has been appointed, and the date of each receipt.
(b) Information regarding all of the child's assets and resources, including the child's unqualified benefits, insurance, cash assets, trust accounts, earnings, and other resources.
(8) The department shall facilitate the transfer of any assets or income that the child has earned, owned, or received to the child when the child is discharged from foster care or reaches the age of 18, whichever is sooner. The department shall assist the child in nominating a representative payee, if applicable. If the child dies while in foster care, the department shall facilitate the transfer of any of the child's assets or income to the child's heirs. If the child is discharged from foster care into the care of a parent, guardian, or conservator, the department shall facilitate the transfer of any assets or income to the child's parent, guardian, or conservator to be managed for the benefit of the child.
(9) As appropriate, the department shall file timely appeals to a denial, overpayment, or cessation of unqualified benefits on behalf of a child in foster care.
(10) This section does not affect any additional notice required by a state court.
(11) As used in this section:
(a) "Federal benefits" includes, but is not limited to, any of the following:
(i) Social Security benefits.
(ii) Supplemental Security Income.
(iii) United States Department of Veterans Affairs benefits.
(b) "Unqualified benefits" means any of the following:
(i) Federal benefits.
(ii) Payments or proceeds that a child receives as a beneficiary of an annuity, a life insurance policy, or a pension.
