SB 312

Present law prohibits a court from direct ing the department of children's services ("department""), or its contractors' or agents', use or disposition of any federal funds for which any child or person in the care of the department is eligi ble or may receive and for which the department may be payee on behalf of such child or person including, but not limited to, Social Security survivors benefits and supplemental security income benefits, foster care or adoption assistance benefits, or vet e ran's benefits, railroad retirement benefits or black lung benefits or any successor entitlements that are provided by federal law. Funds received under any federal benefits programs must be processed, utilized and accounted for by the department pursuant only to federal regulations or federal court orders governing those programs. CONSERVATION OF FUNDS – AUTHORIZED USES W hen the department serves as the representative payee on behalf of a child for any federal funds a child in the care of the departmen t is eligible for or may receive, this bill requires the department to conserve those federal funds for the child's reasonable, foreseeable future needs or use the funds for special needs services not otherwise provided by the department. This bill autho rizes t he department to exercise discretion to conserve these federal funds in the best interest of the child by holding such moneys in a trust or apply for and establish an account for the child, including a Plan for Achieving Self-Support, a 529 or 529A plan, an individual development account, a special needs trust, or a bank account. However, i f it is in the best interest of the child, the department may utilize the federal funds for special needs services that are not currently being provided by the de partment. This bill requires t he department to conserve and use the federal funds in a manner that does not violate any federal asset or resource limits that would affect the child's eligibility for benefits or assistance offered by the federal, state, o r local government. This bill authorizes t he department to use a reasonable portion of interest earnings from the federal funds to offset the reasonable expenses incurred in meeting the department's obligations to apply for and administer benefits descri bed above . However, t he federal funds must not be used to reimburse the department for the costs of caring for the child. RECORDKEEPING This bill requires the department to maintain records related to the conservation and use of these federal funds, an d the records must be maintained in the child's file that is available to the child's attorney, to the child once the child is 18, and to the child's guardian if the child is no longer in the department's custody."