2025 -- H 5077

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LC000588

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF CHILDREN,

YOUTH AND FAMILIES

     Introduced By: Representatives Casimiro, Noret, Chippendale, Roberts, Serpa, Tanzi,
Cruz, Morales, Place, and Read

     Date Introduced: January 16, 2025

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 42-72 of the General Laws entitled "Department of Children, Youth

and Families" is hereby amended by adding thereto the following section:

     42-72-37. Application for social security benefits, supplemental security income, and

veterans benefits.

     (a) Definitions. For the purposes of this section:

     (1) "Benefits" means social security benefits, supplemental security income, veterans

benefits, and railroad retirement benefits; and

     (2) "Youth's attorney" and "guardian ad litem" means the person appointed as the youth's

attorney or guardian ad litem in the proceeding in which the department is appointed as the youth's

guardian or custodian.

     (b) Application for benefits.

     (1) Upon receiving temporary custody or guardianship of a youth in care, the department

shall assess the youth to determine whether the youth may be eligible for benefits. If, after the

assessment, the department determines that the youth may be eligible for benefits, the department

shall ensure that an application is filed on behalf of the youth. The department shall prescribe by

rules and regulations how it will review cases of youth in care at regular intervals to determine

whether the youth may have become eligible for benefits after the initial assessment. The

department shall make reasonable efforts to encourage youth in care over the age of eighteen (18)

who are likely eligible for benefits to cooperate with the application process and to assist youth

with the application process.

     (2) When applying for benefits under this section for a youth in care the department shall

identify a representative payee in accordance with the requirements of 20 CFR 404.2021 and

416.621. If the department is seeking to be appointed as the youth's representative payee, the

department shall consider input, if provided, from the youth's attorney and guardian ad litem

regarding whether another representative payee, consistent with the requirements of 20 CFR

404.2021 and 416.621, is available. If the department serves as the representative payee for a youth

over the age of eighteen (18), the department shall request a court order, as described in subsection

(d) of this section.

     (c) Notifications. The department shall immediately notify a youth over the age of sixteen

(16), the youth's attorney and guardian ad litem, and the youth's parent or legal guardian or another

responsible adult of:

     (1) Any application for or any application to become representative payee for benefits on

behalf of a youth in care;

     (2) Any communications from the Social Security Administration, the U.S. Department of

Veterans Affairs, or the Railroad Retirement Board pertaining to the acceptance or denial of

benefits or the selection of a representative payee; and

     (3) Any appeal or other action requested by the department regarding an application for

benefits.

     (d) Use of benefits. Consistent with federal law, when the department serves as the

representative payee for a youth receiving benefits and receives benefits on the youth's behalf, the

department shall:

     (1) Beginning January 1, 2026, except as provided in a request for the disbursement of

funds pursuant to subsection (f)(4) of this section, ensure that when the youth attains the age of

fourteen (14) years and until the department no longer serves as the representative payee, a

minimum percentage of the youth's supplemental security income benefits are conserved in

accordance with subsection (d)(4) of this section as follows:

     (i) From the age of fourteen (14) through the age of fifteen (15), at least forty percent

(40%);

     (ii) From the age of sixteen (16) through the age of seventeen (17), at least eighty percent

(80%); and

     (iii) From the age of eighteen (18) through the age of twenty (20), one hundred percent

(100%), when a court order has been entered expressly allowing the department to have the

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authority to establish and serve as an authorized agent of the youth over the age of eighteen (18)

with respect to an account established in accordance with subsection (d)(4) of this section.

     (2) Beginning July 1, 2026, except as provided in a request for the disbursement of funds

pursuant to subsection (f)(4) of this section, ensure that when the youth attains the age of fourteen

(14) years and until the department no longer serves as the representative payee, a minimum

percentage of the youth' s social security benefits, veterans benefits, or railroad retirement benefits

are conserved in accordance with subsection (d)(4) of this section as follows:

     (i) From the age of fourteen (14) through the age of fifteen (15), at least forty percent

(40%);

     (ii) From the age of sixteen (16) through the age of seventeen (17), at least eighty percent

(80%); and

     (iii) From the age of eighteen (18) through the age of twenty (20), one hundred percent

(100%), when a court order has been entered expressly allowing the department to have the

authority to establish and serve as an authorized agent of the youth over the age of eighteen (18)

with respect to an account established in accordance with subsection (d)(4) of this section.

     (3) Exercise discretion in accordance with federal law and in the best interests of the youth

when making decisions to use or conserve the youth's benefits that are less than or not subject to

asset or resource limits under federal law, including using the benefits to address the youth's special

needs and conserving the benefits for the youth's reasonably foreseeable future needs.

     (4) Appropriately monitor any federal asset or resource limits for the benefits and ensure

that the youth's best interest is served by using or conserving the benefits in a way that avoids

violating any federal asset or resource limits that would affect the youth's eligibility to receive the

benefits, including:

     (i) Applying to the Social Security Administration to establish a Plan to Achieve Self-

Support (PASS) Account for the youth under the Social Security Act and determining whether it is

in the best interest of the youth to conserve all or parts of the benefits in the PASS account;

     (ii) Establishing a 529 plan for the youth and conserving the youth's benefits in that account

in a manner that appropriately avoids any federal asset or resource limits;

     (iii) Establishing an individual development account for the youth and conserving the

youth's benefits in that account in a manner that appropriately avoids any federal asset or resource

limits;

     (iv) Establishing an ABLE account authorized by Section 529A of the Internal Revenue

Code of 1986 for the youth and conserving the youth's benefits in that account in a manner that

appropriately avoids any federal asset or resource limits;

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     (v) Establishing a Social Security Plan to Achieve Self-Support account for the youth and

conserving the youth's benefits in a manner that appropriately avoids any federal asset or resource

limits;

     (vi) Establishing a special needs trust for the youth and conserving the youth's benefits in

the trust in a manner that is consistent with federal requirements for special needs trusts and that

appropriately avoids any federal asset or resource limits;

     (vii) If the department determines that using the benefits for services for current special

needs not already provided by the department is in the best interest of the youth, using the benefits

for those services;

     (viii) If federal law requires certain back payments of benefits to be placed in a dedicated

account, complying with the requirements for dedicated accounts under 20 CFR 416.640(e); and

     (ix) Applying any other exclusions from federal asset or resource limits available under

federal law and using or conserving the youth' s benefits in a manner that appropriately avoids any

federal asset or resource limits.

     (e) By January 1, 2027, the department shall provide a report to the general assembly

regarding youth in care who receive benefits who are not subject to this section. The report shall

discuss a goal of expanding conservation of children's benefits to all benefits of all children of any

age for whom the department serves as representative payee. The report shall include a description

of any identified obstacles, steps to be taken to address the obstacles, and a description of any need

for statutory, rule, regulation, or procedural changes.

     (f)(1) Annual accounting. The department shall provide an annual accounting to the youth's

attorney and guardian ad litem of how the youth's benefits have been used and conserved. In

addition, within ten (10) business days of a request from a youth or the youth's attorney and

guardian ad litem, the department shall provide an accounting to the youth of how the youth's

benefits have been used and conserved. The accounting shall include:

     (i) The amount of benefits received on the youth's behalf since the most recent accounting

and the date the benefits were received;

     (ii) Information regarding the youth's benefits and resources, including the youth's benefits,

insurance, cash assets, trust accounts, earnings, and other resources;

     (iii) An accounting of the disbursement of benefit funds, including the date, amount,

identification of payee, and purpose; and

     (iv) Information regarding each request by the youth, the youth's attorney and guardian ad

litem, or the youth's caregiver for disbursement of funds and a statement regarding the reason for

not granting the request if the request was denied.

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     (2) Final accounting. When the department's guardianship of the youth is being terminated,

the department shall provide:

     (i) A final accounting to the Social Security Administration, to the youth's attorney and

guardian ad litem, and to either the person or persons who will assume guardianship of the youth

or who is in the process of adopting the youth, if the youth is under eighteen (18), or to the youth,

if the youth is over eighteen (18); and

     (ii) Information to the parent, guardian, or youth regarding how to apply to become the

representative payee. The department shall adopt rules and regulations to ensure that the

representative payee transitions occur in a timely and appropriate manner.

     (g) Financial literacy. The department shall provide the youth with financial literacy

training and support, including specific information regarding the existence, availability, and use

of funds conserved for the youth in accordance with this subsection, beginning by age fourteen

(14). The literacy program and support services shall be developed in consultation with input from

the department's statewide speak advisory board.

     (h) Adoption of rules and regulations. The department shall adopt rules and regulations to

implement the provisions of this section by October 1, 2025.

     (i) Reporting.

     No later than January 1, 2028, the department shall file a report with the general assembly

providing the following information for state fiscal years 2026 and 2027 and annually beginning

January 1, 2029, for the preceding fiscal year:

     (1) The number of youth entering care.

     (2) The number of youth entering care receiving each of the following types of benefits:

social security benefits, supplemental security income, veterans benefits, and/or railroad retirement

benefits.

     (3) The number of youth entering care for whom the department filed an application for

each of the following types of benefits: social security benefits, supplemental security income,

veterans benefits, and/or railroad retirement benefits.

     (4) The number of youth entering care who were awarded each of the following types of

benefits based on an application filed by the department: social security benefits, supplemental

security income, veterans benefits, and/or railroad retirement benefits.

     (j) Annually beginning January 1, 2028, the department shall file a report with the general

assembly with the following information regarding the preceding fiscal year:

     (1) The number of conserved accounts established and maintained for youth in care;

     (2) The average amount conserved by age group; and

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     (3) The total amount conserved by age group.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- DEPARTMENT OF CHILDREN,

YOUTH AND FAMILIES

***

     This act would require the department of children, youth and families (DCYF) to establish

segregated savings accounts for a foster care child receiving social security benefits, supplemental

security income, veterans benefits or railroad retirement benefits, which payments would be exempt

from the asset limits in order to manage the accounts and keep the child eligible for future benefits.

     This act would take effect upon passage.

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