Bill > HB1235

This bill amends Tennessee law to establish new guidelines for how the state's department of child services manages federal funds received by children in its care. Specifically, when the department serves as a representative payee for federal funds, it must conserve those funds for the child's future needs or use them for special needs services not currently provided. The department is granted discretion to hold these funds in various financial vehicles such as trusts, 529 plans, individual development accounts, or special needs trusts. The bill requires that fund usage must not compromise the child's eligibility for other government benefits, and the department must maintain detailed records of fund conservation and usage. These records must be made available to the child's attorney, the child upon turning 18, and the child's guardian if the child is no longer in departmental custody. While the department may use a portion of interest earnings to offset administrative expenses, it cannot use the funds to reimburse itself for the child's care costs. The provisions of this bill will take effect on July 1, 2025, with the aim of protecting and maximizing financial resources for children in state care.