Bill

Bill > H0558


ID H0558

ID H0558
Adds to existing law to provide requirements for the Department of Health and Welfare to apply and reserve federal benefits for children in the department's legal custody.


summary

Introduced
01/29/2026
In Committee
02/24/2026
Crossed Over
02/18/2026
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

RELATING TO FEDERAL

AI Summary

This bill establishes new requirements for the Department of Health and Welfare (the "Department") regarding federal benefits for children in its legal custody. The Department must now actively determine within 60 days of a child entering its custody, and annually thereafter, if the child is eligible for or receiving federal benefits, such as survivor or dependent benefits from the Social Security Administration or the Department of Veterans Affairs. If a child is eligible, the Department must apply for those benefits and, if no other suitable person is available, apply to become the child's "representative payee," which is an individual or organization appointed to receive federal benefits on behalf of a child. When acting as a representative payee, the Department must use the benefits for the child's current unmet needs and future needs, not to reimburse itself for the child's care, and must maintain an account for these funds. The Department also has an obligation to annually review if another qualified person could better serve as representative payee and assist in transferring that role if appropriate. Furthermore, the bill mandates that the Department provide an annual accounting of how the benefits were used to the child, their attorney, guardian, and parents (if parental rights haven't been terminated), and must notify these parties of any decisions or appeals related to the child's benefits. Crucially, the bill outlines a "success sequence savings and disbursement plan" for conserved benefits, allowing children to access portions of their funds upon reaching specific milestones like obtaining a driver's license, graduating high school, or securing employment, and requires the Department to ensure children have access to financial literacy tools before leaving its custody. Finally, upon a child leaving the Department's legal custody, any remaining federal benefit funds must be released to the child if they are 18 or emancipated, or to their parent or guardian if they are younger and not emancipated.

Committee Categories

Health and Social Services

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Health and Welfare Committee (House)

Last Action

Third Reading Calendar (10:30:00 3/2/2026 Senate Floor) (on 03/02/2026)

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