Minnesota Legislature
HF 2467
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/13/2023 04:49pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/02/2023 |
Current Version - as introduced
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A bill for an act
relating to human services; establishing a trust for current and recent foster children
receiving benefits and other income; requiring a report; appropriating money;
amending Minnesota Statutes 2022, section 256N.26, subdivision 12; proposing
coding for new law in Minnesota Statutes, chapter 256N.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 256N.26, subdivision 12, is amended to read:
Subd. 12.
Treatment of Supplemental Security Income.
deleted text begin If a child placed in foster
care receives benefits through Supplemental Security Income (SSI) at the time of foster
care placement or subsequent to placement in foster care, the financially responsible agency
may apply to be the payee for the child for the duration of the child's placement in foster
care.deleted text end If a child continues to be eligible for deleted text begin SSIdeleted text end new text begin Supplemental Security Income benefitsnew text end after
finalization of the adoption or transfer of permanent legal and physical custody and is
determined to be eligible for a payment under Northstar Care for Children, a permanent
caregiver may choose to receive payment from both programs simultaneously. The permanent
caregiver is responsible to report the amount of the payment to the Social Security
Administration and the deleted text begin SSIdeleted text end new text begin Supplemental Security Incomenew text end payment will be reduced as
required by the Social Security Administration.
Sec. 2.
new text begin
[256N.262] FOSTER CHILDREN BENEFITS TRUST.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For the purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Beneficiary" means a current or former child in foster care who is or was entitled
to cash benefits.
new text end
new text begin
(c) "Cash benefits" means all sources of income a child in foster care is entitled to,
including death benefits; survivor benefits; crime victim impact payments; federal cash
benefits from programs administered by the Social Security Administration, including from
the Supplemental Security Income and the Retirement, Survivors, Disability Insurance
programs; and any other eligible income as determined by the Office of the Foster Youth
Ombudsperson.
new text end
new text begin Subd. 2. new text end
new text begin Establishment. new text end
new text begin
(a) The foster children benefits trust is established. The trust
must be funded by appropriations to the Office of the Foster Youth Ombudsperson to
compensate beneficiaries for cash benefits taken by a financially responsible agency to pay
for the beneficiaries' care. The trust must be managed to ensure the stability and growth of
the trust.
new text end
new text begin
(b) All assets of the trust are held in trust for the exclusive benefit of beneficiaries. Assets
must be held in a separate account in the state treasury to be known as the foster children
benefits trust account or in accounts with the third-party provider selected pursuant to
subdivision 9.
new text end
new text begin Subd. 3. new text end
new text begin Requirements of financially responsible agencies. new text end
new text begin
(a) A financially responsible
agency must assess whether each child the agency is responsible for is eligible to receive
any cash benefits as soon as the custody of the child is transferred to a child placing agency
or responsible social services agency pursuant to section 260C.201, subdivision 1, or the
child is otherwise transferred to the state.
new text end
new text begin
(b) If a child placed in foster care is eligible to receive cash benefits, the financially
responsible agency must:
new text end
new text begin
(1) apply to be the payee for the child for the duration of the child's placement in foster
care;
new text end
new text begin
(2) no less frequently than annually, notify the Office of the Foster Youth Ombudsperson
of all cash benefits received for each beneficiary along with documentation identifying the
beneficiary and amounts received for the child;
new text end
new text begin
(3) notify each beneficiary above the age of 18 that the beneficiary may be entitled to
disbursements pursuant to the foster children benefits trust and inform the child how to
contact the commissioner of human services about the trust; and
new text end
new text begin
(4) retain all documentation related to cash benefits received for a beneficiary for at least
five years after the agency is no longer the beneficiary's financially responsible agency.
new text end
new text begin
(c) The financially responsible agency is liable to a beneficiary for any benefit payment
that the agency receives as payee for a beneficiary and that is not included in the
documentation sent to the Office of the Foster Youth Ombudsperson as required by this
subdivision.
new text end
new text begin Subd. 4. new text end
new text begin Deposits. new text end
new text begin
The Office of the Foster Youth Ombudsperson shall deposit an amount
equal to the cash benefits received by a financially responsible agency in a separate account
for each beneficiary.
new text end
new text begin Subd. 5. new text end
new text begin Ombudsperson's duties. new text end
new text begin
(a) The Office of the Foster Youth Ombudsperson
shall keep a record of the amounts deposited pursuant to subdivision 4 and all disbursements
for each beneficiary's account.
new text end
new text begin
(b) The Office of the Foster Youth Ombudsperson shall determine annually the annual
interest earnings of the trust, which include realized capital gains and losses.
new text end
new text begin
(c) The Office of the Foster Youth Ombudsperson shall apportion any annual capital
gains earnings to the separate beneficiaries' accounts. The rate to be used in this
apportionment, computed to the last full quarter percent, must be determined by dividing
the capital gains earnings by the total invested assets of the trust.
new text end
new text begin
(d) For each beneficiary between the ages of 14 and 18, the Office of the Foster Youth
Ombudsperson must notify the beneficiary of the amount of cash benefits received on the
beneficiary's behalf in the prior calendar year and the tax implications of those benefits by
February 1 each year.
new text end
new text begin
(e) Account owner data, account data, and data on beneficiaries of accounts are private
data on individuals or nonpublic data as defined in section 13.02.
new text end
new text begin Subd. 6. new text end
new text begin Account protections. new text end
new text begin
(a) Trust assets are not subject to claims by creditors of
the state, are not part of the general fund, and are not subject to appropriation by the state.
new text end
new text begin
(b) Trust assets may not be used as collateral, as a part of a structured settlement, or in
any way contracted to be paid to anyone who is not the beneficiary.
new text end
new text begin
(c) Trust assets are not subject to seizure or garnishment as assets or income of the
beneficiary.
new text end
new text begin Subd. 7. new text end
new text begin Reports. new text end
new text begin
(a) By December 1, 2024, the Office of the Foster Youth
Ombudsperson shall submit a report to the legislative committees with jurisdiction over
human services on the potential tax and state and federal benefit impacts of the trust and
disbursements on beneficiaries and include recommendations on how best to minimize any
increased tax burden or benefit reduction due to the trust.
new text end
new text begin
(b) By December 1 of each year, the Office of the Foster Youth Ombudsperson shall
submit a report to the legislative committees with jurisdiction over foster youth on the cost
of depositing into the trust pursuant to subdivision 4 and a projection for future costs.
new text end
new text begin Subd. 8. new text end
new text begin Disbursements. new text end
new text begin
(a) Once a beneficiary has reached 18 years of age, the Office
of the Foster Youth Ombudsperson shall disburse $10,000 or the total amount remaining
in the beneficiary's account, whichever is greater, every year to the beneficiary until the
beneficiary's account is depleted.
new text end
new text begin
(b) With each disbursement, the Office of the Foster Youth Ombudsperson shall include
information about the potential tax and benefits consequences of the disbursement.
new text end
new text begin
(c) On petition of a minor beneficiary who is 14 years of age or older, a court may order
the Office of the Foster Youth Ombudsperson to deliver or pay to the beneficiary or expend
for the beneficiary's benefit the amount of the beneficiary's trust account as the court
considers advisable for the use and benefit of the beneficiary.
new text end
new text begin Subd. 9. new text end
new text begin Administration. new text end
new text begin
The Office of the Foster Youth Ombudsperson shall administer
the program pursuant to this section. The Office of the Foster Youth Ombudsperson may
contract with one or more third parties to carry out some or all of these administrative duties,
including managing the assets of the trust and ensuring that records are maintained.
new text end
new text begin Subd. 10. new text end
new text begin Repayment program. new text end
new text begin
(a) No later than January 1, 2025, the Office of the
Foster Youth Ombudsperson must identify every person for whom a financially responsible
agency received cash benefits as the person's representative payee between August 1, 1973,
and July 31, 2023, and the amount of money diverted to the financially responsible agency
during that time. The Office of the Foster Youth Ombudsperson must attempt to notify
every individual identified in this paragraph of the individual's potential eligibility for
repayment pursuant to this subdivision no later than July 1, 2025.
new text end
new text begin
(b) No later than January 1, 2026, the Office of the Foster Youth Ombudsperson must
begin accepting applications for individuals described in paragraph (a) to receive
compensation for cash benefits diverted to the individual's financially responsible agency
between August 1, 1973, and July 31, 2023. The Office of the Foster Youth Ombudsperson
must develop a system to process the applications and approve all applications that can
show that the applicant had cash benefits diverted to a financially responsible agency between
August 1, 1973, and July 31, 2023.
new text end
new text begin
(c) For every beneficiary already enrolled in the foster youth benefits trust that the Office
of the Foster Youth Ombudsperson determines had cash benefits diverted to a financially
responsible agency between August 1, 1973, and July 31, 2023, the Office of the Foster
Youth Ombudsperson must deposit an amount equal to the cash benefits diverted to a
financially responsible agency between August 1, 1973, and July 31, 2023, into the
beneficiary's trust account. The Office of the Foster Youth Ombudsperson must screen
beneficiaries for eligibility under this paragraph automatically without requiring an
application from the beneficiaries.
new text end
new text begin
(d) For every applicant under paragraph (b) who is not already enrolled in the foster
youth benefits trust, the Office of the Foster Youth Ombudsperson must directly award the
applicant an amount equal to the cash benefits diverted to a financially responsible agency
between August 1, 1973, and July 31, 2023.
new text end
new text begin
(e) No later than January 31, 2025, the Office of the Foster Youth Ombudsperson must
issue a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over foster youth.
new text end
new text begin Subd. 11. new text end
new text begin Rulemaking authority. new text end
new text begin
The Office of the Foster Youth Ombudsperson is
authorized, subject to the provisions of chapter 14, to make rules necessary to the operation
of the foster youth benefits trust and repayment program and to aid in performing its
administrative duties and ensuring an equitable result for beneficiaries and former foster
youths.
new text end
Sec. 3. new text begin APPROPRIATIONS; FOSTER YOUTH BENEFITS TRUST AND
REPAYMENT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Foster youth benefits trust. new text end
new text begin
(a) $....... in fiscal year 2024 and $....... in
fiscal year 2025 are appropriated from the general fund to the Office of the Foster Youth
Ombudsperson for the purposes of the foster youth benefits trust under Minnesota Statutes,
section 256N.262.
new text end
new text begin
(b) The Office of the Foster Youth Ombudsperson may use the appropriations in this
section to hire up to two full-time equivalent staff members to administer the foster youth
benefits trust and repayment program.
new text end
new text begin Subd. 2. new text end
new text begin Repayment program. new text end
new text begin
(a) $....... in fiscal year 2024 is appropriated from the
general fund to the Office of the Foster Youth Ombudsperson to identify:
new text end
new text begin
(1) current and former individuals in foster care for whom a financially responsible
agency received cash benefits as the person's representative payee between January 1, 2013,
and July 31, 2023;
new text end
new text begin
(2) the amount of money diverted away from each individual; and
new text end
new text begin
(3) the projected cost of repaying individuals formerly in foster care pursuant to
Minnesota Statutes, section 256N.262, subdivision 10.
new text end
new text begin
(b) Any unspent amount in fiscal year 2024 does not cancel and is carried over to fiscal
year 2025.
new text end