as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2022 05:24pm
A bill for an act
relating to human services; establishing a trust for foster children receiving
Supplemental Security Income benefits; requiring a report; appropriating money;
amending Minnesota Statutes 2020, 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:
Minnesota Statutes 2020, section 256N.26, subdivision 12, is amended to read:
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 (SSI)new text end new text begin 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 SSI payment will be reduced as required by the Social Security
Administration.
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For the purposes of this section, "beneficiary" means a current
or former child in foster care for whom a financially responsible agency sends Supplemental
Security Income (SSI) benefits to the commissioner of human services pursuant to this
section.
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(a) The foster children SSI trust is established. The trust consists
of deposits made by the commissioner of human services pursuant to this section. The trust
must be managed to ensure the stability and growth of the trust.
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(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
SSI trust account or in accounts with the third-party provider selected pursuant to subdivision
9. 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.
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(a) A financially responsible
agency must assess whether each child the agency is responsible for is eligible to receive
benefits through SSI.
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(b) If a child placed in foster care is eligible to receive benefits through SSI, the
financially responsible agency must:
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(1) apply to be the payee for the child for the duration of the child's placement in foster
care;
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(2) within 90 days of receipt, remit all benefit payments received as payee for a foster
child's SSI benefits to the commissioner of human services along with documentation
identifying the child and amounts received for the child;
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(3) notify each beneficiary above the age of 18 that the beneficiary may be entitled to
disbursements pursuant to the foster children SSI trust and inform the child how to contact
the commissioner of human services about the trust; and
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(4) retain all documentation related to SSI benefits received for a beneficiary for at least
five years after the agency is no longer the beneficiary's financially responsible agency.
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(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 sent to the commissioner
of human services as required by this section.
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The commissioner of human services shall deposit all money sent
pursuant to this section in the foster children SSI trust.
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(a) The commissioner of human services shall keep
a record of the receipts and disbursements of the trust and a separate account for each
beneficiary.
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(b) The commissioner shall determine annually the annual interest earnings of the trust,
which include realized capital gains and losses.
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(c) The commissioner 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.
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(d) For each beneficiary between the ages of 14 and 18, the commissioner must, by
February 1 each year, notify the beneficiary of the amount of SSI benefits received on the
beneficiary's behalf in the prior calendar year and the tax implications of those benefits.
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(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.
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The commissioner of human services shall reimburse a
financially responsible agency for all benefits sent to the commissioner pursuant to this
section.
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(a) By December 1, 2023, the commissioner 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.
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(b) By December 1 of each year, the commissioner shall submit a report to the legislative
committees with jurisdiction over human services on the cost of reimbursing financially
responsible agencies pursuant to this section and a projection for future costs.
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(a) Once a beneficiary has reached 18 years of age, the
commissioner of human services shall disburse $10,000 every year to the beneficiary until
the beneficiary's account is depleted.
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(b) With each disbursement, the commissioner shall include information about the
potential tax and benefits consequences of the disbursement.
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(c) On petition of a minor beneficiary who is at least 14 years old, a court may order the
commissioner to deliver or pay to the beneficiary or expend for the beneficiary's benefit the
amount of the beneficiary's trust account as the court considers advisable for the use and
benefit of the beneficiary.
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The commissioner shall administer the program pursuant to
this section. The commissioner may contract with one or more third parties to carry out
some or all of these administrative duties, including managing the assets of the trust and
ensuring that records are maintained.
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$....... in fiscal year 2023 is appropriated from the general fund to the commissioner of
human services to reimburse financially responsible agencies for Supplemental Security
Income benefits sent to the commissioner pursuant to section 2.
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