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HF 54

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/04/2023 12:08pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/04/2023

Current Version - as introduced

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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 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 (SSI) 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.

Sec. 2.

new text begin [256N.262] FOSTER CHILDREN ASSISTANCE 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, "beneficiary" means a
current or former child in foster care for whom a financially responsible agency sends federal
cash assistance benefits to the commissioner of human services pursuant to this section.
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 assistance 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.
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
assistance 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.
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
benefits through SSI.
new text end

new text begin (b) If a child placed in foster care is eligible to receive federal cash assistance 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) within 90 days of receipt, remit all benefit payments received as payee for a foster
child's federal cash assistance benefits to the commissioner of human services along with
documentation identifying the child 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 assistance 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 federal cash assistance 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 sent to the commissioner
of human services as required by this section.
new text end

new text begin Subd. 4. new text end

new text begin Deposits. new text end

new text begin The commissioner of human services shall deposit all money sent
pursuant to this section in the foster children assistance trust.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner's duties. new text end

new text begin (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.
new text end

new text begin (b) The commissioner 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 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.
new text end

new text begin (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 federal cash assistance benefits
received on the beneficiary's behalf in the prior calendar year and the tax implications of
those benefits.
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 Reimbursement. new text end

new text begin The commissioner of human services shall reimburse a
financially responsible agency for all benefits sent to the commissioner pursuant to this
section.
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 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.
new text end

new text begin (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.
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
commissioner of human services shall disburse $10,000 every year to the beneficiary until
the beneficiary's account is depleted.
new text end

new text begin (b) With each disbursement, the commissioner 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 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.
new text end

new text begin Subd. 9. new text end

new text begin Administration. new text end

new text begin 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.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general
fund to the commissioner of human services to reimburse financially responsible agencies
for federal cash assistance benefits sent to the commissioner pursuant to section 2.
new text end