HF 588

as introduced - 94th Legislature (2025 - 2026) Posted on 02/13/2025 02:44pm

A bill for an act
relating to foster children; establishing a trust for foster children receiving
Supplemental Security Income benefits; requiring a report; appropriating money;
amending Minnesota Statutes 2024, section 142A.609, subdivision 11; proposing
coding for new law in Minnesota Statutes, chapter 142A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 142A.609, subdivision 11, is amended to
read:

Subd. 11.

Treatment of Supplemental Security Income.

deleted text begin (a) 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 SSI deleted text end new text begin Supplemental Security Income (SSI) benefits new 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.

deleted text begin (b) If a financially responsible agency applies to be the payee for a child who receives
benefits through SSI, or receives the benefits under this subdivision on behalf of a child,
the financially responsible agency must provide written notice by certified mail, return
receipt requested to:
deleted text end

deleted text begin (1) the child, if the child is 13 years of age or older;
deleted text end

deleted text begin (2) the child's parent, guardian, or custodian or if there is no legal parent or custodian
the child's relative selected by the agency;
deleted text end

deleted text begin (3) the guardian ad litem;
deleted text end

deleted text begin (4) the legally responsible agency; and
deleted text end

deleted text begin (5) the counsel appointed for the child pursuant to section 260C.163, subdivision 3.
deleted text end

deleted text begin (c) If a financially responsible agency receives benefits under this subdivision on behalf
of a child 13 years of age or older, the legally responsible agency and the guardian ad litem
must disclose this information to the child in person in a manner that best helps the child
understand the information. This paragraph does not apply in circumstances where the child
is living outside of Minnesota.
deleted text end

deleted text begin (d) If a financially responsible agency receives the benefits under this subdivision on
behalf of a child, it cannot use those funds for any other purpose than the care of that child.
The financially responsible agency must not commingle any benefits received under this
subdivision and must not put the benefits received on behalf of a child under this subdivision
into a general fund.
deleted text end

deleted text begin (e) If a financially responsible agency receives any benefits under this subdivision, it
must keep a record of:
deleted text end

deleted text begin (1) the total dollar amount it received on behalf of all children it receives benefits for;
deleted text end

deleted text begin (2) the total number of children it applied to be a payee for; and
deleted text end

deleted text begin (3) the total number of children it received benefits for.
deleted text end

deleted text begin (f) By July 1, 2025, and each July 1 thereafter, each financially responsible agency must
submit a report to the commissioner of children, youth, and families that includes the
information required under paragraph (e). By September 1 of each year, the commissioner
must submit a report to the chairs and ranking minority members of the legislative committees
with jurisdiction over child protection that compiles the information provided to the
commissioner by each financially responsible agency under paragraph (e); subdivision 12,
paragraph (e); and section 260C.331, subdivision 7, paragraph (d). This paragraph expires
January 31, 2034.
deleted text end

Sec. 2.

new text begin [142A.613] FOSTER CHILDREN ASSISTANCE TRUST.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin 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 children, youth, and families 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 children, youth, and families 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 children, youth, and families
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 children, youth, and families 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 children, youth, and families 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 children, youth, and families 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 children, youth, and families
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 children, youth, and families 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, 2026, the commissioner shall submit a report to
the legislative committees with jurisdiction over children, youth, and families 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 children, youth, and families 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 children, youth, and families 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 2026 and $....... in fiscal year 2027 are appropriated from the general
fund to the commissioner of children, youth, and families to reimburse financially responsible
agencies for federal cash assistance benefits sent to the commissioner pursuant to Minnesota
Statutes, section 142A.613.
new text end