Bill Summary – FastDemocracy

Legislative Analysis
                                                                           Phone: (517) 373-8080
FOSTER CARE BENEFITS                                                       http://www.house.mi.gov/hfa
Senate Bill: 872 (S-2) as passed by the Senate                             Analysis available at
Sponsor: Sen. Jeff Irwin                                                   http://www.legislature.mi.gov
House Committee: Families, Children and Seniors
Senate Committee: Housing and Human Services
Complete to 12-3-24
SUMMARY:
       Senate Bill 872 would amend the Foster Care and Services Act to do the following:
          • Prohibit the state from using a child in foster care’s state or federal benefits, assets,
              or income as reimbursement for the care of that child after October 1, 2026.
          • Require the Department of Health and Human Services (DHHS) , at its discretion,
              to screen a child in foster care for potential eligibility for state and federal benefits
              within 90 days of a child’s entering foster care and annually if a child remained in
              foster care.
          • Require DHHS to consult with the parents or guardian ad litem of a child in foster
              care to make decisions regarding state or federal benefits for the child’s best
              interest.
          • Require DHHS to apply for state and federal benefits for which a child in foster
              care could be eligible and not already receiving for the child’s best interest.
          • Require DHHS, if it applies for state or federal benefits for the child, in cooperation
              with the guardian ad litem, to provide information to assist payors of state or federal
              benefits in identifying a representative payee or fiduciary or serve as representative
              payee.
          • Require DHHS to conserve and monitor any benefits of a child in foster care for
              whom DHHS served as a representative payee or fiduciary until DHHS no longer
              served as a payee or fiduciary.
          • Require DHHS to notify a child in foster care, through the child’s guardian ad litem,
              of an application for or change in status, i.e., representative payee, decision,
              communication or appeal, of any federal benefits pertaining to the child.
          • Require DHHS to provide a child 14 years of age or older in foster care with
              financial literacy training consistent with the needs of that child.
          • Require DHHS to notify a child, through the child’s guardian ad litem, of
              information about the child’s assets before each permanency planning hearing
              regarding the child if DHHS served as a representative payee or fiduciary.
          • Require DHHS to facilitate the transfer of assets or income to the child when
              discharged or upon adulthood, whichever is sooner, and specify how the assets
              would have to be disbursed if the child were discharged from or died in foster care.
              If the child is discharged to parent, guardian or conservator, department would
              facilitate transfer of assets or income only to funds where it is payee or fiduciary.
House Fiscal Agency                                                                          Page 1 of 2
           •   Require DHHS, or a guardian ad litem if appointed, to file timely appeals to a
               denial, overpayment, or cessation of state or federal benefits on behalf of a child in
               foster care.
       Transfer of assets would have to be in accordance with the rules of the Social Security
       Administration.
       The bill would not affect additional notices required by state court.
       Proposed MCL 722.958f
FISCAL IMPACT:
       Senate Bill 872 would increase costs for the Department of Health and Human Services
       and local units of government by up to $3.7 million GF/GP. Under the provisions of the
       bill, DHHS will no longer be able to utilize a child’s state or federal benefits to cover the
       cost of the child’s care while the child is in foster care. In FY 2023-24, $3.7 million
       restricted funding was expended by the department to cover the cost of foster youth care.
       In FY 2024-25, $3.6 million in restricted funding is authorized to be spent. The loss of
       restricted revenue would need to be replaced by GF/GP.
                                                          Legislative Analyst: E. Best
                                                               Fiscal Analyst: Sydney Brown
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency                                   SB 872 (S-2) as passed by the Senate   Page 2 of 2
Statutes affected: 
Substitute (S-1): 722.951, 722.960
Substitute (S-2): 722.951, 722.960
Substitute (H-1): 722.951, 722.960
Senate Introduced Bill: 722.951, 722.960
As Passed by the Senate: 722.951, 722.960