The bill, HB 661-FN, introduces new requirements for the management of federal benefits for dependent children in the custody of the Department of Health and Human Services (DHHS). It mandates that the DHHS determine eligibility for benefits from the Social Security Administration or Veterans Administration within 60 days of a child's entry into care. The bill stipulates that if a child is already receiving benefits with an appointed representative payee, the DHHS cannot change this appointment unless the current payee is deemed unsuitable. Furthermore, the DHHS may serve as the representative payee if no other suitable candidate is available, and it outlines a phase-in schedule for conserving a percentage of the child's federal benefits, starting at 25% in 2028 and reaching 100% by 2034.

Additionally, the bill requires the DHHS to establish procedures for creating ABLE accounts for children in its custody by June 30, 2027, and mandates annual reviews of children's eligibility for benefits. It also requires the department to provide annual accounting of the use of benefits to the child and their representatives, and to notify relevant parties about applications or decisions related to a child's federal benefits. The bill includes staggered effective dates for various provisions, with some taking effect in 2027 and others in 2028, and it will only apply to children in care after July 1, 2027. A contingency clause allows implementation only if the DHHS commissioner certifies sufficient funding is available, with an estimated fiscal impact of a $2.5 million loss in federal revenue annually starting in FY29, alongside projected implementation costs.

Statutes affected:
As Amended by the House: 126-A:6-a
As Amended by the Senate: 126-A:6-a
As Amended by the Senate (2nd): 126-A:6-a