The proposed legislation, known as the "Children's Benefits Account Act," establishes a framework for the Children, Youth and Families Department to act as the representative payee for managing the retirement, survivors, and disability insurance funds of children in its custody. The Act mandates the creation of benefits accounts for these beneficiaries, which will be maintained by the department. It outlines the department's responsibilities, including applying for benefits on behalf of eligible children, managing the funds, providing annual statements, and ensuring confidentiality of account information.

Additionally, the Act specifies procedures for account closures and disbursements when a beneficiary ages out of foster care or is reunited with their family. It also limits the department's liability regarding delays in processing benefits by the federal social security administration. The department is required to adopt rules for implementing the Act by October 1, 2025, with the provisions taking effect on July 1, 2025.