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, detailing the department's responsibilities in managing these accounts, including tracking funds, providing annual statements, and ensuring confidentiality. The department is required to apply for representative payee status for both beneficiaries and eligible beneficiaries, and it must notify relevant parties of its appointment within thirty days.

Additionally, the Act outlines procedures for account closures and disbursements when a beneficiary ages out of foster care or is reunited with their family. It specifies that the department is not liable for delays caused by the federal social security administration in processing benefits and emphasizes the confidentiality of account information. The department is tasked with adopting rules for the implementation of the Act by October 1, 2025, with the provisions set to take effect on July 1, 2025.