Assembly Bill 1053 aims to establish guidelines for the management of state or federal benefits for children in out-of-home care. Under the proposed law, if the Department of Children and Families or a county department is designated as the representative payee for a child receiving such benefits, they are required to conserve these benefits in protected accounts that do not affect the child's eligibility for federal and state programs. Additionally, the department must provide regular accounting of the benefits to the child, their attorney or guardian ad litem, and their parent or guardian, and work towards returning any remaining funds to the child or another fiduciary upon the child's exit from out-of-home care.

The bill also allows the department to contract with public or private agencies to meet these requirements and explicitly prohibits the use of benefits received on behalf of the child to cover the costs of their care in out-of-home settings. This legislation is designed to ensure that the financial interests of children in out-of-home care are protected and managed in a manner that prioritizes their best interests.