HOUSE BILL NO. 4750

July 29, 2025, Introduced by Reps. Schmaltz, Pavlov, Markkanen, Alexander, Bierlein, Frisbie, Paquette, Cavitt, Fox, Bohnak, BeGole, Rigas, Prestin, St. Germaine, Mueller, Wozniak, Meerman, Rogers, Kelly, Woolford, Aragona, Roth, Schuette, Thompson, Young, Beson, Linting, Greene, Robinson, Longjohn, Wilson, Rheingans, Xiong, Arbit, Tsernoglou, MacDonell and DeBoer and referred to Committee on Families and Veterans.

A bill to amend 1994 PA 203, entitled

"Foster care and adoption services act,"

(MCL 722.951 to 722.960) by adding section 8f.

the people of the state of michigan enact:

Sec. 8f. (1) This section applies to children in foster care.

(2) Within 60 days after a child enters foster care and annually thereafter while a child in foster care is in foster care, the department shall screen a child in foster care for potential eligibility for benefits and apply for benefits for which a child in foster care may be eligible and is not already receiving. When applying for benefits under this section for a child in foster care, the department shall, in cooperation with the child in foster care's attorney, identify a representative payee or fiduciary in accordance with the requirements of 20 CFR 404.2021 and 416.621, as applicable, and shall apply to become the representative payee only if no other suitable candidate is available to be a representative payee. If the department acts as the representative payee, the department shall, on an annual basis, review if someone other than the department is available to apply to assume the role of representative payee and could better serve in that role in the best interests of the child in foster care.

(3) Consistent with federal law, when the department serves as the representative payee or in any other fiduciary capacity for a child in foster care receiving benefits, the department shall do all the following:

(a) Use or conserve the benefits of a child in foster care in the best interests of the child in foster care, including using the benefits for services for special needs not otherwise provided by the department or conserving the benefits for the child in foster care's reasonably foreseeable future needs. The department shall not use any benefits of the child in foster care to reimburse this state for the cost of care for the child in foster care.

(b) Ensure that when the child in foster care attains the age of 14 years and until the department no longer serves as the representative payee or fiduciary, a minimum percentage of the benefits of the child in foster care is conserved in accordance with subdivisions (c) and (d), as follows:

(i) From age 14 through age 15, at least 40%.

(ii) From age 16 through age 17, at least 80%.

(iii) From age 18 through age 20, 100%.

(c) For the benefits or resources of the child in foster care that are below or not subject to any federal asset or resource limit, exercise discretion in accordance with federal law and in the best interests of the child in foster care to conserve the funds or use the funds for services for special needs not otherwise provided by the department, including choosing 1 or more of the options listed under subdivision (d).

(d) Appropriately monitor any federal asset or resource limits for the benefits and ensure that the best interests of the child in foster care are served by using or conserving the benefits in a way that avoids violating any federal asset or resource limits that would affect the eligibility of the child in foster care to receive the benefits, including all the following:

(i) Applying to the Social Security Administration to establish a plan for achieving self-support (PASS) account for the child in foster care under the social security act, 42 USC 301 to 1397mm, and determining whether it is in the best interests of the child in foster care to conserve all or part of the benefits in the PASS account.

(ii) Establishing a plan under section 529A of the internal revenue code of 1986, 26 USC 529A, for the child in foster care and conserving the benefits of the child in foster care in that account in a manner that appropriately avoids any federal asset or resource limits.

(iii) Establishing an individual development account for the child in foster care and conserving the benefits of the child in foster care in that account in a manner that appropriately avoids any federal asset or resource limits.

(iv) Establishing a special needs trust for the child in foster care and conserving the benefits of the child in foster care in the trust in a manner that is consistent with federal requirements for special needs trusts and that appropriately avoids any federal asset or resource limits.

(v) If the department determines that using the benefits for services for current special needs not already provided by the department is in the best interests of the child in foster care, using the benefits for those services.

(vi) If federal law requires certain back payments of benefits to be placed in a dedicated account, complying with the requirements for dedicated accounts under 20 CFR 416.640(e).

(vii) Applying any other exclusions from federal asset or resource limits available under federal law and using or conserving the benefits of the child in foster care in a manner that appropriately avoids any federal asset or resource limits.

(e) Provide an annual accounting to the child in foster care and the attorney of the child in foster care of how the resources of the child in foster care, including benefits, have been used or conserved in accordance with this section.

(f) Provide the child in foster care with financial literacy training when the child in foster care has attained the age of 14 years.

(4) The department shall immediately notify the child in foster care through the attorney of the child in foster care of any of the following:

(a) An application for benefits made on behalf of the child in foster care or any application to become representative payee for those benefits on behalf of the child in foster care.

(b) A decision or communication from this state or the federal government regarding an application for benefits.

(c) An appeal or other action requested by the department regarding an application for benefits.

(5) If the department serves as the representative payee or otherwise receives benefits on behalf of the child in foster care, the department must provide notice to the child in foster care through the attorney of the child in foster care of both the following before each juvenile court hearing regarding the child in foster care:

(a) The date and the amount of benefit funds received on behalf of the child in foster care since any previous notification to the child in foster care's attorney.

(b) Information regarding all of the child in foster care's assets and resources, including the child in foster care's benefits, insurance, cash assets, trust accounts, earnings, and other resources.

(6) All payments from benefits received under this section are the property of the child in foster care. Notwithstanding any provision of law to the contrary, on termination of the department's responsibility for the child in foster care under this section, the department shall release any funds remaining to the child's credit under the requirements of the funding source or, in the absence of any requirements, release the remaining funds as follows:

(a) To the child, if the child is at least 18 years of age or is emancipated.

(b) To the person responsible for the child in foster care if the child is under 18 years of age and is not emancipated.

(7) This section does not affect any additional notice required by a court of this state.

(8) As used in this section, "benefits" means all of the following:

(a) Federal Supplemental Security Income.

(b) Social Security benefits.

(c) United States Department of Veterans Affairs benefits.

(d) Other applicable benefits for which the child in foster care is eligible.