Arizona 2023 2023 Regular Session

Arizona House Bill HB2559 Comm Sub / Analysis

Filed 02/21/2023

                      	HB 2559 
Initials AG 	Page 1 	Caucus & COW 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
House: HHS DPA 9-0-0-0  
 
HB 2559: DCS; federal benefits; dependent children. 
Sponsor: Representative Montenegro, LD 29 
Caucus & COW 
Overview 
Directs the Arizona Department of Child Safety (DCS) to determine eligibility for benefits 
administered by the Social Security Administration (SSA) or the U.S. Department of Veterans 
Affairs (VA) for all children in their care. Requires DCS to apply for those federal benefits on the 
children's behalf if they're deemed eligible. 
History 
The primary purpose of DCS is to protect children. To achieve this, DCS will do and focus equally 
on: 1) investigating reports of abuse and neglect; 2) assessing, promoting and supporting the 
safety of a child in a safe and stable family or other appropriate placement in response to 
allegations of abuse and neglect; 3) cooperating with law enforcement regarding reports that 
include allegations of criminal conduct; and 4) coordinating services to achieve and maintain 
permanency for the child, strengthen the family and provide prevention, intervention and 
treatment services without compromising the child's safety (A.R.S. § 8-451).  
SSA is responsible for administering the nation's primary income support programs for older 
adults and individuals with disabilities: Social Security and Supplemental Security Income. Each 
program has different rules that determine how funds can be accessed, used or managed.  
The VA offers a variety of benefits to veterans of the U.S. Armed forces and to certain members 
of their families. These benefits include financial assistance, health care, education and housing. 
Certain criteria must be met to be eligible for benefits administered by the VA.  
Provisions 
1. Directs DCS to determine eligibility for SSA or VA benefits for all children in their care.        
(Sec. 1) 
2. Requires DCS to apply for SSA or VA benefits on the child's behalf if DCS determines they 
are eligible for those federal benefits. (Sec. 1) 
3. Instructs DCS to determine the best representative payee for receiving the child's federal 
benefits. (Sec. 1) 
4. Specifies that if DCS is serving as the representative payee it must: 
a) not use the child's federal benefits to pay or reimburse themselves or the state for any 
costs of the child's care; 
b) use the child's federal benefits for the child's unmet needs beyond what the agency is 
obligated or required to pay; 
c) establish an appropriate special needs trust for each child who is receiving federal benefits 
or name the child a beneficiary of a pooled special needs trust and conserve the child's 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	HB 2559 
Initials AG 	Page 2 	Caucus & COW 
unspent benefits in a manner consistent with federal and state requirements for special 
need trusts and that appropriately avoid any federal asset or resource limit; and 
d) provide an annual accounting of the child's federal benefits to the child, child's attorney 
and their parents or guardians in addition to the reporting and accounting requirements 
for custodial trustees. (Sec. 1) 
5. Specifies that the accounting must describe how and in what amount the child's federal 
benefits have been spent and conserved. (Sec. 1) 
6. Requires DCS to notify the child, their parents, guardian and attorney of DCS's application for 
the child federal benefits. (Sec. 1) 
Amendments 
Committee on Health & Human Services 
1. Removes certain authorities from the DCS Director, which includes using the monies to defray 
the cost of care and services expended by the Department for the benefit, welfare and best 
interests of the child and investing those monies that the Director determines are not 
necessary for immediate use. 
2. Requires DCS to determine eligibility for a child's federal benefits within 60 days after they 
enter their care. 
3. Specifies that if a child is already receiving benefits before entering the department's care or 
if the department applies for benefits on behalf of the child, DCS must identify, in consultation 
with the child and the child's attorney, a representative payee in accordance with federal 
regulations and apply to become the representative payee only if no other suitable candidate 
is available. 
4. Directs DCS to annually review cases of children in their care to determine whether a child 
may have become eligible for benefits after their initial assessment.  
5. Outlines requirements for when a child is denied any federal benefits or when a child is not 
under the responsibility of the Department's care. 
6. Makes technical and conforming changes.