Michigan House Bill HB4694

Michigan 2023-2024 Regular Session

• Introduced: 6/6/23
• Refer: 6/6/23

Caption

Children: foster care; benefits for a foster youth; require certain percentage deposited into an account until youth becomes 18 years of age. Amends 1994 PA 203 (MCL 722.951 - 722.960) by adding sec. 8e.

Impact

This bill impacts state laws by setting a structured approach to financial management for children receiving Veterans Administration benefits, Supplemental Security Income, or Social Security benefits while in the foster care system. A notable requirement is that a certain percentage of these benefits must be conserved or used specifically for the child rather than being allocated to reimburse the state for the cost of care. From the ages of 14 to 20, the bill stipulates that increments of the benefits be conserved, supporting the child's future needs.

Summary

House Bill 4694 aims to amend the Foster Care and Adoption Services Act by adding provisions regarding the management of benefits for children in foster care. The new section, named 8e, outlines procedures for the Michigan Department of Health and Human Services when applying for various benefits on behalf of foster youth. This includes the requirement to identify a representative payee or fiduciary in cooperation with the child's attorney, ensuring that the child’s financial benefits are utilized in their best interest.

Contention

One of the significant areas of contention surrounding HB 4694 involves the responsibilities imposed on the Department regarding financial oversight and the potential implications on a child's independence as they transition out of the foster care system. Critics may argue that while the bill aims to provide fiduciary protection, it also places additional regulatory burdens on the department, and there may be concerns regarding the adequacy of financial literacy training offered to the youth, ensuring they can make informed decisions about their resources as they age.