1.1 A bill for an act
1.2 relating to human services; establishing a trust for foster children receiving
1.3 Supplemental Security Income benefits; requiring a report; appropriating money;
1.4 amending Minnesota Statutes 2022, section 256N.26, subdivision 12; proposing
1.5 coding for new law in Minnesota Statutes, chapter 256N.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2022, section 256N.26, subdivision 12, is amended to read:
1.8 Subd. 12.Treatment of Supplemental Security Income.If a child placed in foster
1.9care receives benefits through Supplemental Security Income (SSI) at the time of foster
1.10care placement or subsequent to placement in foster care, the financially responsible agency
1.11may apply to be the payee for the child for the duration of the child's placement in foster
1.12care. If a child continues to be eligible for SSI Supplemental Security Income (SSI) benefits
1.13after finalization of the adoption or transfer of permanent legal and physical custody and is
1.14determined to be eligible for a payment under Northstar Care for Children, a permanent
1.15caregiver may choose to receive payment from both programs simultaneously. The permanent
1.16caregiver is responsible to report the amount of the payment to the Social Security
1.17Administration and the SSI payment will be reduced as required by the Social Security
1.18Administration.
1.19 Sec. 2. [256N.262] FOSTER CHILDREN ASSISTANCE TRUST.
1.20 Subdivision 1.Definitions.(a) For the purposes of this section, "beneficiary" means a
1.21current or former child in foster care for whom a financially responsible agency sends federal
1.22cash assistance benefits to the commissioner of human services pursuant to this section.
1Sec. 2.
REVISOR DTT/KA 23-0063711/29/22
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 54
NINETY-THIRD SESSION
Authored by Quam01/04/2023
The bill was read for the first time and referred to the Committee on Children and Families Finance and Policy 2.1 Subd. 2.Establishment.(a) The foster children assistance trust is established. The trust
2.2consists of deposits made by the commissioner of human services pursuant to this section.
2.3The trust must be managed to ensure the stability and growth of the trust.
2.4 (b) All assets of the trust are held in trust for the exclusive benefit of beneficiaries. Assets
2.5must be held in a separate account in the state treasury to be known as the foster children
2.6assistance trust account or in accounts with the third-party provider selected pursuant to
2.7subdivision 9. Trust assets are not subject to claims by creditors of the state, are not part of
2.8the general fund, and are not subject to appropriation by the state.
2.9 Subd. 3.Requirements of financially responsible agencies.(a) A financially responsible
2.10agency must assess whether each child the agency is responsible for is eligible to receive
2.11benefits through SSI.
2.12 (b) If a child placed in foster care is eligible to receive federal cash assistance benefits,
2.13the financially responsible agency must:
2.14 (1) apply to be the payee for the child for the duration of the child's placement in foster
2.15care;
2.16 (2) within 90 days of receipt, remit all benefit payments received as payee for a foster
2.17child's federal cash assistance benefits to the commissioner of human services along with
2.18documentation identifying the child and amounts received for the child;
2.19 (3) notify each beneficiary above the age of 18 that the beneficiary may be entitled to
2.20disbursements pursuant to the foster children assistance trust and inform the child how to
2.21contact the commissioner of human services about the trust; and
2.22 (4) retain all documentation related to federal cash assistance benefits received for a
2.23beneficiary for at least five years after the agency is no longer the beneficiary's financially
2.24responsible agency.
2.25 (c) The financially responsible agency is liable to a beneficiary for any benefit payment
2.26that the agency receives as payee for a beneficiary and that is not sent to the commissioner
2.27of human services as required by this section.
2.28 Subd. 4.Deposits.The commissioner of human services shall deposit all money sent
2.29pursuant to this section in the foster children assistance trust.
2.30 Subd. 5.Commissioner's duties.(a) The commissioner of human services shall keep
2.31a record of the receipts and disbursements of the trust and a separate account for each
2.32beneficiary.
2Sec. 2.
REVISOR DTT/KA 23-0063711/29/22 3.1 (b) The commissioner shall determine annually the annual interest earnings of the trust,
3.2which include realized capital gains and losses.
3.3 (c) The commissioner shall apportion any annual capital gains earnings to the separate
3.4beneficiaries' accounts. The rate to be used in this apportionment, computed to the last full
3.5quarter percent, must be determined by dividing the capital gains earnings by the total
3.6invested assets of the trust.
3.7 (d) For each beneficiary between the ages of 14 and 18, the commissioner must, by
3.8February 1 each year, notify the beneficiary of the amount of federal cash assistance benefits
3.9received on the beneficiary's behalf in the prior calendar year and the tax implications of
3.10those benefits.
3.11 (e) Account owner data, account data, and data on beneficiaries of accounts are private
3.12data on individuals or nonpublic data as defined in section 13.02.
3.13 Subd. 6.Reimbursement.The commissioner of human services shall reimburse a
3.14financially responsible agency for all benefits sent to the commissioner pursuant to this
3.15section.
3.16 Subd. 7.Reports.(a) By December 1, 2024, the commissioner shall submit a report to
3.17the legislative committees with jurisdiction over human services on the potential tax and
3.18state and federal benefit impacts of the trust and disbursements on beneficiaries and include
3.19recommendations on how best to minimize any increased tax burden or benefit reduction
3.20due to the trust.
3.21 (b) By December 1 of each year, the commissioner shall submit a report to the legislative
3.22committees with jurisdiction over human services on the cost of reimbursing financially
3.23responsible agencies pursuant to this section and a projection for future costs.
3.24 Subd. 8.Disbursements.(a) Once a beneficiary has reached 18 years of age, the
3.25commissioner of human services shall disburse $10,000 every year to the beneficiary until
3.26the beneficiary's account is depleted.
3.27 (b) With each disbursement, the commissioner shall include information about the
3.28potential tax and benefits consequences of the disbursement.
3.29 (c) On petition of a minor beneficiary who is at least 14 years old, a court may order the
3.30commissioner to deliver or pay to the beneficiary or expend for the beneficiary's benefit the
3.31amount of the beneficiary's trust account as the court considers advisable for the use and
3.32benefit of the beneficiary.
3Sec. 2.
REVISOR DTT/KA 23-0063711/29/22 4.1 Subd. 9.Administration.The commissioner shall administer the program pursuant to
4.2this section. The commissioner may contract with one or more third parties to carry out
4.3some or all of these administrative duties, including managing the assets of the trust and
4.4ensuring that records are maintained.
4.5 Sec. 3. APPROPRIATION.
4.6 $....... in fiscal year 2024 and $....... in fiscal year 2025 are appropriated from the general
4.7fund to the commissioner of human services to reimburse financially responsible agencies
4.8for federal cash assistance benefits sent to the commissioner pursuant to section 2.
4Sec. 3.
REVISOR DTT/KA 23-0063711/29/22