SB 283
Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AN ACT
RELATING TO CHILDREN; REQUIRING THE CHILDREN, YOUTH AND
FAMILIES DEPARTMENT TO DETERMINE FEDERAL BENEFITS ELIGIBILITY
FOR CHILDREN IN ITS CUSTODY, APPLY FOR FEDERAL BENEFITS AND
EITHER ACT AS THE CHILD'S REPRESENTATIVE PAYEE OR DETERMINE
AN APPROPRIATE ALTERNATIVE; SETTING FORTH THE DEPARTMENT'S
OBLIGATIONS WHEN ACTING AS THE CHILD'S REPRESENTATIVE PAYEE;
PROHIBITING THE USE OF FEDERAL BENEFITS TO PAY THE DEPARTMENT
FOR THE CHILD'S CARE; REQUIRING THE DEPARTMENT TO PROVIDE
FINANCIAL LITERACY AND PLANNING TOOLS; SETTING FORTH
PROVISIONS FOR THE RELEASE OF FEDERAL BENEFITS PROVIDED TO
CHILDREN IN LEGAL CUSTODY OF THE STATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Children's Code is
enacted to read:
"SHORT TITLE.--This act may be cited as the "Federal
Benefits for Children in State Custody Act"."
SECTION 2. A new section of the Children's Code is
enacted to read:
"DEFINITION.--As used in the Federal Benefits for
Children in State Custody Act, "Representative Payee" means a
person appointed by a federal agency to manage the benefits
the federal agency provides to a child."
SECTION 3. A new section of the Children's Code is SB 283
Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
enacted to read:
"FEDERAL BENEFITS PROVIDED TO CHILDREN IN THE LEGAL
CUSTODY OF THE DEPARTMENT--ELIGIBILITY DETERMINATIONS.--
A. Within sixty days after a child enters the
department's legal custody, and annually thereafter, the
department shall determine whether the child is currently
receiving or is eligible to receive federal benefits.
B. If it is determined that a child in the legal
custody of the department is already receiving federal
benefits, the department shall:
(1) in consultation with the child and the
following individuals, identify the child's representative
payee: the child's attorney; the child's custodian; the
child's guardian; the child's guardian ad litem; or the
child's Indian tribe, if the child is known to be an Indian
child; or
(2) apply to become the child's
representative payee; provided that no other candidate is
available.
C. If the department determines that a child is
eligible for benefits administered by the federal government,
the department shall apply:
(1) for those benefits on behalf of the
child; and
(2) to become the child's representative SB 283
Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
payee if no other candidate is available."
SECTION 4. A new section of the Children's Code is
enacted to read:
"FEDERAL BENEFITS PROVIDED TO CHILDREN IN THE LEGAL
CUSTODY OF THE DEPARTMENT--OBLIGATIONS OF THE DEPARTMENT WHEN
ACTING AS THE REPRESENTATIVE PAYEE.--If the department
becomes the representative payee of a child in the legal
custody of the department, the department shall:
A. establish an appropriate account to use and
conserve the child's federal benefits, in the child's best
interest, for current unmet needs and future needs pursuant
to the requirements of the funding source and any applicable
asset and resource limits;
B. annually determine whether a person, other than
the department, is available to assume the role of
representative payee and could better serve in that role, in
the child's best interest;
C. notify the child and the following individuals
of any application, decision or appeal related to a child's
federal benefits: the child's attorney; the child's
custodian; the child's guardian; the child's guardian ad
litem; or the child's Indian tribe, if the child is known to
be an Indian child. In providing notice of any denial of
benefits, the department shall consult with the child's
attorney and appeal the denial if it is in the child's best SB 283
Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
interest;
D. provide an annual accounting as to the use,
application or conservation of the child's federal benefits
to the child and the following individuals: the child's
attorney; the child's custodian; the child's guardian; the
child's guardian ad litem; or the child's Indian tribe, if
the child is known to be an Indian child;
E. avoid receiving overpayment of federal benefits
and pay any discovered overpayment to the appropriate federal
agency; and
F. before the child leaves the custody of the
department, provide the child with financial literacy and
planning tools to assist the child in aligning conserved
benefits with the child's transition plan."
SECTION 5. A new section of the Children's Code is
enacted to read:
"PROHIBITED USE OF FEDERAL BENEFITS.--If the department
is the child's representative payee, the department shall not
use a child's federal benefits to pay for or reimburse the
department for any of the costs of the child's care; however,
the department may use those benefits to pay for the child's
unmet needs beyond what the department is obligated or
required or has agreed to pay."
SECTION 6. A new section of the Children's Code is
enacted to read: SB 283
Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
"RELEASE OF REMAINING FEDERAL BENEFIT FUNDS UPON
TERMINATION OF LEGAL CUSTODY.--If the department is the
child's representative payee, upon termination of the
department's legal custody of a child, the department shall
release any remaining funds to the child's credit pursuant to
the requirements of the funding source. In the absence of
any requirements, the department shall release the funds to:
A. the child, if the child is at least eighteen
years old or emancipated; or
B. the child's parent or guardian, if the child
is younger than eighteen years old or not emancipated."
SECTION 7. A new section of the Children's Code is
enacted to read:
"REPORTING.--Beginning September 1, 2026 and annually
thereafter, the department shall submit a report to the
legislative health and human services committee that
includes:
A. the number of children in its custody who
receive federal benefits;
B. the type of federal benefits;
C. the manner in which those benefits are
conserved; and
D. the amounts of federal benefits used and
conserved."