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SENATE BILL 333
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Michael Padilla
AN ACT
RELATING TO CHILDREN; ENACTING THE CHILDREN'S BENEFITS ACCOUNT
ACT; PROVIDING FOR THE CHILDREN, YOUTH AND FAMILIES DEPARTMENT
TO BE APPOINTED AS THE REPRESENTATIVE PAYEE TO MANAGE AND
MAINTAIN THE RETIREMENT, SURVIVORS AND DISABILITY INSURANCE
FUNDS OF CHILDREN IN THE DEPARTMENT'S CUSTODY; PROVIDING FOR
THE ESTABLISHMENT OF BENEFITS ACCOUNTS FOR BENEFICIARIES;
PROVIDING DEPARTMENT DUTIES TO MANAGE BENEFITS ACCOUNTS ON
BEHALF OF BENEFICIARIES; PROVIDING DEFINITIONS; PROVIDING FOR
ACCOUNT CLOSURES AND DISBURSEMENTS; PROVIDING FOR
CONFIDENTIALITY; PROVIDING FOR RULE ADOPTION.
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:
"[NEW MATERIAL] SHORT TITLE.--This act may be cited as the
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"Children's Benefits Account Act"."
SECTION 2. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] DEFINITIONS.--As used in the Children's
Benefits Account Act:
A. "beneficiary" means a child in the custody of
the department who receives a monthly benefit from the federal
social security administration pursuant to Title II of the
federal Social Security Act;
B. "benefit" means the retirement, survivor and
disability insurance funds paid monthly to a beneficiary
pursuant to Title II of the federal Social Security Act;
C. "benefits account" means an account established
by the department into which a beneficiary's monthly benefit is
deposited and maintained by the department on behalf of the
beneficiary;
D. "eligible beneficiary" means a child in the
custody of the department who is not a beneficiary but is
identified by the department as eligible to receive benefits
from the federal social security administration pursuant to
Title II of the federal Social Security Act; and
E. "representative payee" means the person or
entity appointed by the federal social security administration
to receive and manage the benefits of a beneficiary who is
unable to manage those benefits or any of the beneficiary's own
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finances."
SECTION 3. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] FEDERAL SOCIAL SECURITY BENEFITS--
BENEFICIARY--ELIGIBLE BENEFICIARY--DEPARTMENT REPRESENTATIVE
PAYEE APPOINTMENT.--
A. The department shall take the steps necessary to
be appointed as the representative payee by the federal social
security administration for each child in the department's
custody who is a beneficiary or an eligible beneficiary.
B. If a child in the department's custody is a
beneficiary, the department shall request to be appointed as
the beneficiary's representative payee by application to the
federal social security administration, including providing a
plan indicating how the beneficiary's funds will be used to
meet the beneficiary's needs, as well as any other supportive
information necessary or appropriate.
C. If a child in the department's custody is an
eligible beneficiary, the department shall apply to the federal
social security administration for benefits on behalf of that
child and shall at that same time apply to be appointed as the
child's representative payee, including providing a plan
indicating how the beneficiary's funds will be used to meet the
beneficiary's needs, as well as any other supportive
information necessary or appropriate.
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D. Within thirty days of being appointed as a
representative payee, the department shall provide notice of
the appointment to the beneficiary and the beneficiary's parent
or guardian."
SECTION 4. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] BENEFICIARY FUNDS--BENEFITS ACCOUNT--
DEPARTMENT MANAGEMENT--DUTIES--ACCOUNTING.--
A. The department shall establish a no-cost
benefits account at a financial institution in this state for
each beneficiary for whom the department is appointed as
representative payee. If a beneficiary for whom the department
is a representative payee has funds from benefits credited to
the beneficiary in another account established prior to the
department being appointed as representative payee, those funds
shall be transferred to the department for deposit into the
beneficiary's benefits account along with any lump-sum
retroactive benefits due and paid on behalf of the beneficiary.
B. Each benefit payment received by the department
on behalf of a beneficiary shall be deposited into the
beneficiary's benefits account as established pursuant to
Subsection A of this section, and the department shall
administer, maintain and manage the benefits account only to
the benefit of that beneficiary.
C. In administering and managing benefits accounts,
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the department shall:
(1) maintain an internal system whereby each
beneficiary's benefits account is tracked and maintained as
separate and distinct from any other beneficiary's benefits
account;
(2) provide a process by which the beneficiary
of a benefits account or the parent or guardian of that
beneficiary may request an accounting of the beneficiary's
benefits account;
(3) create an annual statement for each
benefits account that includes an accounting of all deposits
and disbursements from the account and provide the annual
statement to each beneficiary and each beneficiary's parent or
legal guardian; and
(4) update the permanency plan as needed of a
beneficiary to indicate that the child is receiving benefits as
a beneficiary and the department is the beneficiary's
representative payee."
SECTION 5. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] BENEFICIARY--AGE SEVENTEEN--OTHER EVENTS
IMPACTING BENEFITS ACCOUNT--ACCOUNT CLOSURE--DEPARTMENT
ASSISTANCE.--
A. For a beneficiary who has reached the age of
seventeen and is receiving benefits, the department shall
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determine whether, upon turning eighteen years of age, the
beneficiary will require a representative payee to assist in
managing the beneficiary's benefits as follows:
(1) if the department determines that the
beneficiary requires a representative payee, the department
shall identify an appropriate representative payee, who shall
comply with the representative payee responsibilities set forth
in 20 CFR Section 404.2035, as amended; and
(2) if the department determines that the
beneficiary does not require a representative payee, the
department shall provide assistance to the beneficiary with
managing the beneficiary's benefits. The assistance may
include education about maintaining eligibility for benefits
and establishing and maintaining a bank account for purposes of
electronic direct deposit of benefits.
B. The department shall disburse any remaining
funds in a beneficiary's benefits account as permitted by
federal guidelines and rules adopted by the department when a
beneficiary is no longer in the custody of the department
because the beneficiary:
(1) has aged out of foster care;
(2) is reunited with the beneficiary's family;
or
(3) is legally granted a permanent guardian or
adoptive parent.
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C. A benefits account from which the department has
disbursed the remaining funds as provided in Subsection B of
this section shall be closed and the department shall provide
the beneficiary and, if the beneficiary is younger than
eighteen years of age, the beneficiary's parent or guardian
with an audited closing statement of the benefits account. "
SECTION 6. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] BENEFITS ACCOUNTS--CONFIDENTIALITY.--
Benefits accounts shall be confidential. Account balances and
activities in a benefits account shall only be disclosed to the
beneficiary, to the beneficiary's parent or guardian, to a
court-appointed guardian ad litem, to the beneficiary's youth
attorney or by order of a court of competent jurisdiction."
SECTION 7. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] LIMITATION OF DEPARTMENT LIABILITY.--The
department shall not be liable for any delays by the federal
social security administration in processing and disbursing a
beneficiary's benefits and shall not be required to take steps
to recoup losses as a result of those delays. The department
shall be responsible for maintaining and managing only the
benefits received by the department on behalf of a beneficiary
during the time that the department is the beneficiary's
representative payee."
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SECTION 8. A new section of the Children's Code is
enacted to read:
"[NEW MATERIAL] RULES--DEPARTMENT OF FINANCE AND
ADMINISTRATION POLICIES--PROMULGATION AND ADOPTION.--By October
1, 2025, the department shall, in collaboration with the
department of finance and administration, adopt rules in
accordance with the State Rules Act for the implementation and
administration of the provisions of the Children's Benefits
Account Act."
SECTION 9. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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