S.B. 284 - *SB284* SENATE BILL NO. 284–SENATORS CANNIZZARO, SCHEIBLE, NGUYEN; CRUZ-CRAWFORD, DALY, DOÑATE, DONDERO LOOP, FLORES, OHRENSCHALL AND TAYLOR MARCH 5, 2025 ____________ Referred to Committee on Health and Human Services SUMMARY—Revises provisions relating to child welfare. (BDR 38-747) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. CONTAINS UNFUNDED MANDATE (§ 1) (NOT REQUESTED BY AFFECTED LOCAL GOVERNMENT) ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to child welfare; requiring an agency which provides child welfare services to take certain measures to facilitate the payment of certain benefits to which a child in the custody of the agency is entitled; revising the manner in which an agency which provides child welfare services is required to maintain and use certain benefits and awards received on behalf of such a child; requiring an agency which provides child welfare services to provide certain training and information to certain children and other persons interested in the welfare of the child; requiring an agency which provides child welfare services to report certain information to a court; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires that all benefits for survivors or other awards payable to a 1 child receiving child welfare services: (1) in a county whose population is less than 2 100,000 (currently all counties other than Clark and Washoe Counties) be deposited 3 in the State Treasury for credit to the Trust Fund for Child Welfare; or (2) in a 4 county whose population is 100,000 or more (currently Clark and Washoe 5 Counties) be deposited in a trust fund for child welfare established in the county 6 treasury. Existing law requires the Division of Child and Family Services of the 7 Department of Health and Human Services to use money in the Trust Fund for 8 Child Welfare to pay for any services provided to the child to whom the benefits or 9 – 2 – - *SB284* awards were payable with public money. Existing law authorizes the agency which 10 provides child welfare services in a county whose population is 100,000 or more to 11 use the money in the trust fund for child welfare in the county treasury to pay for 12 such services. (NRS 432.037) Section 6 of this bill repeals those provisions. 13 Section 1 of this bill requires an agency which provides child welfare services 14 to determine if each child in the custody of the agency is receiving or is eligible to 15 receive federal benefits administered by the Social Security Administration or the 16 United States Department of Veterans Affairs. If a child is eligible to receive such 17 federal benefits, section 1 requires the agency which provides child welfare 18 services to promptly apply for the federal benefits on behalf of the child. If the 19 agency which provides child welfare services applies for such federal benefits on 20 behalf of a child in its custody or if such a child is receiving such federal benefits, 21 section 1 requires the agency to: (1) determine whether there is a person who may 22 be the representative payee for the child for the purpose of receiving such federal 23 benefits; and (2) if no person is suitable, apply to the Federal Government to be the 24 representative payee for the child. If the agency which provides child welfare 25 services is approved to be the representative payee for the child, section 1 26 additionally requires the agency to: (1) establish an account for the purpose of using 27 and conserving the federal benefits and any other benefits or awards received on 28 behalf of the child; (2) perform an accounting of the use, application or 29 conservation of all benefits that the agency receives on behalf of the child every 6 30 months; and (3) notify and consult with certain persons associated with the child 31 concerning applications for and the use of federal benefits. Section 1 also requires 32 the agency to provide financial counseling to a child who is in the custody of the 33 agency, is receiving benefits and is 14 years of age or older. 34 Section 1 prohibits an agency which provides child welfare services that serves 35 as the representative payee for a child from using any benefits, awards or assets 36 belonging to a child to pay for the costs of the care of the child. Section 1 requires 37 an agency which provides child welfare services that is the representative payee for 38 a child to periodically assess whether there is a more suitable person to serve as the 39 representative payee for the child, consult with certain interested persons as to 40 whether the person is suitable for that role and, if so, assist the person in applying 41 to be the representative payee. If a person assumes the role of representative payee, 42 section 1 requires the agency to provide certain training to the person and request 43 from the person certain documents relating to the accounting of funds of the child. 44 Upon ceasing to serve as the representative payee for a child, section 1 requires an 45 agency which provides child welfare services to remit any balance in the account 46 maintained on behalf of the child or transfer control over the account in accordance 47 with any requirements imposed by the source of the money or, if no such 48 requirements exist, to: (1) the new representative payee or the parent or legal 49 guardian of the child; or (2) if the child is emancipated or has reached 18 years of 50 age, the child. Sections 1 and 3 of this bill require an agency which provides child 51 welfare services to submit to a court overseeing the case of a child in its custody 52 who is receiving federal benefits certain documentation on the accounting of those 53 benefits. Section 2 of this bill makes a conforming change to indicate the proper 54 placement of section 1 in the Nevada Revised Statutes. 55 Section 4 of this bill requires the Division to, on or before July 1, 2025, close 56 each account in the Trust Fund and: (1) if the Division is the representative payee 57 for the child for which the account was maintained, deposit the money into an 58 account maintained pursuant to section 1; or (2) if the Division is not the 59 representative payee for the child, remit the balance of the account in accordance 60 with any requirements imposed by the source of the money or, if no such 61 requirements exist, to the new representative payee, the parent or guardian of the 62 child or the child, depending on the circumstances. Section 4 requires an agency 63 which provides child welfare services in a county whose population is 100,000 or 64 – 3 – - *SB284* more to take similar action with regard to the trust fund for child welfare in the 65 county treasury. 66 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 432 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. Not later than 60 days after a child is placed in the custody 3 of an agency which provides child welfare services and annually 4 thereafter, the agency which provides child welfare services shall 5 determine whether the child is receiving or is eligible to receive 6 federal benefits. 7 2. If an agency which provides child welfare services 8 determines pursuant to subsection 1 that a child is eligible to 9 receive federal benefits but is not currently receiving such 10 benefits, the agency which provides child welfare services shall 11 promptly apply for the federal benefits on behalf of the child. 12 3. If a child in the custody of an agency which provides child 13 welfare services is receiving federal benefits or if the agency which 14 provides child welfare services applies for federal benefits on 15 behalf of the child pursuant to subsection 2, the agency which 16 provides child welfare services shall: 17 (a) Determine, in consultation with the child, any parent 18 whose rights have not been terminated and the attorney for the 19 child, whether there is a person who is suitable to be the 20 representative payee for the child in accordance with 20 C.F.R. §§ 21 404.2021 and 416.621; and 22 (b) If there is no person who is suitable to be the representative 23 payee for the child, apply to be the representative payee for the 24 child pursuant to 20 C.F.R. §§ 404.2024 and 416.624 and deposit 25 the federal benefits into an account established pursuant to 26 subsection 4. 27 4. If an agency which provides child welfare services is the 28 representative payee for a child, the agency which provides child 29 welfare services shall: 30 (a) Establish an account that is appropriate to use and 31 conserve the federal benefits and any other benefits or awards 32 received on behalf of the child. An account established pursuant 33 to this paragraph may be, without limitation: 34 (1) A special needs trust; 35 (2) A pooled special needs trust; 36 (3) An ABLE account described in section 592A of the 37 Internal Revenue Code, 26 U.S.C. § 529A; or 38 – 4 – - *SB284* (4) Any other trust account that will not interfere with the 1 eligibility of the child for any benefits provided by the Federal 2 Government, this State or an agency or political subdivision of this 3 State. 4 (b) Regularly meet with the child and the attorney for the child 5 to discuss the federal benefits and ascertain the needs of the child, 6 including, without limitation, needs related to the future plans of a 7 child who is 14 years of age or older once he or she reaches the 8 age of majority. 9 (c) If the child is 14 years of age or older, provide financial 10 counseling to the child on preserving his or her eligibility for 11 benefits, the use of the benefits for the needs of the child in 12 accordance with subsection 5 and planning for future needs that 13 are foreseeable. 14 5. An agency which provides child welfare services that is the 15 representative payee for a child shall not use any federal benefits 16 or other benefits, awards or assets belonging to a child to pay for 17 or reimburse the agency which provides child welfare services or 18 any other state or local governmental agency for costs of the 19 child’s care. The agency which provides child welfare services 20 may use such money in the specific interests of the child, as 21 determined in cooperation with the child and attorney for the child 22 for costs not covered by the agency as part of the child’s care or by 23 the health insurance of the child. 24 6. In addition to any accounting required by NRS 166A.310, 25 an agency which provides child welfare services that is the 26 representative payee for a child shall, at least once every 6 months, 27 perform an accounting of the use, application or conservation of 28 all benefits received by the agency on behalf of the child and 29 provide documentation of the accounting to: 30 (a) The child; 31 (b) Any parent of the child whose parental rights have not 32 been terminated; 33 (c) Any legal guardian of the child; 34 (d) The attorney for the child; and 35 (e) A court, as required by NRS 432B.580. 36 7. An agency which provides child welfare services that has 37 applied for benefits pursuant to subsection 2 shall notify the child, 38 any parent of the child whose parental rights have not been 39 terminated, the legal guardian of the child and the attorney for the 40 child of any application, decision or appeal related to benefits, any 41 application pursuant to paragraph (b) of subsection 3 to be the 42 representative payee for the child or any decision or appeal related 43 to such an application. 44 – 5 – - *SB284* 8. If an application for federal benefits submitted by an 1 agency which provides child welfare services on behalf of a child 2 is denied, the agency which provides child welfare services shall: 3 (a) Consult with the attorney for the child; and 4 (b) Appeal the denial if an appeal is in the best interests of the 5 child. 6 9. An agency which provides child welfare services that is the 7 representative payee for a child shall periodically assess whether 8 there is a person who is suitable to assume the role of 9 representative payee and who would better serve the best interests 10 of the child. If the agency which provides child welfare services 11 determines that such a person exists, the agency which provides 12 child welfare services shall consult with the child, any parent 13 whose rights have not been terminated and the attorney for the 14 child about the person identified. If after such consultation, the 15 agency continues to believe that the person is suitable to assume 16 the role of representative payee, the agency shall contact the 17 person to support him or her in applying to be the representative 18 payee for the child. 19 10. If a person assumes the role of representative payee 20 pursuant to subsection 3 or 9 for a child who is in the custody of 21 an agency which provides child welfare services, the agency shall: 22 (a) Provide training to the representative payee relating to: 23 (1) The fiduciary obligations of a representative payee; 24 (2) Establishing, monitoring and utilizing accounts to 25 maintain the child’s eligibility for benefits; and 26 (3) Utilizing and accounting for the benefits of the child; 27 (b) While the child remains in the custody of the agency, 28 require the representative payee to: 29 (1) Perform an accounting every 6 months of the use, 30 application or conservation of all benefits received by the 31 representative payee on behalf of the child; and 32 (2) Provide documentation of each accounting performed 33 pursuant to subparagraph (1) to the agency; and 34 (c) Include any documentation provided pursuant to 35 paragraph (b) in a report submitted to a court pursuant to 36 NRS 432B.580. 37 11. An agency which provides child welfare services that 38 ceases to serve as the representative payee for a child shall remit 39 any balance remaining in an account established pursuant to 40 subsection 4 or transfer control over such an account in 41 accordance with the requirements prescribed by the source of the 42 money or, in the absence of such requirements, to: 43 (a) The new representative payee for the child, if any; 44 – 6 – - *SB284* (b) The parent or legal guardian of the child, if there is no new 1 representative payee and the child is not emancipated and has not 2 reached 18 years of age; or 3 (c) The child if the child is emancipated or has reached 18 4 years of age. 5 12. An agency which provides child welfare services shall, 6 not earlier than 18 months before the 18th birthday of a child in 7 the custody of the agency who is receiving federal benefits and not 8 later than 12 months before that birthday: 9 (a) Inform the child concerning any actions necessary for the 10 child to: 11 (1) Continue to be eligible to receive federal benefits after 12 his or her 18th birthday; and 13 (2) Receive federal benefits directly or designate a new 14 representative payee; 15 (b) Inform the child concerning any effect of other benefits 16 received by or on behalf of the child on the amount of the federal 17 benefits received by the child; and 18 (c) Assist the child with any actions described in 19 paragraph (a). 20 13. An agency which provides child welfare services shall 21 provide appropriate training to employees of the agency who are 22 involved in the performance of the duties set forth in this section, 23 including, without limitation, training on how to establish, 24 monitor and use appropriate financial accounts to maintain 25 benefits received by a child in a manner that preserves the 26 eligibility of the child for those benefits. 27 14. As used in this section: 28 (a) “Federal benefits” means benefits administered by the 29 Social Security Administration or the United States Department of 30 Veterans Affairs. 31 (b) “Representative payee” means a person or entity who 32 serves as a representative payee for the purposes described in 20 33 C.F.R. Part 404, Subpart U. 34 Sec. 2. NRS 432.091 is hereby amended to read as follows: 35 432.091 The provisions of NRS 432.010 to 432.085, inclusive, 36 and section 1 of this act, do not apply to the Program for Child Care 37 and Development administered by the Division of Welfare and 38 Supportive Services of the Department pursuant to chapter 422A of 39 NRS. 40 Sec. 3. NRS 432B.580 is hereby amended to read as follows: 41 432B.580 1. Except as otherwise provided in this section and 42 NRS 432B.513, if a child is placed pursuant to NRS 432B.550 other 43 than with a parent, the placement must be reviewed by the court at 44 least semiannually, and within 90 days after a request by a party to 45 – 7 – - *SB284* any of the prior proceedings. Unless the parent, guardian or the 1 custodian objects to the referral, the court may enter an order 2 directing that the placement be reviewed by a panel appointed 3 pursuant to NRS 432B.585. 4 2. An agency acting as the custodian of the child shall, before 5 any hearing for review of the placement of a child, submit a report 6 to the court, or to the panel if it has been designated to review the 7 matter, which includes: 8 (a) An evaluation of the progress of the child and the family of 9 the child and any recommendations for further supervision, 10 treatment or rehabilitation. 11 (b) Information concerning the placement of the child in relation 12 to the child’s siblings, including, without limitation: 13 (1) Whether the child was placed together with the siblings; 14 (2) Any efforts made by the agency to have the child placed 15 together with the siblings; 16 (3) Any actions taken by the agency to ensure that the child 17 has contact with the siblings; and 18 (4) If the child is not placed together with the siblings: 19 (I) The reasons why the child is not placed together with 20 the siblings; and 21 (II) A plan for the child to visit the siblings, which must 22 be presented at the first hearing to occur after the siblings are 23 separated and approved by the court. The plan for visitation must be 24 updated as necessary to reflect any change in the placement of the 25 child or a sibling, including, without limitation, any such change 26 that occurs after the termination of parental rights to the child or a 27 sibling or the adoption of a sibling. 28 (c) Information concerning the child’s education, including: 29 (1) A copy of any academic plan or individual graduation 30 plan developed for the child pursuant to NRS 388.155, 388.165, 31 388.205 or 388.227; 32 (2) The grade and school in which the child is enrolled; 33 (3) The name of each school the child attended before 34 enrolling in the school in which he or she is currently enrolled and 35 the corresponding dates of attendance; 36 (4) Whether the child has not completed or passed any 37 course of instruction that the child should have completed or passed 38 by the time the report is submitted, which has resulted in the child 39 having a deficiency in credits; 40 (5) A copy of any individualized education program 41 developed for the child; 42 (6) A copy of any plan developed in accordance with section 43 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794; 44 – 8 – - *SB284* (7) A summary of any special education services received by 1 the child; 2 (8) A copy of the most recent report card of the child; 3 (9) A statement of the number of credits earned by the child 4 during the most recent semester, if applicable; 5 (10) A statement of the number of times the child has been 6 absent from school during the current or most recent school year for 7 which the child was enrolled in school; 8 (11) The scores the child received on any academic 9 assessments or standardized examinations administered to the child; 10 (12) Any information provided by the educational decision 11 maker appointed for the child pursuant to NRS 432B.462; and 12 (13) Whether a request that the child receive special 13 education services has been made and, if so, the outcome of such a 14 request. 15 (d) A copy of any explanations regarding medication that has 16 been prescribed for the child that have been submitted by a foster 17 home pursuant to NRS 424.0383. 18 (e) Documentation of any accounting conducted pursuant to 19 section 1 of this act within the immediately preceding 6 months. 20 3. Except as otherwise provided in this subsection, a copy of 21 the report submitted pursuant to subsection 2 must be given to the 22 parents, the guardian ad litem and the attorney, if any, representing 23 the parent or the child. If the child was delivered to a provider of 24 emergency services pursuant to NRS 432B.630 and the parent has 25 not appeared in the action, the report need not be sent to that parent. 26 4. After a plan for visitation between a child and the siblings of 27 the child submitted pursuant to subparagraph (4) of paragraph (b) of 28 subsection 2 has been approved by the court, the agency which 29 provides child welfare services must request the court to issue an 30 order requiring the visitation set forth in the plan for visitation. 31 Upon the issuance of such an order, the court shall provide each 32 sibling of the child with the case number of the proceeding for the 33 purpose of allowing the sibling to petition the court for visitation or 34 enforcement of the order for visitation. If a person refuses to comply 35 with or disobeys an order issued pursuant to this subsection, the 36 person may be punished as for a contempt of court. 37 5. The court or the panel shall hold a hearing to review the 38 placement, unless the parent, guardian or custodian files a motion 39 with the court to dispense with the hearing. If the motion is granted, 40 the court or panel may make its determination from any report, 41 statement or other information submitted to it. 42 6. Except as otherwise provided in subsection 7 and subsection 43 5 of NRS 432B.520, notice of the hearing must be filed with the 44 court and must be given by first-class mail or any other means 45 – 9 – - *SB284* agreed upon in writing between the agency which provides child 1 welfare services and the recipient of the notice to: 2 (a) All the parties to any of the prior proceedings; 3 (b) Any persons planning to adopt the child; 4 (c) A sibling of the child, if known, who has been granted a 5 right to visitation of the child pursuant to this section or NRS 6 127.171 and his or her attorney, if any; 7 (d) Any other relatives of the child or providers of foster care 8 who are currently providing care to the child; and 9 (e) The educational decision maker appointed for the child 10 pursuant to NRS 432B.462. 11 7. The notice of the hearing required to be filed and given 12 pursuant to subsection 6: 13 (a) Must include a statement indicating that if the child is placed 14 for adoption the right to visitation of the child is subject to the 15 provisions of NRS 127.171; 16 (b) Must not include any confidential information described in 17 NRS 127.140; 18 (c) Need not be given to a parent whose rights have been 19 terminated pursuant to chapter 128 of NRS or who has voluntarily 20 relinquished the child for adoption pursuant to NRS 127.040; and 21 (d) Need not be given to a parent who delivered a child to a 22 provider of emergency services pursuant to NRS 432B.630. 23 8. The court or panel may require the presence of the child at 24 the hearing and shall provide to each person to whom notice was 25 given pursuant to subsection 6 a right to be heard at the hearing. 26 9. The court or panel shall, after considering the report 27 provided in subsection 2 and any other relevant evidence, determine 28 based on a preponderance of the evidence: 29 (a) The continuing necessity for and appropriateness of the 30 placement; 31 (b) The extent of compliance with the plan submitted pursuant 32 to subsection 2 of NRS 432B.540; 33 (c) Any progress which has been made in alleviating the 34 problem which resulted in the placement of the child; 35 (d) The date the child may be returned to, and safely maintained 36 in, the home or placed for adoption or under a legal guardianship; 37 and 38 (e) Whether the child is making adequate academic progress and 39 receiving the educational services or supports necessary to ensure 40 the academic success of the child. 41 10. If the child is placed in a qualified residential treatment 42 program, the determination pursuant to paragraph (a) of subsection 43 9 must include, without limitation, a finding on each factor 44 prescribed by subsection 4 of NRS 432B.575. 45 – 10 – - *SB284* 11. The provision of notice and a right to be heard pursuant to 1 this section does not cause any person planning to adopt the child, 2 any sibling of the child or any other relative, any adoptive parent of 3 a sibling of the child or a provider of foster care to become a party 4 to the hearing. 5 12. As used in this section, “individualized education program” 6 has the meaning ascribed to it in 20 U.S.C. § 1414(d)(1)(A) 7 Sec. 4. 1. On or before July 1, 2025: 8 (a) The Division shall close each account in the Trust Fund for 9 Child Welfare created by NRS 432.037. If the Division is the 10 representative payee pursuant to section 1 of this act for the child for 11 whom such an account was maintained, the Division shall deposit 12 the money from the account into an account created for the child 13 pursuant to section 1 of this act. If the Division is not the 14 representative payee for the child, the Division shall remit the 15 money in accordance with subsection 11 of section 1 of this act. 16 (b) An agency which provides child welfare services in a county 17 whose population is 100,000 or more shall close the trust fund for 18 child welfare established in the county treasury pursuant to NRS 19 432.037. If the agency which provides child welfare services is the 20 representative payee pursuant to section 1 of this act for a child for 21 whom benefits or other awards payable to the child remain in the 22 trust fund, the agency which provides child welfare services shall 23 deposit the money from the trust fund attributable to such benefits or 24 awards, including, without limitation, any interest paid on such 25 benefits or other awards, into an account created for the child 26 pursuant to section 1 of this act. If the agency which provides child 27 welfare services is not the representative payee for such a child, the 28 agency which provides child welfare services shall remit such 29 money in accordance with subsection 11 of section 1 of this act. 30 2. As used in this section: 31 (a) “Agency which provides child welfare services” has the 32 meaning ascribed to it in NRS 432B.030. 33 (b) “Division” means the Division of Child and Family Services 34 of the Department of Health and Human Services. 35 (c) “Representative payee” has the meaning ascribed to it in 36 section 1 of this act. 37 Sec. 5. The provisions of NRS 354.599 do not apply to any 38 additional expenses of a local government that are related to the 39 provisions of this act. 40 Sec. 6. NRS 432.037 is hereby repealed. 41 Sec. 7. 1. This section and sections 4 and 5 of this act 42 become effective upon passage and approval. 43 2. Sections 1, 2, 3 and 6 of this act become effective on July 1, 44 2025. 45 – 11 – - *SB284* TEXT OF REPEALED SECTION 432.037 Creation of Trust Fund for Child Welfare; duties of Division; deposit of money in trust fund for child welfare established in county treasury in certain counties and disbursement from fund. 1. The Trust Fund for Child Welfare is hereby created. All benefits for survivors or other awards payable to children receiving child welfare services pursuant to NRS 432.010 to 432.085, inclusive, in a county whose population is less than 100,000 must be deposited in the State Treasury for credit to the Fund. 2. The Division shall: (a) Keep a separate account for each child who receives money. (b) Deduct from the account any services to the child provided by public money. Any surplus remaining may be expended for extraordinary items deemed beneficial to the child. (c) Remit any surplus balance to the parent or legal guardian of the child, or to the child if the child is emancipated or has reached the age of 18 years, when the Division is no longer legally responsible for the child. 3. The Division shall pay interest to each child’s separate account maintained in the Trust Fund for Child Welfare at the end of each interest period. Interest must be paid at a rate equal to the average of the interest rates quoted by at least three banking institutions for interest-bearing savings accounts of $3,000 or less on the first day of each interest period. Interest must be paid on the child’s account commencing with the first interest period that the Division is legally responsible for the child. Interest must not be paid for the interest period during which the child ceases to be the legal responsibility of the Division. 4. All benefits for survivors or other awards payable to children receiving child welfare services in a county whose population is 100,000 or more pursuant to NRS 432.010 to 432.085, inclusive, must be deposited in the trust fund for child welfare established in the county treasury. A disbursement from the benefits for survivors or other awards of a child which is deposited in the fund may be made to the agency which provides child welfare services for any child welfare services provided to the child with public money. – 12 – - *SB284* 5. As used in this section, “interest period” means that period not less frequent than quarterly, as determined by the State Treasurer, for which interest must be paid. H