Tennessee 2025-2026 Regular Session

Tennessee House Bill HB1235 Compare Versions

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22 SENATE BILL 312
33 By Yarbro
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55 HOUSE BILL 1235
6-By Love
6+By McKenzie
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99 HB1235
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1212
1313 AN ACT to amend Tennessee Code Annotated, Title 36
1414 and Title 37, relative to children.
1515
1616 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
1717 SECTION 1. Tennessee Code Annotated, Section 37-1-172, is amended by adding the
1818 following as new subsections:
1919 (c) When the department serves as the representative payee on behalf of a child
2020 for any federal funds a child in the care of the department is eligible for or may receive,
2121 the department shall conserve those federal funds for the child's reasonable,
2222 foreseeable future needs or use the funds for special needs services not otherwise
2323 provided by the department.
2424 (d) The department may exercise discretion to conserve these federal funds in
2525 the best interest of the child by holding such moneys in a trust or apply for and establish
2626 an account for the child, including a Plan for Achieving Self-Support, a 529 or 529A plan,
2727 an individual development account, a special needs trust, or a bank account.
2828 (e) If it is in the best interest of the child, then the department may utilize the
2929 federal funds for special needs services that are not currently being provided by the
3030 department.
3131 (f) The department shall conserve and use the federal funds in a manner that
3232 does not violate any federal asset or resource limits that would affect the child's eligibility
3333 for benefits or assistance offered by the federal, state, or local government.
3434 (g) The department shall maintain records related to the conservation and use of
3535 these federal funds, and the records must be maintained in the child's file that is
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4040 available to the child's attorney, to the child once the child is eighteen (18) years of age,
4141 and to the child's guardian if the child is no longer in the department's custody.
4242 (h) The department may use a reasonable portion of interest earnings from the
4343 federal funds to offset the reasonable expenses incurred in meeting the department's
4444 obligations to apply for and administer benefits pursuant to this section. Notwithstanding
4545 subsection (e), the federal funds must not be used to reimburse the department for the
4646 costs of caring for the child.
4747 SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.