SB 283 — CYFD & USE OF FEDERAL BENEFITS

SENATEAN BILLACT 283RELATING 57THTO LEGISLATURECHILDREN; -STATEOFNEWMEXICO- FIRST SESSION, 2025 INTRODUCED BY Heather Berghmans and Crystal Brantley and Katy M.

Duhigg and Nicole Tobiassen and Marianna Anaya 7 9 AN ACT RELATING TO CHILDREN;

e t 17 PROHIBITING THE USE OF FEDERAL BENEFITS TO PAY THE DEPARTMENT w l n d 18 FOR THE CHILD'S CARE;

REQUIRING THE DEPARTMENT TO PROVIDE = = 19 a l FINANCIAL LITERACY AND PLANNING TOOLS;

SETTING FORTH PROVISIONS i a e r 20 FOR THE RELEASE OF FEDERAL BENEFITS PROVIDED TO CHILDREN IN a t m m 21 LEGAL CUSTODY OF THE STATE.

d r e 22 c e s k 23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e a n b 24 SECTION 1.

A new section of the Children's Code is u [ enacted to read:

.229453.1 "[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Federal Benefits for Children in State Custody Act"." SECTION 2.

"[NEW"SHORT MATERIAL]TITLE.--This DEFINITION.--Asact usedmay inbe cited as the Federal"Federal Benefits for Children in State Custody Act,Act"." "representative payee" means a person appointed by a federal agency to manage the benefits the federal agency provides to a child." SECTION 3.2.

"[NEW"DEFINITION.--As MATERIAL]used FEDERALin BENEFITSthe PROVIDEDFederal TOBenefits CHILDRENfor INChildren THEin LEGALState CUSTODYCustody OFAct, THE"Representative DEPARTMENT--ELIGIBILITYPayee" DETERMINATIONS.--means A.a person appointed by a federal agency to manage the benefits the federal agency provides to a child." SECTION 3.

WithinA sixtynew dayssection afterof a child enters the department'sChildren's legalCode custody, and annually thereafter, the department shall determine whether the child is currentlySB e283 tPage 171 receivingenacted or is eligible to receiveread: federal benefits.

w"FEDERAL lBENEFITS nPROVIDED dTO 18CHILDREN B.IN THE LEGAL CUSTODY OF THE DEPARTMENT--ELIGIBILITY DETERMINATIONS.-- A.

IfWithin itsixty isdays determinedafter that a child inenters the department's legal =custody, =and 19annually athereafter, lthe custodydepartment ofshall determine whether the departmentchild is alreadycurrently receiving federalor iis aeligible eto rreceive 20federal benefits,benefits. the department shall:

aB. t m m 21 (1) in consultation with the child and the d r e 22 following individuals, identify the child's representative c e s k 23 payee:

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 e a n b 24 child's guardian;

or the child's u [ Indian tribe, if the child is known to be an Indian child;

or .229453.1 - 2 - (2) apply to become the child's representative payee;

and (2) to become the child's representative SB 283 Page 2 payee if no other candidate is available." SECTION 4.

"[NEW"FEDERAL MATERIAL] 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:

e t 17 A.

establish an appropriate account to use and w l n d 18 conserve the child's federal benefits, in the child's best = = 19 a l interest, for current unmet needs and future needs pursuant to i a e r 20 the requirements of the funding source and any applicable asset a t m m 21 and resource limits;

d r e 22 B.

annually determine whether a person, other than c e s k 23 the department, is available to assume the role of e a n b 24 representative payee and could better serve in that role, in u [ the child's best interest;

.229453.1 - 3 - C.

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 3 interest;

avoid receiving overpayment of federal benefits and pay any discovered overpayment to the appropriate federal e t 17 agency;

and w l n d 18 F.

before the child leaves the custody of the = = 19 a l department, provide the child with financial literacy and i a e r 20 planning tools to assist the child in aligning conserved a t m m 21 benefits with the child's transition plan." d r e 22 SECTION 5.

A new section of the Children's Code is c e s k 23 enacted to read:

e"PROHIBITED a n b 24 "[NEW MATERIAL] PROHIBITED USE OF FEDERAL BENEFITS.--If u [ the department is the child's representative payee, the .229453.1 - 4 - 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;

"[NEWSB MATERIAL]283 RELEASEPage 4 "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.

or e t 17 B.

the child's parent or guardian, if the child is w l n d 18 younger than eighteen years old or not emancipated." = = 19 a l SECTION 7.

A new section of the Children's Code is i a e r 20 enacted to read:

a"REPORTING.--Beginning t m m 21 "[NEW MATERIAL] REPORTING.--Beginning September 1, 2026 d r e 22 and annually thereafter, the department shall submit a report c e s k 23 to the legislative health and human services committee that e a n b 24 includes:

u [ A.

the number of children in its custody who .229453.1 - 5 - receive federal benefits;