A Bill for an Act
Page 1, Line 101Concerning changes to practices related to federal benefits
Page 1, Line 102for youth in foster care, and, in connection therewith,
Page 1, Line 103making an appropriation.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Beginning on or before July 1, 2026, the bill requires a county department of human or social services (county department) to determine whether each child or youth in foster care and each youth participating in the foster youth in transition program (child or youth) may be eligible to receive benefits administered by certain federal agencies, including the United States railroad retirement board, social security administration, or veterans administration (federal benefits) within 90 days after placement. If the county department determines that the child or youth may be eligible, the county department shall apply for federal benefits on behalf of the child or youth.
Under current law, certain federal agencies appoint a representative payee or fiduciary (representative payee) to receive and manage certain federal benefits on behalf of a child or youth in foster care, and a county department serving as a representative payee may use federal benefits to offset the cost of providing basic care and services to a child or youth in foster care. The bill prohibits this benefit offset practice. Instead, the bill directs a county department serving as a representative payee to establish a trust account for the federal benefits (account). Money in the account is available for a limited set of current, unmet needs. Otherwise, the representative payee must save money in the account for the future needs of the individual child or youth.
The bill sets forth various accounting and notice requirements related to federal benefits and requires the department of human services (department), in consultation with interested stakeholders, to establish guidance for county departments. The guidance extends to procedures for identifying a representative payee, disability screening for a child or youth, county department responsibilities when federal benefits are denied or when a child or youth leaves foster care, and policies governing access to account funds. The department shall provide technical assistance to a county department during the 2025 and 2026 state fiscal years.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 19-7-105 as follows:
Page 2, Line 319-7-105. Federal benefits for children and youth in foster
Page 2, Line 4care - rules - definitions - legislative intent - legislative declaration. (1) (a) The general assembly finds and declares that:
Page 2, Line 5(I) The federal government provides various benefits and
Page 2, Line 6resources to promote the well-being, education, health, and safety of children or youth in foster care;
Page 2, Line 7(II) In addition to their needs and circumstances making
Page 3, Line 1them eligible for benefits, children or youth in foster care often
Page 3, Line 2face significant challenges, including instability in living
Page 3, Line 3arrangements, lack of financial resources, and limited access to long-term care and support;
Page 3, Line 4(III) Federal benefits are often allocated to support
Page 3, Line 5placement of children in the foster care system; however,
Page 3, Line 6federal benefit funds are not always directly allocated for the
Page 3, Line 7personal use and needs of individual children or youth in foster care;
Page 3, Line 8(IV) Individualized allocation of federal benefits is
Page 3, Line 9critical for addressing the specific needs and circumstances of
Page 3, Line 10each child or youth in foster care, providing them with the
Page 3, Line 11resources necessary to promote health, education, and long-term success; and
Page 3, Line 12(V) Individualized allocation of federal benefits is
Page 3, Line 13consistent with the policy of the state of Colorado to prioritize
Page 3, Line 14the needs of children or youth in foster care, particularly their
Page 3, Line 15financial security and independence, as they transition to adulthood or reunification with families.
Page 3, Line 16(b) The general assembly further finds and declares that
Page 3, Line 17the intent of this section is to ensure that federal benefits
Page 3, Line 18provided to children or youth in foster care are set aside
Page 3, Line 19specifically for the use of individual children or youth in foster care, thereby:
Page 3, Line 20(I) Enabling children or youth in foster care to access
Page 3, Line 21benefits directly for their personal care, education, and
Page 3, Line 22welfare;
Page 4, Line 1(II) Helping to mitigate the effects of instability by giving
Page 4, Line 2children or youth in foster care access to the resources they
Page 4, Line 3need to thrive in their current foster care environment or transition to independence; and
Page 4, Line 4(III) Providing transparency and accountability in the use
Page 4, Line 5of federal benefits, ensuring that children or youth in foster care receive the full support intended for their unique needs.
Page 4, Line 6(c) It is the intent of the general assembly to create a
Page 4, Line 7system in which all federal benefits are not generalized or
Page 4, Line 8pooled for institutional purposes, but are individually
Page 4, Line 9allocated and protected for the direct use of each child or
Page 4, Line 10youth in the foster care system. It is further the intent of the general assembly that:
Page 4, Line 11(I) Federal benefits, which are the legal entitlement of
Page 4, Line 12individual children and youth, not be used to cover the costs of
Page 4, Line 13care that the state and counties of Colorado are legally required to cover;
Page 4, Line 14(II) Federal benefit funds be managed and distributed with
Page 4, Line 15oversight to ensure that they are used solely for the benefit
Page 4, Line 16and advancement of an individual child or youth's well-being and development; and
Page 4, Line 17(III) Federal resources be allocated to prioritize the
Page 4, Line 18personal rights and needs of individual children or youth in
Page 4, Line 19foster care, affording them the opportunities and stability
Page 4, Line 20necessary to succeed, regardless of their status in the foster care system.
Page 4, Line 21(2) As used in this section, unless the context otherwise requires:
Page 5, Line 1(a) "Federal benefits" means survivor benefits that are
Page 5, Line 2administered by the United States social security
Page 5, Line 3administration, veterans benefits administration, or the
Page 5, Line 4railroad retirement board and that are based on the eligibility of an insured parent.
Page 5, Line 5(b) "Interested party" means a child or youth; the child's
Page 5, Line 6or youth's counsel for youth; a parent and the parent's counsel,
Page 5, Line 7unless parental rights have been terminated or there is a court
Page 5, Line 8order restricting access; the individual with whom the child or
Page 5, Line 9youth is currently placed; the guardian ad litem; or other party
Page 5, Line 10who may have information about the child's or youth's eligibility for or receipt of federal benefits.
Page 5, Line 11(3) (a) Beginning on or before July 1, 2027, a county
Page 5, Line 12department shall, within ninety days after the date of
Page 5, Line 13placement of a child or youth into the legal custody or under
Page 5, Line 14the legal authority of the county department, determine whether each child or youth is receiving federal benefits.
Page 5, Line 15(b) Beginning on or before July 1, 2027, a county
Page 5, Line 16department shall, within ninety days after the date of
Page 5, Line 17placement of a child or youth into the legal custody or under
Page 5, Line 18the legal authority of the county department, determine
Page 5, Line 19whether each child or youth who is not receiving federal
Page 5, Line 20benefits may be eligible to receive federal benefits. If the
Page 5, Line 21county department makes an initial determination that the
Page 5, Line 22child or youth is not likely to be eligible for federal benefits,
Page 5, Line 23the county department shall annually review the case of the
Page 6, Line 1child or youth to determine whether circumstances have
Page 6, Line 2changed to make the child or youth eligible for federal benefits.
Page 6, Line 3(c) In conducting an initial benefit eligibility
Page 6, Line 4determination or an annual review pursuant to this subsection
Page 6, Line 5(3), the county department shall consult with interested parties.
Page 6, Line 6(d) If the county department determines that the child or
Page 6, Line 7youth may be eligible to receive federal benefits, then the
Page 6, Line 8county department shall, in compliance with all applicable
Page 6, Line 9federal rules and regulations, apply for the federal benefits on behalf of the child or youth.
Page 6, Line 10(e) Following a denial of federal benefits or other
Page 6, Line 11adverse benefit eligibility determination, the county
Page 6, Line 12department shall consult with interested parties and appeal the
Page 6, Line 13denial or adverse determination if doing so is in the best interests of the child or youth.
Page 6, Line 14(f) If a child or youth is in a noncertified kinship care
Page 6, Line 15placement, and if the county department or noncertified kinship
Page 6, Line 16caregiver determines that the child or youth may be eligible for
Page 6, Line 17federal benefits, the county department shall provide the
Page 6, Line 18noncertified kinship caregiver with the technical assistance
Page 6, Line 19needed for the noncertified kinship caregiver to complete and
Page 6, Line 20submit a successful application for the federal benefits on behalf of the child or youth.
Page 6, Line 21(4) (a) If a child or youth in the legal custody or under
Page 6, Line 22the legal authority of a county department is already receiving
Page 7, Line 1federal benefits or may be eligible for federal benefits pursuant
Page 7, Line 2to subsection (3) of this section, the county department shall
Page 7, Line 3perform an assessment of possible representative payees or
Page 7, Line 4fiduciaries. The county department shall follow the established
Page 7, Line 5categories of preferred payees pursuant to social security or
Page 7, Line 6applicable federal guidelines when determining which potential
Page 7, Line 7representative payee or fiduciary to include in an application to
Page 7, Line 8change the representative payee or fiduciary, if the county
Page 7, Line 9department deems a change necessary, or in an application for
Page 7, Line 10federal benefits. Decisions about which potential representative
Page 7, Line 11payee or fiduciary to include in an application must be made in consultation with interested parties.
Page 7, Line 12(b) If a county department provides a noncertified kinship
Page 7, Line 13caregiver with technical assistance pursuant to subsection
Page 7, Line 14(3)(f) of this section, the county department may presume that
Page 7, Line 15the noncertified kinship caregiver is the appropriate
Page 7, Line 16representative payee or fiduciary if the presumption is
Page 7, Line 17consistent with established categories of preferred payees pursuant to social security or applicable federal guidelines.
Page 7, Line 18(c) If the county department becomes the representative
Page 7, Line 19payee or fiduciary, the county department shall annually
Page 7, Line 20reassess, in consultation with interested parties, whether a
Page 7, Line 21candidate other than the county department would better
Page 7, Line 22serve the best interests of the child or youth as the representative payee or fiduciary.
Page 7, Line 23(5) (a) Beginning on or before July 1, 2027, if a county
Page 7, Line 24department is the representative payee or fiduciary for a child or youth, the county department shall:
Page 8, Line 1(I) Not use any federal benefits of a child or youth to pay
Page 8, Line 2for or reimburse the county department for care or services for
Page 8, Line 3the child or youth, including, but not limited to, foster care
Page 8, Line 4maintenance expenses as defined in the federal "Social Security
Page 8, Line 5Act", 42 U.S.C. sec. 675 (4)(A), cost of care as defined in section
Page 8, Line 619-1-103, or any special allowances or expenses established by
Page 8, Line 7the department of human services for the care of a child or youth in a particular age range;
Page 8, Line 8(II) Establish and maintain, consistent with federal and
Page 8, Line 9state asset and resource limits, an account for deposit of the
Page 8, Line 10federal benefits of a child or youth. The account may be an
Page 8, Line 11individual account or an approved collective account, if the
Page 8, Line 12representative payee maintains a separate ledger and
Page 8, Line 13accounting records for each child or youth beneficiary of an
Page 8, Line 14approved collective account. The contents of the account,
Page 8, Line 15including applicable interest or earnings, must be saved for the future needs of the individual child or youth.
Page 8, Line 16(III) Provide an annual accounting of the accumulation
Page 8, Line 17of the child's or youth's federal benefits to interested parties. The annual accounting information must include:
Page 8, Line 18(A) The amount and source of federal benefits collected
Page 8, Line 19by the county department and credited to the account maintained on behalf of the child or youth;
Page 8, Line 20(B) The balance of the account maintained on behalf of the child or youth; and
Page 8, Line 21(C) Information regarding the child's or youth's assets
Page 9, Line 1and resources, including benefits, insurance, cash assets, trust
Page 9, Line 2accounts, and earnings, if the assets or resources are controlled by the county department.
Page 9, Line 3(b) If a county department is not the representative payee
Page 9, Line 4or fiduciary for a child or youth, the county department is not
Page 9, Line 5responsible for establishing or maintaining an account for
Page 9, Line 6deposit of the federal benefits of the child or youth or providing
Page 9, Line 7related accounting information pursuant to subsection (5)(a) of this section.
Page 9, Line 8(c) If a county department is the representative payee or
Page 9, Line 9fiduciary for a child or youth pursuant to subsection (5)(a) of
Page 9, Line 10this section, this section does not prevent or limit the county
Page 9, Line 11department from conserving for the child or youth benefits that:
Page 9, Line 12(I) Are administered by a federal agency; and
Page 9, Line 13(II) Fall outside the scope of the definition of federal benefits in subsection (2)(a) of this section.
Page 9, Line 14(6) (a) The county department shall provide timely, developmentally appropriate notice to interested parties of:
Page 9, Line 15(I) Submission of an application for federal benefits on behalf of a child or youth;
Page 9, Line 16(II) Submission of a request for the county department to
Page 9, Line 17become the representative payee or fiduciary for the child or
Page 9, Line 18youth and identification of the representative payee or fiduciary ultimately selected;
Page 9, Line 19(III) Receipt by the county department of a federal
Page 9, Line 20agency's decision regarding federal benefits, including denial, termination, or reduction of federal benefits;
Page 10, Line 1(IV) A decision by the county department about whether
Page 10, Line 2or not to appeal an adverse determination, including the outcome of any appeal filed;
Page 10, Line 3(V) Receipt of an eligibility redetermination; and
Page 10, Line 4(VI) The establishment of a special account or trust on behalf of the child or youth.
Page 10, Line 5(b) The notice must state that interested parties may
Page 10, Line 6submit information relevant to the selection of a
Page 10, Line 7representative payee or fiduciary for the child or youth, and
Page 10, Line 8that an individual may have the right to contest the selection
Page 10, Line 9of a representative payee or fiduciary before the relevant
Page 10, Line 10federal agency, including the social security administration or veterans administration.
Page 10, Line 11(7) Once a child who is receiving federal benefits leaves
Page 10, Line 12the legal custody or legal authority of the county department,
Page 10, Line 13the county department shall release, pursuant to the
Page 10, Line 14requirements of the funding source, any funds that have
Page 10, Line 15accumulated in an account that the county department has
Page 10, Line 16established or maintains for deposit of the federal benefits of the child or youth.
Page 10, Line 17(8) On or before July 1, 2026, the department of human
Page 10, Line 18services, in consultation with interested stakeholders,
Page 10, Line 19including, but not limited to, county departments, organizations
Page 10, Line 20that advocate on behalf of youth in foster care, guardians ad
Page 10, Line 21litem, organizations that represent court-appointed special
Page 10, Line 22advocates, organizations that advocate on behalf of disability
Page 11, Line 1rights, the office of respondent parents' counsel, and the office
Page 11, Line 2of the child's representative, shall adopt rules for the
Page 11, Line 3implementation of this section. The rules must include guidance to the county departments on:
Page 11, Line 4(a) The types of federal benefits for which a county
Page 11, Line 5department shall, pursuant to subsection (3) of this section,
Page 11, Line 6conduct an eligibility screening, submit an application, or appeal an adverse determination;
Page 11, Line 7(b) Screening methods for identifying whether a child or
Page 11, Line 8youth is already receiving federal benefits or may be eligible to
Page 11, Line 9receive federal benefits and screening methods for subsequent annual eligibility reviews;
Page 11, Line 10(c) Best practices for consulting with the child or youth
Page 11, Line 11or other interested parties who may have information about the child's or youth's receipt of or eligibility for federal benefits;
Page 11, Line 12(d) The application process for federal benefits for each
Page 11, Line 13child or youth, who, pursuant to screening, is likely to be determined eligible for federal benefits;
Page 11, Line 14(e) The process for appealing and requesting
Page 11, Line 15reconsideration of adverse decisions regarding eligibility for federal benefits;
Page 11, Line 16(f) The process for providing technical assistance to a
Page 11, Line 17noncertified kinship caregiver who is applying for federal benefits on behalf of a child or youth;
Page 11, Line 18(g) Methods for identifying, pursuant to applicable
Page 11, Line 19federal guidelines, an appropriate representative payee or
Page 11, Line 20fiduciary for a child or youth in the legal custody or under the
Page 12, Line 1legal authority of the county department or in a kinship care placement;
Page 12, Line 2(h) The process for establishing and maintaining an
Page 12, Line 3account for deposit and accumulation of the federal benefits of
Page 12, Line 4a child or youth while in the legal custody or under the legal
Page 12, Line 5authority of the county department and for providing related accounting information annually;
Page 12, Line 6(i) Specifications for providing required notices regarding
Page 12, Line 7federal benefit applications, applications for a county
Page 12, Line 8department to become a representative payee or fiduciary,
Page 12, Line 9receipt of decisions regarding federal benefit eligibility, appeals of denials, and establishment of accounts;
Page 12, Line 10(j) Informing a child or youth about rights and
Page 12, Line 11responsibilities regarding the continued receipt of federal
Page 12, Line 12benefits, the sources of assistance that may be available for
Page 12, Line 13resolving related problems, and the process for transferring accumulated federal benefits; and
Page 12, Line 14(k) For youth participating in the foster youth in
Page 12, Line 15transition program pursuant to part 3 of this article 7,
Page 12, Line 16information about applying for and conserving federal benefits or obtaining related financial literacy training.
Page 12, Line 17SECTION 2. In Colorado Revised Statutes, 19-7-305, amend (1)(c)(IV) as follows:
Page 12, Line 1819-7-305. Available services and supports. (1) Each county
Page 12, Line 19department shall offer, at a minimum, the following services and supports to participating youth in the transition program:
Page 12, Line 20(c) Case management services, including the development of a
Page 13, Line 1case plan with a roadmap to success for the participating youth, as well
Page 13, Line 2as assistance in the following areas, as appropriate, and with the agreement of the participating youth:
Page 13, Line 3(IV) Obtaining appropriate community resources and public
Page 13, Line 4benefits, including applying for federal benefits as defined in
Page 13, Line 5section 19-7-105, conserving or managing federal benefits
Page 13, Line 6obtained pursuant to section 19-7-105, or obtaining related financial literacy training;
Page 13, Line 7SECTION 3. Appropriation. For the 2025-26 state fiscal year,
Page 13, Line 8$109,179 is appropriated to the department of human services for use by
Page 13, Line 9the division of child welfare. This appropriation is from the general fund
Page 13, Line 10and is based on an assumption that the division will require an additional
Page 13, Line 111.0 FTE. To implement this act, the division may use this appropriation for administration.
Page 13, Line 12SECTION 4. Safety clause. The general assembly finds,
Page 13, Line 13determines, and declares that this act is necessary for the immediate
Page 13, Line 14preservation of the public peace, health, or safety or for appropriations for
Page 13, Line 15the support and maintenance of the departments of the state and state institutions.