A Bill for an Act
Page 1, Line 101Concerning changes to practices related to federal benefits
Page 1, Line 102for youth in foster care.
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.
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 2, Line 8them eligible for benefits, children or youth in foster care often
Page 3, Line 1face significant challenges, including instability in living
Page 3, Line 2arrangements, lack of financial resources, and limited access to long-term care and support;
Page 3, Line 3(III) Individualized allocation of federal benefits is
Page 3, Line 4critical for addressing the specific needs and circumstances of
Page 3, Line 5each child or youth in foster care, providing them with the
Page 3, Line 6resources necessary to promote health, education, and long-term success; and
Page 3, Line 7(IV) Individualized allocation of federal benefits is
Page 3, Line 8consistent with the policy of the state of Colorado to prioritize
Page 3, Line 9the needs of children or youth in foster care, particularly their
Page 3, Line 10financial security and independence, as they transition to adulthood or reunification with families.
Page 3, Line 11(b) The general assembly further declares its intent to
Page 3, Line 12ensure that federal benefits provided to children or youth in
Page 3, Line 13foster care are set aside specifically for the use of individual children or youth in foster care, thereby:
Page 3, Line 14(I) Enabling children or youth in foster care to access
Page 3, Line 15benefits directly for their personal care, education, and welfare;
Page 3, Line 16(II) Helping to mitigate the effects of instability by giving
Page 3, Line 17children or youth in foster care access to the resources they
Page 3, Line 18need to thrive in their current foster care environment or transition to independence; and
Page 3, Line 19(III) Providing transparency and accountability in the use
Page 3, Line 20of federal benefits, ensuring that children or youth in foster
Page 3, Line 21care receive the full support intended for their unique needs.
Page 4, Line 1(c) It is the intent of the general assemblythat federal
Page 4, Line 2benefits are not generalized or pooled for institutional
Page 4, Line 3purposes, but are individually allocated and protected for the
Page 4, Line 4direct use of each child or youth in the foster care system.
Page 4, Line 5Individual allocation and protection of federal survivor
Page 4, Line 6benefits is the first step toward addressing this issue more
Page 4, Line 7broadly. Therefore, it is further the intent of the general assembly that:
Page 4, Line 8(I) Federal survivor benefits, which are the legal
Page 4, Line 9entitlement of individual children and youth, not be used to cover the costs of care for children or youth in foster care;
Page 4, Line 10(II) Federal survivor benefit funds be managed and
Page 4, Line 11distributed with oversight to ensure that they are used solely
Page 4, Line 12for the benefit and advancement of an individual child or youth's well-being and development; and
Page 4, Line 13(III) Federal survivor benefit resources be allocated to
Page 4, Line 14prioritize the personal rights and needs of individual children
Page 4, Line 15or youth in foster care, affording them the opportunities and
Page 4, Line 16stability necessary to succeed, regardless of their status in the foster care system.
Page 4, Line 17(2) As used in this section, unless the context otherwise requires:
Page 4, Line 18(a) "Federalsurvivor benefits" means survivor benefits
Page 4, Line 19that are administered by the United States social security
Page 4, Line 20administration, veterans benefits administration, or the
Page 4, Line 21railroad retirement board and that are based on the eligibility
Page 4, Line 22of an insured parent.
Page 5, Line 1(b) "Interested party" means a child or youth; the child's
Page 5, Line 2or youth's counsel for youth; a parent and the parent's counsel,
Page 5, Line 3unless parental rights have been terminated or there is a court
Page 5, Line 4order restricting access; the individual with whom the child or
Page 5, Line 5youth is currently placed; the guardian ad litem; or other party
Page 5, Line 6who may have information about the child's or youth's eligibility for or receipt of federal survivor benefits.
Page 5, Line 7(3) (a) Beginning on or before July 1, 2027, within ninety
Page 5, Line 8days after a county department assumes legal custody of or
Page 5, Line 9authority over a child or youth, if the county department
Page 5, Line 10establishes that the child or youth has a deceased parent, the
Page 5, Line 11county department shall determine whether the child or youthmay beeligible to receive federal survivor benefits.
Page 5, Line 12(b) Beginning on or before July 1, 2027, if a county
Page 5, Line 13department makes an initial determination that the child or
Page 5, Line 14youth is not likely to be eligible for federal survivor benefits,
Page 5, Line 15the county department shall annually review the case of the
Page 5, Line 16child or youth to determine whether circumstances have
Page 5, Line 17changed to make the child or youth eligible for federal survivor benefits.
Page 5, Line 18(c) In conducting an initial benefit eligibility
Page 5, Line 19determination or an annual review pursuant to this subsection
Page 5, Line 20(3), the county department shall consult with interested parties
Page 5, Line 21as necessary to assess the child's or youth's eligibility for
Page 5, Line 22federal survivorbenefits and to determine, in accordance with
Page 5, Line 23applicable federal law, the most likely, appropriate
Page 5, Line 24representative payee or fiduciary.
Page 6, Line 1(d) If the county department determines that the child or
Page 6, Line 2youth may be eligible to receive federal survivorbenefits, and
Page 6, Line 3that the county department is the most appropriate
Page 6, Line 4representative payee or fiduciary,then the county department
Page 6, Line 5shall, in compliance with all applicable federal rules and
Page 6, Line 6regulations, apply for the federal survivor benefits on behalf
Page 6, Line 7of the child or youth.If the county department determines that
Page 6, Line 8the child or youth may be eligible for federal survivor benefits
Page 6, Line 9but that the county department is not the most appropriate
Page 6, Line 10representative payee or fiduciary, the county department shall
Page 6, Line 11provide information to the prospective representative payee or
Page 6, Line 12fiduciary that the county department has identified about how
Page 6, Line 13to apply for federal survivor benefits on behalf of the child or
Page 6, Line 14youth and how to become the child's or youth's representative payee or fiduciary.
Page 6, Line 15(e) Following a denial of federal survivor benefits or
Page 6, Line 16other adverse benefit eligibility determination, the county
Page 6, Line 17department shall consult with interested parties and determine
Page 6, Line 18whether there are grounds to appeal. If there are grounds to
Page 6, Line 19appeal, the county department shall appeal the denial or adverse determination.
Page 6, Line 20(f) If a child or youth in noncertified kinship care may be
Page 6, Line 21eligible for federal survivor benefits, the county department
Page 6, Line 22shall provide the noncertified kinship caregiver with
Page 6, Line 23information about how to apply for federal survivor benefits on behalf of the child or youth.
Page 7, Line 1(4) If the county department becomes the representative
Page 7, Line 2payee or fiduciary for a child's or youth's federal survivor
Page 7, Line 3benefits, the county department shall annually reassess, in
Page 7, Line 4consultation with interested parties, whether a candidate other
Page 7, Line 5than the county department would be a preferable representative payee or fiduciary.
Page 7, Line 6(5) (a) Beginning on or before July 1, 2027, if a county
Page 7, Line 7department is the representative payee or fiduciary for a child or youth, the county department shall:
Page 7, Line 8(I) Not use any federal survivor benefits of a child or
Page 7, Line 9youth to pay for or reimburse the county department for care
Page 7, Line 10or services for the child or youth, including, but not limited to,
Page 7, Line 11foster care maintenance expenses as defined in the federal
Page 7, Line 12"Social Security Act", 42 U.S.C. sec. 675 (4)(A), and cost of care as defined in section 19-1-103.
Page 7, Line 13(II) Establish and maintain, consistent with federal and
Page 7, Line 14state asset and resource limits, an account for deposit of the
Page 7, Line 15federal survivor benefits of a child or youth. The account may
Page 7, Line 16be an individual account or an approved collective account, if
Page 7, Line 17the representative payee maintains a separate ledger and
Page 7, Line 18accounting records for each child or youth beneficiary of an
Page 7, Line 19approved collective account. The contents of the account,
Page 7, Line 20including applicable interest or earnings, must be saved for the individual child or youth.
Page 7, Line 21(III) Provide an annual accounting of the accumulation
Page 7, Line 22of the child's or youth's federal survivor benefits to the child
Page 7, Line 23or youth and the legal representative of the child or youth. The annual accounting information must include:
Page 8, Line 1(A) The amount and source of federal survivor benefits
Page 8, Line 2collected by the county department and credited to the account maintained on behalf of the child or youth;
Page 8, Line 3(B) The balance of the account maintained on behalf of the child or youth; and
Page 8, Line 4(C) Information regarding the child's or youth's accounts
Page 8, Line 5and earnings related to those accounts, if applicable, and any
Page 8, Line 6additional assets and resources, including benefits, insurance,
Page 8, Line 7cash assets, trust accounts, and earnings, if the assets or resources are controlled by the county department.
Page 8, Line 8(b) If a county department is not the representative payee
Page 8, Line 9or fiduciary for a child's or youth's federal survivor benefits,
Page 8, Line 10the county department is not responsible for establishing or
Page 8, Line 11maintaining an account for deposit of the federal survivor
Page 8, Line 12benefits of the child or youth or providing related accounting information pursuant to subsection (5)(a) of this section.
Page 8, Line 13(c) This section does not prevent or limit a court from
Page 8, Line 14ordering or a county department from voluntarily undertaking
Page 8, Line 15the conservation of federal survivor benefits for a child or
Page 8, Line 16youth or from using, in accordance with applicable federal and
Page 8, Line 17state law, the federal survivor benefits for purposes other than the cost of care.
Page 8, Line 18(6) (a) The county department shall provide timely,
Page 8, Line 19developmentally appropriate notice to the parties, unless prevented by a court order, of:
Page 8, Line 20(I) Submission of an application for federal survivor benefits on behalf of a child or youth;
Page 9, Line 1(II) Submission of a request for the county department to
Page 9, Line 2become the representative payee or fiduciary for the child's or
Page 9, Line 3youth's federal survivor benefits and identification of the representative payee or fiduciary ultimately selected;
Page 9, Line 4(III) Receipt by the county department of a federal
Page 9, Line 5agency's decision regarding federal survivor benefits, including denial, termination, or reduction of federal survivor benefits;
Page 9, Line 6(IV) A decision by the county department about whether
Page 9, Line 7or not to appeal an adverse determination, including the outcome of any appeal filed; and
Page 9, Line 8(V) The establishment of a special account or trust on behalf of the child or youth.
Page 9, Line 9(b) The notice must state that interested parties may
Page 9, Line 10submit information relevant to the selection of a
Page 9, Line 11representative payee or fiduciary for the child or youth, and
Page 9, Line 12that an individual may have the right to contest the selection
Page 9, Line 13of a representative payee or fiduciary before the relevant
Page 9, Line 14federal agency, including the social security administration or veterans administration.
Page 9, Line 15(7) Once a child who is receiving federal survivor benefits
Page 9, Line 16leaves foster care, the county department shall release,
Page 9, Line 17pursuant to the requirements of the funding source, any funds
Page 9, Line 18that have accumulated in an account that the county
Page 9, Line 19department has established or maintains for deposit of the federal survivor benefits of the child or youth.
Page 9, Line 20(8) On or before January 1, 2027, the department of human
Page 10, Line 1services, in consultation with interested stakeholders,
Page 10, Line 2including, but not limited to, county departments, organizations
Page 10, Line 3that advocate on behalf of youth in foster care, organizations
Page 10, Line 4that represent court-appointed special advocates,
Page 10, Line 5organizations that advocate on behalf of disability rights, the
Page 10, Line 6office of respondent parents' counsel, and the office of the
Page 10, Line 7child's representative, shall adopt rules consistent with
Page 10, Line 8applicable state and federal law for the implementation of this
Page 10, Line 9section. The rules must include guidance to the county departments on:
Page 10, Line 10(a) Screening processes for identifying whether a child or
Page 10, Line 11youth is already receiving federalsurvivor benefits or may be
Page 10, Line 12eligible to receive federal survivor benefits and screening processes for subsequent annual eligibility reviews;
Page 10, Line 13(b) Best practices for consulting with the child or youth
Page 10, Line 14or other interested parties who may have information about the
Page 10, Line 15child's or youth's receipt of or eligibility for federal survivor benefits;
Page 10, Line 16(c) The application process for federal survivor benefits
Page 10, Line 17for each child or youth, who, pursuant to screening, is likely to be determined eligible for federal survivor benefits;
Page 10, Line 18(d) The process for making a determination about whether
Page 10, Line 19it is appropriate to challenge a benefit denial or other adverse determination;
Page 10, Line 20(e) The process for providing information to a
Page 10, Line 21noncertified kinship caregiver about applying for federal
Page 10, Line 22survivor benefits on behalf of a child or youth;
Page 11, Line 1(f) The process for identifying, pursuant to applicable
Page 11, Line 2federal guidelines, an appropriate representative payee or fiduciary for a child or youth;
Page 11, Line 3(g) The process for establishing and maintaining an
Page 11, Line 4account for deposit and accumulation of the federal survivor
Page 11, Line 5benefits of a child or youth while in the legal custody or under
Page 11, Line 6the legal authority of the county department and for providing related accounting information annually;
Page 11, Line 7(h) Specifications for providing required notices
Page 11, Line 8regarding federal survivor benefit applications, applications
Page 11, Line 9for a county department to become a representative payee or
Page 11, Line 10fiduciary, receipt of decisions regarding federal survivor
Page 11, Line 11benefit eligibility, appeals of denials, and establishment of accounts; and
Page 11, Line 12(i) Informing a child or youth about rights and
Page 11, Line 13responsibilities regarding the continued receipt of federal
Page 11, Line 14benefits, the sources of assistance that may be available for
Page 11, Line 15resolving related problems, and the process for transferring accumulated federal survivor benefits.
Page 11, Line 16(9) The department of human services shall provide
Page 11, Line 17technical assistance and guidance to the county departments
Page 11, Line 18about how the county departments shall address saving federal survivor benefits in the best interests of a child or youth.
Page 11, Line 19SECTION 2. In Colorado Revised Statutes, 19-7-305, amend (1)(c)(IV) as follows:
Page 11, Line 2019-7-305. Available services and supports. (1) Each county
Page 11, Line 21department shall offer, at a minimum, the following services and supports to participating youth in the transition program:
Page 12, Line 1(c) Case management services, including the development of a
Page 12, Line 2case plan with a roadmap to success for the participating youth, as well
Page 12, Line 3as assistance in the following areas, as appropriate, and with the agreement of the participating youth:
Page 12, Line 4(IV) Obtaining appropriate community resources and public
Page 12, Line 5benefits, including applying for federal benefits as defined in
Page 12, Line 6section 19-7-105, conserving or managing federal benefits
Page 12, Line 7obtained pursuant to section 19-7-105, or obtaining related financial literacy training;
Page 12, Line 9SECTION 3. Safety clause. The general assembly finds,
Page 12, Line 10determines, and declares that this act is necessary for the immediate
Page 12, Line 11preservation of the public peace, health, or safety or for appropriations for
Page 12, Line 12the support and maintenance of the departments of the state and state institutions.