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.
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) Individualized allocation of federal benefits is
Page 3, Line 5critical for addressing the specific needs and circumstances of
Page 3, Line 6each child or youth in foster care, providing them with the
Page 3, Line 7resources necessary to promote health, education, and long-term success; and
Page 3, Line 8(IV) Individualized allocation of federal benefits is
Page 3, Line 9consistent with the policy of the state of Colorado to prioritize
Page 3, Line 10the needs of children or youth in foster care, particularly their
Page 3, Line 11financial security and independence, as they transition to adulthood or reunification with families.
Page 3, Line 12(b) The general assembly further declares its intent to
Page 3, Line 13ensure that federal benefits provided to children or youth in
Page 3, Line 14foster care are set aside specifically for the use of individual children or youth in foster care, thereby:
Page 3, Line 15(I) Enabling children or youth in foster care to access
Page 3, Line 16benefits directly for their personal care, education, and welfare;
Page 3, Line 17(II) Helping to mitigate the effects of instability by giving
Page 3, Line 18children or youth in foster care access to the resources they
Page 3, Line 19need to thrive in their current foster care environment or transition to independence; and
Page 3, Line 20(III) Providing transparency and accountability in the use
Page 3, Line 21of federal benefits, ensuring that children or youth in foster care 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 of 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 youth is eligible 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 federal survivor benefits.
Page 5, Line 22(d) If the county department determines that the child or
Page 6, Line 1youth may be eligible to receive federal survivor benefits, then
Page 6, Line 2the county department shall, in compliance with all applicable
Page 6, Line 3federal rules and regulations, apply for the federal survivor benefits on behalf of the child or youth.
Page 6, Line 4(e) Following a denial of federal survivor benefits or
Page 6, Line 5other adverse benefit eligibility determination, the county
Page 6, Line 6department shall consult with interested parties and determine
Page 6, Line 7whether there are grounds to appeal. If there are grounds to
Page 6, Line 8appeal, the county department shall appeal the denial or adverse determination.
Page 6, Line 9(f) If a child or youth in noncertified kinship care may be
Page 6, Line 10eligible for federal survivor benefits, the county department
Page 6, Line 11shall provide the noncertified kinship caregiver with
Page 6, Line 12information about how to apply for federal survivor benefits on behalf of the child or youth.
Page 6, Line 13(4) (a) If a child or youth in the legal custody or under
Page 6, Line 14the legal authority of a county department is already receiving
Page 6, Line 15federal survivor benefits or may be eligible for federal
Page 6, Line 16survivor benefits pursuant to subsection (3) of this section, prior
Page 6, Line 17to applying to be the representative payee or fiduciary, the
Page 6, Line 18county department shall consult with interested parties to
Page 6, Line 19identify any other preferable candidates for the role in
Page 6, Line 20accordance with applicable federal guidelines. If a preferable
Page 6, Line 21candidate is identified, the county department shall provide the
Page 6, Line 22candidate with information about the process for becoming a representative payee or fiduciary.
Page 6, Line 23(b) If the county department becomes the representative
Page 7, Line 1payee or fiduciary for a child's or youth's federal survivor
Page 7, Line 2benefits, the county department shall annually reassess, in
Page 7, Line 3consultation with interested parties, whether a candidate other
Page 7, Line 4than the county department would be a preferable representative payee or fiduciary.
Page 7, Line 5(5) (a) Beginning on or before July 1, 2027, if a county
Page 7, Line 6department is the representative payee or fiduciary for a child or youth, the county department shall:
Page 7, Line 7(I) Not use any federal survivor benefits of a child or
Page 7, Line 8youth to pay for or reimburse the county department for care
Page 7, Line 9or services for the child or youth, including, but not limited to,
Page 7, Line 10foster care maintenance expenses as defined in the federal
Page 7, Line 11"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 12(II) Establish and maintain, consistent with federal and
Page 7, Line 13state asset and resource limits, an account for deposit of the
Page 7, Line 14federal survivor benefits of a child or youth. The account may
Page 7, Line 15be an individual account or an approved collective account, if
Page 7, Line 16the representative payee maintains a separate ledger and
Page 7, Line 17accounting records for each child or youth beneficiary of an
Page 7, Line 18approved collective account. The contents of the account,
Page 7, Line 19including applicable interest or earnings, must be saved for the individual child or youth.
Page 7, Line 20(III) Provide an annual accounting of the accumulation
Page 7, Line 21of the child's or youth's federal survivor benefits to the child
Page 7, Line 22or youth and the legal representative of the child or youth. The
Page 7, Line 23annual 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
Page 8, Line 21benefits 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 9, Line 21services, in consultation with interested stakeholders,
Page 10, Line 1including, but not limited to, county departments, organizations
Page 10, Line 2that advocate on behalf of youth in foster care, organizations
Page 10, Line 3that represent court-appointed special advocates,
Page 10, Line 4organizations that advocate on behalf of disability rights, the
Page 10, Line 5office of respondent parents' counsel, and the office of the
Page 10, Line 6child's representative, shall adopt rules consistent with
Page 10, Line 7applicable state and federal law for the implementation of this
Page 10, Line 8section. The rules must include guidance to the county departments on:
Page 10, Line 9(a) Screening processes for identifying whether a child or
Page 10, Line 10youth is already receiving federalsurvivor benefits or may be
Page 10, Line 11eligible to receive federal survivor benefits and screening processes for subsequent annual eligibility reviews;
Page 10, Line 12(b) Best practices for consulting with the child or youth
Page 10, Line 13or other interested parties who may have information about the
Page 10, Line 14child's or youth's receipt of or eligibility for federal survivor benefits;
Page 10, Line 15(c) The application process for federal survivor benefits
Page 10, Line 16for each child or youth, who, pursuant to screening, is likely to be determined eligible for federal survivor benefits;
Page 10, Line 17(d) The process for making a determination about whether
Page 10, Line 18it is appropriate to challenge a benefit denial or other adverse determination;
Page 10, Line 19(e) The process for providing information to a
Page 10, Line 20noncertified kinship caregiver about applying for federal survivor benefits on behalf of a child or youth;
Page 10, Line 21(f) The process for identifying, pursuant to applicable
Page 11, Line 1federal guidelines, an appropriate representative payee or fiduciary for a child or youth;
Page 11, Line 2(g) The process for establishing and maintaining an
Page 11, Line 3account for deposit and accumulation of the federal survivor
Page 11, Line 4benefits of a child or youth while in the legal custody or under
Page 11, Line 5the legal authority of the county department and for providing related accounting information annually;
Page 11, Line 6(h) Specifications for providing required notices
Page 11, Line 7regarding federal survivor benefit applications, applications
Page 11, Line 8for a county department to become a representative payee or
Page 11, Line 9fiduciary, receipt of decisions regarding federal survivor
Page 11, Line 10benefit eligibility, appeals of denials, and establishment of accounts; and
Page 11, Line 11(i) Informing a child or youth about rights and
Page 11, Line 12responsibilities regarding the continued receipt of federal
Page 11, Line 13benefits, the sources of assistance that may be available for
Page 11, Line 14resolving related problems, and the process for transferring accumulated federal survivor benefits.
Page 11, Line 15(9) The department of human services shall provide
Page 11, Line 16technical assistance and guidance to the county departments
Page 11, Line 17about how the county departments shall address saving federal survivor benefits in the best interests of a child or youth.
Page 11, Line 18SECTION 2. In Colorado Revised Statutes, 19-7-305, amend (1)(c)(IV) as follows:
Page 11, Line 1919-7-305. Available services and supports. (1) Each county
Page 11, Line 20department shall offer, at a minimum, the following services and supports
Page 11, Line 21to 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 8SECTION 3. Appropriation. For the 2025-26 state fiscal year,
Page 12, Line 9$109,179 is appropriated to the department of human services for use by
Page 12, Line 10the division of child welfare. This appropriation is from the general fund
Page 12, Line 11and is based on an assumption that the division will require an additional
Page 12, Line 121.0 FTE. To implement this act, the division may use this appropriation for administration.
Page 12, Line 13SECTION 4. Safety clause. The general assembly finds,
Page 12, Line 14determines, and declares that this act is necessary for the immediate
Page 12, Line 15preservation of the public peace, health, or safety or for appropriations for
Page 12, Line 16the support and maintenance of the departments of the state and state institutions.