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, 19-7-101, amend (2)(a)(VI), (2)(b)(XI), (2)(b)(XII), and (2)(i)(VII) as follows:
Page 2, Line 319-7-101. Rights of children and youth in foster care - written
Page 2, Line 4notice - reporting - legislative declaration. (2) A child or youth in
Page 2, Line 5foster care or participating in the foster youth in transition program,
Page 2, Line 6created in part 3 of this article 7, but excluding a child or youth detained
Page 2, Line 7by or committed to the care and physical custody of the division of youth services in the department of human services, has the following rights:
Page 2, Line 8(a) Fair and equal access, including:
Page 2, Line 9(VI) Developmentally appropriate notification of any benefits,
Page 3, Line 1including federal benefits pursuant to section 19-7-105, for which
Page 3, Line 2the child or youth is eligible or receiving, including written notification of who is serving as representative payee, when applicable; and
Page 3, Line 3(b) Appropriate placement and care, including:
Page 3, Line 4(XI) A requirement that the representative payee for the child or
Page 3, Line 5youth, including the department of human services if it is acting as the
Page 3, Line 6representative payee, use any benefits the child or youth receives to meet
Page 3, Line 7the child's or youth's individual needs consistent with the
Page 3, Line 8requirements of section 19-7-105 for federal benefits, after the
Page 3, Line 9representative payee meets with the child or youth to ascertain the child's or youth's current and foreseeable needs; and
Page 3, Line 10(XII)
TimelyPage 3, Line 1119-7-105, timely notification to the social security administration to
Page 3, Line 12initiate the transfer of benefits from a representative payee when a child
Page 3, Line 13or youth who is receiving benefits leaves the custody of the department of human services;
Page 3, Line 14(i) The necessities to be self-sufficient during the transition to adulthood, including:
Page 3, Line 15(VII)
AssistingPage 3, Line 1619-7-105, assisting a youth in applying for benefits the youth is eligible
Page 3, Line 17for or currently receiving, to ensure that benefits continue once the youth
Page 3, Line 18turns eighteen years of age or transitions out of foster care, including redetermination for the purposes of social security benefits; and
Page 3, Line 19SECTION 2. In Colorado Revised Statutes, add 19-7-105 as follows:
Page 3, Line 2019-7-105. Federal benefits for children and youth in foster
Page 3, Line 21care - rules - definitions. (1) As used in this section, unless the context otherwise requires:
Page 4, Line 1(a) "Child or youth" means a child or youth who is:
(I) In foster care as defined in section 19-1-103; or
Page 4, Line 2(II) Participating in the foster youth in transition program, created in part 3 of this article 7.
Page 4, Line 3(b) "Federal benefits" means benefits administered by
Page 4, Line 4federal agencies including the United States railroad
Page 4, Line 5retirement board, social security administration, or veterans administration;
Page 4, Line 6(c) (I) "Unmet needs" means expenses that a county
Page 4, Line 7department is not required by law, rule, policy, practice, or
Page 4, Line 8court order to pay on behalf of a child or youth; that are not
Page 4, Line 9provided for by another source of funds or resources; and that include, but are not limited to:
Page 4, Line 10(A) Tuition, tutoring, and training, including the cost of application fees, books, equipment, and testing;
Page 4, Line 11(B) Transportation to work or training or to maintain family connections;
Page 4, Line 12(C) Travel;
Page 4, Line 13(D) Expenses related to the transition into adulthood,
Page 4, Line 14including first and last month's rent, housing applications,
Page 4, Line 15essential household supplies, furniture, kitchen equipment, linens, or cleaning supplies;
Page 4, Line 16(E) Technology, including the purchase of a computer or
Page 4, Line 17phone as needed to advance a child or youth's skill in school, work, or independence, or to maintain a connection with family;
Page 4, Line 18(F) Instruments, books, supplies, fees, or equipment to
Page 5, Line 1support the child or youth in pursuing hobbies, sports, the arts, or interests; and
Page 5, Line 2(G) Medical treatment, personal needs assistance, special equipment, therapy or rehabilitation, or housing modification.
Page 5, Line 3(II) "Unmet needs" does not include a cost of care as that term is defined in section 19-1-103.
Page 5, Line 4(2) (a) Beginning on or before July 1, 2026, a county
Page 5, Line 5department shall determine whether each child or youth is
Page 5, Line 6receiving or may be eligible to receive federal benefits within
Page 5, Line 7ninety days after the date of placement of the child or youth
Page 5, Line 8into the legal custody or under the legal authority of the
Page 5, Line 9county department. In conducting a benefit eligibility review
Page 5, Line 10pursuant to this subsection (2), the county department shall
Page 5, Line 11consult with a parent, caregiver, or other party who may have
Page 5, Line 12information about the child's or youth's eligibility for federal benefits.
Page 5, Line 13(b) If the county department determines that the child or
Page 5, Line 14youth is not receiving federal benefits but may be eligible to
Page 5, Line 15receive federal benefits, then the county department shall apply for the federal benefits on behalf of the child or youth.
Page 5, Line 16(c) Following a denial of federal benefits or other
Page 5, Line 17adverse benefit eligibility determination, the county
Page 5, Line 18department shall consult with the child's or youth's counsel
Page 5, Line 19for youth and appeal the denial or adverse determination if in the best interests of the child or youth.
Page 5, Line 20(d) The county department shall annually review the
Page 5, Line 21case of each child or youth to determine whether the child or
Page 6, Line 1youth may be eligible for federal benefits after the county
Page 6, Line 2department's initial assessment. The county department shall
Page 6, Line 3also review the case of a child within thirty days following the
Page 6, Line 4child's seventeenth birthday to determine whether the child may be eligible for federal benefits.
Page 6, Line 5(e) (I) In connection with determining current or
Page 6, Line 6potential eligibility for federal benefits pursuant to this
Page 6, Line 7subsection (2), a county department shall perform an assessment of possible representative payees or fiduciaries.
Page 6, Line 8(II) The county department shall identify a
Page 6, Line 9representative payee or fiduciary in accordance with applicable
Page 6, Line 10federal agency guidelines, including the established categories
Page 6, Line 11of preferred payees pursuant to social security and
Page 6, Line 12supplemental security income guidelines, and in coordination
Page 6, Line 13with the child's or youth's counsel for youth or guardian ad
Page 6, Line 14litem, parent, or any relative or kin caregiver. The county
Page 6, Line 15department shall apply to become the representative payee or fiduciary if there is no other suitable candidate available.
Page 6, Line 16(III) If the county department becomes the representative
Page 6, Line 17payee or fiduciary, the county department shall annually
Page 6, Line 18reassess, in consultation with the child or youth and the child's
Page 6, Line 19or youth's counsel for youth or guardian ad litem, whether a
Page 6, Line 20candidate other than the county department may better serve
Page 6, Line 21the best interests of the child or youth as the representative payee or fiduciary.
Page 6, Line 22(3) Beginning on or before July 1, 2026, if a county
Page 6, Line 23department is the representative payee or fiduciary for a child or youth, the county department:
Page 7, Line 1(a) Shall not use any federal benefits of a child or youth
Page 7, Line 2to pay for or reimburse the county department for care or
Page 7, Line 3services for the child or youth, including, but not limited to,
Page 7, Line 4foster care maintenance expenses as defined in the federal
Page 7, Line 5"Social Security Act", 42 U.S.C. sec. 675 (4)(A), cost of care as
Page 7, Line 6defined in section 19-1-103, or any special allowances or
Page 7, Line 7expenses established by the department of human services for the care of a child or youth in a particular age range;
Page 7, Line 8(b) May use, pursuant to section 19-7-101 (2)(b)(XI), the
Page 7, Line 9federal benefits of the child or youth for the unmet needs of the
Page 7, Line 10child or youth following a meeting with the child or youth. The
Page 7, Line 11county department is not responsible for ongoing expenditures
Page 7, Line 12related to a child's or youth's unmet needs if the federal benefits allocated to the child or youth have been exhausted.
Page 7, Line 13(c) Shall establish, in a manner consistent with federal
Page 7, Line 14and state asset and resource limits, an account for deposit and
Page 7, Line 15disbursement of the federal benefits of a child or youth. The
Page 7, Line 16contents of the account, including applicable interest or
Page 7, Line 17earnings, must be used for the current unmet needs or saved for
Page 7, Line 18the future needs of the individual child or youth, as the best
Page 7, Line 19interests of the child or youth require. The account may include the following:
Page 7, Line 20(I) A special needs trust;
(II) A pooled special needs trust;
Page 7, Line 21(III) An achieving a better life experience account
Page 7, Line 22established pursuant to section 529A of the "Internal Revenue Code of 1986"; or
Page 8, Line 1(IV) Any other trust account that does not interfere
Page 8, Line 2with asset limitations for a state or federal benefit program for which the child or youth may be eligible; and
Page 8, Line 3(d) In addition to the requirements of sections 15-1.5-115
Page 8, Line 4and 19-7-101 (2)(a)(VII), shall provide an annual accounting of
Page 8, Line 5the use, application, or savings of the child's or youth's federal
Page 8, Line 6benefits to the child or youth; the child's or youth's parent and
Page 8, Line 7the parent's counsel, unless parental rights have been
Page 8, Line 8terminated or there is a court order restricting access; the
Page 8, Line 9individual with whom the child or youth is currently placed; the
Page 8, Line 10guardian ad litem; and counsel for youth. The annual accounting information must include:
Page 8, Line 11(I) The amount and source of federal benefits collected
Page 8, Line 12by the county department and credited to the account maintained on behalf of the child or youth;
Page 8, Line 13(II) The balance of the account maintained on behalf of the child or youth;
Page 8, Line 14(III) Any amounts deducted by the county department and the reasons for the deductions; and
Page 8, Line 15(IV) Information regarding the child's or youth's assets
Page 8, Line 16and resources, including benefits, insurance, cash assets, trust
Page 8, Line 17accounts, and earnings, if such assets or resources are controlled by the county department.
Page 8, Line 18(4) (a) The county department shall provide timely,
Page 8, Line 19developmentally appropriate notice to the child or youth; the
Page 8, Line 20child's or youth's parent and the parent's counsel, unless
Page 9, Line 1parental rights have been terminated or there is a court order
Page 9, Line 2restricting access; the individual with whom the child or youth
Page 9, Line 3is currently placed; the guardian ad litem; and counsel for youth of the following events:
Page 9, Line 4(I) Submission of an application for federal benefits on behalf of a child or youth;
Page 9, Line 5(II) Submission of a request for the county department to
Page 9, Line 6become the representative payee or fiduciary for the child or
Page 9, Line 7youth, and, pursuant to section 19-7-101 (2)(a)(VI), identification of the representative payee or fiduciary ultimately selected;
Page 9, Line 8(III) Receipt by the county department of a federal
Page 9, Line 9agency's decision regarding federal benefits, including denial, termination, or reduction of federal benefits;
Page 9, Line 10(IV) A decision by the county department about whether
Page 9, Line 11or not to appeal an adverse determination, including the outcome of any appeal filed;
Page 9, Line 12(V) Receipt of an eligibility redetermination; and
Page 9, Line 13(VI) The establishment of a special account or trust on behalf of the child or youth.
Page 9, Line 14(b) The notice must state that interested parties may
Page 9, Line 15submit information relevant to the selection of a
Page 9, Line 16representative payee or fiduciary for the child or youth, and
Page 9, Line 17that an individual may have the right to contest the selection
Page 9, Line 18of a representative payee or fiduciary before the relevant
Page 9, Line 19federal agency, including the social security administration or veterans administration.
Page 9, Line 20(5) Once a child who is receiving federal benefits leaves
Page 10, Line 1the legal custody or legal authority of the county department,
Page 10, Line 2the county department shall release, pursuant to the
Page 10, Line 3requirements of the funding source, any remaining money. In the
Page 10, Line 4absence of any requirements of the funding source, the county department shall release the remaining money to:
Page 10, Line 5(a) The youth;
(b) The child if the child is emancipated; or
Page 10, Line 6(c) The person who is responsible for the child if the child is not emancipated.
Page 10, Line 7(6) On or before July 1, 2026, the department of human
Page 10, Line 8services, in consultation with other interested stakeholders,
Page 10, Line 9including, but not limited to, county departments, organizations
Page 10, Line 10that advocate on behalf of youth in foster care, guardians ad
Page 10, Line 11litem, the office of respondent parents' counsel, organizations
Page 10, Line 12that advocate on behalf of disability rights, and the office of
Page 10, Line 13the child's representative, shall adopt rules for the
Page 10, Line 14implementation of this section. The rules must include guidance to the county departments on:
Page 10, Line 15(a) Identifying an appropriate representative payee or fiduciary;
Page 10, Line 16(b) The types of federal benefits for which a county
Page 10, Line 17department shall, pursuant to subsection (2) of this section,
Page 10, Line 18conduct an eligibility screening, submit an application, or appeal an adverse determination;
Page 10, Line 19(c) Determining the manner and tools for conducting
Page 10, Line 20disability screenings for a child or youth who may be eligible
Page 10, Line 21for benefits;
Page 11, Line 1(d) The application process for federal benefits for each
Page 11, Line 2child or youth, who, pursuant to the disability screening, is likely to be determined eligible for benefits;
Page 11, Line 3(e) Requesting reconsideration and appealing adverse decisions when appropriate;
Page 11, Line 4(f) Informing a parent or caretaker at the time a child or
Page 11, Line 5youth leaves foster care of potential eligibility for federal
Page 11, Line 6benefits if the child or youth is not receiving federal benefits but may become eligible upon application;
Page 11, Line 7(g) Informing a child or youth about rights and
Page 11, Line 8responsibilities regarding the continued receipt of federal
Page 11, Line 9benefits, the sources of assistance that may be available for
Page 11, Line 10resolving related problems, and the process for transferring accumulated federal benefits;
Page 11, Line 11(h) Strategies for leveraging existing providers of civil
Page 11, Line 12legal services and leveraging funds pursuant to 42 U.S.C. secs.
Page 11, Line 13670 to 679c to provide legal assistance to children and youth to comply with the law; and
Page 11, Line 14(i) Child- or youth-centered policies for accessing and
Page 11, Line 15disbursing account funds, including procedures for a child or
Page 11, Line 16youth or a representative payee or fiduciary to request and
Page 11, Line 17receive access to account funds to pay for unmet needs and how
Page 11, Line 18to administer access to federal benefits pursuant to federal requirements for allowable spending.
Page 11, Line 19(7) (a) The department of human services shall provide
Page 11, Line 20technical assistance to the county departments to ensure that
Page 11, Line 21county departments are properly implementing the
Page 12, Line 1requirements of this section. The department of human services
Page 12, Line 2shall contract for services to develop and provide the
Page 12, Line 3technical assistance required pursuant to this subsection (7) so
Page 12, Line 4that the technical assistance is available to the county
Page 12, Line 5departments during the state fiscal years commencing on July 1, 2025, and July 1, 2026.
Page 12, Line 6(b) The department of human services may seek, accept,
Page 12, Line 7and expend gifts, grants, or donations from private or public sources for the purposes of this subsection (7).
Page 12, Line 8SECTION 3. In Colorado Revised Statutes, 19-7-305, amend (1)(c)(IV) as follows:
Page 12, Line 919-7-305. Available services and supports. (1) Each county
Page 12, Line 10department shall offer, at a minimum, the following services and supports to participating youth in the transition program:
Page 12, Line 11(c) Case management services, including the development of a
Page 12, Line 12case plan with a roadmap to success for the participating youth, as well
Page 12, Line 13as assistance in the following areas, as appropriate, and with the agreement of the participating youth:
Page 12, Line 14(IV) Obtaining appropriate community resources and public
Page 12, Line 15benefits, including applying for federal benefits as defined in
Page 12, Line 16section 19-7-105, conserving or managing federal benefits
Page 12, Line 17obtained pursuant to section 19-7-105, or obtaining related financial literacy training;
Page 12, Line 18SECTION 4. Safety clause. The general assembly finds,
Page 12, Line 19determines, and declares that this act is necessary for the immediate
Page 12, Line 20preservation of the public peace, health, or safety or for appropriations for
Page 13, Line 1the support and maintenance of the departments of the state and state institutions.