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HB1229
HOUSE OF REPRESENTATIVES
H.B. NO.
1229
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating
to foster care
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The legislature finds that the United States
Department of Health and Human Services Adoption and Foster Care Analysis and
Reporting System recorded 1,418 children in foster care in Hawaii on September
30, 2021.
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Approximately ten per cent of
foster youth in the United States are entitled to social security benefits,
either because their parents have died or because they have a physical or
mental disability.
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The
legislature also finds that the United States Social Security Administration
(SSA) generally appoints representative payees to receive and manage social
security payments on behalf of beneficiaries who are incapable of managing
their social security or supplemental security income, including children.
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Although the SSA lists child welfare service
agencies as one of the least preferred types of representative payees, many
state child welfare agencies apply to become the representative payee of child
beneficiaries in foster care and intercept and seize their social security
payments, often without notifying the child or other persons who are more
preferred as the child's representative payee.
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Between 2018 and 2022, the department of human services collected
$1,500,000 on behalf of thirty-seven children in foster care.
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The
legislature believes that intercepting social security payments meant for
foster children limits their financial well-being as they pursue higher
education or achieve financial independence.
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In addition, child welfare officials in New York City recently decided
to end the practice of intercepting foster children's social security payments
and plan to deposit the payments into savings accounts, which a foster child
may access when the child is returned to their family, is adopted, or ages out
of foster care.
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Accordingly,
the purpose of this Act is to:
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(1)
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Prohibit the department of human services
from using any social security benefits or funds received for a child under
foster custody of the department to cover the cost of foster care services; and
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(2)
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Require the department of human services to d
eposit
all social security funds received for a child under foster custody of the
department into a savings account that may be accessed by the child when the
child returns to their family, is adopted, or ages out of foster care.
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SECTION
2.
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Chapter 587A, Hawaii Revised
Statutes, is amended by adding a new section to be appropriately designated and
to read as follows:
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"
�587A-
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Social security payments to children in
foster care; savings account.
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(a)
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The department shall not use any social security payments, including
supplemental security income payments, it receives from the Social Security
Administration on behalf of a child under foster custody of the department to
cover the cost of any foster care services.
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(b)
�
The department shall establish
a savings account for each child under foster custody of the department, on
behalf of whom the department receives social security payments, including
supplemental security income payments, and deposit all social security payments
received from the Social Security Administration for the child into the child's
savings account.
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The department shall
make the savings account accessible to the child when the child is removed from
foster care custody because the child returns to their family, is adopted, or
ages out of foster care.
"
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SECTION
3.
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New statutory material is
underscored.
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SECTION
4.
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This Act shall take effect upon its
approval.
INTRODUCED BY:
_____________________________
Report Title:
DHS;
Social Security Payments; Foster Care; Savings Account
Description:
Prohibits
the Department of Human Services from using any social security income
payments, including supplemental income payments it receives on behalf of a
child under foster custody of the Department to cover the cost of foster care
services.
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Requires the Department of Human
Services to deposit all social security income payments received on behalf of a
child under foster custody of the Department into a savings account that shall
be made accessible to the child when the child leaves foster care custody.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.