JUVENILE PROCEEDINGS – Adds to existing law to provide requirements for the Department of Health and Welfare to apply and reserve federal benefits for children in the department’s legal custody.

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
558
BY
HEALTH
AND
WELFARE
COMMITTEE
AN
ACT
1
RELATING
TO
FEDERAL
BENEFITS;
AMENDING
TITLE
16,
IDAHO
CODE,
BY
THE
ADDI
-
2
TION
OF
A
NEW
CHAPTER
25,
TITLE
16,
IDAHO
CODE,
TO
PROVIDE
A
SHORT
TI
-
3
TLE,
TO
DEFINE
TERMS,
TO
ESTABLISH
PROVISIONS
REGARDING
FEDERAL
BENEFIT
4
ELIGIBILITY
DETERMINATIONS
FOR
CHILDREN
IN
THE
LEGAL
CUSTODY
OF
THE
DE
-
5
PARTMENT
OF
HEALTH
AND
WELFARE,
TO
ESTABLISH
PROVISIONS
REGARDING
OBLI
-
6
GATIONS
OF
THE
DEPARTMENT
WHEN
ACTING
AS
REPRESENTATIVE
PAYEE,
TO
ES
-
7
TABLISH
PROVISIONS
REGARDING
THE
PROHIBITED
USE
OF
FEDERAL
BENEFITS
BY
8
THE
DEPARTMENT,
TO
ESTABLISH
PROVISIONS
REGARDING
NOTICE
AND
APPEAL,
TO
9
ESTABLISH
PROVISIONS
REGARDING
MILESTONE
DISBURSEMENT
OF
FEDERAL
BEN
-
10
EFITS,
AND
TO
ESTABLISH
PROVISIONS
REGARDING
RELEASE
OF
REMAINING
FED
-
1
1
ERAL
BENEFIT
FUNDS
UPON
TERMINATION
OF
LEGAL
CUSTODY;
AND
DECLARING
AN
12
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
13
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
14
SECTION
1.
That
Title
16,
Idaho
Code,
be,
and
the
same
is
hereby
amended
15
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
16
ter
25,
Title
16,
Idaho
Code,
and
to
read
as
follows:
17
CHAPTER
25
18
FEDERAL
BENEFITS
FOR
CHILDREN
IN
CUSTODY
OF
THE
DEPARTMENT
OF
HEALTH
AND
19
WELFARE
20
16
-
2501.
DEFINITIONS.
As
used
in
this
chapter:
21
(1)
"Department"
means
the
department
of
health
and
welfare
and
its
au
-
22
thorized
agents.
23
(2)
"Representative
payee"
means
a
person
or
organization
appointed
by
24
a
federal
agency
to
receive
federal
benefits
on
behalf
of
a
child.
25
16
-
2502.
FEDERAL
BENEFITS
PROVIDED
TO
CHILDREN
IN
THE
LEGAL
CUSTODY
OF
26
THE
DEPARTMENT
-
-
ELIGIBILITY
DETERMINATIONS.
(1)
Within
sixty
(60)
days
af
-
27
ter
a
child
enters
the
department's
legal
custody,
and
annually
thereafter,
28
the
department
shall
determine
whether
the
child
is
currently
receiving
or
29
eligible
to
receive
federal
benefits
administered
by
the
social
security
ad
-
30
ministration
or
the
department
of
veterans
affairs,
including
survivor
ben
-
31
efits
or
dependent
benefits.
32
(2)
If
it
is
determined
that
a
child
in
the
legal
custody
of
the
depart
-
33
ment
is
already
receiving
federal
benefits,
the
department
shall:
34
(a)
In
consultation
with
the
child
and
the
child's
attorney,
identify
35
the
child's
representative
payee
consistent
with
federal
law;
or
36
(b)
Apply
to
become
the
child's
representative
payee
if
no
other
suit
-
37
able
candidate
is
available.
38
(3)
If
the
department
determines
that
the
child
is
eligible
for
federal
39
benefits,
the
department
shall:
40

2
(a)
Apply
for
those
benefits
on
behalf
of
the
child;
and
1
(b)
If
no
other
candidate
is
available,
apply
to
become
the
child's
rep
-
2
resentative
payee.
3
16
-
2503.
OBLIGATIONS
OF
THE
DEPARTMENT
WHEN
ACTING
AS
REPRESENTATIVE
4
PAYEE.
If
the
department
is
appointed
to
serve
as
the
representative
payee
of
5
a
child
in
the
legal
custody
of
the
department,
the
department
shall:
6
(1)
Establish
and
maintain
an
appropriate
account
to
use
and
conserve
7
the
child's
federal
benefits
for
current
unmet
needs
and
future
needs
pur
-
8
suant
to
the
requirements
of
the
funding
source
and
any
applicable
asset
and
9
resource
limits;
10
(2)
Annually
review
whether
another
qualified
person,
other
than
the
1
1
department,
could
assume
the
role
of
representative
payee
and
could
better
12
serve
that
role.
If
another
qualified
person
is
identified,
the
department
13
shall
assist
in
transferring
the
role
of
representative
payee
to
such
per
-
14
son;
and
15
(3)
Provide
an
annual
accounting
of
the
use,
application,
or
conserva
-
16
tion
of
the
child's
federal
benefits
to
the
child,
the
child's
attorney,
the
17
child's
guardian,
and
the
child's
parents
if
parental
rights
have
not
been
18
terminated.
19
16
-
2504.
PROHIBITED
USE
OF
FEDERAL
BENEFITS.
(1)
If
the
department
is
20
the
child's
representative
payee,
the
department
shall
not
use
a
child's
21
federal
benefits
to
pay
for
or
reimburse
the
department
or
the
state
of
Idaho
22
for
any
costs
of
the
child's
care,
maintenance,
supervision,
or
services.
23
(2)
The
department
may
use
such
benefits
to
pay
for
the
child's
unmet
24
needs
beyond
what
the
department
is
obligated,
is
required,
or
has
agreed
to
25
pay.
26
16
-
2505.
NOTICE
AND
APPEAL.
(1)
The
department
shall
notify
the
child,
27
the
child's
attorney,
the
child's
guardian,
and
the
child's
parents,
if
28
parental
rights
have
not
been
terminated,
in
writing
of
any
application,
29
decision,
or
appeal
related
to
the
child's
federal
benefits.
30
(2)
In
providing
notice
of
the
denial
of
benefits,
the
department
shall
31
consult
with
the
child
and
the
child's
attorney
and
appeal
the
denial
if
it
is
32
in
the
child's
best
interest.
33
16
-
2506.
MILESTONE
DISBURSEMENT
OF
FEDERAL
BENEFITS.
If
the
depart
-
34
ment
is
appointed
to
serve
as
the
representative
payee
of
a
child
in
the
legal
35
custody
of
the
department,
the
department
shall:
36
(1)
Develop
and
implement
a
success
sequence
savings
and
disbursement
37
plan
for
each
child
with
conserved
earned
benefits.
Under
the
plan
the
child
38
may
access
a
portion
of
the
child's
benefits
upon
completion
of
specific
39
milestones
that
promote
independence
and
financial
readiness.
Such
mile
-
40
stones
may
include:
41
(a)
Obtaining
a
driver's
license
or
state
identification
card;
42
(b)
Receiving
a
high
school
diploma
or
a
recognized
equivalent;
43
(c)
Enrolling
in
a
postsecondary
education,
vocational
training,
or
44
apprenticeship
program;
45

3
(d)
Maintaining
verified
employment
for
at
least
six
(6)
consecutive
1
months;
and
2
(e)
Completing
a
department
-
approved
financial
literacy
or
saving
3
readiness
program;
4
(2)
Determine
reasonable
disbursement
thresholds
and
amounts
for
each
5
milestone;
and
6
(3)
Before
the
child
leaves
the
custody
of
the
department,
ensure
that
7
the
child
has
access
to
financial
literacy
and
planning
tools.
8
16
-
2507.
RELEASE
OF
REMAINING
FEDERAL
BENEFIT
FUNDS
UPON
TERMINATION
9
OF
LEGAL
CUSTODY.
If
the
department
is
the
child's
representative
payee,
10
upon
termination
of
the
department's
legal
custody
of
a
child,
the
depart
-
1
1
ment
shall
release
any
remaining
funds
to:
12
(1)
The
child,
if
the
child
is
at
least
eighteen
(18)
years
of
age
or
13
emancipated;
or
14
(2)
The
child's
parent
or
guardian,
if
the
child
is
younger
than
eigh
-
15
teen
(18)
years
of
age
and
is
not
emancipated.
16
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
17
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
18
July
1,
2026.
19