Department of Human Services - Benefits for Children in Custody - Alterations

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0768*

HOUSE BILL 768
D4 6lr2852
CF SB 658
By: Delegates Simpson and Shetty
Introduced and read first time: February 4, 2026
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 2, 2026

CHAPTER ______

AN ACT concerning 1

Department of Human Services – Benefits for Children in Custody – Alterations 2

FOR the purpose of altering certain provisions relating to the responsibilities of the 3
Department of Human Services as representative payee and fiduciary for certain 4
children committed to the custody of the Department; requiring the Secretary of 5
Human Serv ices to establish and maintain a foster youth savings program to 6
conserve additional resources to assist youth in transitioning to independence, 7
subject to the availability of funds; and generally relating to children in the custody 8
of the Department of Human Services. 9

BY repealing and reenacting, with amendments, 10
Article – Family Law 11
Section 5–527.1 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, with amendments, 15
Article – Family Law 16
Section 5–527.1 17
Annotated Code of Maryland 18
(2019 Replacement Volume and 2025 Supplement) 19
(As enacted by Section 1 of this Act) 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
2 HOUSE BILL 768

Article – Family Law 1

5–527.1. 2

(a) IN THIS SECTION, “UNMET NEEDS” MEANS NEEDS BEYOND THOSE THAT 3
THE DEPARTMENT IS REQUIRED OR AGREES TO PAY, INCLUDING: 4

(1) ADDITIONAL SERVICES, RESOURCES, OR EQUIPMENT RELATED TO 5
A CHILD’S DISABILITY; 6

(2) HOUSING EXPENSES IF A CHILD IS PREPARING TO LEAVE T HE 7
CUSTODY OF THE DEPARTMENT FOR REASONS RELATED TO THE CHILD’S AGE; 8

(3) TECHNOLOGY, SPECIAL CLOTHING , INSTRUMENTS, BOOKS, OR 9
OTHER ITEMS RELATING TO A CHILD’S HOBBIES AND INTERESTS; 10

(4) TRANSPORTATION EXPEN SES NOT OTHERWISE PA ID BY THE 11
DEPARTMENT; AND 12

(5) TUITION, TUTORING, OR TRAINING , INCLUDING APPLICATIO N 13
FEES, BOOKS, EQUIPMENT, AND TESTING. 14

(B) This section applies to children committed to the custody of the Department. 15

[(b) When applying for benefits under this section for a child in the Department’s 16
custody, the Department shall, in cooperation with the child’s attorney, identify a 17
representative payee or fiduciary in accordance with the requirements of 20 C.F.R. §§ 18
404.2021 and 416.621.] 19

(C) IF A CHILD WAS RECEIVING U.S. DEPARTMENT OF VETERANS AFFAIRS 20
BENEFITS, SUPPLEMENTAL SECURITY INCOME, OR SOCIAL SECURITY BENEFITS 21
BEFORE ENTERING THE DEPARTMENT’S CUSTODY , OR IF THE DEPARTMENT 22
APPLIES FOR BENEFITS ON BEHALF OF THE CHILD, THE DEPARTMENT SHALL: 23

(1) ATTEMPT TO IDENTIFY, IN CONSULTATION WITH THE CHILD AND 24
THE CHILD ’S GUARDIAN AD LITEM OR ATTORNEY , AN APPROPRIATE 25
REPRESENTATIVE PAYEE IN ACCORDANCE WITH THE REQUIREMENTS OF 20 C.F.R. 26
§§ 404.2021 AND 416.621; 27

(2) APPLY TO BECOME THE REPRESENTATIVE PAYEE ONLY I F NO 28
OTHER SUITABLE CANDIDATE IS AVAILABLE; AND 29

(3) DOCUMENT ALL EFFORTS TO LOCATE A SUITABLE CANDIDATE. 30
HOUSE BILL 768 3

(D) THE DEPARTMENT PERIODICALLY SHALL REVIEW WHETHER A PERSON 1
OTHER THAN THE DEPARTMENT IS AVAILABLE TO APPLY TO ASSUME THE ROLE OF 2
REPRESENTATIVE PAYEE UNDER SUBSECTION (B) OF THIS SECTION IF THE PERSON 3
COULD BETTER SERVE THE BEST INTEREST OF THE CHILD. 4

[(c)] (E) (1) Consistent with federal law, when the Department serves as the 5
representative payee or in any other fiduciary capacity for a child receiving [Veterans 6
Administration] U.S. DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental 7
Security Income, or Social Security benefits, the Department shall: 8

[(1)] (I) use THE BENEFITS FOR THE CHILD’S CURRENT UNMET 9
NEEDS IN ACCORDANCE WITH ITEM (IV)4 OF THIS PARAGRAPH or conserve the benefits 10
in the child’s best interest, including using the benefits for services for special needs not 11
otherwise provided by the Department or conserving the benefits for the child’s reasonably 12
foreseeable future needs; 13

[(2)] (II) ensure that when the child [attains the age of 14 years] ENTERS 14
THE CARE OF THE DEPARTMENT and until the Department no longer serves as the 15
representative payee or fiduciary, [a minimum percentage of ] the child’s benefits are not 16
used to reimburse the State for the costs of care for the child and are used or conserved in 17
accordance with items [(3) and (4)] (III) AND (IV) of this [subsection, as follows: 18

(i) from age 14 through age 15, at least 40%; 19

(ii) from age 16 through age 17, at least 80%; and 20

(iii) from age 18 through age 20, 100%] PARAGRAPH; 21

[(3)] (III) for the child’s benefits or resources that are below or not subject 22
to any federal asset or resource limit, exercise discretion in accordance with federal law and 23
in the best interest of the child to [conserve the funds or ] use the funds for [services for 24
special needs not otherwise provided by the Department] THE CHILD’S CURRENT UNMET 25
NEEDS IN ACCORDANCE WITH ITEM (IV)5 OF THIS PARA GRAPH OR CONSERVE TH E 26
FUNDS, including BY choosing one or more of the options listed under item [(4)] (IV) of this 27
[subsection] PARAGRAPH; 28

[(4)] (IV) appropriately monitor any federal asset or resource limits for the 29
benefits and ensure that the child’s best interest is served by using or conserving the 30
benefits in a way that avoids violating any federal asset or resource limits that would affect 31
the child’s eligibility to receive the benefits, including: 32

[(i)] 1. applying to the Social Security Administration to establish 33
a Plan for Achieving Self –Support (PASS) account for the child under the Social Security 34
4 HOUSE BILL 768

Act and determining whether it is in the best interest of the child to conserve all or part of 1
the benefits in the PASS account; 2

[(ii)] 2. establishing a 529A plan for the child and conserving the 3
child’s benefits in that account in a manner that appropriately avoids any federal asset or 4
resource limits; 5

[(iii)] 3. establishing an individual development account for the 6
child and conserving the child’s benefits in that account in a manner that appropriately 7
avoids any federal asset or resource limits; 8

[(iv)] 4. establishing a special n eeds trust for the child and 9
conserving the child’s benefits in the trust in a manner that is consistent with federal 10
requirements for special needs trusts and that appropriately avoids any federal asset or 11
resource limits; 12

[(v) if the Department determines that using the benefits for services 13
for current special needs not already provided by the Department is in the best interests of 14
the child, using the benefits for those services;] 15

5. USING THE BENEFITS I N A MANNER THAT IS I N THE 16
BEST INTER EST OF THE CHILD FOR THE CHILD ’S CURRENT UNMET NEED S, AS 17
DETERMINED IN CONSUL TATION WITH THE CHIL D AND THE ATTORNEY F OR THE 18
CHILD, FOR COSTS NOT PAID BY THE DEPARTMENT AS PART OF THE CHILD’S CARE 19
OR BY THE HEALTH INSURANCE OF THE CHILD; 20

[(vi)] 6. if federal law requires certain back payments of benefits 21
to be placed in a dedicated account, complying with the requirements for dedicated accounts 22
under 20 C.F.R. § 416.640(e); and 23

[(vii)] 7. applying any other exclusions from federal asset or 24
resource limits available under federal law and using or conserving the child’s benefits in 25
a manner that appropriately avoids any federal asset or resource limits; 26

[(5)] (V) provide an annual accounting to the child and the child’s 27
attorney of how the child’s re sources, including [Veterans Administration ] U.S. 28
DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental Security Income, and 29
Social Security benefits, have been used or conserved in accordance with this section; [and] 30

[(6)] (VI) provide the child with financial literacy training when the child 31
has attained the age of 14 years; AND 32

(VII) WHEN THE CHILD HAS ATTAINED THE AGE OF 16 YEARS AND 33
6 MONTHS, PROVIDE THE CHILD WITH INFORMATION REGARDING: 34

HOUSE BILL 768 5

1. ACCESSING, USING, AND MAINTAINING BENEFITS; 1

2. TRANSITION PLANS; 2

3. WHEN THE BENEFITS ARE SCHEDULED TO END; AND 3

4. ELIGIBILITY FOR BENE FITS AFTER LEAVING T HE 4
CARE OF THE DEPARTMENT. 5

(2) (I) A BENEFICIARY WHO IS A T LEAST 18 YEARS OLD MAY 6
REQUEST THE COURT TO ALLOW THE BENEFICIAR Y’S BENEFITS TO BE USED FOR 7
CURRENT UNMET NEEDS. 8

(II) IF THE COURT DETERMIN ES THAT IT IS IN THE BEST 9
INTEREST OF THE BENE FICIARY TO USE THE B ENEFITS FOR CURRENT UNMET 10
NEEDS, THE COURT SHALL GRANT A REQUEST MADE UNDER THIS PARAGRAPH. 11

(F) THE DEPARTMENT SHALL: 12

(1) WITHIN 60 DAYS AFTER A CHILD E NTERS THE CARE OF TH E 13
DEPARTMENT, AND EACH YEAR THEREA FTER, DETERMINE THE CHILD ’S 14
ELIGIBILITY FOR U.S. DEPARTMENT OF VETERANS AFFAIRS BENEFITS , 15
SUPPLEMENTAL SOCIAL SECURITY INCOME, AND SOCIAL SECURITY BENEFITS; 16

(2) SEEK COVERAGE FOR TH E COST OF THE SCREEN ING REQUIRED 17
UNDER ITEM (1) OF THIS SUBSECTION T HROUGH THE EARLY AND PERIODIC 18
SCREENING, DIAGNOSTIC, AND TREATMENT BENEFIT; AND 19

(3) APPLY FOR BENEFITS O N BEHALF OF THE CHIL D, IF THE 20
DEPARTMENT DETERMINES THAT A CHILD MIGHT BE ELIGIBLE FOR THE BENEFITS. 21

[(d)] (G) (1) The Department shall immediately notify the child through the 22
child’s attorney of: 23

(i) any application for [Veterans Administration ] U.S. 24
DEPARTMENT OF VETERANS AFFAIRS benefits, Supplementa l Security Income, or 25
Social Security benefits made on the child’s behalf or any application to become 26
representative payee for those benefits on the child’s behalf; 27

(ii) any decisions or communications from the [Veterans 28
Administration] U.S. DEPARTMENT OF VETERANS AFFAIRS or the Social Security 29
Administration regarding an application for benefits described under item (i) of this 30
paragraph; and 31

6 HOUSE BILL 768

(iii) any appeal or other action requested by the Department 1
regarding an application for benefits described under item (i) of this paragraph. 2

(2) IF THE BENEFITS UNDER PARAGRAPH (1)(I) OF THIS SUBSECTION 3
ARE DENIED AND THE DEPARTMENT DETERMINES AN APPEAL IS IN THE BEST 4
INTEREST OF THE CHIL D, THE DEPARTMENT SHALL CONS ULT WITH THE CHILD ’S 5
ATTORNEY AND APPEAL THE DENIAL. 6

(3) When the Department serves as the representative payee or otherwise 7
receives [Veterans Administration ] U.S. DEPARTMENT OF VETERANS AFFAIRS 8
benefits, Supplemental Security Income, or Social Security benefits on the child’s behalf, 9
the Department shall provide notice to the child through the child’s attorney of the 10
following before each juvenile court hearing regarding the child: 11

(i) the dates and the amount of benefit funds received on the child’s 12
behalf since any prior notification to the child’s attorney; and 13

(ii) information regarding all the child’s assets and resources, 14
including the child’s benefits, insurance, cash assets, trust accounts, earnings, and other 15
resources. 16

[(e)] (H) This section may not be construed to affect any additional notice 17
required by a State court. 18

(a) This section applies to children committed to the custody of the Department. 19

(b) When applying for benefits under this section for a child in the Department’s 20
custody, the Department shall, in cooperation with the child’s attorney, identify a 21
representative payee or fiduciary in accordance with the requirements of 20 C.F.R. §§ 22
404.2021 and 416.621. 23

(c) Consistent with federal law, when the Department serves as the 24
representative payee or in any other fiduciary capacity for a child receiving [Veterans 25
Administration] U.S. DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental 26
Security Income, or Social Security benefits, the Department shall: 27

(1) use or conserve the benefits in the child’s best interest, including using 28
the benefits for services for special needs not otherwise provided by the Department or 29
conserving the benefits for the child’s reasonably foreseeable future needs; 30

(2) ensure that when the child attains the age of 14 years and until the 31
Department no longer serves as the representative payee or fiduciary, a minimum 32
percentage of the child’s benefits are not used to reimburse the Stat e for the costs of care 33
for the child and are used or conserved in accordance with items (3) and (4) of this 34
subsection, as follows: 35

HOUSE BILL 768 7

(i) from age 14 through age 15, at least 40%; 1

(ii) from age 16 through age 17, at least 80%; and 2

(iii) from age 18 through age 20, 100%; 3

(3) for the child’s benefits or resources that are below or not subject to any 4
federal asset or resource limit, exercise discretion in accordance with federal law and in the 5
best interest of the child to conserve the funds or use the funds for services for special needs 6
not otherwise provided by the Department, including choosing one or more of the options 7
listed under item (4) of this subsection; 8

(4) appropriately monitor any federal asset or resource limits for the 9
benefits and ensure that the child’s best interest is served by using or conserving the 10
benefits in a way that avoids violating any federal asset or resource limits that would affect 11
the child’s eligibility to receive the benefits, including: 12

(i) applying to the Social Security Administration to establish a 13
Plan for Achieving Self–Support (PASS) account for the child under the Social Security Act 14
and determining whether it is in the best interest of the child to conserve all or part of the 15
benefits in the PASS account; 16

(ii) establishing a 529A plan for the child and conserving the child’s 17
benefits in that account in a manner that appropriately avoids any federal asset or resource 18
limits; 19

(iii) establishing an individual development account for the child and 20
conserving the child’s benefits in that account in a manner that appropriately avoids any 21
federal asset or resource limits; 22

(iv) establishing a special needs trust for the child and conserving the 23
child’s benefits in the trust in a manner that is consistent with federal requirements for 24
special needs trusts and that appropriately avoids any federal asset or resource limits; 25

(v) if the Department determines that using the benefits for services 26
for current special needs not already provided by the Department is in the best interests of 27
the child, using the benefits for those services; 28

(vi) if federal law requires certain back payments of benefits to be 29
placed in a dedicated account, complying with the requirements for dedicated accounts 30
under 20 C.F.R. § 416.640(e); and 31

(vii) applying any other exclusions from federal asset or resource 32
limits available under federal law and using or conserving the child’s benefits in a manner 33
that appropriately avoids any federal asset or resource limits; 34

8 HOUSE BILL 768

(5) provide an annual accounting to the child and the child’s attorney of 1
how the child’s resources, including [Veterans Administration ] U.S. DEPARTMENT OF 2
VETERANS AFFAIRS benefits, Supplemental Security Income, and Social Security 3
benefits, have been used or conserved in accordance with this section; [and] 4

(6) provide the child with financial literacy training when the child has 5
attained the age of 14 years; AND 6

(7) BEGINNING WHEN THE C HILD HAS ATTAINED TH E AGE OF 16 7
YEARS, PROVIDE THE CHILD, IF APPLICABLE, WITH INFORMATION REGARDING: 8

(I) ACCESSING, USING, AND MAINTAINING BENEFITS; 9

(II) TRANSITION PLANS; 10

(III) WHEN THE BENEFITS ARE SCHEDULED TO END; AND 11

(IV) ELIGIBILITY FOR BENE FITS AFTER LEAVING T HE CARE OF 12
THE DEPARTMENT. 13

(D) THE DEPARTMENT SHALL: 14

(1) DETERMINE THE ELIGIB ILITY FOR U.S. DEPARTMENT OF 15
VETERANS AFFAIRS BENEFITS, SUPPLEMENTAL SOCIAL SECURITY INCOME, AND 16
SOCIAL SECURITY BENEFITS OF A CHILD WHO IS PLACE D IN THE CARE AND 17
CUSTODY OF THE DEPARTMENT WITHIN 60 DAYS: 18

(I) AFTER THE CHILD ENTERS THE CARE AND CUSTODY OF THE 19
DEPARTMENT; 20

(II) AFTER THE DEPARTMENT RECEIVES N OTICE FROM THE 21
CHILD’S ATTORNEY OF A MATE RIAL CHANGE OF CIRCU MSTANCES THAT IS LIK ELY 22
TO AFFECT THE CHILD’S ELIGIBILITY FOR BENEFITS; 23

(III) AFTER THE CHILD REACHES THE AGE OF 17 YEARS AND 6 24
MONTHS; AND 25

(IV) AFTER THE CHILD REAC HES THE AGE OF 20 YEARS AND 6 26
MONTHS; 27

(2) APPLY FOR BENEFITS O N BEHALF OF THE CHIL D, IF THE 28
DEPARTMENT DETERMINES THAT A CHILD MIGHT BE ELIGIBLE FOR ANY BENEFITS; 29
AND 30

HOUSE BILL 768 9

(3) IF THE DEPARTMENT IS IDENTIF IED AS THE REPRESENT ATIVE 1
PAYEE UNDER SUBSECTI ON (B) OF THIS SECTION , APPLY TO SERVE AS 2
REPRESENTATIVE PAYEE. 3

[(d)] (E) (1) The Department shall immediately notify the child through the 4
child’s attorney of: 5

(i) any application for [Veterans Administration ] U.S. 6
DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental Security Income, or 7
Social Security benefits made on the child’s behalf or any application to become 8
representative payee for those benefits on the child’s behalf; 9

(ii) any decisions or communications from the [Veterans 10
Administration] U.S. DEPARTMENT OF VETERANS AFFAIRS or the Social Security 11
Administration regarding an application for benefits described under item (i) of this 12
paragraph; and 13

(iii) any appeal or other action requested by the Department 14
regarding an application for benefits described under item (i) of this paragraph. 15

(2) IF THE BENEFITS UNDER PARAGRAPH (1)(I) OF THIS SUBSECTION 16
ARE DENIED AND THE DEPARTMENT DETERMINES AN APPEAL IS IN THE BEST 17
INTEREST OF THE CHIL D, THE DEPARTMENT SHALL CONS ULT WITH THE CHILD ’S 18
ATTORNEY TO DETERMINE WHETHER TO APPEAL THE DENIAL. 19

(3) When the Department serves as the representative payee or otherwise 20
receives [Veterans Administration ] U.S. DEPARTMENT OF VETERANS AFFAIRS 21
benefits, Supplemental Security Income, or Social Security benefits on the child’s behalf, 22
the Department shall provide notice to the child through the child’s attorney of the 23
following before each juvenile court hearing regarding the child: 24

(i) the dates and the amount of benefit funds received on the child’s 25
behalf since any prior notification to the child’s attorney; and 26

(ii) information regarding all the child’s assets and resources, 27
including the child’s benefits, insurance, cash assets, trust accounts, earnings, and other 28
resources. 29

(F) SUBJECT TO THE AVAILA BILITY OF FUNDS , THE SECRETARY SHALL 30
ESTABLISH AND MAINTA IN A FOSTER YOUTH SA VINGS PROGRAM TO CON SERVE 31
ADDITIONAL RESOURCES TO ASSIST YOUTH IN TRANSITIONING TO INDEPENDENCE. 32

(G) THE SECRETARY SHALL ADOPT REGULATIONS AND POLI CIES TO 33
IMPLEMENT THE PROVISIONS OF THIS SECTION. 34

10 HOUSE BILL 768

[(e)] (H) This section may not be construed to affect any additional notice 1
required by a State court. 2

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
as follows: 4

Article – Family Law 5

5–527.1. 6

(a) This section applies to children committed to the custody of the Department. 7

[(b) When applying for benefits under this section for a child in the Department’s 8
custody, the Department shall, in cooperation with the child’s attorney, identify a 9
representative payee or fiduciary in accordance with the requirements of 20 C.F.R. §§ 10
404.2021 and 416.621.] 11

(B) IF A CHILD WAS RECEIVING U.S. DEPARTMENT OF VETERANS AFFAIRS 12
BENEFITS, SUPPLEMENTAL SECURITY INCOME, OR SOCIAL SECURITY BENEFITS 13
BEFORE ENTERING THE DEPARTMENT’S CUSTODY , OR IF THE DEPARTMENT 14
APPLIES FOR BENEFITS ON BEHALF OF THE CHILD, THE DEPARTMENT SHALL: 15

(1) ATTEMPT TO IDENTIFY , IN CONSULTATION WITH THE CHILD ’S 16
ATTORNEY, AN APPROPRIATE REPRESENTATIVE PAYEE IN ACCORDANCE WITH THE 17
REQUIREMENTS OF 20 C.F.R. §§ 404.2021 AND 416.621; 18

(2) IF THE DEPARTMENT IS IDENTIF IED, APPLY TO BECOME THE 19
REPRESENTATIVE PAYEE; AND 20

(3) DOCUMENT ALL EFFORTS TO LOCATE AN APPROPRIATE 21
REPRESENTATIVE PAYEE. 22

(C) IF A CHILD IS IN THE CUSTODY OF THE DEPARTMENT AND IS RECEIVING 23
U.S. DEPARTMENT OF VETERANS AFFAIRS BENEFITS, SUPPLEMENTAL SECURITY 24
INCOME, OR SOCIAL SECURITY BENEFITS , AFTER A CHANGE TO A CHILD’S 25
PERMANENCY PLAN, THE DEPARTMENT SHALL: 26

(1) REVIEW THE IDENTIFIC ATION OF THE REPRESE NTATIVE PAYEE 27
UNDER SUBSECTION (B) OF THIS SECTION IN C ONSULTATION WITH THE CHILD’S 28
ATTORNEY; AND 29

(2) IF APPLICABLE, APPLY FOR A CHANGE TO THE REPRESENTATIVE 30
PAYEE. 31

HOUSE BILL 768 11

[(c)] (D) Consistent with federal law, when the Department serves as the 1
representative payee or in any other fiduciary capacity for a child receiving U.S. 2
Department of Veterans Affairs benefits, Supplemental Security Income, or Social Security 3
benefits, the Department shall: 4

(1) CONSERVE ANY FEDERAL BENEFITS RECEIVED ON BEHALF OF 5
THE CHILD; 6

(2) [use or ] conserve the benefits in the child’s best interest, including 7
using the benefits for services for special needs not otherwise provided by the Department 8
or conserving the benefits for the child’s reasonably foreseeable future needs; 9

[(2) ensure that wh en the child attains the age of 14 years and until the 10
Department no longer serves as the representative payee or fiduciary, a minimum 11
percentage of the child’s benefits are not used to reimburse the State for the costs of care 12
for the child and are used o r conserved in accordance with items (3) and (4) of this 13
subsection, as follows: 14

(i) from age 14 through age 15, at least 40%; 15

(ii) from age 16 through age 17, at least 80%; and 16

(iii) from age 18 through age 20, 100%;] 17

(3) for the child’s benefits or resources that are below or not subject to any 18
federal asset or resource limit, exercise discretion in accordance with federal law and in the 19
best interest of the child to [conserve the funds or ] use the funds [for services for special 20
needs not otherwise provided by the Department ] OR CONSERVE THE FUNDS, including 21
BY choosing one or more of the options listed under item (4) of this subsection; 22

(4) appropriately monitor any federal asset or resource limits for the 23
benefits and ensure that the child’s best interest is served by using or conserving the 24
benefits in a way that avoids violating any federal asset or resource limits that would affect 25
the child’s eligibility to receive the benefits, including: 26

(i) applying to the Social Security Ad ministration to establish a 27
Plan for Achieving Self–Support (PASS) account for the child under the Social Security Act 28
and determining whether it is in the best interest of the child to conserve all or part of the 29
benefits in the PASS account; 30

(ii) establishing a 529A plan for the child and conserving the child’s 31
benefits in that account in a manner that appropriately avoids any federal asset or resource 32
limits; 33

12 HOUSE BILL 768

(iii) establishing an individual development account for the child and 1
conserving the child’s benefits in that account in a manner that appropriately avoids any 2
federal asset or resource limits; 3

(iv) establishing a special needs trust for the child and conserving the 4
child’s benefits in the trust in a manner that is consistent with fede ral requirements for 5
special needs trusts and that appropriately avoids any federal asset or resource limits; 6

(v) if the Department determines that using the benefits for services 7
for current special needs not already provided by the Department is in the best interests of 8
the child, using the benefits for those services; 9

(vi) if federal law requires certain back payments of benefits to be 10
placed in a dedicated account, complying with the requirements for dedicated accounts 11
under 20 C.F.R. § 416.640(e); and 12

(vii) applying any other exclusions from federal asset or resource 13
limits available under federal law and using or conserving the child’s benefits in a manner 14
that appropriately avoids any federal asset or resource limits; 15

(5) provide an ann ual accounting to the child and the child’s attorney of 16
how the child’s resources, including U.S. Department of Veterans Affairs benefits, 17
Supplemental Security Income, and Social Security benefits, have been used or conserved 18
in accordance with this section; 19

(6) provide the child with financial literacy training when the child has 20
attained the age of 14 years; and 21

(7) beginning when the child has attained the age of 16 years, provide the 22
child, if applicable, with information regarding: 23

(i) accessing, using, and maintaining benefits; 24

(ii) transition plans; 25

(iii) when the benefits are scheduled to end; and 26

(iv) eligibility for benefits after leaving the care of the Department. 27

[(d)] (E) The Department shall: 28

(1) determine the eligibility for U.S. Department of Veterans Affairs 29
benefits, Supplemental Social Security Income, and Social Security benefits of a child who 30
is placed in the care and custody of the Department within 60 days: 31

(i) after the child enters the care and custody of the Department; 32

HOUSE BILL 768 13

(ii) after the Department receives notice from the child’s attorney of 1
a material change of circumstances that is likely to affect the child’s eligibility for benefits; 2

(iii) after the child reaches the age of 17 years and 6 months; and 3

(iv) after the child reaches the age of 20 years and 6 months; 4

(2) apply for benefits on behalf of the child, if the Department determines 5
that a child might be eligible for any benefits; and 6

(3) if the Department is identified as the representative payee under 7
subsection (b) of this section, apply to serve as representative payee. 8

[(e)] (F) (1) The Department shall immediately notify the child through the 9
child’s attorney of: 10

(i) any application for U.S. Department of Veterans Affairs benefits, 11
Supplemental Security Income, or Social Security benefits made on the child’s behalf or any 12
application to become representative payee for those benefits on the child’s behalf; 13

(ii) any decisions or communications from the U.S. Dep artment of 14
Veterans Affairs or the Social Security Administration regarding an application for benefits 15
described under item (i) of this paragraph; and 16

(iii) any appeal or other action requested by the Department 17
regarding an application for benefits described under item (i) of this paragraph. 18

(2) If the benefits under paragraph (1)(i) of this subsection are denied and 19
the Department determines an appeal is in the best interest of the child, the Department 20
shall consult with the child’s attorney to determine whether to appeal the denial. 21

(3) When the Department serves as the representative payee or otherwise 22
receives U.S. Department of Veterans Affairs benefits, Supplemental Security Income, or 23
Social Security benefits on the child’s behalf, the D epartment shall provide notice to the 24
child through the child’s attorney of the following before each juvenile court hearing 25
regarding the child: 26

(i) the dates and the amount of benefit funds received on the child’s 27
behalf since any prior notification to the child’s attorney; and 28

(ii) information regarding all the child’s assets and resources, 29
including the child’s benefits, insurance, cash assets, trust accounts, earnings, and other 30
resources. 31

[(f)] (G) Subject to the availability of funds, the S ecretary shall establish and 32
maintain a foster youth savings program to conserve additional resources to assist youth 33
in transitioning to independence. 34
14 HOUSE BILL 768

[(g)] (H) The Secretary shall adopt regulations and policies to implement the 1
provisions of this section. 2

[(h)] (I) This section may not be construed to affect any additional notice 3
required by a State court. 4

SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 5
effect July 1, 2027. 6

SECTION 2. 4. AND BE IT FURTHER ENACTED, That , except as provided in 7
Section 3 of this Act, this Act shall take effect October 1, 2026. Section 1 of this Act shall 8
remain effective for a period of 9 months and, at the end of June 30, 2027, Section 1 of this 9
Act, with no further action required by the General Assembly, shall be abrogated and of no 10
further force and effect. 11

Approved:
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Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
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President of the Senate.