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.
*sb0658*

SENATE BILL 658
D4 6lr2855
CF HB 768
By: Senators West, James, and Muse
Introduced and read first time: February 6, 2026
Assigned to: Judicial Proceedings

A BILL ENTITLED

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; and generally relating to 5
children in the custody of the Department of Human Services. 6

BY repealing and reenacting, with amendments, 7
Article – Family Law 8
Section 5–527.1 9
Annotated Code of Maryland 10
(2019 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Family Law 14

5–527.1. 15

(a) IN THIS SECTION, “UNMET NEEDS” MEANS NEEDS BEYOND THOSE THAT 16
THE DEPARTMENT IS REQUIRED OR AGREES TO PAY, INCLUDING: 17

(1) ADDITIONAL SERVICES, RESOURCES, OR EQUIPMENT RELATED TO 18
A CHILD’S DISABILITY; 19

(2) HOUSING EXPENSES IF A CHILD IS PREPARING TO LEAVE THE 20
CUSTODY OF THE DEPARTMENT FOR REASONS RELATED TO THE CHILD’S AGE; 21

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(3) TECHNOLOGY, SPECIAL CLOTHING , INSTRUMENTS, BOOKS, OR 1
OTHER ITEMS RELATING TO A CHILD’S HOBBIES AND INTERESTS; 2

(4) TRANSPORTATION EXPEN SES NOT OTHERWISE PA ID BY THE 3
DEPARTMENT; AND 4

(5) TUITION, TUTORING, OR TRAINING , INCLUDING APPLICATIO N 5
FEES, BOOKS, EQUIPMENT, AND TESTING. 6

(B) 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

(C) 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 AND 16
THE CHILD ’S GUARDIAN AD LITEM OR ATTORNEY , AN APPROPRIATE 17
REPRESENTATIVE PAYEE IN ACCORDANCE WITH THE REQUIREMENTS OF 20 C.F.R. 18
§§ 404.2021 AND 416.621; 19

(2) APPLY TO BECOME THE REPRESENTATIVE PAYEE ONLY IF NO 20
OTHER SUITABLE CANDIDATE IS AVAILABLE; AND 21

(3) DOCUMENT ALL EFFORTS TO LOCATE A SUITABLE CANDIDATE. 22

(D) THE DEPARTMENT PERIODICALLY SHALL REVIEW WHETHER A PERSON 23
OTHER THAN THE DEPARTMENT IS AVAILABLE TO APPLY TO ASSUME THE ROLE OF 24
REPRESENTATIVE PAYEE UNDER SUBSECTION (B) OF THIS SECTION IF THE PERSON 25
COULD BETTER SERVE THE BEST INTEREST OF THE CHILD. 26

[(c)] (E) (1) Consistent with federal law, when the Department serves as the 27
representative payee or in any other fiduciary capacity for a child receiving [Veterans 28
Administration] U.S. DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental 29
Security Income, or Social Security benefits, the Department shall: 30

[(1)] (I) use THE BENEFITS FOR THE CHILD’S CURRENT UNMET 31
NEEDS IN ACCORDANCE WITH ITEM (IV)4 OF THIS PARAGRAPH or conserve the benefits 32
in the child’s best interest, including using the benefits for services for special needs not 33
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otherwise provided by the Department or conserving the benefits for the child’s reasonably 1
foreseeable future needs; 2

[(2)] (II) ensure that when the child [attains the age of 14 years] ENTERS 3
THE CARE OF THE DEPARTMENT and until the Department no longer serves as the 4
representative payee or fiduciary, [a minimum percentage of ] the child’s benefits are not 5
used to reimburse the State for the costs of care for the ch ild and are used or conserved in 6
accordance with items [(3) and (4)] (III) AND (IV) of this [subsection, as follows: 7

(i) from age 14 through age 15, at least 40%; 8

(ii) from age 16 through age 17, at least 80%; and 9

(iii) from age 18 through age 20, 100%] PARAGRAPH; 10

[(3)] (III) for the child’s benefits or resources that are below or not subject 11
to any federal asset or resource limit, exercise discretion in accordance with federal law and 12
in the best interest of the child to [conserve the funds or] use the funds for [services for 13
special needs not otherwise provided by the Department] THE CHILD’S CURRENT UNMET 14
NEEDS IN ACCORDANCE WITH ITEM (IV)5 OF THIS PARAGRAPH OR CONSERVE THE 15
FUNDS, including BY choosing one or more of the options listed under item [(4)] (IV) of this 16
[subsection] PARAGRAPH; 17

[(4)] (IV) appropriately monitor any federal asset or resource limits for the 18
benefits and ensure that the child’s best interest is served by using or conserving the 19
benefits in a way that avoids violating any federal asset or resource limits that would affect 20
the child’s eligibility to receive the benefits, including: 21

[(i)] 1. applying to the Social Security Administration to establish 22
a Plan for Achieving Self –Support (PASS) account for the child under the Social Security 23
Act and determining whether it is in the best interest of the child to conserve all or part of 24
the benefits in the PASS account; 25

[(ii)] 2. establishing a 529A plan for the child and conserving the 26
child’s benefits in that account in a manner that appropriately avoids any federal asset or 27
resource limits; 28

[(iii)] 3. establishing an individual development account for the 29
child and conserving the child’s benefits in that account in a manner that appropriately 30
avoids any federal asset or resource limits; 31

[(iv)] 4. establishing a special needs trust for the child and 32
conserving the child’s benefits in the trust in a manner that is consistent with federal 33
requirements for special needs trusts and that appropriately avoid s any federal asset or 34
resource limits; 35

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[(v) if the Department determines that using the benefits for services 1
for current special needs not already provided by the Department is in the best interests of 2
the child, using the benefits for those services;] 3

5. USING THE BENEFITS I N A MANNER THAT IS I N THE 4
BEST INTEREST OF THE CHILD FOR THE CHILD ’S CURRENT UNMET NEED S, AS 5
DETERMINED IN CONSUL TATION WITH THE CHIL D AND THE ATTORNEY F OR THE 6
CHILD, FOR COSTS NOT PAID BY THE DEPARTMENT AS PART OF THE CHILD’S CARE 7
OR BY THE HEALTH INSURANCE OF THE CHILD; 8

[(vi)] 6. if federal law requires certain back payments of benefits 9
to be placed in a dedicated account, complying with the requirements for dedicated accounts 10
under 20 C.F.R. § 416.640(e); and 11

[(vii)] 7. applying any other exclusions from federal asset or 12
resource limits available under federal law and using or conserving the child’s benefits in 13
a manner that appropriately avoids any federal asset or resource limits; 14

[(5)] (V) provide an annual acc ounting to the child and the child’s 15
attorney of how the child’s resources, including [Veterans Administration ] U.S. 16
DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental Security Income, and 17
Social Security benefits, have been used or conserved in accordance with this section; [and] 18

[(6)] (VI) provide the child with financial literacy training when the child 19
has attained the age of 14 years; AND 20

(VII) WHEN THE CHILD HAS ATTAINED THE AGE OF 16 YEARS AND 21
6 MONTHS, PROVIDE THE CHILD WITH INFORMATION REGARDING: 22

1. ACCESSING, USING, AND MAINTAINING BENEFITS; 23

2. TRANSITION PLANS; 24

3. WHEN THE BENEFITS ARE SCHEDULED TO END; AND 25

4. ELIGIBILITY FOR BENE FITS AFTER LEAVING T HE 26
CARE OF THE DEPARTMENT. 27

(2) (I) A BENEFICIARY WHO IS A T LEAST 18 YEARS OLD MAY 28
REQUEST THE COURT TO ALLOW THE BENEFICIAR Y’S BENEFITS TO BE USE D FOR 29
CURRENT UNMET NEEDS. 30

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(II) IF THE COURT DETERMIN ES THAT IT IS IN THE BEST 1
INTEREST OF THE BENE FICIARY TO USE THE B ENEFITS FOR CURRENT UNMET 2
NEEDS, THE COURT SHALL GRANT A REQUEST MADE UNDER THIS PARAGRAPH. 3

(F) THE DEPARTMENT SHALL: 4

(1) WITHIN 60 DAYS AFTER A CHILD E NTERS THE CARE OF TH E 5
DEPARTMENT, AND EACH YEAR THEREA FTER, DETERMINE THE CHILD ’S 6
ELIGIBILITY FOR U.S. DEPARTMENT OF VETERANS AFFAIRS BENEFITS , 7
SUPPLEMENTAL SOCIAL SECURITY INCOME, AND SOCIAL SECURITY BENEFITS; 8

(2) SEEK COVERAGE FOR TH E COST OF THE SCREEN ING REQUIRED 9
UNDER ITEM (1) OF THIS SUBSECTION T HROUGH THE EARLY AND PERIODIC 10
SCREENING, DIAGNOSTIC, AND TREATMENT BENEFIT; AND 11

(3) APPLY FOR BENEF ITS ON BEHALF OF THE CHILD, IF THE 12
DEPARTMENT DETERMINES THAT A CHILD MIGHT BE ELIGIBLE FOR THE BENEFITS. 13

[(d)] (G) (1) The Department shall immediately notify the child through the 14
child’s attorney of: 15

(i) any application for [Veterans Administratio n] U.S. 16
DEPARTMENT OF VETERANS AFFAIRS benefits, Supplemental Security Income, or 17
Social Security benefits made on the child’s behalf or any application to become 18
representative payee for those benefits on the child’s behalf; 19

(ii) any decisions or comm unications from the [Veterans 20
Administration] U.S. DEPARTMENT OF VETERANS AFFAIRS or the Social Security 21
Administration regarding an application for benefits described under item (i) of this 22
paragraph; and 23

(iii) any appeal or other action requested by the Department 24
regarding an application for benefits described under item (i) of this paragraph. 25

(2) IF THE BENEFITS UNDER PARAGRAPH (1)(I) OF THIS SUBSECTION 26
ARE DENIED AND THE DEPARTMENT DETERMINES AN APPEAL IS IN THE BEST 27
INTEREST OF THE CHIL D, THE DEPARTMENT SHALL CONS ULT WITH THE CHILD ’S 28
ATTORNEY AND APPEAL THE DENIAL. 29

(3) When the Department serves as the representative payee or otherwise 30
receives [Veterans Administration ] U.S. DEPARTMENT OF VETERANS AFFAIRS 31
benefits, Supplemental Security Incom e, or Social Security benefits on the child’s behalf, 32
the Department shall provide notice to the child through the child’s attorney of the 33
following before each juvenile court hearing regarding the child: 34

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(i) the dates and the amount of benefit funds received on the child’s 1
behalf since any prior notification to the child’s attorney; and 2

(ii) information regarding all the child’s assets and resources, 3
including the child’s benefits, insurance, cash assets, trust accounts, earnings, and other 4
resources. 5

[(e)] (H) This section may not be construed to affect any additional notice 6
required by a State court. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9