SB0312 • 2026

Children's Services, Dept. of

AN ACT to amend Tennessee Code Annotated, Title 36 and Title 37, relative to children.

Children Parental Rights

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Yarbro, Love
Last action: 2026-04-14
Official status: Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
Effective date: Not listed

Plain English Breakdown

The bill summary text does not provide specific details on what constitutes 'reasonable, foreseeable future needs' or 'special needs services'.

Children's Services Department Act

This bill requires Tennessee's Department of Children's Services to conserve federal funds received on behalf of children in its care and use them for the child's future needs or special services not provided by the department.

What This Bill Does

Requires the department to save and use federal money received on behalf of a child only for that child’s reasonable, foreseeable future needs or special services not provided by the department.
Allows the department to put these funds into trusts, savings plans, or other accounts in the best interest of the child.
Ensures that using these funds does not affect the child's eligibility for federal benefits and assistance programs.
Requires the department to keep detailed records of how these funds are managed and used, which must be available to the child’s attorney, guardian, or the child once they turn 18.

Who It Names or Affects

Children in Tennessee's Department of Children's Services care
The Department of Children's Services

Terms To Know

Representative Payee: A person or organization that manages federal benefits on behalf of a child who cannot manage their own money.
Special Needs Trust: A trust designed to hold funds for someone with disabilities without affecting their eligibility for government assistance programs.

Limits and Unknowns

The bill does not specify how much of the interest earned from federal funds can be used by the department.
It is unclear what specific special needs services will qualify under this act.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA0982

Amendment 1-0 to HB1235

Plain English: The amendment adds new rules for how the Department of Children's Services in Tennessee should manage social security, supplemental security income, and veteran’s benefits received by children under its care.

Adds requirements for the department to conserve or use benefits in the best interest of the child, including specific circumstances where funds can be used instead of conserved.
Specifies that the department may establish various types of accounts for managing these benefits, such as a plan for achieving self-support or a special needs trust.
Requires the department to maintain detailed records about how it manages and uses these benefits.

The exact implementation details are left to future rules promulgated by the Department of Children's Services.

Bill History

2026-04-14 Tennessee General Assembly
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
2026-04-08 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
2026-04-08 Tennessee General Assembly
Action Def. in s/c Finance, Ways, and Means Subcommittee to the Final Calendar No. 2
2026-04-06 Tennessee General Assembly
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/8/2026
2026-04-06 Tennessee General Assembly
Assigned to s/c Finance, Ways, and Means Subcommittee
2026-04-06 Tennessee General Assembly
Rec. for pass; ref to Finance, Ways, and Means Committee
2026-04-01 Tennessee General Assembly
Placed on cal. Government Operations Committee for 4/6/2026
2026-04-01 Tennessee General Assembly
Rec. for pass. if am., ref. to Government Operations Committee
2026-03-25 Tennessee General Assembly
Placed on cal. Judiciary Committee for 4/1/2026
2026-03-25 Tennessee General Assembly
Action def. in Judiciary Committee to 4/1/2026
2026-03-18 Tennessee General Assembly
Placed on cal. Judiciary Committee for 3/23/2026
2026-03-17 Tennessee General Assembly
Rec for pass if am by s/c ref. to Judiciary Committee
2026-03-11 Tennessee General Assembly
Placed on s/c cal Children and Family Affairs Subcommittee for 3/17/2026
2026-03-10 Tennessee General Assembly
Action Def. in s/c Children and Family Affairs Subcommittee to 3/17/2026
2026-03-04 Tennessee General Assembly
Placed on s/c cal Children and Family Affairs Subcommittee for 3/10/2026
2026-02-03 Tennessee General Assembly
Def. to Special Calendar to be Published with Final Calendar in Children and Family Affairs Subcommittee
2026-01-28 Tennessee General Assembly
Placed on s/c cal Children and Family Affairs Subcommittee for 2/3/2026
2026-01-23 Tennessee General Assembly
Meeting Canceled
2026-01-21 Tennessee General Assembly
Placed on s/c cal Children and Family Affairs Subcommittee for 1/27/2026
2025-04-17 Tennessee General Assembly
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2025
2025-04-14 Tennessee General Assembly
Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025
2025-04-14 Tennessee General Assembly
Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025
2025-03-25 Tennessee General Assembly
Action Def. in s/c Children and Family Affairs Subcommittee to First Calendar of 2026
2025-03-19 Tennessee General Assembly
Placed on s/c cal Children and Family Affairs Subcommittee for 3/25/2025
2025-03-18 Tennessee General Assembly
Action Def. in s/c Children and Family Affairs Subcommittee to 3/25/2025
2025-03-12 Tennessee General Assembly
Placed on s/c cal Children and Family Affairs Subcommittee for 3/18/2025
2025-03-12 Tennessee General Assembly
Sponsor change.
2025-03-12 Tennessee General Assembly
Sponsor(s) withdrawn.
2025-03-11 Tennessee General Assembly
Recommended for passage, refer to Senate Finance, Ways, and Means Committee
2025-03-05 Tennessee General Assembly
Placed on Senate Judiciary Committee calendar for 3/11/2025
2025-02-12 Tennessee General Assembly
Passed on Second Consideration, refer to Senate Judiciary Committee
2025-02-12 Tennessee General Assembly
Assigned to s/c Children and Family Affairs Subcommittee
2025-02-12 Tennessee General Assembly
P2C, ref. to Judiciary Committee
2025-02-10 Tennessee General Assembly
Introduced, Passed on First Consideration
2025-02-10 Tennessee General Assembly
Intro., P1C.
2025-02-06 Tennessee General Assembly
Filed for introduction
2025-01-27 Tennessee General Assembly
Filed for introduction

Official Summary Text

Present law prohibits

a
court
from
direct
ing
the department of children's services
("department"),
or its contractors' or agents'
,
use or disposition of any federal funds for which any child or person in the care of the department is eligi
ble or may receive and for which the department may be payee on behalf of such child or person including, but not limited to, Social Security survivors benefits and supplemental security income benefits, foster care or adoption assistance benefits, or vet
e
ran's benefits, railroad retirement benefits or black lung benefits or any successor entitlements that are provided by federal law.

Funds received under any federal benefits programs
must
be processed, utilized and accounted for by the department pursuant
only to federal regulations or federal court orders governing those programs.

CONSERVATION OF FUNDS
–
AUTHORIZED USES

W
hen the department serves as the representative payee on behalf of a child for any federal funds a child in the care of the departmen
t is eligible for or may receive,
this bill requires
the department
to
conserve those federal funds for the child's reasonable, foreseeable future needs or use the funds for special needs services not otherwise provided by the department.

This bill autho
rizes

t
he department
to
exercise discretion to conserve these federal funds in the best interest of the child by holding such moneys in a trust or apply for and establish an account for the child, including a Plan for Achieving Self-Support, a 529 or 529A
plan, an individual development account, a special needs trust, or a bank account.
However, i
f it is in the best interest of the child, the department may utilize the federal funds for special needs services that are not currently being provided by the de
partment.

This bill requires

t
he department
to
conserve and use the federal funds in a manner that does not violate any federal asset or resource limits that would affect the child's eligibility for benefits or assistance offered by the federal, state, o
r local government.

This bill authorizes t
he department
to
use a reasonable portion of interest earnings from the federal funds to offset the reasonable expenses incurred in meeting the department's obligations to apply for and administer benefits
descri
bed above
.
However, t
he federal funds must not be used to reimburse the department for the costs of caring for the child.

RECORDKEEPING

This bill requires the
department
to
maintain records related to the conservation and use of these federal funds, an
d the records must be maintained in the child's file that is available to the child's attorney, to the child once the child is 18, and to the child's guardian if the child is no longer in the department's custody.

Current Bill Text

Read the full stored bill text

HOUSE BILL 1235
By Love

SENATE BILL 312
By Yarbro

SB0312
001580
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 36
and Title 37, relative to children.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 37-1-172, is amended by adding the
following as new subsections:
(c) When the department serves as the representative payee on behalf of a child
for any federal funds a child in the care of the department is eligible for or may receive,
the department shall conserve those federal funds for the child's reasonable,
foreseeable future needs or use the funds for special needs services not otherwise
provided by the department.
(d) The department may exercise discretion to conserve these federal funds in
the best interest of the child by holding such moneys in a trust or apply for and establish
an account for the child, including a Plan for Achieving Self-Support, a 529 or 529A plan,
an individual development account, a special needs trust, or a bank account.
(e) If it is in the best interest of the child, then the department may utilize the
federal funds for special needs services that are not currently being provided by the
department.
(f) The department shall conserve and use the federal funds in a manner that
does not violate any federal asset or resource limits that would affect the child's eligibility
for benefits or assistance offered by the federal, state, or local government.
(g) The department shall maintain records related to the conservation and use of
these federal funds, and the records must be maintained in the child's file that is

- 2 - 001580

available to the child's attorney, to the child once the child is eighteen (18) years of age,
and to the child's guardian if the child is no longer in the department's custody.
(h) The department may use a reasonable portion of interest earnings from the
federal funds to offset the reasonable expenses incurred in meeting the department's
obligations to apply for and administer benefits pursuant to this section. Notwithstanding
subsection (e), the federal funds must not be used to reimburse the department for the
costs of caring for the child.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.