DCYF/financial stability

AN ACT Relating to strengthening the financial stability of 1
persons in the care of the department of children, youth, and 2
families; amending RCW 74.13.060; and adding a new section to chapter 3
43.216 RCW. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 43.216 6
RCW to read as follows: 7
(1) As of January 1, 2026, the department may not apply any 8
benefits, payments, funds, or accrual paid to, or on behalf of, a 9
person in the care of the department subject to chapter 13.34 or 10
13.40 RCW as reimbursement for the cost of care. 11
(2) When a person is in the care of the department and is not 12
already receiving supplemental security income and retirement, 13
survivors, and disability insurance benefits, the department shall 14
assess whether the person is eligible for such benefits. The 15
department shall screen persons in out-of-home placement for 16
eligibility for such benefits on an ongoing basis. When a person is 17
assessed to be eligible for social security benefits, the department 18
shall: 19
(a)(i) Apply for supplemental security income and retirement, 20
survivors, and disability insurance benefits on behalf of the person. 21
S-0824.1
SENATE BILL 5488
State of Washington 69th Legislature 2025 Regular Session
By Senators Alvarado, Warnick, C. Wilson, Chapman, Krishnadasan,
Nobles, Trudeau, and Valdez
Read first time 01/24/25. Referred to Committee on Human Services.
p. 1 SB 5488
If a person is over the age of 12, the person shall be asked to 1
consent to authorize a release of information for the application;2
(ii) When the department applies for supplemental security income 3
and retirement, survivors, and disability insurance benefits on 4
behalf of a person, the department shall provide notification of the 5
application to the person and: 6
(A) The person's caregivers and all parties to the dependency, if 7
the person is a dependent child under chapter 13.34 RCW; or8
(B) The person's parent or legal guardian if the person is under 9
age 18 and is being held under the supervision of juvenile 10
rehabilitation for juvenile and adult offenders under chapter 13.40 11
RCW; 12
(b) Provide all relevant information to the social security 13
administration concerning potential representative payees; and14
(c) If the person is approved for benefits, maintain eligibility 15
for the benefits. 16
(3) When a person is in the care of the department and is already 17
receiving supplemental security income and retirement, survivors, and 18
disability insurance benefits and the permanency plan for the person 19
is reunification, the department may delay applying to become the 20
representative payee to support reunification. 21
(4) When the department is the representative payee for a person 22
in the care of the department, the department shall:23
(a) Place funds into an account on behalf of the person. The 24
department shall disburse funds from the account for the purpose of 25
meeting any of the person's unmet personal needs while in care. Funds 26
may only be used to meet unmet personal needs that are not covered by 27
other state or federal funds and may not supplant other funding 28
sources that would cover the person's care. When the amount of money 29
due to the person exceeds asset limits for the benefit or exceeds the 30
amount needed to provide for the person's personal needs, the 31
department shall place the funds in an appropriate savings or 32
investment that will not count against the person's eligibility for 33
supplemental security income and retirement, survivors, and 34
disability insurance benefits, unless such funds are needed for the 35
person to access medicaid waiver services provided by the 36
developmental disabilities administration. Such accounts may include, 37
but are not limited to: 38
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(i) A Washington achieving a better life experience program 1
account managed by the department of commerce pursuant to RCW 2
43.330.462; 3
(ii) A special needs trust or pooled trust; or 4
(iii) A savings account; and 5
(b) Provide an annual account statement to the person, and any 6
other persons required to be notified under subsection (2)(a)(ii)(A) 7
or (B) of this section. 8
(5) When the conditions of placement no longer exist the 9
department shall work with the parent, person, or agency who is 10
legally responsible for the person to become the representative 11
payee. If the person is turning 18, the department shall work with 12
the person to become the payee, unless the person requires a guardian 13
to manage the funds. 14
(6) The department shall develop and implement a financial 15
literacy training for youth that includes information related to 16
public benefits. The training must be provided to persons exiting the 17
care of the department when the person is: 18
(a) Over the age of 14; 19
(b) Receiving or likely to be eligible to receive public benefit 20
payments; and 21
(c) Likely to have the ability to participate in the management 22
of their own payments in the future. 23
Sec. 2. RCW 74.13.060 and 2009 c 520 s 59 are each amended to 24
read as follows: 25
(1) The secretary or his or her designees or delegatees shall be 26
the custodian without compensation of such moneys and other funds of 27
any person which may come into the possession of the secretary during 28
the period such person is placed with the department or an entity 29
with which it has entered into a performance-based contract pursuant 30
to chapter 74.13 RCW. As such custodian, the secretary shall have 31
authority to disburse moneys from the person's funds for the 32
following purposes only and subject to the following limitations:33
(a) For such personal needs of such person as the secretary may 34
deem proper and necessary. 35
(b) ((Against the amount of public assistance otherwise payable 36
to such person. This includes applying, as reimbursement, any 37
benefits, payments, funds, or accrual paid to or on behalf of said 38
person from any source against the amount of public assistance 39
p. 3 SB 5488
expended on behalf of said person during the period for which the 1
benefits, payments, funds or accruals were paid )) To conserve funds 2
in a savings or investment account subject to section 1 of this act.3
(2) All funds held by the secretary as custodian may be deposited 4
in a single fund, the receipts and expenditures therefrom to be 5
accurately accounted for by him or her on an individual basis. 6
Whenever, the funds belonging to any one person exceed the sum of 7
((five hundred dollars)) $2,000, the secretary may deposit said funds 8
in a savings and loan association account , or other savings or 9
investment account subject to section 1 of this act, on behalf of 10
that particular person. 11
(3) When the conditions of placement no longer exist and public 12
assistance is no longer being provided for such person, upon a 13
showing of legal competency and proper authority, the secretary shall 14
deliver to such person, or the parent, person, or agency legally 15
responsible for such person, all funds belonging to the person 16
remaining in his or her possession as custodian, together with a full 17
and final accounting of all receipts and expenditures made therefrom.18
(4) The appointment of a guardian for the estate of such person 19
shall terminate the secretary's authority as custodian of said funds 20
upon receipt by the secretary of a certified copy of letters of 21
guardianship. Upon the guardian's request, the secretary shall 22
immediately forward to such guardian any funds of such person 23
remaining in the secretary's possession together with full and final 24
accounting of all receipts and expenditures made therefrom.25
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