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Tennessee committee advances bill to conserve federal benefits for children in state care
Summary
Representative Jason Love presented House Bill 1235 to require that when the Department of Children's Services receives federal benefits as a representative payee for a child in its care, some of those funds be conserved for the child; the subcommittee agreed to send the bill to next year’s first calendar for further work.
Representative Jason Love presented House Bill 1235 to the Children and Family Affairs Subcommittee on March 25, proposing that when the Department of Children’s Services receives federal benefits as a representative payee for a child in its care, a portion of those funds be conserved for that child’s future use.
The measure would apply to federal benefits for which a child in state custody is eligible — the sponsor mentioned social security survivors benefits, supplemental security income and foster-care or adoption-assistance payments — and would direct the department to conserve some funds for the child rather than applying them fully to current costs.
“This bill would seek to then, direct that when a department receives as representative payee on behalf of a child for any federal funds ... that they would conserve some of those funds for that child's use,” Representative Jason Love told the committee. He said the issue affects many children who have benefits available but whose funds are not being preserved for them.
Representative Jason Love told the panel the state is aware of similar efforts in other states and that the measure carries a substantial fiscal note. He said the office is discussing alternatives with the Department of Children’s Services. The sponsor described mechanisms under consideration including 529 plans, special-needs trusts or bank accounts to preserve funds for a child when they age out of foster care.
Representative Jerome Towns pressed the sponsor on permissible uses for conserved funds — college, transportation or housing — and stressed the need for an accessible start-up resource for youth leaving state care. “The kids don't need to be high and dry when they out of the system. They need something to start,” Towns said.
Representative Allison asked whether the bill applies only when a parent is deceased; the sponsor confirmed it applies when death triggers the child's receipt of those benefits.
Committee members noted the bill’s fiscal implications. Without objection, the subcommittee rolled House Bill 1235 to the first calendar of the next legislative year (February) for continued work and to allow further conversation with the department and finance committees.
Next steps: the bill will be worked by the sponsor and staff over the interim and return to the subcommittee/calendar next year for further consideration.
