Senate Bill 2571

(As Passed the Senate)

AN ACT TO DIRECT THE MISSISSIPPI DEPARTMENT OF CHILD PROTECTION SERVICES (DEPARTMENT), FOR ANY CHILD IN THE CARE AND CUSTODY OF THE DEPARTMENT, TO DETERMINE WITHIN 60 DAYS AFTER ENTRY INTO CARE WHETHER THE CHILD IS RECEIVING OR IS ELIGIBLE FOR CERTAIN EARNED FEDERAL BENEFITS; TO DIRECT THE DEPARTMENT TO APPLY FOR SUCH BENEFITS ON BEHALF OF THE CHILD IF A DETERMINATION IS MADE THAT THE CHILD IS OR MAY BE ELIGIBLE; TO DIRECT THE DEPARTMENT TO APPLY TO BECOME THE CHILD'S REPRESENTATIVE PAYEE IF NO OTHER SUITABLE CANDIDATE IS AVAILABLE; TO PROVIDE THE DEPARTMENT'S OBLIGATIONS IF APPOINTED TO SERVE AS THE REPRESENTATIVE PAYEE; TO PROVIDE THAT THE DEPARTMENT SHALL DEVELOP AND IMPLEMENT A SUCCESS SEQUENCE SAVINGS AND DISBURSEMENT PLAN FOR EACH CHILD WITH CONSERVED EARNED BENEFITS; TO ENABLE A CHILD TO ACCESS A PORTION OF CONSERVED BENEFITS UPON COMPLETION OF SPECIFIC MILESTONES THAT PROMOTE INDEPENDENCE AND FINANCIAL READINESS; TO PROVIDE FOR THE RELEASE OF ANY REMAINING CONSERVED BENEFITS UPON TERMINATION OF THE DEPARTMENT'S CUSTODY OR LEGAL RESPONSIBILITY FOR THE CHILD; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This act shall be known and may be cited as the "Foster Youth Earned Benefits Protection for Success Act."

SECTION 2. As used in this act, the following terms shall have the meaning ascribed herein:

(a) "Department" means the Mississippi Department of Child Protection Services.

(b) "Plan" means the Success Sequence Savings and Disbursement Plan under Section 6 of this act.

SECTION 3. (1) For any child in the care and custody of the department, the department shall determine within sixty (60) days after entry into care whether the child is receiving or is eligible for earned federal benefits administered by the Social Security Administration or the Department of Veterans Affairs, including, but not limited to, survivors' or dependent benefits.

(2) If the department determines that a child is eligible or may be eligible for such earned benefits, the department shall apply for the benefits on behalf of the child in accordance with federal law.

If a child is already receiving earned federal benefits before entering the care and custody of the Department of Child Safety, or if the department applies for benefits on behalf of the child, the department shall, in consultation with the child and the child's attorney, identify an appropriate representative payee consistent with 20 CFR Sections 404.2021 and 416.621, and shall apply to become the representative payee only if no other suitable candidate is available.

(3) If the department is appointed to serve as the representative payee, the department:

(a) Shall not use any of the child's earned federal benefits, savings or assets to pay for or reimburse the department or this state for any cost of the child's care, maintenance, supervision or services.

(b) May use the child's earned benefits only for unmet needs of the child that are beyond those the department is obligated or agrees to pay.

(c) Shall establish and maintain an account to conserve the child's earned benefits in the child's best interest and consistent with federal and state asset and resource limits. Acceptable account types include:

(i) A special needs trust;

(ii) A pooled special needs trust;

(iii) An ABLE account established pursuant to 26 USC § 529A; or

(iv) Any other account or trust vehicle determined not to interfere with eligibility for public benefits.

(d) Shall provide an annual accounting of the use, application or conservation of the child's earned benefits to the child, the child's attorney, and, if parental rights have not been terminated, to the child's parents or guardians.

(e) Shall periodically review whether another qualified person or entity could serve as representative payee in the child's best interest and, if so, shall assist in transferring that role.

SECTION 4. (1) The department shall provide written notice to the child, the child's parents (unless parental rights have been terminated), the child's guardian, the child's current placement and the child's attorney of any application for benefits, decision, appeal or appellate determination related to the child's earned benefits.

(2) If benefits are denied, the department shall consult with the child's attorney and appeal the denial if it is in the child's best interests.

SECTION 5. The department shall review each case annually to determine whether a child in care has become newly eligible for earned federal benefits after the department's initial determination.

SECTION 6. (1) The department shall develop and implement a Success Sequence Savings and Disbursement Plan for each child with conserved earned benefits.

(2) Under the plan, a child may access a portion of conserved benefits upon completion of specific milestones that promote independence and financial readiness, including, but not limited to:

(a) Obtaining a driver's license or state identification card;

(b) Graduating from high school or receiving a recognized equivalent;

(d) Maintaining verified employment for at least six (6) consecutive months; or

(e) Completing a department-approved financial literacy or savings-readiness program.

(3) The department shall determine reasonable disbursement thresholds and amounts for each milestone to promote long-term savings while rewarding progress toward self-sufficiency.

(4) The department shall ensure that all youth participating in the program have access to financial literacy instruction and counseling to support effective use of milestone payments and long-term asset building.

SECTION 7. Upon termination of the department's custody or legal responsibility for the child, the department shall release any remaining conserved benefits as follows:

(a) To the child, if the child is at least eighteen (18) years of age or emancipated; or

(b) To the person responsible for the child, if the child has not attained age eighteen (18) and is not emancipated.

SECTION 8. The department may adopt rules consistent with federal law to implement this act, including rules governing account management, milestone disbursements, reporting, financial literacy education and oversight.

SECTION 9. This act shall take effect and be in force from and after July 1, 2026, and shall stand repealed on June 30, 2026.