SENATE BILL 333

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Michael Padilla

 

 

 

 

 

AN ACT

RELATING TO CHILDREN; ENACTING THE CHILDREN'S BENEFITS ACCOUNT ACT; PROVIDING FOR THE CHILDREN, YOUTH AND FAMILIES DEPARTMENT TO BE APPOINTED AS THE REPRESENTATIVE PAYEE TO MANAGE AND MAINTAIN THE RETIREMENT, SURVIVORS AND DISABILITY INSURANCE FUNDS OF CHILDREN IN THE DEPARTMENT'S CUSTODY; PROVIDING FOR THE ESTABLISHMENT OF BENEFITS ACCOUNTS FOR BENEFICIARIES; PROVIDING DEPARTMENT DUTIES TO MANAGE BENEFITS ACCOUNTS ON BEHALF OF BENEFICIARIES; PROVIDING DEFINITIONS; PROVIDING FOR ACCOUNT CLOSURES AND DISBURSEMENTS; PROVIDING FOR CONFIDENTIALITY; PROVIDING FOR RULE ADOPTION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Children's Benefits Account Act"."

     SECTION 2. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] DEFINITIONS.--As used in the Children's Benefits Account Act:

          A. "beneficiary" means a child in the custody of the department who receives a monthly benefit from the federal social security administration pursuant to Title II of the federal Social Security Act;

          B. "benefit" means the retirement, survivor and disability insurance funds paid monthly to a beneficiary pursuant to Title II of the federal Social Security Act;

          C. "benefits account" means an account established by the department into which a beneficiary's monthly benefit is deposited and maintained by the department on behalf of the beneficiary;

          D. "eligible beneficiary" means a child in the custody of the department who is not a beneficiary but is identified by the department as eligible to receive benefits from the federal social security administration pursuant to Title II of the federal Social Security Act; and

          E. "representative payee" means the person or entity appointed by the federal social security administration to receive and manage the benefits of a beneficiary who is unable to manage those benefits or any of the beneficiary's own finances."

     SECTION 3. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] FEDERAL SOCIAL SECURITY BENEFITS--BENEFICIARY--ELIGIBLE BENEFICIARY--DEPARTMENT REPRESENTATIVE PAYEE APPOINTMENT.--

          A. The department shall take the steps necessary to be appointed as the representative payee by the federal social security administration for each child in the department's custody who is a beneficiary or an eligible beneficiary.

          B. If a child in the department's custody is a beneficiary, the department shall request to be appointed as the beneficiary's representative payee by application to the federal social security administration, including providing a plan indicating how the beneficiary's funds will be used to meet the beneficiary's needs, as well as any other supportive information necessary or appropriate.

          C. If a child in the department's custody is an eligible beneficiary, the department shall apply to the federal social security administration for benefits on behalf of that child and shall at that same time apply to be appointed as the child's representative payee, including providing a plan indicating how the beneficiary's funds will be used to meet the beneficiary's needs, as well as any other supportive information necessary or appropriate.

          D. Within thirty days of being appointed as a representative payee, the department shall provide notice of the appointment to the beneficiary and the beneficiary's parent or guardian."

     SECTION 4. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] BENEFICIARY FUNDS--BENEFITS ACCOUNT--DEPARTMENT MANAGEMENT--DUTIES--ACCOUNTING.--

          A. The department shall establish a no-cost benefits account at a financial institution in this state for each beneficiary for whom the department is appointed as representative payee. If a beneficiary for whom the department is a representative payee has funds from benefits credited to the beneficiary in another account established prior to the department being appointed as representative payee, those funds shall be transferred to the department for deposit into the beneficiary's benefits account along with any lump-sum retroactive benefits due and paid on behalf of the beneficiary.

          B. Each benefit payment received by the department on behalf of a beneficiary shall be deposited into the beneficiary's benefits account as established pursuant to Subsection A of this section, and the department shall administer, maintain and manage the benefits account only to the benefit of that beneficiary.

          C. In administering and managing benefits accounts, the department shall:

                (1) maintain an internal system whereby each beneficiary's benefits account is tracked and maintained as separate and distinct from any other beneficiary's benefits account;

                (2) provide a process by which the beneficiary of a benefits account or the parent or guardian of that beneficiary may request an accounting of the beneficiary's benefits account;

                (3) create an annual statement for each benefits account that includes an accounting of all deposits and disbursements from the account and provide the annual statement to each beneficiary and each beneficiary's parent or legal guardian; and

                (4) update the permanency plan as needed of a beneficiary to indicate that the child is receiving benefits as a beneficiary and the department is the beneficiary's representative payee."

     SECTION 5. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] BENEFICIARY--AGE SEVENTEEN--OTHER EVENTS IMPACTING BENEFITS ACCOUNT--ACCOUNT CLOSURE--DEPARTMENT ASSISTANCE.--

          A. For a beneficiary who has reached the age of seventeen and is receiving benefits, the department shall determine whether, upon turning eighteen years of age, the beneficiary will require a representative payee to assist in managing the beneficiary's benefits as follows:

                (1) if the department determines that the beneficiary requires a representative payee, the department shall identify an appropriate representative payee, who shall comply with the representative payee responsibilities set forth in 20 CFR Section 404.2035, as amended; and

                (2) if the department determines that the beneficiary does not require a representative payee, the department shall provide assistance to the beneficiary with managing the beneficiary's benefits. The assistance may include education about maintaining eligibility for benefits and establishing and maintaining a bank account for purposes of electronic direct deposit of benefits.

          B. The department shall disburse any remaining funds in a beneficiary's benefits account as permitted by federal guidelines and rules adopted by the department when a beneficiary is no longer in the custody of the department because the beneficiary:

                (1) has aged out of foster care;

                (2) is reunited with the beneficiary's family; or

                (3) is legally granted a permanent guardian or adoptive parent.

          C. A benefits account from which the department has disbursed the remaining funds as provided in Subsection B of this section shall be closed and the department shall provide the beneficiary and, if the beneficiary is younger than eighteen years of age, the beneficiary's parent or guardian with an audited closing statement of the benefits account."

     SECTION 6. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] BENEFITS ACCOUNTS--CONFIDENTIALITY.--Benefits accounts shall be confidential. Account balances and activities in a benefits account shall only be disclosed to the beneficiary, to the beneficiary's parent or guardian, to a court-appointed guardian ad litem, to the beneficiary's youth attorney or by order of a court of competent jurisdiction."

     SECTION 7. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] LIMITATION OF DEPARTMENT LIABILITY.--The department shall not be liable for any delays by the federal social security administration in processing and disbursing a beneficiary's benefits and shall not be required to take steps to recoup losses as a result of those delays. The department shall be responsible for maintaining and managing only the benefits received by the department on behalf of a beneficiary during the time that the department is the beneficiary's representative payee."

     SECTION 8. A new section of the Children's Code is enacted to read:

     "[NEW MATERIAL] RULES--DEPARTMENT OF FINANCE AND ADMINISTRATION POLICIES--PROMULGATION AND ADOPTION.--By October 1, 2025, the department shall, in collaboration with the department of finance and administration, adopt rules in accordance with the State Rules Act for the implementation and administration of the provisions of the Children's Benefits Account Act."

     SECTION 9. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2025.

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