(a) The Legislature finds that the State of California has utilized federal benefits administered by the federal Social Security Administration to offset the cost of foster care placement and that the utilization of these funds to support youth and young adults with their transition to adulthood would meet an urgent need for a population that is at high risk of homelessness. The Legislature finds that it is in a child’s best interests to ensure that federal survivors’ benefits for which they are eligible are available for their current and future use. It is the intent of the Legislature that federal Social Security Administration survivors’ benefits received by a child or youth in foster care shall not be utilized by the county placing agency to offset the cost of the child or youth’s care, and that placing agencies shall instead conserve those funds for the future use of the beneficiary.
(b) When the placing agency serves as the representative payee or in any other fiduciary capacity for a child or youth receiving federal Social Security Administration survivors’ benefits, the placing agency shall act in accordance with the Guide for Organizational Representative Payees, as published by the federal Social Security Administration, and shall do all of the following:
(1) Ensure that the child’s survivors’ benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and supervision, as defined in subdivision (b) of Section 11460, and are conserved in accordance with paragraph (2).
(2) Monitor any applicable federal asset, resource, or income limits for the child’s benefits and ensure that the child’s best interests is served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account on behalf of the child and preserves eligibility for other benefits to which the child may be entitled.
(3) Provide, upon request, an accounting to the child if the child is 12 years of age or older and the child’s attorney of how, and in what amount, the child’s resources, including any benefits administered by the federal Social Security Administration, have been conserved, consistent with the accounting report requirements described in Sections 404.2065 and 416.665 of Title 20 of the Code of Federal Regulations, and the county’s consideration of the child’s best interests, consistent with federal guidance.
(c) Any reference to “federal survivors’ benefits” or “Social Security Administration survivors’ benefits” in this section shall have the same meaning as benefits to which a child of an individual who dies is entitled pursuant to Section 402(d) of Title 42 of the United States Code.
(d) (1) The placing agency shall notify the child, the child’s attorney, and the child’s parents or guardians, before, or concurrent with, all of the following:
(A) Any application for benefits administered by the federal Social Security Administration made by the agency on the child’s behalf pursuant to subdivision (a) of Section 13757.
(B) Any application by the placing agency to become a representative payee for benefits administered by the federal Social Security Administration on the child’s behalf.
(C) Any decisions or communications from the federal Social Security Administration regarding an application for benefits described in subparagraph (A).
(D) Any action taken by the agency regarding an application for benefits described in subdivision (c) of Section 13757.
(2) In addition to notification, as required under paragraph (1), the placing agency shall also provide the information in subparagraphs (A) to (D), inclusive, of paragraph (1) to the child, the child’s attorney, and the child’s parents or guardians upon request.
(e) At least 30 days before the child’s exit from foster care to permanency, if the placing agency is the representative payee, the placing agency shall collaborate with the child, the child’s attorney, and the child’s parents or guardians if the child is exiting to reunification or the child’s guardian or adoptive parent if the child is exiting to guardianship or adoption, to begin transfer or control and responsibility for any funds conserved under this section to the child’s parent, guardian, adoptive parent, or the child if the child has exited after 18 years of age, unless the child chooses to select another representative payee. Transfer of conserved funds shall be made in accordance with the federal Social Security Administration’s rules for changes of representative payee.
(f) This section shall become operative on January 1, 2025, or 30 days after the department issues the necessary all-county letters and informing materials to county placing agencies, whichever is later.
(Repealed and added by Stats. 2024, Ch. 623, Sec. 6. (AB 2906) Effective January 1, 2025. Conditionally operative on or after January 1, 2025, by its own provisions.)