SF 481 (LSB 1718XS (4) 91)

SENATE FILE 481

BY  TRONE GARRIOTT

A BILL FOR

An Act relating to certain benefits received by children in foster care, and making an appropriation.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 234.37, Code 2025, is amended to read as follows:
   234.37  Department may establish accounts for certain children.
   1.  For purposes of this section:
   a.  “Benefits” means benefits received under the federal Social Security Act or from a court order requiring payment of child support.
   b.  “Child” means a child as defined in section 234.1, who is described by any of the following:
   (1)  The child was committed to the director or the director’s designee.
   (2)  The child’s legal custody has been transferred to the department.
   (3)  The child was voluntarily placed in foster care pursuant to section 234.35.
   2.  a.  The department may establish an account in the name of any a child committed to the director or the director’s designee, or whose legal custody has been transferred to the department, or who is voluntarily placed in foster care pursuant to section 234.35. Any money which the child receives from the United States government or any private source shall be placed in the child’s account, unless a guardian of the child’s property has been. If a conservator appointed and for the child under section 633.554 demands the money, in which case it the moneys in the child’s account shall be paid to the guardian conservator. The 
   b.  An account established for a child under this subsection shall be an interest-bearing account at a reputable bank or savings association, and maintained by the department as trustee for the child in an interest-bearing account at a reputable bank or savings association, except that if the. 
   c.  If a child is residing at an institution administered by the department, a limited amount of the child’s funds described in paragraph “a” may be maintained at the institution in a separate account, which need not may be interest bearing a non-interest-bearing account, in the child’s name at the institution. Any money 
   d.  Moneys held in an account in the a child’s name or in trust for the a child under this section subsection may be used, at the discretion of the department and subject to restrictions lawfully imposed by the United States government or other source from which the child receives the funds, for the purchase of personal incidentals, desires, and comforts of the child.
   e.  All of the money moneys held for a child by the department under this section subsection, and not used in the child’s behalf as authorized by law, shall be promptly paid to the child, or the child’s parent, or the child’s legal guardian upon termination of the child’s commitment of the child to the director or the director’s designee, or upon transfer or cessation of the department’s legal custody of the child by the department.
   3.  Notwithstanding subsection 1, the department shall establish a separate benefits account in the name of a child under eighteen years of age if the child receives benefits. Benefits the child receives shall be deposited in the child’s account. If a conservator appointed for the child under section 633.554 demands the money, the moneys in the child’s benefits account shall be paid to the conservator.
   a.  An account established for a child under this subsection shall be an interest-bearing account at a reputable bank or savings association, and maintained by the department as trustee for the child. 
   b.  All moneys held for a child by the department under this subsection shall be released to the child upon the child reaching eighteen years of age.
    Sec. 2.  DEPARTMENT OF HEALTH AND HUMAN SERVICES —— PAYMENT OF FOSTER CARE.  There is appropriated from the general fund of the state to the department of health and human services for the fiscal year beginning July 1, 2025, and ending June 30, 2026, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For the payment of foster care costs for children who receive benefits under the federal Social Security Act or from a court order requiring payment of child support:
   ...................................................................... $ 1,200,000
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to social security benefits and child support benefits (benefits) for children receiving foster care.
   The bill defines “child” as a person who is less than 18 years of age, or a person who is 18, 19, or 20 years of age if the person meets certain conditions, and who was committed to the director of the department of health and human services (HHS) or the director’s designee; whose legal custody has been transferred to HHS; or who was voluntarily placed in foster care.
   The bill requires the department of health and human services (HHS) to establish a benefits account (account) in the name of any child under 18 years of age if the child receives benefits. Any benefits the child receives must be placed in the child’s account. If a conservator makes a demand for moneys in the child’s account, the moneys in the child’s account must be paid to the conservator. The account must be an interest-bearing account at a reputable bank or savings association, and maintained by HHS as trustee for the child. All moneys in the account must be released to the child upon the child reaching 18 years of age.
   The bill appropriates $1.2 million to HHS for FY 2025-2026 to be used for the payment of foster care costs for children who receive benefits.