ASSEMBLY CHILDREN, FAMILIES AND FOOD SECURITY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4543

with committee amendments

STATE OF NEW JERSEY

DATED:  SEPTEMBER 23, 2024

      The Assembly Children, Families and Food Security Committee reports favorably and with committee amendments Assembly Bill No. 4543.

      As amended by the committee, this bill prohibits the Department of Children and Families from using the property or benefits of any child under the custody of the Division of Child Protection and Permanency to offset the State’s costs for the child’s maintenance, unless necessary to establish or maintain the child’s eligibility for benefits or services, including federal Supplemental Security Income benefits.  The bill also stipulates that the department must appropriately monitor any federal asset or resource limits for the relevant benefits, and ensure that the child’s best interest is served by using or conserving the benefits in a manner that avoids violating federal asset or resource limits that would affect the child’s ability to receive the benefits, including by establishing a qualified ABLE account for the child. 

      Authorized under “The Stephen Beck, Jr., Achieving a Better Life Experience Act,” Pub.L.113-295, ABLE accounts are tax-exempt savings accounts intended to help individuals with disabilities and their families to save private funds for disability-related expenses, while still maintaining eligibility for means-tested federal benefits under Medicaid and the Supplemental Security Income Program.  New Jersey’s qualified State ABLE program allows individuals with disabilities and their families to save up to $18,000 annually, and a maximum of $305,000 over a lifetime, for disability-related expenses. 

      The federal Social Security Administration typically will appoint the department as the representative payee for a child under the division’s custody to manage any federal benefits to which the child is entitled.  These federal benefits include, but are not limited to:

      1.   Social Security Disability Insurance benefits, based on the work history of a disabled or deceased parent;

      2.   Supplemental Security Income benefits for a child who is under the age of 18 years, has a disability, and who meets certain income and resource limits established by the Social Security Administration;

      3.   Survivor benefits for children of deceased military veterans, which are provided by the Veterans Administration; and

      4.   Railroad Retirement Benefits.

      These federal benefits are provided in the child’s name, but are intended to be used to support the costs associated with the child’s care.  In the case of a child in an out-of-home placement, the department is the child’s caregiver and, under federal law, may be allowed to use the child’s federal benefits to offset the State’s costs to maintain the child in an out-of-home placement.

COMMITTEE AMENDMENTS

      The committee amendments add language to clarify that the department is prohibited from utilizing the property or benefits of a child under the custody of the Division of Child Protection and Permanency in the Department of Children and Families, unless necessary to establish or maintain the child’s eligibility for benefits or services, including federal Supplemental Security Income Program benefits.

      The committee amends the bill to replace the term “parent(s)” with “parent”.

      The committee amendments replace language that requires the department to establish an account at a federally insured financial institution into which the child’s federal benefits will be deposited for conservation or use in the child’s best interests, with language requiring the department to monitor any federal asset or resource limits for the benefits and ensure that the child’s best interest is served by using or conserving the benefits in a way that avoids violating federal asset limits that would affect the child’s eligibility to receive the benefits, including by establishing a qualified ABLE account for the child. 

      The committee amendments add definitions for the terms “Qualified ABLE account” and “Supplemental Security Income Program.”