SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

SENATE, No. 3153

with committee amendments

STATE OF NEW JERSEY

DATED:  OCTOBER 7, 2024

      The Senate Health, Human Services and Senior Citizens Committee reports favorably and with committee amendments Senate Bill No. 3153.

      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, except to maintain the child’s eligibility for federal Supplemental Security Income Program (SSI) benefits and to avoid a violation of federal asset or resource limits under the SSI program.

      The bill, as amended, also stipulates that the department must appropriately monitor any federal asset or resource limits for the child’s relevant benefits, establish a qualified ABLE account or other trust account for every child who is eligible, and ensure that the child’s best interest is served by using the benefits for the child’s unmet needs or conserving the benefits in a way that avoids violating federal asset or resource limits that would affect the child’s ability to receive the benefits.

      The bill requires the Commissioner of Children and Families to apply for any federal waivers necessary to implement the provisions of the bill and ensure continued federal reimbursement for State expenditures for child welfare services under Title IV-E of the Social Security Act.  The committee amendments stipulate that if a child is or may be eligible for SSI benefits, the department will, if necessary for the child’s eligibility for such benefits, forego claiming the child for the purposes of federal reimbursement for State child welfare services.

      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; balances under $100,000 are excluded from the SSI resource limit.

      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, except to maintain the child’s eligibility for Supplemental Security Income (SSI) Program benefits and avoid violating federal asset or resource limits under the SSI program.

      The committee amends the bill to replace language requiring the department to notify a child’s parents or legal guardian, among other required parties, when the department utilizes a child’s federal benefits for the child’s unmet needs beyond the amount that the State is obligated to pay, with language requiring notification of the child’s parent and legal guardian, among other parties, under such circumstances.

      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, establish a qualified ABLE account or other trust account for every child who is eligible, and ensure that the child’s best interest is served by using the benefits for the child’s unmet needs or conserving the benefits in a way that avoids violating federal asset or resource limits that would affect the child’s eligibility to receive the benefits. 

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

      The committee amendments add language to section 2 of the bill to stipulate that, in the case of a child in an out-of-home placement who is eligible for federal SSI benefits, the department will, if necessary to ensure the child’s eligibility for the benefits, forego claiming the child for the purposes of federal reimbursements for State child welfare payments.

      The committee amendments update the synopsis to reflect these changes.