I. For all children in the care of the department, the department shall determine whether each child is receiving benefits administered by the Social Security Administration or the Veterans Administration within 60 days after the child enters the department's care. If the department determines that a child is not receiving benefits but may be eligible for federal benefits, the department shall apply for the benefits on behalf of the child.
II. If a child is already receiving benefits before entering the department's care with an appointed representative payee in place, the department shall not seek to change the payee appointment unless the current payee has been deemed unsuitable or other circumstances warranting a payee change are met in accordance with the federal regulations for naming a successor payee. If there is no payee or if the department applies for benefits on behalf of the child, the department shall identify, in consultation with the child and the child's representative, a representative payee in accordance with 20 C.F.R. sections 404.2021 and 416.621 and encourage the identified individual to apply to the Social Security Administration to be appointed as the child's representative payee. The department shall apply to become the representative payee only if no other suitable candidate is available.
[Paragraph III effective July 1, 2028.]
III. If the department is determined by the court to serve as the representative payee:
(a) The department shall not use the child's federal benefits, other benefits, savings, or assets to pay for or reimburse the department or this state for any of the costs of the child's care in accordance with the phase-in schedule under subparagraph (b).
(b) In addition to any amount required to be set aside by the department under federal law and the division for children, youth and families policy, the department shall conserve the following amounts on behalf of the child:
(1) Beginning July 1, 2028, the department shall conserve 25 percent of the child's federal benefits.
(2) Beginning July 1, 2030, the department shall conserve 50 percent of the child's federal benefits.
(3) Beginning July 1, 2032, the department shall conserve 75 percent of the child's federal benefits.
(4) Beginning July 1, 2034, the department shall conserve 100 percent of the child's federal benefits.
(c) The department may use the child's federal benefits for the child's unmet needs beyond what the department is obligated or required to pay.
(d) The department shall establish an appropriate account to use and conserve the child's benefits in the child's best interest for current unmet needs and future needs in a manner consistent with federal and state asset and resource limits. The account may include any of the following:
(1) A special needs trust.
(2) A pooled special needs trust.
(3) An Achieving a Better Life Experience (ABLE) savings account, established pursuant to RSA 195-K and section 529A of the Internal Revenue Code.
(4) Any other trust account determined not to interfere with social security or asset limitations for any other benefit program.
(e) The department shall provide an annual accounting as to the use, application, or conservation of the child's federal benefits to the child, the child's representative, and the child's parents or guardians.
[Paragraph IV effective July 1, 2028.]
IV. The department shall notify the child, the child's parents, unless parental rights have been terminated, the child's guardian, the child's current placement, the child's court appointed special advocate or guardian ad litem, and the child's attorney of any application or decision related to a child's federal benefits. In providing notice of any denial of benefits, the department shall explain that there is a right to appeal, the process for filing an appeal, and the names and contact information of organizations that might be available to provide pro bono or reduced fee legal assistance.
[Paragraph V effective July 1, 2028.]
V. The department shall annually review cases of children in the department's care to determine whether a child may have become eligible for benefits after the department's initial assessment.
[Paragraph VI effective July 1, 2028.]
VI. Notwithstanding any other law, on termination of the department's responsibility for the child, the department shall release any moneys remaining to the child's credit pursuant to the requirements of the funding source or, in the absence of any requirements, shall release the remaining moneys to:
(a) The child, if the child is at least 18 years of age or is emancipated; or
(b) The person who is responsible for the child if the child is a minor and not emancipated.
[Paragraph VII effective July 1, 2028.]
VII. For purposes of this section, a "child in the care of the department" means the department has custody or guardianship over the child or the child is in a court-ordered placement or other out-of-home placement under the supervision of the department.