§ 4–1303.12. Social Security benefits of children in Agency custody.

(a) Upon a child's removal under § 4-1301.07 or § 4-1303.04(c), or within 90 days of March 10, 2023 if the child is in the care of the Agency at the time, the Agency shall ascertain whether the child may be eligible for benefits administered by the Social Security Administration ("Social Security benefits"). If the Agency ascertains that a child may be eligible for Social Security benefits, the Agency shall apply for the benefits on behalf of the child.

(b) The Agency shall immediately notify the child, the child's guardian ad litem, and the child's parents or guardians of:

(1) Any application for Social Security benefits made by the Agency on the child's behalf;

(2) Any application by the Agency to become the child's Social Security benefits representative payee;

(3) Any decisions or communications from the Social Security Administration regarding the child's benefits application; and

(4) Any appeal by the Agency regarding the child's benefits application.

(c) When the Agency serves as the representative payee or in another fiduciary capacity for a child receiving Social Security benefits, the Agency shall:

(1) Be prohibited from reimbursing the District for any costs associated with the child's care using the child's Social Security benefits;

(2) Monitor federal asset or resource limits that would affect the child's eligibility to continue to receive benefits and conserve the benefits in a way to avoid violating or exceeding those limits, including by:

(A) Applying to the Social Security Administration for a Plan for Achieving Self-Support ("PASS") account for the child and determining the amount of benefits to deposit in the PASS account that would be in the best interests of the child;

(B) Establishing a 529A plan account for the child;

(D) Establishing a special needs trust for the child or joining a pooled special needs trust on behalf of the child;

(E) If federal law requires certain back payments of benefits to be deposited into a dedicated account, opening a dedicated account for the child and complying with the requirements under 20 C.F.R. § 416.640(e); or

(F) Applying any other exclusions from federal asset or resource limits available under federal law; and

(3) Provide, at least once every 6 months, an accounting to the child, the child's guardian ad litem, and the child's parents or guardians of the child's resources, including of any Social Security benefits.

(d) Upon the child's exit from foster care, the Agency shall develop a written plan in collaboration with the child, the child's guardian ad litem, and any individual with parental rights regarding the future use and control of the child's resources conserved under this section that would be in the best interest of the child. The following party's preferences shall be considered in the best interest of the child if there is disagreement on the use and control of the child's resources:

(1) The child, if the child is or will be an aged-out youth, as that term is defined in § 4-1303.03g;

(2) The adoptive parent, if the child is or will be adopted; or

(3) The child's parent or guardian if the child is or will be reunited with the parent or guardian.

(e) The Agency shall timely effectuate portions of the written plan within its control or designated responsibilities. If the Social Security Administration takes any action inconsistent with the realization of the written plan, the Agency shall develop a revised written plan consistent with subsection (d) of this section.

(f) The Agency shall avoid overpayment of Social Security benefits while serving as the representative payee and shall pay any discovered overpayment to the appropriate federal entity. The Agency may request a waiver of adjustment or recovery of an overpayment, including filing an appeal; provided, that the Agency shall pay any overpayment amount deemed final.

(g) The Agency shall provide at least 5 hours of financial literacy education, financial management training, and financial skills building to any individual gaining access for the first time to the child's resources conserved by the Agency; except, that an individual's failure to attend or receive Agency-sponsored training shall not constitute Agency non-compliance with the written plan regarding the future use and control of conserved resources developed under this section.

(h)(1) The Agency may execute any contracts, grants, or agreements necessary to implement the provisions of this section.

(2) The Agency's duties under this section may be delegated to an Agency contractee or grantee.

(i) Beginning on February 28 of the year after the applicability date of this section, and no later than February 28 of each year thereafter, the Mayor shall submit a report to the Council on the Agency's efforts to conserve the Social Security benefits of children under its care, which shall include:

(1) The number of children receiving Social Security benefits;

(2) Without divulging identifiable information, for each child receiving benefits, the type of benefits, the amount conserved, and the type of account in which the benefits are being conserved;

(3) The total amount of federal benefits being conserved by the Agency;

(4) The total number of accounts established each month; and

(5) A summary of the Agency's efforts to educate children, their parents or guardians, and their guardians ad litem on financial literacy and the requirements of this section.

(j) The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this section. The proposed rules shall be submitted to the Council for a 30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution within this 30-day review period, the proposed rules shall be deemed approved.