Children: foster care; conditions on the use of certain benefits for a child in foster care; provide. Amends 1994 PA 203 (MCL 722.951 - 722.960) by adding sec. 8f.

A new definition of 'benefits' was added, specifying it includes Federal SSI, Social Security benefits, State SSI, VA benefits, and other applicable benefits identified by the department.

The savings/conservation requirement was significantly changed. The old version required tiered conservation: 40% for ages 14-15, 80% for ages 16-17, and 100% for ages 18-20. The new version requires a flat minimum of 50% conservation for ages 14 through 17 only, eliminating the 18-20 age bracket entirely.

Financial literacy training at age 14 changed from a mandatory requirement to a discretionary one ('if appropriate, as determined by the department'). The content also shifted from general personal finance concepts to a focus on postsecondary education financing options, including FAFSA evaluation and cost-reduction strategies.

The list of options for conserving benefits (PASS accounts, 529A plans, individual development accounts, special needs trusts) was changed from an exhaustive list to a non-exhaustive one by adding 'but not limited to,' giving the department more flexibility.

A provision requiring compliance with dedicated account requirements under 20 CFR 416.640(e) for federal back payments was removed.

References to the child's 'attorney' were replaced with 'guardian ad litem, if one has been appointed,' in both the representative payee identification process and the annual accounting provision. This narrows who must be involved when no GAL is appointed.

Multiple references to a new 'section 8g' were added throughout the bill, indicating a companion section was introduced (its content is not shown in this diff).

The bill no longer references section 8g, which was part of the original Senate version. All cross-references to 'this section and section 8g' were changed to just 'this section,' narrowing the bill's scope.

The detailed definition of 'benefits' (SSI, Social Security, State SSI, VA benefits, and other applicable benefits) was entirely removed from the substitute.

The conservation requirement changed from a flat minimum of 50% for ages 14-17 to a tiered system: at least 40% conserved from age 14-15, at least 80% from age 16-17, and 100% from age 18-20.

Financial literacy training changed from discretionary ('if appropriate, as determined by the department') to mandatory for all children who reach age 14. The content also shifted from a focus on FAFSA and postsecondary education to broader personal finance concepts including short-term, mid-term, and long-term goal setting.

The entire provision requiring the department to make monthly payments from benefits to the child for allowable expenses (education, medical co-pays, job training, transportation, immediate living expenses) was removed.

A new requirement was added for the department to annually review whether someone other than the department could better serve as representative payee in the child's best interests.

The list of options for avoiding federal asset/resource limits was changed from 'including, but not limited to' (illustrative) to 'including all the following' (exhaustive), and a new option was added for complying with dedicated account requirements under 20 CFR 416.640(e).

The section requiring the department to track activities of a non-department representative payee, provide guidance, and require annual accounting reports from that person was removed.

All references to 'guardian ad litem' were replaced with 'attorney,' changing who receives annual accountings and cooperates on payee identification.

The enacting sections specifying an October 1, 2026 effective date and the condition that the bill does not take effect unless Senate Bill No. 18 is enacted were removed.

The bill now applies to both section 8f and a new section 8g, expanding its reach beyond the single section in the House version.

All references to the child's 'attorney' were replaced with 'guardian ad litem, if one has been appointed,' changing who the department must coordinate with for identifying representative payees and providing annual accountings.

The House version contained an extremely detailed financial literacy curriculum with 21 specific subtopics (career aptitude surveys, credit reports, auto purchases, identity theft, investment strategies, essay assignments, etc.). The Senate reduced this to a single general requirement for 'personal financial management skills and basic principles' plus the FAFSA/postsecondary education evaluation, and made it conditional on the department determining it is 'appropriate.'

A new section requires the department to monitor and guide any third-party representative payee, including keeping track of their activities, providing guidance as needed, and requiring them to submit annual accounting reports to both the department and the child.

The House version required tiered savings percentages (40% ages 14-15, 80% ages 16-17, 100% ages 18-20). The Senate replaced this with a flat requirement that at least 50% of benefits be conserved for children ages 14 through 17, eliminating the 18-20 tier entirely.

A new provision requires the department to make monthly payments from the child's benefits for 'allowable expenses' including education, Medicaid co-pays, job training, transportation, and immediate living expenses. The department must approve these unless it determines they are not in the child's best interests.

The House version specified how remaining funds should be released when the department's responsibility ends (to the child if 18 or emancipated, or to the responsible adult if under 18). This provision was removed entirely.

The House version required the department to immediately notify the child (through their attorney) and placement agency about benefit applications, government decisions, appeals, and to provide pre-hearing notices detailing all benefit funds received and the child's total assets. All of these notification requirements were removed.

The definition of 'benefits' now includes 'if identified by the department, other applicable benefits for which the child in foster care is eligible,' adding a departmental identification step that was not in the House version.

Two enacting sections were added: the bill takes effect October 1, 2026, and it does not take effect unless Senate Bill No. 18 of the 103rd Legislature is also enacted into law, making this bill contingent on separate legislation.

The list of strategies for avoiding federal asset limits was changed from 'including all the following' to 'including, but not limited to, all the following,' making it non-exhaustive. A specific requirement about dedicated accounts under 20 CFR 416.640(e) was removed.

Financial literacy training (subdivision f) was expanded from a single sentence requiring training at age 14 into a detailed list of 21 required components, including career aptitude surveys, postsecondary financing evaluation, student loan debt analysis, an argumentative essay on student loans, tax form completion (1040, W-4, W-2), budget creation, credit reporting education, automobile purchase analysis, insurance comparison, identity theft protection, and saving/investing strategies.

The annual accounting requirement (subdivision e) now requires the accounting be provided not just to the child and their attorney, but also to the appropriate contact at the supervising child placement agency.

Notification requirements in subdivisions (4) and (5) now require that notices about benefit applications, representative payee status, and pre-hearing benefit fund reports be sent to the appropriate contact at the supervising child placement agency in addition to the child's attorney.