To ensure that foster children are able to use their social security and supplemental security income benefits to address their needs and improve their lives.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foster Children Self-Support Act''.

SEC. 2. BAN ON USE OF SOCIAL SECURITY OR SUPPLEMENTAL SECURITY INCOME 
              BENEFITS PAID TO REPRESENTATIVE PAYEES ON BEHALF OF 
              FOSTER CHILDREN FOR STATE COSTS.

    (a) Amendments to Title II.--Section 205(j)(9) of the Social 
Security Act (42 U.S.C. 405(j)(9)) is amended--
            (1) by inserting ``(A)'' after ``(9)''; and
            (2) by adding at the end the following:
    ``(B)(i) A representative payee shall not use any benefits paid to 
the representative payee pursuant to paragraph (1) to reimburse a State 
for--
            ``(I) foster care maintenance payments made pursuant to 
        section 472, or
            ``(II) other payments made by a State or political 
        subdivision of a State to cover maintenance expenses for an 
        individual who is in foster care under the responsibility of 
        the State.
    ``(ii) A fee charged in accordance with paragraph (4)(A)(i) or 
section 1631(a)(2)(D) shall not be considered a maintenance expense for 
purposes of clause (i) of this subparagraph.''.
    (b) Amendments to Title XVI.--Section 1631(a)(2)(A)(iv) of such Act 
(42 U.S.C. 1383(a)(2)(A)(iv)) is amended--
            (1) by inserting ``(I)'' after ``(iv)'';
            (2) by adding ``and'' at the end; and
            (3) by adding after and below the end the following:
    ``(II) A representative payee of an individual or eligible spouse 
shall not use any benefits paid to the representative payee pursuant to 
clause (ii) of this subparagraph to reimburse a State for--
            ``(aa) foster care maintenance payments made pursuant to 
        section 472; or
            ``(bb) other payments made by a State or political 
        subdivision of a State to cover maintenance expenses for an 
        individual who is in foster care under the responsibility of 
        the State.
    ``(III) A fee charged in accordance with subparagraph (D) of this 
paragraph or section 205(j)(4)(A)(i) shall not be considered a 
maintenance expense for purposes of subclause (II) of this clause.''.

SEC. 3. SCREENING OF FOSTER CHILDREN FOR ELIGIBILITY FOR SOCIAL 
              SECURITY AND SUPPLEMENTAL SECURITY INCOME BENEFITS.

    (a) State Plan Requirement.--Section 471(a) of the Social Security 
Act (42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(28) provides that, not later than the beginning of the 
        1st calendar quarter that begins after the 3-year period that 
        begins with the date of the encatment of this paragraph, the 
        State agency referred to in paragraph (2) of this subsection 
        shall--
                    ``(A) develop and implement procedures to ensure 
                that, within 60 days after the status of a child who is 
                in foster care under the responsibility of the State is 
                first reviewed pursuant to section 475(5)(B), the child 
                is screened to determine the potential eligibility of 
                the child for benefits under title II and for 
                supplemental security income benefits under title XVI; 
                and
                    ``(B) if the screening results in a determination 
                that the child is potentially eligible for any of such 
                benefits--
                            ``(i) provide the child with assistance in 
                        applying for, and (if necessary) appealing any 
                        decisions made with respect to, the benefits; 
                        and
                            ``(ii) if there is no other suitable 
                        candidate available, apply to become the 
                        representative payee for the child with respect 
                        to the benefits.''.
    (b) GAO Study.--
            (1) In general.--Within 6 years after the date of the 
        enactment of this Act, the Comptroller General of the United 
        States shall conduct a study to determine whether the States 
        have substantially complied with the amendments made by this 
        section, including specifically whether the States have--
                    (A) established successful procedures that screen 
                all foster children under the responsibility of the 
                States for their potential eligibility for benefits 
                under title II of the Social Security Act and for 
                supplemental security income benefits under title XVI 
                of such Act;
                    (B) provided all such potentially eligible foster 
                children assistance in applying for, and appealing 
                decisions made with respect to, the benefits; and
                    (C) implemented procedures to identify suitable 
                nongovernmental candidates to serve as representative 
                payees for children in foster care with respect to the 
                benefits.
            (2) Report to the congress.--Within 1 year after completing 
        the study required by paragraph (1), the Comptroller General 
        shall submit to the Congress a written report that contains the 
        results of the study.

SEC. 4. NOTICE TO ATTORNEY OR GUARDIAN AD LITEM FOR FOSTER CHILD OF 
              DETERMINATION TO PAY SOCIAL SECURITY OR SUPPLEMENTAL 
              SECURITY INCOME BENEFITS TO REPRESENTATIVE PAYEE.

    (a) Amendment to Title II.--Section 205(j)(2)(E)(ii) of the Social 
Security Act (42 U.S.C. 405(j)(2)(E)(ii)) is amended by inserting ``, 
except that, in the case of an individual who is in foster care under 
the responsibility of a State, such notice shall also be provided to 
the attorney or guardian ad litem appointed to represent the individual 
pursuant to section 106(b)(2)(A)(xiii) of the Child Abuse Prevention 
and Treatment Act'' before the period.
    (b) Amendment to Title XVI.--Section 1631(a)(2)(B)(xii) of such Act 
(42 U.S.C. 1383(a)(2)(B)(xii) is amended by inserting ``, except that, 
in the case of an individual who is in foster care under the 
responsibility of a State, such notice shall also be provided to the 
attorney or guardian ad litem appointed to represent the individual 
pursuant to section 106(b)(2)(A)(xiii) of the Child Abuse Prevention 
and Treatment Act'' before the period.

SEC. 5. MANAGEMENT OF SOCIAL SECURITY AND SUPPLEMENTAL SECURITY INCOME 
              BENEFITS FOR FOSTER CHILDREN.

    (a) Plan for Achieving Self-Support.--Section 471(a) of the Social 
Security Act (42 U.S.C. 671(a)), as amended by section 3(a) of this 
Act, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(29) provides that, with respect to each child in foster 
        care under the responsibility of the State who is a recipient 
        of benefits under title II or supplemental security income 
        benefits under title XVI, the State agency shall develop a 
        plan, developed specifically for the child, which is designed 
        to best meet the current and future needs of the individual and 
        enable the child to achieve self-support after leaving foster 
        care, in accordance with the following:
                    ``(A)(i) The plan shall set forth a strategy to 
                conserve benefits not necessary for the immediate needs 
                of the child, determined as provided for pursuant to 
                clause (ii) of this subparagraph, in a manner that best 
                meets the future needs and educational and employment 
                interests of the child.
                    ``(ii) The plan shall provide for a determination 
                as to whether the child has immediate needs for which 
                the benefits should be used consistent with sections 
                205(j)(10)(B) and1631(a)(2)(A)(iv)(II).
                    ``(iii) The plan shall provide that, if the child 
                ceases to be under the responsibility of the State, any 
                assets set aside under the plan shall be conserved and 
                inaccessible to the child, except for a use of funds 
                described in item (aa) through (gg) of section 
                1631(a)(2)(F)(ii)(II) of this Act, or for another use 
                approved by the Secretary as being in the best 
                interests of the child, until the child attains 18 
                years of age at which time any assets subject to the 
                plan shall be distributed to the child.
                    ``(B) The State agency shall--
                            ``(i) develop and implement the plan in 
                        collaboration with the child (on an age-
                        appropriate basis), the social worker for the 
                        child, the person acting as the representative 
                        payee for the child pursuant to section 205(j) 
                        or 1631(a)(2) of this Act, and the attorney or 
                        guardian ad litem appointed to represent the 
                        child pursuant to section 106(b)(2)(A)(xiii) of 
                        the Child Abuse Prevention and Treatment Act; 
                        and
                            ``(ii) in developing and implementing the 
                        plan, make reasonable efforts to seek input 
                        from the parents and caretakers of the child.
                    ``(C)(i) Within 60 days after the status of the 
                child is first reviewed pursuant to section 475(5)(B), 
                the State agency shall complete the plan.
                    ``(ii) The State agency shall ensure that each 
                subsequent such review of such status shall include 
                consideration of an updated version of the plan and a 
                report on the progress made in implementing the plan.
                    ``(D)(i) Not later than 30 days before the status 
                of the child is first reviewed pursuant to section 
                475(5)(B) of this Act after completion of the plan, the 
                State agency shall provide a copy of the plan to the 
                attorney or guardian ad litem appointed to represent 
                the child pursuant to section 106(b)(2)(A)(xiii) of the 
                Child Abuse Prevention and Treatment Act.
                    ``(ii) Not later than 30 days before each 
                subsequent such review, the State agency shall provide 
                an updated copy of the plan to the attorney or guardian 
                ad litem so appointed.
                    ``(E)(i) The child may request the plan to be 
                modified in a review of the status of the child 
                pursuant to section 475(5)(B), in a separate hearing, 
                or in a permanency hearing pursuant to section 
                475(5)(C).
                    ``(ii) The plan shall not be treated, in any 
                administrative or judicial review proceeding, as 
                meeting the requirements of this paragraph with respect 
                to a child unless the plan is determined by the 
                reviewer to be the best available means of meeting the 
                current and future needs and educational and employment 
                interests of the child.''.
    (b) Provisions Relating to Representative Payees.--
            (1) Amendments to title ii.--Section 205(j) of such Act (42 
        U.S.C. 405(j)) (as amended by the preceding provisions of this 
        Act) is amended further--
                    (A) by redesignating paragraphs (8), (9), and (10) 
                as paragraphs (9), (10), and (11), repectively; and
                    (B) by inserting after paragraph (7) the following 
                new paragraph:
    ``(8) A representative payee shall manage the benefits paid to the 
representative payee under paragraph (1) on behalf of an individual who 
is in foster care under the responsibility of a State, in accordance 
with the plan developed for the child pursuant to section 
471(a)(26).''.
            (2) Amendment to title xvi.--Section 1631(a)(2) of such Act 
        (42 U.S.C. 1383(a)(2)) is amended by adding at the end the 
        following:
    ``(J) A representative payee shall manage the benefits paid to the 
representative payee under subparagraph (A)(ii) of this paragraph on 
behalf of an individual who is in foster care under the responsibility 
of a State, in accordance with the plan developed for the child 
pursuant to section 471(a)(26).''.
    (c) Exclusion From Resources Under the SSI Program.--Section 
1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (14);
            (2) by striking the period at the end of paragraph (15) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (15) the following:
            ``(16) any assets managed on behalf of an eligible 
        individual in accordance with a plan developed for the 
        individual pursuant to section 471(a)(26).''.

SEC. 6. SUPPORT AND MAINTENANCE FURNISHED IN CASH OR IN KIND 
              DISREGARDED IN DETERMINING INCOME OF FOSTER CHILDREN 
              UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM.

    Section 1612(a)(2)(A) of the Social Security Act (42 U.S.C. 
1382a(a)(2)(A)) is amended--
            (1) by striking ``and'' at the end of clause (ii); and
            (2) by inserting ``, and (iv) clause (i) shall not apply in 
        the case of a child who is in foster care under the 
        responsibility of a State'' before the last seimcolon.

SEC. 7. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b) of this 
section, the amendments made by this Act (other than by section 3(a)) 
shall apply to benefits payable for months beginning after the date of 
the enactment of this Act.
    (b) State Plan Requirements Relating to Plans for Achieving Self-
Support.--
            (1) In general.--The amendments made by section 5(a) of 
        this Act shall take effect on the 1st day of the 1st calendar 
        quarter beginning after the date of the enactment of this Act, 
        and shall apply to payments under part E of title IV of the 
        Social Security Act for calendar quarters beginning after such 
        1st day.
            (2) Delay permitted if state legislation required.--If the 
        Secretary of Health and Human Services determines that State 
        legislation (other than legislation appropriating funds) is 
        required in order for a State plan approved under part E of 
        title IV of the Social Security Act to meet the additional 
        requirements imposed by the amendments made by section 5(a) of 
        this Act, the plan shall not be regarded as failing to meet any 
        of the additional requirements before the 1st day of the 1st 
        calendar quarter beginning after the first regular session of 
        the State legislature that begins after the date of the 
        enactment of this Act. If the State has a 2-year legislative 
        session, each year of the session is deemed to be a separate 
        regular session of the State legislature.

Summary: Foster Children Self-Support Act - Amends titles II (Old Age, Survivors and Disability Insurance) and XVI (Supplemental Security Income) (SSI) of the Social Security Act (SSA) to ban the use of Social Security or SSI benefits, paid to representative payees on behalf of foster children, to reimburse foster care maintenance payments by states.

Amends SSA title IV part E (Federal Payments for Foster Care and Adoption Assistance) to require the state plan for foster care and adoption assistance to provide for screening of foster children for eligibility for Social Security and SSI benefits and assistance.

Requires written notice to the attorney or guardian ad litem appointed to represent a foster child of the Commissioner of Social Security's initial determination to certify payment of such benefits to a representative payee.

Requires a state plan to require the appropriate state agency to develop a plan for each foster care child receiving Social Security or SSI benefits which is designed to best meet the individual's current and future needs and enable the child to achieve self-support after leaving foster care.

Requires a representative payee to manage the benefits paid on behalf of such a foster child in accordance with the plan developed for the child.

Excludes from the calculation of an individual's resources under the SSI program any assets managed on the individual's behalf in accordance with such plan.

Disregards support and maintenance furnished in cash or in kind in determining the income of foster children under the SSI program.