TN HB1235

Requires the Department of Children's Services, when acting as representative payee for foster children receiving federal funds, to conserve those funds for the child's future needs or use them for special needs services not otherwise provided by the department

Authorizes the department to hold conserved federal funds in various accounts including trusts, 529 education plans, 529A ABLE accounts, individual development accounts, or bank accounts in the child's best interest

Prohibits using the child's federal funds to reimburse the department for the costs of caring for the child, though the department may use interest earnings to offset administrative expenses for benefits management

Mandates recordkeeping on federal fund conservation and use, with records accessible to the child's attorney, the child upon turning 18, and the child's guardian if custody transfers

Effective July 1, 2025