| 1 | 1 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1683Introduced by Assembly Member DaviesJanuary 24, 2022 An act to add Section 16521.9 to the Welfare and Institutions Code, relating to foster youth. LEGISLATIVE COUNSEL'S DIGESTAB 1683, as introduced, Davies. Foster youth: savings accounts.Existing law generally provides for the placement of foster youth in various placement settings, and governs the provision of child welfare services, which is defined to mean public social services that are directed toward the accomplishment of specified purposes, including protecting and promoting the welfare of all children, preventing the unnecessary separation of children from their families, and restoring to their families children who have been removed. Existing law places various requirements on the State Department of Social Services in the provision of those public social services.This bill would require the department to develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution. The bill would require the department to ensure that a financial institution contracted with meets various requirements, including that the financial institution provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments. The bill would require the department to ensure that the child meets various requirements, including taking a financial literacy class to be developed by the department. The bill would authorize a contracting financial institution to hold a child with a savings account opened pursuant to those provisions responsible for overdraft costs up to $100. The bill would limit access to the savings account to the child who established the account, as specified. The bill would make related findings and declarations.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares the following:(a) Children in foster care frequently lack access to savings accounts and are unable to learn fiscal maturity and literacy skills. Fiscal maturity and literacy skills are crucial to a financially independent adulthood.(b) Access to savings accounts prepares a child to become financially independent once the child is no longer in the custody, care, or supervision of the state.(c) Savings accounts provide important life lessons for children to learn to save money for the future.SEC. 2. Section 16521.9 is added to the Welfare and Institutions Code, to read:16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution.(b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements:(1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments.(2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose.(3) Continues to provide the child access to the account if the child reunifies with their family.(c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements:(1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account.(2) The child has been in the foster care system for at least six months.(d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section.(e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100).(f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account.(g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied.(h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1683Introduced by Assembly Member DaviesJanuary 24, 2022 An act to add Section 16521.9 to the Welfare and Institutions Code, relating to foster youth. LEGISLATIVE COUNSEL'S DIGESTAB 1683, as introduced, Davies. Foster youth: savings accounts.Existing law generally provides for the placement of foster youth in various placement settings, and governs the provision of child welfare services, which is defined to mean public social services that are directed toward the accomplishment of specified purposes, including protecting and promoting the welfare of all children, preventing the unnecessary separation of children from their families, and restoring to their families children who have been removed. Existing law places various requirements on the State Department of Social Services in the provision of those public social services.This bill would require the department to develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution. The bill would require the department to ensure that a financial institution contracted with meets various requirements, including that the financial institution provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments. The bill would require the department to ensure that the child meets various requirements, including taking a financial literacy class to be developed by the department. The bill would authorize a contracting financial institution to hold a child with a savings account opened pursuant to those provisions responsible for overdraft costs up to $100. The bill would limit access to the savings account to the child who established the account, as specified. The bill would make related findings and declarations.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 12 | 12 | | |
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| 13 | 13 | | No. 1683 |
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| 15 | 15 | | Introduced by Assembly Member DaviesJanuary 24, 2022 |
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| 17 | 17 | | Introduced by Assembly Member Davies |
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| 18 | 18 | | January 24, 2022 |
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| 19 | 19 | | |
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| 20 | 20 | | An act to add Section 16521.9 to the Welfare and Institutions Code, relating to foster youth. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 1683, as introduced, Davies. Foster youth: savings accounts. |
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| 27 | 27 | | |
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| 28 | 28 | | Existing law generally provides for the placement of foster youth in various placement settings, and governs the provision of child welfare services, which is defined to mean public social services that are directed toward the accomplishment of specified purposes, including protecting and promoting the welfare of all children, preventing the unnecessary separation of children from their families, and restoring to their families children who have been removed. Existing law places various requirements on the State Department of Social Services in the provision of those public social services.This bill would require the department to develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution. The bill would require the department to ensure that a financial institution contracted with meets various requirements, including that the financial institution provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments. The bill would require the department to ensure that the child meets various requirements, including taking a financial literacy class to be developed by the department. The bill would authorize a contracting financial institution to hold a child with a savings account opened pursuant to those provisions responsible for overdraft costs up to $100. The bill would limit access to the savings account to the child who established the account, as specified. The bill would make related findings and declarations. |
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| 30 | 30 | | Existing law generally provides for the placement of foster youth in various placement settings, and governs the provision of child welfare services, which is defined to mean public social services that are directed toward the accomplishment of specified purposes, including protecting and promoting the welfare of all children, preventing the unnecessary separation of children from their families, and restoring to their families children who have been removed. Existing law places various requirements on the State Department of Social Services in the provision of those public social services. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill would require the department to develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution. The bill would require the department to ensure that a financial institution contracted with meets various requirements, including that the financial institution provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments. The bill would require the department to ensure that the child meets various requirements, including taking a financial literacy class to be developed by the department. The bill would authorize a contracting financial institution to hold a child with a savings account opened pursuant to those provisions responsible for overdraft costs up to $100. The bill would limit access to the savings account to the child who established the account, as specified. The bill would make related findings and declarations. |
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| 33 | 33 | | |
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| 34 | 34 | | ## Digest Key |
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| 35 | 35 | | |
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| 36 | 36 | | ## Bill Text |
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| 37 | 37 | | |
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| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares the following:(a) Children in foster care frequently lack access to savings accounts and are unable to learn fiscal maturity and literacy skills. Fiscal maturity and literacy skills are crucial to a financially independent adulthood.(b) Access to savings accounts prepares a child to become financially independent once the child is no longer in the custody, care, or supervision of the state.(c) Savings accounts provide important life lessons for children to learn to save money for the future.SEC. 2. Section 16521.9 is added to the Welfare and Institutions Code, to read:16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution.(b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements:(1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments.(2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose.(3) Continues to provide the child access to the account if the child reunifies with their family.(c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements:(1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account.(2) The child has been in the foster care system for at least six months.(d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section.(e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100).(f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account.(g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied.(h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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| 40 | 40 | | The people of the State of California do enact as follows: |
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| 42 | 42 | | ## The people of the State of California do enact as follows: |
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| 44 | 44 | | SECTION 1. The Legislature finds and declares the following:(a) Children in foster care frequently lack access to savings accounts and are unable to learn fiscal maturity and literacy skills. Fiscal maturity and literacy skills are crucial to a financially independent adulthood.(b) Access to savings accounts prepares a child to become financially independent once the child is no longer in the custody, care, or supervision of the state.(c) Savings accounts provide important life lessons for children to learn to save money for the future. |
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| 46 | 46 | | SECTION 1. The Legislature finds and declares the following:(a) Children in foster care frequently lack access to savings accounts and are unable to learn fiscal maturity and literacy skills. Fiscal maturity and literacy skills are crucial to a financially independent adulthood.(b) Access to savings accounts prepares a child to become financially independent once the child is no longer in the custody, care, or supervision of the state.(c) Savings accounts provide important life lessons for children to learn to save money for the future. |
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| 48 | 48 | | SECTION 1. The Legislature finds and declares the following: |
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| 49 | 49 | | |
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| 50 | 50 | | ### SECTION 1. |
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| 51 | 51 | | |
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| 52 | 52 | | (a) Children in foster care frequently lack access to savings accounts and are unable to learn fiscal maturity and literacy skills. Fiscal maturity and literacy skills are crucial to a financially independent adulthood. |
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| 53 | 53 | | |
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| 54 | 54 | | (b) Access to savings accounts prepares a child to become financially independent once the child is no longer in the custody, care, or supervision of the state. |
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| 55 | 55 | | |
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| 56 | 56 | | (c) Savings accounts provide important life lessons for children to learn to save money for the future. |
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| 57 | 57 | | |
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| 58 | 58 | | SEC. 2. Section 16521.9 is added to the Welfare and Institutions Code, to read:16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution.(b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements:(1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments.(2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose.(3) Continues to provide the child access to the account if the child reunifies with their family.(c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements:(1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account.(2) The child has been in the foster care system for at least six months.(d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section.(e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100).(f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account.(g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied.(h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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| 59 | 59 | | |
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| 60 | 60 | | SEC. 2. Section 16521.9 is added to the Welfare and Institutions Code, to read: |
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| 62 | 62 | | ### SEC. 2. |
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| 64 | 64 | | 16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution.(b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements:(1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments.(2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose.(3) Continues to provide the child access to the account if the child reunifies with their family.(c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements:(1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account.(2) The child has been in the foster care system for at least six months.(d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section.(e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100).(f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account.(g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied.(h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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| 66 | 66 | | 16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution.(b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements:(1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments.(2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose.(3) Continues to provide the child access to the account if the child reunifies with their family.(c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements:(1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account.(2) The child has been in the foster care system for at least six months.(d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section.(e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100).(f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account.(g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied.(h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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| 67 | 67 | | |
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| 68 | 68 | | 16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution.(b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements:(1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments.(2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose.(3) Continues to provide the child access to the account if the child reunifies with their family.(c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements:(1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account.(2) The child has been in the foster care system for at least six months.(d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section.(e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100).(f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account.(g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied.(h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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| 69 | 69 | | |
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| 71 | 71 | | |
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| 72 | 72 | | 16521.9. (a) The department shall develop a program to give children in the foster care system who are 12 years of age or older access to a savings account at a financial institution. |
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| 73 | 73 | | |
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| 74 | 74 | | (b) The department shall ensure that a financial institution contracted with pursuant to this section meets all of the following requirements: |
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| 76 | 76 | | (1) Provides a debit card that is accepted at any place that takes electronic benefits transfer (EBT) payments. |
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| 77 | 77 | | |
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| 78 | 78 | | (2) Provides access to the department to monitor use of money in a childs savings account when required to ensure continuation of receipt of state and federal benefits received by or on behalf of the child. The department shall adopt rules setting forth methods by which the department may monitor use of moneys in a childs account for this purpose. |
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| 80 | 80 | | (3) Continues to provide the child access to the account if the child reunifies with their family. |
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| 81 | 81 | | |
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| 82 | 82 | | (c) The department shall ensure that a child who opens a savings account pursuant to this section meets the following requirements: |
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| 83 | 83 | | |
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| 84 | 84 | | (1) The child takes a financial literacy class developed pursuant to subdivision (d) prior to opening the account. |
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| 85 | 85 | | |
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| 86 | 86 | | (2) The child has been in the foster care system for at least six months. |
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| 87 | 87 | | |
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| 88 | 88 | | (d) The department shall develop a financial literacy class and make the class available for children who are seeking to open a savings account pursuant to this section. |
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| 90 | 90 | | (e) Notwithstanding Chapter 2 (commencing with Section 6710) of Part 3 of Division 11 of the Family Code, a contracting financial institution may hold a child with a savings account opened pursuant to this program responsible for overdraft costs up to one hundred dollars ($100). |
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| 92 | 92 | | (f) The parent, guardian, foster parent, or other person having legal custody of the child is not entitled to be an accountholder on a savings account established pursuant this section or to have access to information about or moneys in the account without the written authorization of the child who established the account. |
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| 93 | 93 | | |
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| 94 | 94 | | (g) A financial institution that establishes a savings account for a child under this section is not liable to any person or entity for establishing the account or for permitting the child to make deposits to or withdrawals from the account. The financial institution is not required to ensure that moneys paid out of the account are properly applied. |
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| 95 | 95 | | |
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| 96 | 96 | | (h) Nothing in this section authorizes the department to require a financial institution to establish an account for a child. |
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