| 1 | 1 | | 88R23964 BDP-F |
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| 2 | 2 | | By: Lujan, Klick, Garcia, Noble, H.B. No. 2645 |
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| 3 | 3 | | Morales of Maverick |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to a pilot program to increase the financial independence |
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| 9 | 9 | | of foster youth who are transitioning to independent living. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter B, Chapter 264, Family Code, is |
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| 12 | 12 | | amended by adding Section 264.1215 to read as follows: |
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| 13 | 13 | | Sec. 264.1215. PILOT PROGRAM FOR FINANCIAL TRANSITIONAL |
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| 14 | 14 | | LIVING SERVICES. (a) The department shall establish a pilot |
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| 15 | 15 | | program to assist foster youth to achieve financial security and |
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| 16 | 16 | | independence as the youth transition to independent living. |
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| 17 | 17 | | (b) The department shall enter into an agreement with one or |
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| 18 | 18 | | more banks, credit unions, or other financial institutions to |
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| 19 | 19 | | establish savings and checking accounts for foster youth who are at |
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| 20 | 20 | | least 14 but not more than 21 years of age and participate in the |
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| 21 | 21 | | pilot program. The agreement must include the following terms: |
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| 22 | 22 | | (1) notwithstanding Section 34.305(c), Finance Code, |
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| 23 | 23 | | a requirement that foster youth participating in the program are |
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| 24 | 24 | | the sole owner of the savings and checking accounts and may |
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| 25 | 25 | | establish savings and checking accounts without a co-signor; |
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| 26 | 26 | | (2) a requirement that the department and the bank, |
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| 27 | 27 | | credit union, or other financial institution together encourage the |
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| 28 | 28 | | foster youth participating in the program to open or continue |
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| 29 | 29 | | private savings and checking accounts once the participants are no |
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| 30 | 30 | | longer eligible for the program; |
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| 31 | 31 | | (3) procedures to ensure the participants maintain |
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| 32 | 32 | | ownership and control of the account at the time the participants |
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| 33 | 33 | | exit the program; |
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| 34 | 34 | | (4) a requirement that the bank, credit union, or |
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| 35 | 35 | | other financial institution provide to participants in the program |
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| 36 | 36 | | a checking and savings account that does not require maintenance |
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| 37 | 37 | | fees and cannot incur overdraft fees, nonsufficient funds fees, |
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| 38 | 38 | | inactivity fees, or any other penalty fees; and |
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| 39 | 39 | | (5) options to make financial coaching or mentoring |
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| 40 | 40 | | available to foster youth participating in the pilot program. |
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| 41 | 41 | | (c) The department may seek to partner with persons, |
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| 42 | 42 | | including nonprofit organizations or foundations, to match the |
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| 43 | 43 | | amounts of money deposited into the foster youth savings accounts |
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| 44 | 44 | | under the pilot program. The matching funds must be deposited |
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| 45 | 45 | | directly into a youth's savings account. |
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| 46 | 46 | | (d) The department and a person selected as a partner under |
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| 47 | 47 | | Subsection (c) may jointly establish incentives to provide |
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| 48 | 48 | | financial rewards to foster youth for actions performed by the |
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| 49 | 49 | | youth. |
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| 50 | 50 | | (e) The department shall survey each foster youth who enters |
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| 51 | 51 | | and exits the pilot program. The survey must be designed to assess |
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| 52 | 52 | | any changes in the youth's attitudes, perceptions, and knowledge |
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| 53 | 53 | | about financial matters from the time the youth entered the program |
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| 54 | 54 | | until the youth exited the program. |
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| 55 | 55 | | (f) The department shall complete an evaluation of the pilot |
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| 56 | 56 | | program and submit a report on the evaluation of the pilot program |
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| 57 | 57 | | conducted under this section to the governor, lieutenant governor, |
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| 58 | 58 | | and speaker of the house of representatives as soon as the |
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| 59 | 59 | | evaluation is complete but not later than December 31, 2027. |
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| 60 | 60 | | (g) A foster youth may not be denied the rights granted |
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| 61 | 61 | | under Section 264.0111 to control money earned by the youth that is |
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| 62 | 62 | | deposited into a savings or checking account under the pilot |
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| 63 | 63 | | program. |
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| 64 | 64 | | (h) If the department is unable to enter into an agreement |
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| 65 | 65 | | with a bank, credit union, or other financial institution, the |
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| 66 | 66 | | department shall include in the report required under Subsection |
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| 67 | 67 | | (f) a description of any legal or practical barriers that must be |
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| 68 | 68 | | addressed to ensure foster youth are able to participate in the |
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| 69 | 69 | | pilot program and establish savings and checking accounts before |
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| 70 | 70 | | the foster youth are no longer eligible for foster care services. |
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| 71 | 71 | | (i) This section expires January 1, 2028. |
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| 72 | 72 | | SECTION 2. As soon as practicable after the effective date |
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| 73 | 73 | | of this Act, the Department of Family and Protective Services shall |
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| 74 | 74 | | establish the pilot program as required by Section 264.1215, Family |
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| 75 | 75 | | Code, as added by this Act. |
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| 76 | 76 | | SECTION 3. This Act takes effect September 1, 2023. |
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