BILL ANALYSIS H.B. 4655 By: Hull Human Services Committee Report (Unamended) BACKGROUND AND PURPOSE The bill author has informed the committee that youth aging out of the state's foster care system, who are some of the most resilient yet vulnerable individuals, have survived traumatic and overwhelmingly difficult circumstances often with little guidance on how to navigate into adulthood. According to the Texas Department of Family and Protective Services (DFPS), the Preparation for Adult Living (PAL) program helps educate older youth in substitute care on a variety of subjects related to adulthood and was implemented to ensure that these youth are prepared for their inevitable departure from DFPS care and support. However, the bill author has informed the committee that the curriculum for the program needs updating due to the lack of teachings in certain financial skills. H.B. 4655 seeks to address this issue by including in the PAL program specific instruction relating to credit agencies and credit scores, loans, interest rates, financial scams, bank accounts, budgeting, and rental contracts. Additionally, the bill requires DFPS to include in a child's transition plan information on how to secure or transfer governmental assistance for which the youth may qualify. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 4655 amends the Family Code to include the following among the required contents of the experiential life-skills training that a foster care provider must provide, or assist youth who are age 14 or older in obtaining, to improve their transition to independent living: with respect to the financial literacy education program: o as part of instruction on obtaining and interpreting a credit score, information about different scores produced by credit reporting agencies; o instruction on the risks of payday loans, unsecured loans, and motor vehicle title loans; o as part of instruction on avoiding predatory lending practices, an explanation of interest rates and usurious interest; o instruction on identifying and avoiding financial scams; and o as part of instruction on using basic banking and accounting skills, opening and using a bank account and creating a balanced budget; and for youth who are 17 years of age or older, lessons related to financing a motor vehicle, including information about the types of financing available for the purchase of a motor vehicle and the risks of subprime and buy-here-pay-here motor vehicle loans. H.B. 4655 revises the requirement for the Department of Family and Protective Services (DFPS) to ensure that the transition plan for each youth 16 years of age or older includes provisions that require DFPS to review a common rental application with the youth and ensure that the youth possesses all of the documentation required to obtain rental housing by including a common rental contract among the documentation DFPS must review with the youth. H.B. 4655 requires DFPS to ensure that the transition plan for each youth 16 years of age or older includes information about securing or transferring governmental assistance the youth may qualify for, including social security benefits, veteran or service member benefits, SNAP, WIC, TANF, and housing assistance. EFFECTIVE DATE September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 4655
By: Hull
Human Services
Committee Report (Unamended)
H.B. 4655
By: Hull
Human Services
Committee Report (Unamended)
BACKGROUND AND PURPOSE The bill author has informed the committee that youth aging out of the state's foster care system, who are some of the most resilient yet vulnerable individuals, have survived traumatic and overwhelmingly difficult circumstances often with little guidance on how to navigate into adulthood. According to the Texas Department of Family and Protective Services (DFPS), the Preparation for Adult Living (PAL) program helps educate older youth in substitute care on a variety of subjects related to adulthood and was implemented to ensure that these youth are prepared for their inevitable departure from DFPS care and support. However, the bill author has informed the committee that the curriculum for the program needs updating due to the lack of teachings in certain financial skills. H.B. 4655 seeks to address this issue by including in the PAL program specific instruction relating to credit agencies and credit scores, loans, interest rates, financial scams, bank accounts, budgeting, and rental contracts. Additionally, the bill requires DFPS to include in a child's transition plan information on how to secure or transfer governmental assistance for which the youth may qualify.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 4655 amends the Family Code to include the following among the required contents of the experiential life-skills training that a foster care provider must provide, or assist youth who are age 14 or older in obtaining, to improve their transition to independent living: with respect to the financial literacy education program: o as part of instruction on obtaining and interpreting a credit score, information about different scores produced by credit reporting agencies; o instruction on the risks of payday loans, unsecured loans, and motor vehicle title loans; o as part of instruction on avoiding predatory lending practices, an explanation of interest rates and usurious interest; o instruction on identifying and avoiding financial scams; and o as part of instruction on using basic banking and accounting skills, opening and using a bank account and creating a balanced budget; and for youth who are 17 years of age or older, lessons related to financing a motor vehicle, including information about the types of financing available for the purchase of a motor vehicle and the risks of subprime and buy-here-pay-here motor vehicle loans. H.B. 4655 revises the requirement for the Department of Family and Protective Services (DFPS) to ensure that the transition plan for each youth 16 years of age or older includes provisions that require DFPS to review a common rental application with the youth and ensure that the youth possesses all of the documentation required to obtain rental housing by including a common rental contract among the documentation DFPS must review with the youth. H.B. 4655 requires DFPS to ensure that the transition plan for each youth 16 years of age or older includes information about securing or transferring governmental assistance the youth may qualify for, including social security benefits, veteran or service member benefits, SNAP, WIC, TANF, and housing assistance.
EFFECTIVE DATE September 1, 2025.
BACKGROUND AND PURPOSE
The bill author has informed the committee that youth aging out of the state's foster care system, who are some of the most resilient yet vulnerable individuals, have survived traumatic and overwhelmingly difficult circumstances often with little guidance on how to navigate into adulthood. According to the Texas Department of Family and Protective Services (DFPS), the Preparation for Adult Living (PAL) program helps educate older youth in substitute care on a variety of subjects related to adulthood and was implemented to ensure that these youth are prepared for their inevitable departure from DFPS care and support. However, the bill author has informed the committee that the curriculum for the program needs updating due to the lack of teachings in certain financial skills.
H.B. 4655 seeks to address this issue by including in the PAL program specific instruction relating to credit agencies and credit scores, loans, interest rates, financial scams, bank accounts, budgeting, and rental contracts. Additionally, the bill requires DFPS to include in a child's transition plan information on how to secure or transfer governmental assistance for which the youth may qualify.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 4655 amends the Family Code to include the following among the required contents of the experiential life-skills training that a foster care provider must provide, or assist youth who are age 14 or older in obtaining, to improve their transition to independent living:
with respect to the financial literacy education program:
o as part of instruction on obtaining and interpreting a credit score, information about different scores produced by credit reporting agencies;
o instruction on the risks of payday loans, unsecured loans, and motor vehicle title loans;
o as part of instruction on avoiding predatory lending practices, an explanation of interest rates and usurious interest;
o instruction on identifying and avoiding financial scams; and
o as part of instruction on using basic banking and accounting skills, opening and using a bank account and creating a balanced budget; and
for youth who are 17 years of age or older, lessons related to financing a motor vehicle, including information about the types of financing available for the purchase of a motor vehicle and the risks of subprime and buy-here-pay-here motor vehicle loans.
H.B. 4655 revises the requirement for the Department of Family and Protective Services (DFPS) to ensure that the transition plan for each youth 16 years of age or older includes provisions that require DFPS to review a common rental application with the youth and ensure that the youth possesses all of the documentation required to obtain rental housing by including a common rental contract among the documentation DFPS must review with the youth.
H.B. 4655 requires DFPS to ensure that the transition plan for each youth 16 years of age or older includes information about securing or transferring governmental assistance the youth may qualify for, including social security benefits, veteran or service member benefits, SNAP, WIC, TANF, and housing assistance.
EFFECTIVE DATE
September 1, 2025.