Texas 2025 - 89th Regular

Texas Senate Bill SB577 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R1527 MM-D
2	2	By: West S.B. No. 577
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment of the foster child trust account
10	10	program.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter A, Chapter 264, Family Code, is
13	13	amended by adding Section 264.0112 to read as follows:
14	14	Sec. 264.0112. FOSTER CHILD TRUST ACCOUNT PROGRAM. (a) The
15	15	department in cooperation with the comptroller shall establish and
16	16	administer a foster child trust account program to hold federal
17	17	benefits described by Subsection (b) received by children in the
18	18	department's conservatorship.
19	19	(b) For a child in the department's conservatorship who
20	20	receives or is eligible to receive United States Department of
21	21	Veterans Affairs benefits, Supplemental Security Income (SSI)
22	22	benefits under 42 U.S.C. Section 1381 et seq., or Social Security
23	23	Disability Insurance (SSDI) benefits under 42 U.S.C. Section 401 et
24	24	seq., the department shall:
25	25	(1) serve as the representative payee for the benefits
26	26	received by the child;
27	27	(2) deposit any benefits received by the department on
28	28	behalf of the child into an interest-bearing trust account
29	29	maintained by the comptroller and manage the account until all
30	30	money in the account is disbursed to the child;
31	31	(3) save the benefits in a manner that avoids
32	32	violating federal asset or resource limits that would negatively
33	33	affect the child's eligibility to receive the benefits; and
34	34	(4) provide an accounting to the child and the child's
35	35	legal representative regarding the saving of the child's resources
36	36	under the program on the date the child is discharged from or
37	37	otherwise leaves foster care.
38	38	(c) The comptroller may contract with one or more financial
39	39	institutions to establish and manage an account for each child who
40	40	receives benefits described by Subsection (b).
41	41	(d) The comptroller shall make funds in the account
42	42	available to a child in accordance with Subsection (e) as soon as
43	43	practicable after:
44	44	(1) the date the child leaves the department's
45	45	conservatorship if on that date the child:
46	46	(A) is at least 18 years of age; or
47	47	(B) has had the disabilities of minority removed;
48	48	or
49	49	(2) the child's 18th birthday if the child is younger
50	50	than 18 years of age on the date the child leaves the department's
51	51	conservatorship.
52	52	(e) On the date provided by Subsection (d), the comptroller
53	53	shall make the entire balance of the account available to the child
54	54	using a debit card or an online or electronic transfer payment
55	55	service if the balance of the account does not exceed $5,000. If
56	56	the balance of the account exceeds $5,000, the comptroller shall
57	57	make $5,000 available to the child on the date provided by
58	58	Subsection (d), and pay the remaining balance of the account to the
59	59	child in increments not to exceed $5,000 each quarter after the
60	60	initial disbursement until no money remains in the account.
61	61	(f) Neither the state nor a child's guardian may access
62	62	money in the child's account except that the state may deduct an
63	63	amount equal to any interest earned on money in the account.
64	64	(g) On the date on which all money has been disbursed from a
65	65	child's account, the child's account is closed.
66	66	SECTION 2. Not later than January 1, 2026, the Department of
67	67	Family and Protective Services shall adopt rules necessary to
68	68	establish and administer the accounts required under Section
69	69	264.0112, Family Code, as added by this Act.
70	70	SECTION 3. This Act takes effect September 1, 2025.