Bill Text: TX SB1379 | 2023-2024 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to a pilot program to increase the financial independence of foster youth who are transitioning to independent living.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-06-18 - Effective on 9/1/23 [SB1379 Detail]

Download: Texas-2023-SB1379-Introduced.html

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88R6715 BDP-F
By: Parker S.B. No. 1379

A BILL TO BE ENTITLED
AN ACT
relating to a pilot program to increase the financial independence
of foster children who are transitioning to independent living.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 264, Family Code, is
amended by adding Section 264.1215 to read as follows:
Sec. 264.1215. PILOT PROGRAM FOR FINANCIAL TRANSITIONAL
LIVING SERVICES. (a) The department shall establish a pilot
program to assist foster children to achieve financial security and
independence as the children transition to independent living.
(b) Notwithstanding Section 34.305(c), Finance Code, the
department shall enter into an agreement with a credit union or
other financial institution to establish savings and checking
accounts for foster children who, under an agreement with the
department and credit union or other financial institution,
participate in the pilot program. The agreement may include, as
appropriate, the following terms:
(1) a requirement that the department and the credit
union or other financial institution together encourage the foster
children participating in the program to open or continue private
savings and checking accounts once the participants are no longer
eligible for foster care services;
(2) procedures to transfer ownership and control of
the account to the participants exiting the program who are no
longer eligible for foster care services;
(3) safeguards to prevent overdraft fees or any other
fees that the foster child may incur;
(4) options to make financial coaching or mentoring
available to foster children participating in the pilot program;
and
(5) the age a foster child may participate in the pilot
program without a co-signor.
(c) The department may seek to partner with a person,
including a foundation, to match the amounts of money deposited
into the foster children savings and checking accounts under the
pilot program. The matching funds must be deposited directly into
the child's savings or checking account.
(d) The department and the person selected as a partner
under Subsection (c) may jointly establish incentives to provide
financial rewards to foster children for actions performed by the
children, including college visits or attendance at financial
education classes. The financial rewards may only be paid by the
person and are not available for matching funds provided under
Subsection (c).
(e) Money that may be deposited in a foster child's savings
and checking account established under the pilot program includes:
(1) money earned by the child through employment or
allowance;
(2) gift money;
(3) money deposited by the child's foster parent or by
a parent or other relative of the child;
(4) money received from the person selected as a
partner under Subsection (c) as financial incentives or matching
funds; and
(5) other money authorized under the department's
agreement with the credit union or other financial institution.
(f) The department shall survey each foster child who enters
and exits the pilot program. The survey must be designed to assess
any changes in the child's attitudes, perceptions, and knowledge
about financial matters from the time the child entered the program
until the child exited the program.
(g) The department shall complete an evaluation of the pilot
program not later than December 31, 2026.
(h) The department shall submit a report on the evaluation
of the pilot program conducted under Subsection (g) to the
governor, lieutenant governor, and speaker of the house of
representatives as soon as the evaluation is complete but not later
than December 31, 2026.
(i) A foster child may not be denied the rights granted
under Section 264.0111 to control money earned by the child that is
deposited into a savings or checking account under the pilot
program.
(j) If the department is unable to enter into an agreement
with a credit union or other financial institution, the department
shall include in the report required under Subsection (h) a
description of any legal or practical barriers that must be
addressed to ensure foster children are able to participate in the
pilot program and establish savings and checking accounts before
the foster children are no longer eligible for foster care
services.
(k) This section expires December 31, 2030.
SECTION 2. As soon as practicable after the effective date
of this Act, the Department of Family and Protective Services shall
establish the pilot program as required by Section 264.1215, Family
Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2023.