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

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

---

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-Comm_Sub.html

---

By: Parker, et al. S.B. No. 1379
(Lujan, Klick, Garcia, Noble, Morales of Maverick)

A BILL TO BE ENTITLED
AN ACT
relating to a pilot program to increase the financial independence
of foster youth 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 youth to achieve financial security and
independence as the youth transition to independent living.
(b) The department shall enter into an agreement with one or
more banks, credit unions, or other financial institutions to
establish savings and checking accounts for foster youth who are at
least 14 but not more than 21 years of age and participate in the
pilot program. The agreement must include the following terms:
(1) notwithstanding Section 34.305(c), Finance Code,
a requirement that foster youth participating in the program are
the sole owner of the savings and checking accounts and may
establish savings and checking accounts without a co-signor;
(2) a requirement that the department and the bank,
credit union, or other financial institution together encourage the
foster youth participating in the program to open or continue
private savings and checking accounts once the participants are no
longer eligible for the program;
(3) procedures to ensure the participants maintain
ownership and control of the account at the time the participants
exit the program;
(4) a requirement that the bank, credit union, or
other financial institution provide to participants in the program
a checking and savings account that does not require maintenance
fees and cannot incur overdraft fees, nonsufficient funds fees,
inactivity fees, or any other penalty fees; and
(5) options to make financial coaching or mentoring
available to foster youth participating in the pilot program.
(c) The department may seek to partner with persons,
including nonprofit organizations or foundations, to match the
amounts of money deposited into the foster youth savings accounts
under the pilot program. The matching funds must be deposited
directly into a youth's savings account.
(d) The department and a person selected as a partner under
Subsection (c) may jointly establish incentives to provide
financial rewards to foster youth for actions performed by the
youth.
(e) The department shall survey each foster youth who enters
and exits the pilot program. The survey must be designed to assess
any changes in the youth's attitudes, perceptions, and knowledge
about financial matters from the time the youth entered the program
until the youth exited the program.
(f) The department shall complete an evaluation of the pilot
program and submit a report on the evaluation of the pilot program
conducted under this section 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, 2027.
(g) A foster youth may not be denied the rights granted
under Section 264.0111 to control money earned by the youth that is
deposited into a savings or checking account under the pilot
program.
(h) If the department is unable to enter into an agreement
with a bank, credit union, or other financial institution, the
department shall include in the report required under Subsection
(f) a description of any legal or practical barriers that must be
addressed to ensure foster youth are able to participate in the
pilot program and establish savings and checking accounts before
the foster youth are no longer eligible for foster care services.
(i) This section expires January 1, 2028.
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.