Bill Text: TX SB602 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the Preparation for Adult Living Program and other services for foster children transitioning to independent living.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-03 - Referred to Health & Human Services [SB602 Detail]

Download: Texas-2025-SB602-Introduced.html

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89R1528 AMF-D
By: West S.B. No. 602

A BILL TO BE ENTITLED
AN ACT
relating to the Preparation for Adult Living Program and other
services for foster children transitioning to independent living.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 264.121, Family Code, is amended by
amending Subsections (a-2) and (i) and adding Subsection (j) to
read as follows:
(a-2) The experiential life-skills training under
Subsection (a-1) must include:
(1) a financial literacy education program developed
in collaboration with the Office of Consumer Credit Commissioner
and the State Securities Board that:
(A) includes instruction on:
(i) obtaining and interpreting a credit
score, including information about different scores produced by
credit reporting agencies;
(ii) protecting, repairing, and improving a
credit score;
(iii) the risks of payday loans, unsecured
loans, and motor vehicle title loans;
(iv) avoiding predatory lending practices,
including an explanation of interest rates and usurious interest;
(v) identifying and avoiding financial
scams;
(vi) [(iv)] saving money and accomplishing
financial goals through prudent financial management practices;
(vii) [(v)] using basic banking and
accounting skills, including opening and using a bank account,
balancing a checkbook, and creating a balanced budget;
(viii) [(vi)] using debit and credit cards
responsibly;
(ix) [(vii)] understanding a paycheck and
items withheld from a paycheck;
(x) [(viii)] understanding the time
requirements and process for filing federal taxes;
(xi) [(ix)] protecting financial, credit,
and personally identifying information in personal and
professional relationships and online;
(xii) [(x)] forms of identity and credit
theft; and
(xiii) [(xi)] using insurance to protect
against the risk of financial loss; and
(B) assists a youth who has a source of income to:
(i) establish a savings plan and, if
available, a savings account that the youth can independently
manage; and
(ii) prepare a monthly budget that includes
the following expenses:
(a) rent based on the monthly rent for
an apartment advertised for lease during the preceding month;
(b) utilities based on a reasonable
utility bill in the area in which the youth resides;
(c) telephone service based on a
reasonable bill for telephone service in the area in which the youth
resides;
(d) Internet service based on a
reasonable bill for Internet service in the area in which the youth
resides; and
(e) other reasonable monthly
expenses; and
(2) for youth who are 17 years of age or older, lessons
related to:
(A) 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;
(B) insurance, including applying for and
obtaining motor vehicle [automobile] insurance and residential
property insurance, including tenants insurance;
(C) [(B)] civic engagement, including the
process for registering to vote, the places to vote, and resources
for information regarding upcoming elections; and
(D) [(C)] the documents the youth is required to
receive under Subsection (e-1) prior to being discharged from
foster care and how those documents may be used.
(i) The department shall ensure that the transition plan for
each youth 16 years of age or older includes provisions to assist
the youth in managing the youth's housing needs after the youth
leaves foster care, including provisions that:
(1) identify the cost of housing in relation to the
youth's sources of income, including any benefits or rental
assistance available to the youth;
(2) if the youth's housing goals include residing with
family or friends, state that the department has addressed the
following with the youth:
(A) the length of time the youth expects to stay
in the housing arrangement;
(B) expectations for the youth regarding paying
rent and meeting other household obligations;
(C) the youth's psychological and emotional
needs, as applicable; and
(D) any potential conflicts with other household
members, or any difficulties connected to the type of housing the
youth is seeking, that may arise based on the youth's psychological
and emotional needs;
(3) inform the youth about emergency shelters and
housing resources, including supervised independent living and
housing at colleges and universities, such as dormitories;
(4) require the department to review a common rental
application and a common rental contract with the youth and ensure
that the youth possesses all of the documentation required to
obtain rental housing; and
(5) identify any individuals who are able to serve as
cosigners or references on the youth's applications for housing.
(j) The department shall 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:
(1) social security benefits;
(2) veteran or service member benefits;
(3) supplemental nutrition assistance;
(4) special supplemental nutrition assistance for
women, infants, and children;
(5) temporary assistance for needy families; and
(6) housing assistance.
SECTION 2. This Act takes effect September 1, 2025.