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A BILL TO BE ENTITLED
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AN ACT
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relating to a pilot program to increase the financial independence |
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of foster youth who are transitioning to independent living. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 264, Family Code, is |
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amended by adding Section 264.1215 to read as follows: |
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Sec. 264.1215. PILOT PROGRAM FOR FINANCIAL TRANSITIONAL |
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LIVING SERVICES. (a) The department shall establish a pilot |
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program to assist foster youth to achieve financial security and |
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independence as the youth transition to independent living. |
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(b) The department shall enter into an agreement with one or |
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more banks, credit unions, or other financial institutions to |
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establish savings and checking accounts for foster youth who are at |
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least 14 but not more than 21 years of age and participate in the |
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pilot program. The agreement must include the following terms: |
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(1) notwithstanding Section 34.305(c), Finance Code, |
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a requirement that foster youth participating in the program are |
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the sole owner of the savings and checking accounts and may |
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establish savings and checking accounts without a co-signor; |
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(2) a requirement that the department and the bank, |
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credit union, or other financial institution together encourage the |
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foster youth participating in the program to open or continue |
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private savings and checking accounts once the participants are no |
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longer eligible for the program; |
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(3) procedures to ensure the participants maintain |
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ownership and control of the account at the time the participants |
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exit the program; |
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(4) a requirement that the bank, credit union, or |
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other financial institution provide to participants in the program |
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a checking and savings account that does not require maintenance |
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fees and cannot incur overdraft fees, nonsufficient funds fees, |
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inactivity fees, or any other penalty fees; and |
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(5) options to make financial coaching or mentoring |
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available to foster youth participating in the pilot program. |
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(c) The department may seek to partner with persons, |
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including nonprofit organizations or foundations, to match the |
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amounts of money deposited into the foster youth savings accounts |
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under the pilot program. The matching funds must be deposited |
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directly into a youth's savings account. |
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(d) The department and a person selected as a partner under |
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Subsection (c) may jointly establish incentives to provide |
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financial rewards to foster youth for actions performed by the |
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youth. |
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(e) The department shall survey each foster youth who enters |
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and exits the pilot program. The survey must be designed to assess |
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any changes in the youth's attitudes, perceptions, and knowledge |
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about financial matters from the time the youth entered the program |
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until the youth exited the program. |
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(f) The department shall complete an evaluation of the pilot |
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program and submit a report on the evaluation of the pilot program |
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conducted under this section to the governor, lieutenant governor, |
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and speaker of the house of representatives as soon as the |
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evaluation is complete but not later than December 31, 2027. |
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(g) A foster youth may not be denied the rights granted |
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under Section 264.0111 to control money earned by the youth that is |
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deposited into a savings or checking account under the pilot |
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program. |
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(h) If the department is unable to enter into an agreement |
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with a bank, credit union, or other financial institution, the |
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department shall include in the report required under Subsection |
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(f) a description of any legal or practical barriers that must be |
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addressed to ensure foster youth are able to participate in the |
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pilot program and establish savings and checking accounts before |
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the foster youth are no longer eligible for foster care services. |
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(i) This section expires January 1, 2028. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the Department of Family and Protective Services shall |
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establish the pilot program as required by Section 264.1215, Family |
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Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |