88R23964 BDP-F
 
  By: Lujan, Klick, Garcia, Noble, H.B. No. 2645
      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.