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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the foster child trust account |
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program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 264, Family Code, is |
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amended by adding Section 264.0112 to read as follows: |
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Sec. 264.0112. FOSTER CHILD TRUST ACCOUNT PROGRAM. (a) The |
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department in cooperation with the comptroller shall establish and |
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administer a foster child trust account program to hold federal |
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benefits described by Subsection (b) received by children in the |
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department's conservatorship. |
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(b) For a child in the department's conservatorship who |
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receives or is eligible to receive United States Department of |
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Veterans Affairs benefits, Supplemental Security Income (SSI) |
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benefits under 42 U.S.C. Section 1381 et seq., or Social Security |
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Disability Insurance (SSDI) benefits under 42 U.S.C. Section 401 et |
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seq., the department shall: |
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(1) serve as the representative payee for the benefits |
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received by the child; |
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(2) deposit any benefits received by the department on |
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behalf of the child into an interest-bearing trust account |
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maintained by the comptroller and manage the account until all |
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money in the account is disbursed to the child; |
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(3) save the benefits in a manner that avoids |
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violating federal asset or resource limits that would negatively |
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affect the child's eligibility to receive the benefits; and |
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(4) provide an accounting to the child and the child's |
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legal representative regarding the saving of the child's resources |
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under the program on the date the child is discharged from or |
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otherwise leaves foster care. |
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(c) The comptroller may contract with one or more financial |
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institutions to establish and manage an account for each child who |
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receives benefits described by Subsection (b). |
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(d) The comptroller shall make funds in the account |
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available to a child in accordance with Subsection (e) as soon as |
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practicable after: |
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(1) the date the child leaves the department's |
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conservatorship if on that date the child: |
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(A) is at least 18 years of age; or |
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(B) has had the disabilities of minority removed; |
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or |
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(2) the child's 18th birthday if the child is younger |
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than 18 years of age on the date the child leaves the department's |
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conservatorship. |
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(e) On the date provided by Subsection (d), the comptroller |
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shall make the entire balance of the account available to the child |
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using a debit card or an online or electronic transfer payment |
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service if the balance of the account does not exceed $5,000. If |
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the balance of the account exceeds $5,000, the comptroller shall |
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make $5,000 available to the child on the date provided by |
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Subsection (d), and pay the remaining balance of the account to the |
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child in increments not to exceed $5,000 each quarter after the |
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initial disbursement until no money remains in the account. |
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(f) Neither the state nor a child's guardian may access |
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money in the child's account except that the state may deduct an |
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amount equal to any interest earned on money in the account. |
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(g) On the date on which all money has been disbursed from a |
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child's account, the child's account is closed. |
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SECTION 2. Not later than January 1, 2026, the Department of |
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Family and Protective Services shall adopt rules necessary to |
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establish and administer the accounts required under Section |
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264.0112, Family Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |