payday loans and credit scores join foster youth training

The text as introduced · 827 words

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.