Bill Text: TX SB577 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the establishment of the foster child trust account program.

Sponsorship: Bipartisan Bill

Status: (Introduced - Dead) 2025-05-13 - Co-author authorized [SB577 Detail]

Download: Texas-2025-SB577-Introduced.html

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89R1527 MM-D
By: West S.B. No. 577

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