(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 § 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 § 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.

For expiration of this section, see Subsection (i).
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