The legislature finds that many youth exiting foster care have not been financially prepared for a successful transition to independence. The legislature finds that financial awareness can play a key role in ensuring safe and stable housing and long-term economic well-being. The legislature recognizes that through passage of Substitute Senate Bill No. 6560 in 2018, the legislature established the goal of discharging all youth from state care into safe and stable housing. Therefore, the legislature resolves to create a program to aid young people in foster care with establishing self-controlled banking accounts to promote successful transition from foster care into independence.
This section adds a new section to an existing chapter 74.13. Here is the modified chapter for context.
The department shall develop a program to provide eligible youth with the ability to establish a self-controlled bank account with a financial institution.
Caseworkers shall provide an eligible youth with the opportunity to open a bank account with a financial institution. If interested, the eligible youth may open the account with any supportive adult, including but not limited to: Independent living service providers, caregivers, caseworkers, kinship and other family members, attorneys, and supportive adults in the community which may include mentors, teachers, and coaches. It is the department's responsibility to ensure that every eligible youth receives information about this program beginning at age 14, and to determine whether a youth has established a self-controlled bank account at the youth's shared planning meeting that is used to develop a transition plan, as provided for in this chapter. If it is determined that an eligible youth has not established a self-controlled bank account at the time of the shared planning meeting, information on opening a bank account with a financial institution must be included in a youth's transition plan.
The department shall deposit a minimum of $25 per month into an eligible youth's bank account as established under this program.
The program is to be fully operational by January 1, 2023.
An eligible youth is a dependent youth ages 14 and up, including youth in extended foster care, and remains eligible to open a bank account with the financial support of the department until the dependency proceeding is dismissed.
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The department shall convene a group of stakeholders to develop the implementation plan of this program and to ensure statewide access to high quality, developmentally, and culturally appropriate financial education to dependent youth ages 12 and up. The department is encouraged to utilize existing resources readily available including those provided by the department of financial institutions, among other agencies and programs. Stakeholders shall include, but are not limited to: Current or former foster youth, current or former caregivers, including kinship caregivers, the financial education public-private partnership, financial institutions, and those with expertise in providing financial education or mentorship to youth ages 12 and up.
By December 1, 2022, and in compliance with RCW 43.01.036, the department shall submit a report on the work of the stakeholder group as well as the status of the program implementation to the appropriate committees of the legislature and the governor.