Washington SB 5591: Providing dependent youth with financial education and support.

Bill Text

AN ACT Relating to providing dependent youth with financial 1
education and support; adding a new section to chapter 74.13 RCW; and 2
creating a new section.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The legislature finds that many youth 5
exiting foster care have not been financially prepared for a 6
successful transition to independence. The legislature finds that 7
financial awareness can play a key role in ensuring safe and stable 8
housing and long-term economic well-being. The legislature recognizes 9
that through passage of Substitute Senate Bill No. 6560 in 2018, the 10
legislature established the goal of discharging all youth from state 11
care into safe and stable housing. Therefore, the legislature 12
resolves to create a program to aid young people in foster care with 13
establishing private self-controlled accounts to promote successful 14
transition from foster care into independence.15
NEW SECTION. Sec. 2. A new section is added to chapter 74.13 16
RCW to read as follows:17
(1) The department shall develop a program to provide eligible 18
youth with the opportunity to establish a private self-controlled 19
account with a financial institution.20
S-0404.3
SENATE BILL 5591
State of Washington 68th Legislature 2023 Regular Session
By Senators Nobles, Mullet, Frame, Kuderer, Lovelett, Nguyen,
Randall, Trudeau, Valdez, and C. Wilson
Read first time 01/27/23. Referred to Committee on Human Services.
p. 1 SB 5591

(a) Caseworkers shall provide an eligible youth with the 1
opportunity to open a private self-controlled account with a 2
financial institution. If interested, the eligible youth may open the 3
account with assistance from any supportive adult, including but not 4
limited to: Independent living service providers, caregivers, 5
caseworkers, kinship and other family members, attorneys, and 6
supportive adults in the community which may include mentors, 7
teachers, and coaches. It is the department's responsibility to 8
ensure that every eligible youth receives information about this 9
program beginning at age 14, and to determine whether a youth has 10
established a private self-controlled account at the youth's shared 11
planning meeting that is used to develop a transition plan, as 12
provided for in this chapter. If it is determined that an eligible 13
youth has not established a private self-controlled account at the 14
time of the shared planning meeting, information on opening an 15
account with a financial institution must be included in a youth's 16
transition plan.17
(b) As appropriate, the department shall engage various partners 18
to work with young people to establish their accounts, including but 19
not limited to independent living providers, established community-20
based organizations, foster parents and caregivers, foster care in-21
school support staff, and other direct service department staff.22
(c) The department shall deposit a minimum of $25 per month into 23
an eligible youth's account as established under this program. The 24
department shall make a first deposit within two weeks of the youth's 25
opening of an account. Eligible youth may opt out of receiving 26
minimum deposits under this section at any time. It is the 27
department's responsibility to inform the eligible youth about the 28
impact that deposits could have on public benefit eligibility.29
(d) The department shall create an online platform to allow youth 30
to establish their financial accounts.31
(e) The program is to be fully operational by January 1, 2024. 32
The program shall be established across the state in phases over the 33
state fiscal years as follows:34
(i) Over the 2023-2024 fiscal year, Spokane and Pierce counties;35
(ii) Over the 2024-2025 fiscal year, the remaining counties in 36
the department's regions 1 and 5;37
(iii) Over the 2025-2026 fiscal year, regions 2 and 6; and38
(iv) Over the 2026-2027 fiscal year, regions 3 and 4.39
p. 2 SB 5591

(f) The department shall conduct an annual electronic survey of 1
15 percent of eligible youth as a method of program evaluation.2
(g) An eligible youth is a dependent youth ages 14 and up, 3
including youth in extended foster care, and remains eligible to open 4
an account with the financial support of the department until the 5
dependency proceeding is dismissed.6
(2)(a) The department shall convene a temporary advisory 7
committee to develop the implementation plan of this program, collect 8
and report data, expand and build upon partnerships with financial 9
institutions and service providers, review communications and 10
marketing materials, and conduct other relevant duties. The 11
department shall consult the temporary advisory committee regarding 12
the financial education program to ensure statewide access to a high 13
quality, developmentally, and culturally appropriate program for 14
dependent youth ages 12 and up. The temporary advisory committee 15
shall develop a survey for eligible youth t