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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4655

Regular Session

Relating to the Preparation for Adult Living Program and other services for foster children transitioning to independent living.

Government Affairs & Regulatory Compliance Analysis

HB4655: Government Affairs Overview

HB4655 amends the Texas Family Code to mandate that all foster care providers serving youth aged 14 and older must upgrade their Preparation for Adult Living (PAL) curriculum from general life skills to specific, granular financial and legal instruction. This legislation shifts the "Standard of Care" for Child Placing Agencies (CPAs), Residential Treatment Centers (RTCs), and Supervised Independent Living (SIL) providers, requiring immediate updates to transition planning protocols regarding housing contracts, predatory lending, and government benefits.

Rep. Lacey Hull·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-06-20
Business Impact

Who HB4655 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

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Banking & Finance

Affected business types:

  • Banks
  • Credit unions
  • Financial services firms
  • Insurance companies
View all banking & finance legislation

Key Operational Considerations

  • 1DFPS Master Contracts: Anticipate amendments to your provider agreement incorporating Section 264.121 of the Family Code.
  • 2Liability Guardrails: Train staff to provide *educational information* on insurance and credit, rather than *financial advice*, to avoid professional liability exposure.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB4655
Relating to the Preparation for Adult Living Program and other services for foster children transitioning to independent living.
Moderate Urgency
Passed with Opposition
House Vote143 - 5
YEA
97% in favor148 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
5
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
DFPS
Primary Author: Rep. Lacey Hull
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Due to supermajority passage, despite Section 2 text listing September 1).
  • Compliance Deadline: June 20, 2025. Providers must be ready to document these specific conversations for any youth discharging or aging out on or after this date to avoid negligence claims or contract breach.
  • Agency Rulemaking: The Department of Family and Protective Services (DFPS) must collaborate with the Office of Consumer Credit Commissioner (OCCC) to develop the financial literacy materials. Expect a "regulatory gray zone" between the effective date and the release of official DFPS guidance; providers must bridge this gap with their own compliant materials immediately.

Immediate Action Plan

  • 1. Audit Curriculum: Immediately review current PAL materials. If they do not cover predatory lending (payday/title loans) and subprime auto financing, they are non-compliant.
  • 2. Update Forms: Revise the "Transition Plan" document to include specific checkboxes for "Rental Contract Review" and "Government Benefits Transfer Protocol."
  • 3. Standardize the "Roommate Talk": Create a script or worksheet for caseworkers to use when discussing living arrangements with youth, ensuring all statutory points (duration, expenses, conflict) are covered.
  • 4. Identify At-Risk Youth: Flag all youth in care aged 16+ who are scheduled for discharge in Q3 2025 and prioritize them for the updated financial modules.

Operational Changes Required

Contracts

  • Vendor Agreements: If you outsource PAL training to third-party vendors, you must amend their Statements of Work immediately. Their curriculum is likely non-compliant if it does not specifically cover "buy-here-pay-here" auto financing, payday loans, and title loans as now required by statute.
  • DFPS Master Contracts: Anticipate amendments to your provider agreement incorporating Section 264.121 of the Family Code.

Hiring/Training

  • Caseworker Retraining: Case managers are now statutorily required to facilitate complex financial discussions. Staff must be trained to explain the legal implications of a "common rental contract" (e.g., a TAA Lease) versus a simple rental application.
  • Liability Guardrails: Train staff to provide *educational information* on insurance and credit, rather than *financial advice*, to avoid professional liability exposure.

Reporting & Record-Keeping

  • Transition Plan Updates: You must update your internal case management checklists. The file must contain signed documentation verifying the youth has:
  • 1. Reviewed a standard rental contract.
  • 2. Received instruction on applying for and transferring government benefits (SNAP, WIC, TANF).
  • 3. Identified a potential cosigner for housing (or documented the lack thereof).
  • 4. Discussed specific "roommate expectations" regarding rent and duration of stay if planning to live with others.

Fees & Costs

  • Budget Impact: No new state fees.
  • Operational Cost: Providers should budget for administrative hours to update curriculum and potential costs to purchase updated financial literacy materials if current resources do not meet the new OCCC-aligned standards.

Strategic Ambiguities & Considerations

  • "Collaboration with OCCC": The statute requires the financial literacy program to be developed with the Office of Consumer Credit Commissioner. It is unclear if DFPS will mandate a *single* standardized course or simply set learning objectives. Strategy: Do not invest heavily in proprietary curriculum development until DFPS clarifies if a free, state-mandated module will be released.
  • "Reasonable" Expenses: The law requires budgeting based on "reasonable" utility and housing costs. This is subjective. Strategy: Protect against audit findings by documenting the data source for your budget figures (e.g., "Used average kWh rates for Zip Code 78701").

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 12, 2025
Passed House
May 7, 2025
Passed Senate
May 21, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsFamilyFamily--child ProtectionFinancialFinancial--generalHuman ServicesHuman Services--generalFoster CareFamily & Protective Services, Department of
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House Authors

Rep. Lacey HullRepublican · Primary Author

Senate Sponsors

Sen. Royce WestDemocrat · Primary Sponsor
Cosponsors (2)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Lacey Hull

View all bills by Rep. Lacey Hull

Related by Topic

View more Family legislation
Quick Reference

Frequently Asked Questions

Common questions about HB4655

Q

What does Texas HB4655 do?

HB4655 amends the Texas Family Code to mandate that all foster care providers serving youth aged 14 and older must upgrade their Preparation for Adult Living (PAL) curriculum from general life skills to specific, granular financial and legal instruction. This legislation shifts the "Standard of Care" for Child Placing Agencies (CPAs), Residential Treatment Centers (RTCs), and Supervised Independent Living (SIL) providers, requiring immediate updates to transition planning protocols regarding housing contracts, predatory lending, and government benefits.

Q

Who authored HB4655?

HB4655 was authored by Texas Representative Lacey Hull during the Regular Session.

Q

When was HB4655 signed into law?

HB4655 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4655?

HB4655 is enforced by Department of Family and Protective Services (DFPS).

Q

How significant are the changes in HB4655?

The regulatory priority for HB4655 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB4655?

The cost impact of HB4655 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB4655 address?

HB4655 addresses topics including family, family--child protection, financial, financial--general and human services.

Q

What are the key dates for HB4655?

Key dates for HB4655: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026