Foster youth could open a bank account with judge's consent under bill headed to Senate floor

A Senate committee passed a bill Wednesday that would grant foster youth the ability to open a bank account without parental consent.

Currently, anyone younger than 18 needs an adult to co-sign on bank accounts. Some financial institutions require parents or guardians, others are more flexible. Lawmakers amended House Bill 1441 to authorize juvenile court judges the ability to grant foster youth or emancipated minors consent to open an account.

A previous version of the bill would have allowed a judge or the Indiana Department of Child Services to do that.

However, this raised concerns for Sen. Cyndi Carrasco (R-Indianapolis) during a Senate Insurance and Financial Institutions Committee meeting last week. She said she was concerned about the criteria DCS might use to make that determination.

Lawmakers removed that provision from the bill Wednesday. Sen. Kyle Walker (R-Fishers), one of the bill's sponsors, believes that will address some of the concerns from the committee.

“It pulls out the portion that would allow DCS to be one of the folks who can consent for a juvenile to enter into this contract and leaves it solely up to the court, which is consistent with other parts of code that we have," Walker said.

The bill amendments will also ensure the contracts between the financial institutions and the qualified youth remain enforceable. Under the bill, qualified youth would be responsible for all bank-related costs and accrued penalties.

Rowan Grae is part of the Indiana Youth Advisory Board and an advocate for the bill. Grae, a former foster youth, testified in support of the bill.

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Grae said they spent eight years in the foster care system, split between two homes. During their time in the system, Grae got their first job.

They said their foster parents opened a bank account for them without their consent and began monitoring their purchases and withdrawing money.

"It felt like my money was never actually mine, even though I was working those doubles. I would work 16 hours a day during the summer sometimes, just to make extra money, because I had goals. I wanted to move out when I turned 18," Grae said. "And so, with that, it just became an issue with them."

Grae said they believe this bill will provide security for youth in the foster care system.

The bill now goes to the Senate floor.
 

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.