BILL NUMBER: S2187
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the state finance law, in relation to establishing the
New York baby opportunity fund
 
PURPOSE:
Each newborn in New York State households earning an income of $125,000
or less will receive $1,000, which will be put into a savings account.
The account will be accessible on the child's 18th birthday, and can
only be used for education, the purchase of a home, or starting a busi-
ness.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section. 1 of the bill establishes the New York baby opportunity fund.
Among other things, it establishes that the fund shall provide for the
deposit of one thousand dollars into an individual account for each
eligible child within six months of receipt of an application to the
fund for such child, and provides that monies within each account shall
be invested in a manner that generates a rate of return at least equal
to the rate of return earned on a thirty-year treasury bond.
Section 2 sets forth the effective date.
 
EXISTING LAW:
New law.
 
JUSTIFICATION:
All too often children, born into the world of poverty, never establish
a savings account and often reach adulthood without any type of finan-
cial "nestegg".
This bill is modeled after a proposal made by Sen. Cory Booker and
backed by Gov. Murphy in New Jersey.
It will be investing in the future of New York State and providing a
"leg-up" to children entering the world.
 
FISCAL IMPACT ON THE STATE:
Approximately $150,000,000 per year.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: S4555/A4065 (Benedetto) - Referred to Finance
 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after 16 it
shall have become a law