BILL NUMBER: S4564
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the state finance law, in relation to establishing the
New York baby opportunity fund
 
PURPOSE:
To establish an opportunity fund that will deposit $1,000 into an
account managed by the New York State comptroller to be available to
eligible children when they reach the age of 18. It provides that such
funds be used for education costs, the purchase of a home, or establish-
ing a business.
 
SUMMARY OF SPECIFIC PROVISIONS:
The bill amends the state finance law to establish the fund and effec-
tively implement the purpose of the bill. In addition to setting forth
the "qualified expenses" cited above, the bill requires that the funds
within each account be invested in a manner that generates a rate of
return at least equal to the rate of return earned on a 30-year treasury
bond.
 
JUSTIFICATION:
The New York Baby Opportunity Fund is aimed at reducing the racial
wealth gap in New York State. Though the fund would be applied
universally, it seeks to provide resources to children from households
with the least resources, including children from Black, Latino and
Indigenous households.
 
FISCAL IMPACT ON THE STATE:
Approximately $150,000,000 per year.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: S4555 - Referred to Finance
2023-24: S2187 - Referred to Finance
 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it
shall have become a law, with an immediate effective date for rule
implementation.