The bill establishes the Rhode Island Baby Bond Trust as a new chapter in the state's public finance laws, which will operate as an independent entity to manage and disburse funds for the benefit of children born in Rhode Island on or after January 1, 2025, who are either covered under Rite Care or uninsured at birth. The trust will be overseen by the general treasurer and will receive various forms of contributions, including payments, gifts, and grants. The funds will be used for eligible expenditures such as education, home ownership, vehicle purchase, or business ownership within Rhode Island. The trust's assets are exempt from state and local taxes and will not affect the beneficiaries' eligibility for state benefits or financial aid.

The bill details the operational framework of the trust, including the investment of funds, the role of the Department of Health in notifying the General Treasurer of births, and the criteria for beneficiaries to access the funds. A sum of $3,000 will be allocated to each beneficiary's account from the state's general fund upon their birth. The bill also amends existing law to redirect funds from the sale of abandoned property to the Baby Bond Trust instead of the general fund. Beneficiaries must claim their funds before age 30 and meet residency requirements to be eligible for the full sum. The bill will be enacted immediately upon passage.

Statutes affected:
7851: 33-21.1-23