The bill introduces a new chapter, "RHODE ISLAND BABY BOND TRUST," to Title 35 of the General Laws, establishing a trust to hold and disburse funds for designated beneficiaries—children born on or after January 1, 2025, who were covered under Rite Care or were uninsured at birth. The trust, managed by the general treasurer, will receive various forms of contributions and is exempt from state and local taxes. Funds are not to be commingled with state funds and are not considered assets or income for state benefit or financial aid eligibility. The general treasurer is empowered to manage the trust's funds, including investing monies, entering contracts, and maintaining accounts for each beneficiary.

The bill specifies that each designated beneficiary will have $3,000 transferred to their account in the trust from the state's general fund upon birth. The Department of Health will notify the general treasurer of each birth. Beneficiaries can access their funds at age 18 for eligible expenditures, such as education, home ownership, vehicle purchase, or business ownership in Rhode Island, provided they have been residents for two years and claim before age 30. Unclaimed or ineligible funds revert to the trust. The bill also amends Section 33-21.1-23 to direct funds from unclaimed property to the Baby Bond Trust instead of the state's general fund, with the administrator allowed to deduct administration costs. The bill becomes effective upon passage.

Statutes affected:
7851: 33-21.1-23