The bill establishes the Rhode Island Baby Bond Trust as a new chapter in Title 35 of the General Laws, which is an instrumentality of the state tasked with holding and disbursing funds for designated beneficiaries. These beneficiaries are defined as individuals born on or after January 1, 2025, who were either covered under Rite Care or uninsured at the time of birth. The trust is to be managed by the general treasurer, who is responsible for the receipt, maintenance, administration, and disbursement of the funds. The trust's property and earnings are exempt from state and local taxation, and the funds are not to be considered as assets or income for state-administered benefits or financial aid programs. The bill also grants the general treasurer various powers, including the ability to receive and invest monies, enter into contracts, and accept gifts and donations.

The bill further specifies that upon the birth of a designated beneficiary, the general treasurer is to transfer $3,000 from the general fund to the trust for the beneficiary's account. Beneficiaries can access their funds at age 18, provided they have been Rhode Island residents for at least two years, and must claim their funds before turning 30. If a beneficiary does not meet these conditions, the funds are returned to the trust. The bill also amends Section 33-21.1-23 of the General Laws, directing that funds from unclaimed property be deposited into the Rhode Island Baby Bond Trust instead of the state's general fund. The administrator is allowed to deduct costs related to the administration of this chapter before transferring surplus funds to the trust. The act is effective upon passage.

Statutes affected:
2929: 33-21.1-23