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SB497,4,22 20(2) Except as provided in s. 25.187, moneys in the baby bond fund may be
21expended only for the purpose of making distributions under s. 224.58 (4) and
22deposits under s. 224.58 (3) (b) 2.
SB497,12 23Section 12 . 69.14 (1) (a) of the statutes is amended to read:
SB497,5,224 69.14 (1) (a) Filing deadline. A record of birth for every birth that occurs in this
25state shall be filed within 5 days after the birth with the state registrar, who shall

1register the birth under this subchapter. The state registrar shall submit a copy of
2the record of birth to the department of financial institutions.
SB497,13 3Section 13. 71.05 (6) (b) 57. of the statutes is created to read:
SB497,5,54 71.05 (6) (b) 57. The amount of a distribution made to an account beneficiary,
5as defined in s. 224.58 (1) (b), under s. 224.58 (4).
SB497,14 6Section 14. 71.78 (4) (v) of the statutes is created to read:
SB497,5,87 71.78 (4) (v) The department of financial institutions and the department of
8health services for the purpose of determining eligibility under s. 224.58 (3) (a) 1.
SB497,15 9Section 15 . 224.58 of the statutes is created to read:
SB497,5,10 10224.58 Baby bond program. (1) Definitions. In this section:
SB497,5,1211 (a) “Account” means a baby bond account established by the department under
12sub. (3).
SB497,5,1413 (b) “Account beneficiary” means an individual for whom the department
14establishes an account.
SB497,5,1515 (c) “Domestic business entity” has the meaning given in s. 180.1100 (2).
SB497,5,1616 (d) “Eligible expense" means an expense associated with any of the following:
SB497,5,1717 1. Postsecondary education of an account beneficiary.
SB497,5,1818 2. Child care or education of a minor dependent of the account beneficiary.
SB497,5,1919 3. The purchase of a home by an account beneficiary.
SB497,5,2220 4. Starting a business by an account beneficiary if the business is a domestic
21business entity or is a foreign business entity registered or authorized to do business
22in this state under ch. 178, 179, 180, 181, or 183.
SB497,5,2523 5. Contributing to a traditional individual retirement account, a Roth IRA, an
24account associated with a 401 (k), 403 (b), 457, or Keogh plan, or a similar retirement
25savings account by an account beneficiary.
SB497,6,1
1(e) “Foreign business entity” has the meaning given in s. 180.1100 (3).
SB497,6,42 (f) “Last-known address” means the most recent contact information provided
3to the department according to the department's records, which may be either a
4physical address or an electronic mail address.
SB497,6,6 5(2) Baby bond program. The department shall establish and administer a baby
6bond program as described in this section.
SB497,6,8 7(3) Establishing accounts. (a) For each record of birth submitted to the
8department under s. 69.14 (1) (a), the department shall do all of the following:
SB497,6,119 1. In consultation with the department of health services and the department
10of revenue, determine whether, on the day before the child was born, the mother
11meets the income level described under s. 49.471 (4) (a) 1. or 2.
SB497,6,1312 2. If the criteria in subd. 1. is satisfied, establish a baby bond account for the
13child, with the child designated as the account beneficiary.
SB497,6,1514 (b) Upon establishing an account for a child under par. (a) 2., the department
15shall promptly do all of the following:
SB497,6,1716 1. Provide written notice of the account to the last-known address of the child's
17parents.
SB497,6,2118 2. From the appropriation account under s. 20.144 (5) (c) or (j), deposit $3,000
19into the baby bond fund and credit this amount to the child's account or, from the
20appropriation amount under s. 20.144 (5) (q), credit $3,000 to the child's account if
21such funds are available for this purpose as provided in s. 224.58 (5) (b).
SB497,6,2522 (c) An account established under this subsection shall include the amount
23specified in par. (b) 2., the account beneficiary's pro rata share of total net investment
24earnings of the baby bond fund, and any amount allocated to the account under sub.
25(5) (b) or (6) (b).
SB497,7,4
1(4) Distributions. (a) Not later than 30 days before an account beneficiary's
218th birthday, the department shall provide notice to the last-known address of the
3account beneficiary and the account beneficiary's parents that the account
4beneficiary may be eligible for distribution of the account balance.
SB497,7,75 (b) Upon application to the department by an account beneficiary, the
6department shall distribute to the account beneficiary the full balance of the account
7if all of the following requirements are satisfied:
SB497,7,88 1. The account beneficiary is at least 18 years of age.
SB497,7,109 2. Except as provided in par. (c), the account beneficiary and at least one of the
10account beneficiary's parents is a resident of this state.
SB497,7,1211 3. The account beneficiary has successfully completed the financial literacy
12course developed by the department under sub. (7) (a) 4.
SB497,7,1413 4. The account beneficiary certifies that the account beneficiary will use the
14money distributed only to pay eligible expenses.
SB497,7,1915 (c) If an account beneficiary or the account beneficiary's parents have relocated
16from this state as of the account beneficiary's 18th birthday, the account beneficiary
17is eligible for distribution of the account balance under par. (b) if the account
18beneficiary returns to this state and remains a resident of this state for at least one
19year thereafter.
SB497,7,2120 (d) An account beneficiary may use moneys distributed from the account only
21to pay for eligible expenses.
SB497,7,23 22(5) Account termination. (a) The department may terminate an account
23beneficiary's account if any of the following occurs:
SB497,7,2424 1. The account beneficiary dies.
SB497,7,2525 2. The account balance is $0.
SB497,8,3
13. The account beneficiary is at least 30 years of age and has not requested
2distribution of the account balance or has failed to satisfy the conditions for
3distribution of the account balance under sub. (4) (b) and (c).
SB497,8,64 (b) If an account is not distributed and is terminated under par. (a) with a
5balance in the account, the balance shall remain in the baby bond fund and may be
6used to fund new accounts or allocated in the manner described in sub. (6) (b).
SB497,8,127 (c) Not fewer than 90 days before terminating an account for the reason
8provided in par. (a) 3., the department shall provide notice to the last-known address
9of the account beneficiary and the account beneficiary's parents of the department's
10intent to terminate the account and the date on which the termination will occur if
11the account beneficiary has not applied for distribution of the account balance by that
12date.
SB497,8,15 13(6) Donations and other contributions to program. (a) The department may
14receive donations, gifts, grants, bequests, or other contributions to the baby bond
15program and use them for the purposes for which they are made.
SB497,8,1916 (b) If no purpose is stated for a donation, gift, grant, bequest, or other
17contribution received by the department, the department may deposit the amount
18into the baby bond fund and use the amount to fund new accounts or to equitably
19allocate the amount among existing accounts.
SB497,8,2220 (c) The department may receive only monetary donations, gifts, grants,
21bequests, or other contributions. The department may not accept property or other
22in-kind donations, gifts, grants, bequests, or contributions.
SB497,8,24 23(7) Powers and duties of the department. (a) The department shall do all of
24the following:
SB497,9,2
11. Collaborate with the department of health services and the department of
2revenue to determine eligibility under sub. (3) (a) 1.
SB497,9,53 2. From the pooled assets and investments of the baby bond fund, maintain an
4accounting under which each account beneficiary's share of the total is identified as
5a separate account.
SB497,9,106 3. Provide to each account beneficiary and the account beneficiary's parents,
7at their last-known addresses, an annual statement of the account beneficiary's
8account, including the account balance, the date the account beneficiary is eligible
9for distribution of the account balance, and the requirements the account beneficiary
10must satisfy to receive the distribution.
SB497,9,1611 4. Develop and maintain an online, interactive financial literacy course. The
12course shall be organized into modules, with a test of knowledge at the conclusion
13of each module. The course shall require the course participant to successfully
14complete the test before continuing to the next module, but the course may not limit
15the number of times the participant may retake the test to achieve successful
16completion.
SB497,9,1817 5. Maintain as confidential all personal and financial information pertaining
18to an account beneficiary and the account beneficiary's parents.
SB497,9,1919 (b) The department may do any of the following:
SB497,9,2220 1. Enter into contracts for the services of accountants, actuaries, attorneys,
21consultants, or other professionals to assist in the administration of the baby bond
22program established under this section.
SB497,9,2423 2. Conduct marketing, advertising, and fundraising for the baby bond program,
24including through contracts with 3rd parties.
SB497,9,2525 3. Promulgate rules to implement and administer this section.
SB497,10,6
1(8) Exclusion from consideration for need-based programs or benefits.
2Notwithstanding any other provision of law, neither the balance of an account
3beneficiary's account nor distributions to the account beneficiary may be considered
4for purposes of determining the account beneficiary's eligibility for any state or local
5program or benefit in which the account beneficiary's income, assets, or financial
6need is a criteria for eligibility.
SB497,16 7Section 16. Initial applicability.
SB497,10,98 (1) The treatment of s. 69.14 (1) (a) first applies to children born on the effective
9date of this subsection.
SB497,17 10Section 17. Effective date.
SB497,10,1211 (1) This act takes effect on the first day of the 7th month beginning after
12publication.
SB497,10,1313 (End)
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