AB1143: Bill Text

AB1143,,63 (c) An account established under this subsection shall include the amount specified in par. (b) 2., the account beneficiary’s pro rata share of total net investment earnings of the baby bond fund, and any amount allocated to the account under sub. (5) (b) or (6) (b).

AB1143,,64 (4) Distributions. (a) Not later than 30 days before an account beneficiary’s 18th birthday, the department shall provide notice to the last-known address of the account beneficiary and the account beneficiary’s parents that the account beneficiary may be eligible for distribution of the account balance.

AB1143,,65 (b) Upon application to the department by an account beneficiary, the department shall distribute to the account beneficiary the full balance of the account if all of the following requirements are satisfied:

AB1143,,66 1. The account beneficiary is at least 18 years of age.

AB1143,,67 2. Except as provided in par. (c), the account beneficiary and at least one of the account beneficiary’s parents is a resident of this state.

AB1143,,68 3. The account beneficiary has successfully completed the financial literacy course developed by the department under sub. (7) (a) 4.

AB1143,,69 4. The account beneficiary certifies that the account beneficiary will use the money distributed only to pay eligible expenses.

AB1143,,70 (c) If an account beneficiary or the account beneficiary’s parents have relocated from this state as of the account beneficiary’s 18th birthday, the account beneficiary is eligible for distribution of the account balance under par. (b) if the account beneficiary returns to this state and remains a resident of this state for at least one year thereafter.

AB1143,,71 (d) An account beneficiary may use moneys distributed from the account only to pay for eligible expenses.

AB1143,,72 (5) Account termination. (a) The department may terminate an account beneficiary’s account if any of the following occurs:

AB1143,,73 1. The account beneficiary dies.

AB1143,,74 2. The account balance is $0.

AB1143,,75 3. The account beneficiary is at least 30 years of age and has not requested distribution of the account balance or has failed to satisfy the conditions for distribution of the account balance under sub. (4) (b) and (c).

AB1143,,76 (b) If an account is not distributed and is terminated under par. (a) with a balance in the account, the balance shall remain in the baby bond fund and may be used to fund new accounts or allocated in the manner described in sub. (6) (b).

AB1143,,77 (c) Not fewer than 90 days before terminating an account for the reason provided in par. (a) 3., the department shall provide notice to the last-known address of the account beneficiary and the account beneficiary’s parents of the department’s intent to terminate the account and the date on which the termination will occur if the account beneficiary has not applied for distribution of the account balance by that date.

AB1143,,78 (6) Donations and other contributions to program. (a) The department may receive donations, gifts, grants, bequests, or other contributions to the baby bond program and use them for the purposes for which they are made.

AB1143,,79 (b) If no purpose is stated for a donation, gift, grant, bequest, or other contribution received by the department, the department may deposit the amount into the baby bond fund and use the amount to fund new accounts or to equitably allocate the amount among existing accounts.

AB1143,,80 (c) The department may receive only monetary donations, gifts, grants, bequests, or other contributions. The department may not accept property or other in-kind donations, gifts, grants, bequests, or contributions.

AB1143,,81 (7) Powers and duties of the department. (a) The department shall do all of the following:

AB1143,,82 1. Collaborate with the department of health services and the department of revenue to determine eligibility under sub. (3) (a) 1.

AB1143,,83 2. From the pooled assets and investments of the baby bond fund, maintain an accounting under which each account beneficiary’s share of the total is identified as a separate account.

AB1143,,84 3. Provide to each account beneficiary and the account beneficiary’s parents, at their last-known addresses, an annual statement of the account beneficiary’s account, including the account balance, the date the account beneficiary is eligible for distribution of the account balance, and the requirements the account beneficiary must satisfy to receive the distribution.

AB1143,,85 4. Develop and maintain an online, interactive financial literacy course. The course shall be organized into modules, with a test of knowledge at the conclusion of each module. The course shall require the course participant to successfully complete the test before continuing to the next module, but the course may not limit the number of times the participant may retake the test to achieve successful completion.

AB1143,,86 5. Maintain as confidential all personal and financial information pertaining to an account beneficiary and the account beneficiary’s parents.

AB1143,,87 (b) The department may do any of the following:

AB1143,,88 1. Enter into contracts for the services of accountants, actuaries, attorneys, consultants, or other professionals to assist in the administration of the baby bond program established under this section.

AB1143,,89 2. Conduct marketing, advertising, and fundraising for the baby bond program, including through contracts with 3rd parties.

AB1143,,90 3. Promulgate rules to implement and administer this section.

AB1143,,91 (8) Exclusion from consideration for need-based programs or benefits. Notwithstanding any other provision of law, neither the balance of an account beneficiary’s account nor distributions to the account beneficiary may be considered for purposes of determining the account beneficiary’s eligibility for any state or local program or benefit in which the account beneficiary’s income, assets, or financial need is a criteria for eligibility.

AB1143,19 Section 19. Initial applicability.

AB1143,,93 (1) The treatment of ss. 69.14 (1) (a), 69.20 (3) (b) 6. and (i), and 69.22 (6) first applies to children born on the effective date of this subsection.

AB1143,20 Section 20. Effective date.

AB1143,,95 (1) This act takes effect on the first day of the 7th month beginning after publication.

AB1143,,96 (end)