Under the bill, the State Registrar of Vital Records must provide to DFI a copy
of the record of birth for each child born in the state on or after the bill's effective date.
In consultation with the Department of Health Services and the Department of
Revenue, DFI must determine whether, on the day before the child was born, the
child's mother met the income requirements for the Medical Assistance program, and
if this criteria is satisfied, DFI must establish a baby bond account for the child, with
the child designated as the account beneficiary. DFI must then deposit $3,000 into
the baby bond trust fund and credit this amount to the child's baby bond account.
The amount in the account consists of the initial $3,000, investment income
generated through management of the baby bond trust fund by SWIB, and any
allocated donations, gifts, grants, bequests, or other contributions received by the
baby bond program. When the account beneficiary attains 18 years of age, if certain

conditions are satisfied, the account beneficiary may receive distribution of the full
account balance to pay expenses associated with postsecondary education of the
account beneficiary; child care or education of a minor dependent of the account
beneficiary; the purchase of a home by the account beneficiary; starting a business
by the account beneficiary; or contributing to a retirement savings account by the
account beneficiary. Upon application to DFI, an account beneficiary is eligible for
distribution of the account balance if all of the following requirements are satisfied:
1) the account beneficiary is at least 18 years of age; 2) with an exception, the account
beneficiary and at least one of the account beneficiary's parents is a Wisconsin
resident; 3) the account beneficiary has successfully completed a financial literacy
course developed by DFI; and 4) the account beneficiary certifies that the account
beneficiary will use the money distributed only to pay expenses described above. If
an account beneficiary or the account beneficiary's parents relocate from Wisconsin
prior to the account beneficiary's 18th birthday, the account beneficiary is eligible for
the distribution if the account beneficiary returns to Wisconsin and remains a
Wisconsin resident for at least one year thereafter. A distribution from an account
is not subject to state income tax. DFI may terminate an account beneficiary's
account if the account beneficiary dies, the account balance is $0, or the account
beneficiary is at least 30 years of age and has not requested a distribution or has
failed to satisfy the conditions for distribution. The balance of an account that is
terminated remains in the baby bond trust fund for further use for the baby bond
program.

AB513,3,32 20.144 (1) (g) General program operations. The amounts in the schedule for
3the general program operations of the department of financial institutions. Except
4as provided in pars. (a), (h), (i), (j), and (u) and sub. subs. (3) and (5), all moneys
5received by the department, other than by the office of credit unions and the division
6of banking, and 88 percent of all moneys received by the office of credit unions and
7the department's division of banking shall be credited to this appropriation, but any

1balance at the close of a fiscal year under this appropriation shall lapse to the general
2fund. Annually, $150,000 of the amounts received under this appropriation account
3shall be transferred to the appropriation account under s. 20.575 (1) (g).