HB 6659 — AN ACT CONCERNING THE ESTABLISHMENT OF THE CONNECTICUT BABY BOND TRUST.

House of Representatives General Assembly RaisedFile Bill No.

6659655 January Session, 2021 LCOSubstitute House Bill No.

56956659 ReferredHouse toof Representatives, May 10, 2021 The Committee on APPROPRIATIONSAppropriations Introducedreported by:through REP.

(APP)WALKER ANof ACTthe CONCERNING93rd THEDist., ESTABLISHMENTChairperson OFof THEthe CONNECTICUTCommittee BABYon BONDthe TRUST.part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE ESTABLISHMENT OF THE CONNECTICUT BABY BOND TRUST.

(2) "Eligible expenditure" means an expenditure associated with any of the following:following, each as prescribed by the Treasurer:

(B) ownershippurchase of a home in Connecticut by a designated beneficiary;

(C) ownershipinvestment ofin a business in Connecticut by a designated beneficiary;

or (D) any investment in financial assets or personal capital that provides long-term gains to wages or wealth,wealth; as prescribed by the Treasurer;

Sec.sHB6659 / File No.

655 1 sHB6659 File No.

655 Sec.

(NEW) (Effective July 1, 2021) (a) There is established the LCOConnecticut No.Baby Bond Trust.

5695 1 of 5 Raised Bill No.6659 Connecticut Baby Bond Trust.

LCOsHB6659 / File No.

5695655 2 ofsHB6659 5File RaisedNo. Bill No.6659 (2) Enter into one or more contractual agreements, including contracts for legal, actuarial, accounting, custodial, advisory, management, administrative, advertising, marketing and consulting services for the trust and pay for such services from the gains and earnings of the trust;

655 (2) Enter into one or more contractual agreements, including contracts for legal, actuarial, accounting, custodial, advisory, management, administrative, advertising, marketing and consulting services for the trust and pay for such services from the assets of the trust;

(7) Establish one or more funds within the trusttrust; and maintain separate accounts for each designated beneficiary;

The Treasurer shall not require the trust to invest directly in obligations of the state or any political subdivision of the state or in any investment or other fund administered by the Treasurer.The assets of the trust shall becontinuously investedandreinvestedinamanner consistent withthe LCOobjectives of the trust until disbursed for qualified expenses as defined by this act or expended on expenses incurred by the operations of the sHB6659 / File No.

5695655 3 ofsHB6659 5File RaisedNo. Bill No.6659 objectives of the trust until disbursed for qualified expenses as defined by this act or expended on expenses incurred by the operations of the trust.

655 trust.

(b) Upon a designated beneficiary's eighteenth birthday,birthday ifand suchcompletion beneficiaryof is a residentfinancial ofliteracy therequirement state,as suchprescribed beneficiaryby shallthe becomeTreasurer, suchbeneficiary shallbecome eligible to receive thethetotalsum total sum of the accounting under subsection (a) of this section to be used for a qualified expense.

The Treasurer may adopt regulations, in accordance with the provisions of chapter 54 oftheof the general statutes, to carry out the purposes of this section.

LCO(c) A designated beneficiary may submit a claim for such accounting sHB6659 / File No.

5695655 4 ofsHB6659 5File Raised Bill No.

6659655 (c)until If a designated beneficiary is deceased before his or her eighteenththirtieth birthday, oras isprescribed noby longerthe aTreasurer, residentprovidedsuchdesignatedbeneficiaryisaresidentofthestateatthetime of the state on his or her eighteenth birthday, such accountingclaim. shall be credited back to the trust.

(d)If Thea Treasurerdesignated shall furnish each eligible beneficiary with(1) anis annualdeceased statementbefore relatinghis toor theher individual'seighteenth accounting,birthday, whichor shall(2) includefails (1) a statement of the balance attributable to thesubmit individual, (2) a projectionvalid ofclaim, theas balance'sdetermined growth by the timeTreasurer, thebefore individualhis attainsor theher agethirtieth ofbirthday, eighteen,such (3)accounting resourcesshall andbe informationcredited back to promotethe financialassets wellnessof and capability, and (4) such other information as the Treasurertrust. deems relevant.

(d) The Treasurer and the Department of Social Services shall enter into a memorandum of understanding to establish information sharing practices in order to carry out the purposes of this act.

Section 1 July 1, 2021 Section 1 New section Sec.

7 July 1, 2021 New section July 1, 2021 Sec.

8 July 1, 2021 New section StatementAPP ofJoint Purpose:Favorable Subst.

TosHB6659 establish/ theFile ConnecticutNo. Baby Bond Trust.

[Proposed655 deletions5 aresHB6659 enclosedFile inNo. brackets.

Proposed655 additionsThe following Fiscal Impact Statement and Bill Analysis are indicatedprepared byfor underline,the notbenefit underlined.]of the entiremembers textof the General Assembly, solely for purposes of ainformation, billsummarization orand resolutionexplanation orand ado sectionnot represent the intent of athe billGeneral Assembly or resolutioneither ischamber new,thereof itfor isany LCOpurpose. No.

5695In 5general, fiscal impacts are based upon a variety of 5informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ FY 23 $ Resources of the General Fund GF - Cost $70-$80 $70-$80 million million Note:

GF=General Fund Municipal Impact:

None Explanation The bill requires a deposit from the General Fund to the Connecticut Baby Bond Trust starting in FY 22 for each baby born in the state under the HUSKY Health program.