AB1143,4,92 25.17 (3) (a) Invest the core retirement investment trust, baby bond fund, state
3life fund, local government property insurance fund, veterans trust fund, and injured
4patients and families compensation fund in loans, securities, and any other
5investments authorized by s. 620.22, and in bonds or other evidences of indebtedness
6or preferred stock of companies engaged in the finance business whether as direct
7lenders or as holding companies owning subsidiaries engaged in the finance
8business. Investments permitted by sub. (4) are permitted investments under this
9subsection.
AB1143,10 10Section 10. 25.18 (1) (q) of the statutes is created to read:
AB1143,4,1311 25.18 (1) (q) Invest any of the assets of the baby bond fund in any investment
12that is an authorized investment for assets in the variable retirement investment
13trust under s. 25.17 (5).
AB1143,11 14Section 11. 25.32 of the statutes is created to read:
AB1143,4,16 1525.32 Baby bond fund. (1) There is established a separate nonlapsible trust
16fund designated as the baby bond fund. The fund shall consist of all of the following:
AB1143,4,1717 (a) Money deposited into the fund under s. 224.58 (3) (b) 2.
AB1143,4,1918 (b) All donations, gifts, grants, bequests, or other contributions deposited into
19the fund under s. 224.58 (6).
AB1143,4,2020 (c) All earnings and other investment income of the fund.
AB1143,4,23 21(2) Except as provided in s. 25.187, moneys in the baby bond fund may be
22expended only for the purpose of making distributions under s. 224.58 (4) and
23deposits under s. 224.58 (3) (b) 2.
AB1143,12 24Section 12 . 69.14 (1) (a) of the statutes is amended to read:
AB1143,5,5
169.14 (1) (a) Filing deadline. A record of birth for every birth that occurs in this
2state shall be filed within 5 days after the birth with the state registrar, who shall
3register the birth under this subchapter. The state registrar shall submit a copy of
4the record of birth to the department of financial institutions, but shall redact from
5the copy any parent's social security number.
AB1143,13 6Section 13. 69.20 (3) (b) 6. of the statutes is created to read:
AB1143,5,87 69.20 (3) (b) 6. The information is submitted to the department of financial
8institutions for the purpose of administering the baby bond program under s. 224.58.
AB1143,14 9Section 14. 69.20 (3) (i) of the statutes is created to read:
AB1143,5,1210 69.20 (3) (i) The state registrar shall disclose information on birth records,
11other than a parent's social security number, to the department of financial
12institutions for use in the administration of the baby bond program under s. 224.58.
AB1143,15 13Section 15. 69.22 (6) of the statutes is amended to read:
AB1143,5,1914 69.22 (6) The state registrar may charge a reasonable fee for providing
15searches of vital records and for providing copies of vital records to state agencies for
16program use, except that no fee may be charged for providing a copy of the record of
17birth to the department of financial institutions under s. 69.14 (1) (a)
. The register
18of deeds may provide free searches and free copies to agencies in his or her county
19at the direction of the county board.
AB1143,16 20Section 16. 71.05 (6) (b) 57. of the statutes is created to read:
AB1143,5,2221 71.05 (6) (b) 57. The amount of a distribution made to an account beneficiary,
22as defined in s. 224.58 (1) (b), under s. 224.58 (4).
AB1143,17 23Section 17. 71.78 (4) (w) of the statutes is created to read:
AB1143,5,2524 71.78 (4) (w) The department of financial institutions and the department of
25health services for the purpose of determining eligibility under s. 224.58 (3) (a) 1.
AB1143,18
1Section 18. 224.58 of the statutes is created to read:
AB1143,6,2 2224.58 Baby bond program. (1) Definitions. In this section:
AB1143,6,43 (a) “Account” means a baby bond account established by the department under
4sub. (3).
AB1143,6,65 (b) “Account beneficiary” means an individual for whom the department
6establishes an account.
AB1143,6,77 (c) “Domestic business entity” has the meaning given in s. 180.1100 (2).
AB1143,6,88 (d) “Eligible expense" means an expense associated with any of the following:
AB1143,6,99 1. Postsecondary education of an account beneficiary.
AB1143,6,1010 2. Child care or education of a minor dependent of the account beneficiary.
AB1143,6,1111 3. The purchase of a home by an account beneficiary.
AB1143,6,1412 4. Starting a business by an account beneficiary if the business is a domestic
13business entity or is a foreign business entity registered or authorized to do business
14in this state under ch. 178, 179, 180, 181, or 183.
AB1143,6,1715 5. Contributing to a traditional individual retirement account, a Roth IRA, an
16account associated with a 401 (k), 403 (b), 457, or Keogh plan, or a similar retirement
17savings account by an account beneficiary.
AB1143,6,1818 (e) “Foreign business entity” has the meaning given in s. 180.1100 (3).
AB1143,6,2119 (f) “Last-known address” means the most recent contact information provided
20to the department according to the department's records, which may be either a
21physical address or an electronic mail address.
AB1143,6,23 22(2) Baby bond program. The department shall establish and administer a baby
23bond program as described in this section.
AB1143,6,25 24(3) Establishing accounts. (a) For each record of birth submitted to the
25department under s. 69.14 (1) (a), the department shall do all of the following:
AB1143,7,3
11. In consultation with the department of health services and the department
2of revenue, determine whether, on the day before the child was born, the mother
3meets the income level described under s. 49.471 (4) (a) 1. or 2.
AB1143,7,54 2. If the criteria in subd. 1. is satisfied, establish a baby bond account for the
5child, with the child designated as the account beneficiary.
AB1143,7,76 (b) Upon establishing an account for a child under par. (a) 2., the department
7shall promptly do all of the following:
AB1143,7,98 1. Provide written notice of the account to the last-known address of the child's
9parents.
AB1143,7,1310 2. From the appropriation account under s. 20.144 (5) (c) or (j), deposit $3,000
11into the baby bond fund and credit this amount to the child's account or, from the
12appropriation amount under s. 20.144 (5) (q), credit $3,000 to the child's account if
13such funds are available for this purpose as provided in s. 224.58 (5) (b).
AB1143,7,1714 (c) An account established under this subsection shall include the amount
15specified in par. (b) 2., the account beneficiary's pro rata share of total net investment
16earnings of the baby bond fund, and any amount allocated to the account under sub.
17(5) (b) or (6) (b).
AB1143,7,21 18(4) Distributions. (a) Not later than 30 days before an account beneficiary's
1918th birthday, the department shall provide notice to the last-known address of the
20account beneficiary and the account beneficiary's parents that the account
21beneficiary may be eligible for distribution of the account balance.
AB1143,7,2422 (b) Upon application to the department by an account beneficiary, the
23department shall distribute to the account beneficiary the full balance of the account
24if all of the following requirements are satisfied:
AB1143,7,2525 1. The account beneficiary is at least 18 years of age.
AB1143,8,2
12. Except as provided in par. (c), the account beneficiary and at least one of the
2account beneficiary's parents is a resident of this state.
AB1143,8,43 3. The account beneficiary has successfully completed the financial literacy
4course developed by the department under sub. (7) (a) 4.
AB1143,8,65 4. The account beneficiary certifies that the account beneficiary will use the
6money distributed only to pay eligible expenses.
AB1143,8,117 (c) If an account beneficiary or the account beneficiary's parents have relocated
8from this state as of the account beneficiary's 18th birthday, the account beneficiary
9is eligible for distribution of the account balance under par. (b) if the account
10beneficiary returns to this state and remains a resident of this state for at least one
11year thereafter.
AB1143,8,1312 (d) An account beneficiary may use moneys distributed from the account only
13to pay for eligible expenses.
AB1143,8,15 14(5) Account termination. (a) The department may terminate an account
15beneficiary's account if any of the following occurs:
AB1143,8,1616 1. The account beneficiary dies.
AB1143,8,1717 2. The account balance is $0.
AB1143,8,2018 3. The account beneficiary is at least 30 years of age and has not requested
19distribution of the account balance or has failed to satisfy the conditions for
20distribution of the account balance under sub. (4) (b) and (c).
AB1143,8,2321 (b) If an account is not distributed and is terminated under par. (a) with a
22balance in the account, the balance shall remain in the baby bond fund and may be
23used to fund new accounts or allocated in the manner described in sub. (6) (b).
AB1143,9,424 (c) Not fewer than 90 days before terminating an account for the reason
25provided in par. (a) 3., the department shall provide notice to the last-known address

1of the account beneficiary and the account beneficiary's parents of the department's
2intent to terminate the account and the date on which the termination will occur if
3the account beneficiary has not applied for distribution of the account balance by that
4date.
AB1143,9,7 5(6) Donations and other contributions to program. (a) The department may
6receive donations, gifts, grants, bequests, or other contributions to the baby bond
7program and use them for the purposes for which they are made.
AB1143,9,118 (b) If no purpose is stated for a donation, gift, grant, bequest, or other
9contribution received by the department, the department may deposit the amount
10into the baby bond fund and use the amount to fund new accounts or to equitably
11allocate the amount among existing accounts.
AB1143,9,1412 (c) The department may receive only monetary donations, gifts, grants,
13bequests, or other contributions. The department may not accept property or other
14in-kind donations, gifts, grants, bequests, or contributions.
AB1143,9,16 15(7) Powers and duties of the department. (a) The department shall do all of
16the following:
AB1143,9,1817 1. Collaborate with the department of health services and the department of
18revenue to determine eligibility under sub. (3) (a) 1.
AB1143,9,2119 2. From the pooled assets and investments of the baby bond fund, maintain an
20accounting under which each account beneficiary's share of the total is identified as
21a separate account.
AB1143,9,2422 3. Provide to each account beneficiary and the account beneficiary's parents,
23at their last-known addresses, an annual statement of the account beneficiary's
24account, including the account balance, the date the account beneficiary is eligible

1for distribution of the account balance, and the requirements the account beneficiary
2must satisfy to receive the distribution.
AB1143,10,83 4. Develop and maintain an online, interactive financial literacy course. The
4course shall be organized into modules, with a test of knowledge at the conclusion
5of each module. The course shall require the course participant to successfully
6complete the test before continuing to the next module, but the course may not limit
7the number of times the participant may retake the test to achieve successful
8completion.
AB1143,10,109 5. Maintain as confidential all personal and financial information pertaining
10to an account beneficiary and the account beneficiary's parents.
AB1143,10,1111 (b) The department may do any of the following:
AB1143,10,1412 1. Enter into contracts for the services of accountants, actuaries, attorneys,
13consultants, or other professionals to assist in the administration of the baby bond
14program established under this section.
AB1143,10,1615 2. Conduct marketing, advertising, and fundraising for the baby bond program,
16including through contracts with 3rd parties.
AB1143,10,1717 3. Promulgate rules to implement and administer this section.
AB1143,10,23 18(8) Exclusion from consideration for need-based programs or benefits.
19Notwithstanding any other provision of law, neither the balance of an account
20beneficiary's account nor distributions to the account beneficiary may be considered
21for purposes of determining the account beneficiary's eligibility for any state or local
22program or benefit in which the account beneficiary's income, assets, or financial
23need is a criteria for eligibility.
AB1143,19 24Section 19. Initial applicability.
AB1143,11,2
1(1) The treatment of ss. 69.14 (1) (a), 69.20 (3) (b) 6. and (i), and 69.22 (6) first
2applies to children born on the effective date of this subsection.
AB1143,20 3Section 20. Effective date.
AB1143,11,54 (1) This act takes effect on the first day of the 7th month beginning after
5publication.
AB1143,11,66 (End)
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