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OFA Bill Analysis
HB 6659
AN ACT CONCERNING THE ESTABLISHMENT OF THE
CONNECTICUT BABY BOND TRUST.
SUMMARY:
The bill establishes the Connecticut Baby Bond Trust, and requires a
$5000 deposit from the General Fund to the Trust at the time of every
eligible birth. The purpose of the Trust is to take in and invest money
on behalf of "designated beneficiaries," who may spend a portion of
fund proceeds on eligible expenditures on or after their 18
th
birthday.
Designated beneficiaries are those persons born after July 1, 2021
under medical coverage provided under HUSKY Health, as defined in
CGS 17b-290. Funds are accessible to a designated beneficiary if they
are living in Connecticut on their 18
th
birthday. Eligible expenses
include education, homeownership, business ownership, or
"investment in financial assets or personal capital that provides long-
term gains to wages or wealth" as defined by the Treasurer.
The Connecticut Baby Bond Trust is empowered to receive, hold,
and invest the monies deposited into the Trust, and to pay for
administrative expenses from the investment proceeds of the Trust.
Deposits in the Trust and the trust itself are not property of the state or
within any department, institution, or agency of the state, and are to be
held separate from state funds. Contracts of the Trust are not debts or
obligations of the state. Property and earnings of the Trust are exempt
from taxation by the State and all political subdivisions of the State.
Monies invested in the Trust are not considered assets of the
beneficiaries for purposes of the temporary family assistance program,
the federal Low Income Home Energy Assistance Program block grant
and the weatherization assistance program, or for determining 2021HB-06659-R000655-BA.DOCX
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eligibility for need-based aid at public educational institutions in the
State.
EFFECTIVE DATE: July 1, 2021
COMMITTEE ACTION
Appropriations
Joint Favorable Substitute
Yea 34 Nay 16