Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1157 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 783 FILED ON: 1/17/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1157
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Andres X. Vargas
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act addressing the racial wealth gap.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Andres X. Vargas3rd Essex1/12/2023Deborah B. Goldberg (Treasurer
16	16	and Receiver General)
17	17	Treasurer, Office of the State
18	18	Treasurer and Receiver General
19	19	1/17/2023Samantha Montaño15th Suffolk1/31/2023Steven Ultrino33rd Middlesex2/9/2023Tricia Farley-Bouvier2nd Berkshire2/15/2023Russell E. Holmes6th Suffolk2/22/2023James C. Arena-DeRosa8th Middlesex2/24/2023Lindsay N. Sabadosa1st Hampshire2/28/2023 1 of 6
20	20	HOUSE DOCKET, NO. 783 FILED ON: 1/17/2023
21	21	HOUSE . . . . . . . . . . . . . . . No. 1157
22	22	By Representative Vargas of Haverhill, a petition (accompanied by bill, House, No. 1157) of
23	23	Andres X. Vargas and others for legislation to direct the State Treasurer to establish a baby
24	24	bonds trust fund to assist certain designated beneficiaries in pursuing opportunities for education,
25	25	housing, and entrepreneurship. Financial Services.
26	26	The Commonwealth of Massachusetts
27	27	_______________
28	28	In the One Hundred and Ninety-Third General Court
29	29	(2023-2024)
30	30	_______________
31	31	An Act addressing the racial wealth gap.
32	32	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
33	33	of the same, as follows:
34	34	1 SECTION 1. Chapter 10 of the General Laws is hereby amended by adding after section
35	35	278 the following section:-
36	36	3 Section 79. (a) As used in this section the followings words and terms shall have the
37	37	4following meanings:-
38	38	5 “Accounting”, a designated beneficiary’s pro rata share of the fund, as determined by the
39	39	6state treasurer.
40	40	7 “Board”, means the Massachusetts Baby Bonds Trust Fund Advisory Board.
41	41	8 “Committee”, means the Massachusetts Baby Bonds Community Advisory Committee.
42	42	9 “Designated beneficiary”, means any individual who: (i) is born on or after July 1, 2024;
43	43	10and (ii) receives cash assistance under transitional aid to families with dependent children or is a 2 of 6
44	44	11child under the care or custody of the Massachusetts department of children and families within
45	45	12the first twelve months of their life.
46	46	13 “Eligible expenditure”, means an expenditure associated with any of the following: (i)
47	47	14post-secondary education of a designated beneficiary at a vocational or apprentice program,
48	48	15community college, or university that is located in and licensed, approved, or accredited by the
49	49	16commonwealth; (ii) investment in an entity doing business in the commonwealth by a designated
50	50	17beneficiary; (iii) purchase of a home in the commonwealth by a designated beneficiary; or (iv)
51	51	18any investment in financial assets or personal capital that provides long-term gains to wages or
52	52	19wealth, as defined by regulation promulgated by the state treasurer.
53	53	20 “Fund”, means the Massachusetts Baby Bonds Trust Fund.
54	54	21 (b)(1) There shall be a Massachusetts Baby Bonds Trust Fund for the exclusive purpose
55	55	22of assisting designated beneficiaries in pursuing opportunities for education, housing, and
56	56	23entrepreneurship, in order to create opportunities for financial independence.
57	57	24 (2) The state treasurer shall administer the fund. The state treasurer may contract with
58	58	25practitioners, administrators, investment managers and other entities in order to design,
59	59	26administer and provide investment options for the fund. The provisions of section 38 of chapter
60	60	2729 of the general laws shall not apply to the investment of the fund.
61	61	28 (3) The state treasurer may accept moneys from public and private sources, including, but
62	62	29not limited to gifts, grants and donations, but not in lieu of contribution by the General Court.
63	63	30The state treasurer may expend moneys from the fund for all reasonable and necessary direct
64	64	31costs and expenses incurred with the management and investment of the fund. 3 of 6
65	65	32 (4) Moneys deposited in the fund shall not be subject to further appropriation and any
66	66	33moneys that are unexpended at the end of a fiscal year shall not revert to the General Fund and
67	67	34shall be available for expenditure in the following fiscal year. No expenditure made from the
68	68	35fund shall cause the fund to become deficient at any point.
69	69	36 (5) The state treasurer shall report annually on or before December 31 to the governor
70	70	37and house and senate committees on ways and means: (i) the balance of the fund and (ii) the total
71	71	38return generated by the principal of said fund during the prior 12-month period ending on June
72	72	3930.
73	73	40 (c)(1) There shall be a Baby Bonds Trust Fund Advisory Board. The board shall meet
74	74	41from time to time to assist the state treasurer in the development of general policy regarding the
75	75	42fund and shall provide technical advice and input to the state treasurer. Matters considered by the
76	76	43board shall include, but not be limited to: (i) identification of eligible expenditures; (ii)
77	77	44development of mitigation measures to prevent fraud, scams, or financial exploitation of
78	78	45designated beneficiaries related to eligible expenditures; and (iii) partnerships with individuals
79	79	46and communities disproportionately impacted by the racial wealth gap in program expansion and
80	80	47development, including, but not limited to, regular collaboration with the Massachusetts Baby
81	81	48Bonds Community Advisory Committee established in subsection (d).
82	82	49 (2) The board shall consist of 17 members. There shall be 6 nonvoting members, 2 of
83	83	50whom shall be appointed by the president of the senate, 1 of whom shall be appointed by the
84	84	51minority leader of the senate, 2 of whom shall be appointed by the speaker of the house of
85	85	52representatives and 1 of whom shall be appointed by the minority leader of the house. There
86	86	53shall be 11 voting members: the state treasurer, or a designee, who shall serve as chair; the 4 of 6
87	87	54secretary for administration and finance, or a designee; the secretary of education, or a designee;
88	88	55the attorney general, or a designee; 2 members of the Baby Bonds Community Advisory
89	89	56Committee established in subsection (d), selected by said committee; and 4 members appointed
90	90	57by the state treasurer 2 of whom shall be experts in economics and socio-economic policy and 2
91	91	58of whom shall be individuals from, or who have experience advocating on behalf of, a census
92	92	59tract where over 20 per cent of the populations fall below the federal poverty line. The appointed
93	93	60members shall each serve for a term of 5 years and shall be eligible for reappointment. The board
94	94	61shall serve without compensation but shall be reimbursed for necessary expenses incurred in the
95	95	62performance of their duties.
96	96	63 (3) The board shall report annually on or before December 31 to the governor and the
97	97	64house and senate committees on ways and means.
98	98	65 (d) There shall be in the office of the treasurer and receiver general a Massachusetts Baby
99	99	66Bonds Community Advisory Committee which shall facilitate regular community engagement
100	100	67and outreach concerning the administration and allocation of the Baby Bonds Trust Fund. The
101	101	68committee shall be comprised of individuals and interested stakeholders from geographically
102	102	69diverse regions of the commonwealth. The committee shall serve without compensation but shall
103	103	70be reimbursed for necessary expenses incurred in the performance of their duties.
104	104	71 (e)(1) At any time upon their reaching the age of 18 and prior to their reaching the age of
105	105	7235, a designated beneficiary may submit a claim to distribute, in whole or in part, their
106	106	73accounting; provided, however, that the designated beneficiary shall demonstrate that the
107	107	74distribution will be applied toward an eligible expenditure; provided further, that, at the time of
108	108	75the application, the designated beneficiary is a resident of the commonwealth. 5 of 6
109	109	76 (2) A designated beneficiary may not assign, alienate or otherwise dispose of any portion
110	110	77of or interest in such accounting to another individual at any time prior to receiving the full
111	111	78distribution of the amounts in their accounting.
112	112	79 (3) If a designated beneficiary fails to submit a valid claim prior to their reaching age 35,
113	113	80their accounting shall be credited back to the assets of the fund.
114	114	81 (4) In the case of the death of a designated beneficiary prior to their reaching the age of
115	115	8235, upon receipt of notification of such individual’s death, their accounting shall be credited back
116	116	83to the assets of the fund.
117	117	84 (5) The state treasurer shall seek to develop and make regularly available relevant
118	118	85resources and supports designed to assist in making financial decisions to designated
119	119	86beneficiaries and their households. The state treasurer shall encourage and incentivize designated
120	120	87beneficiaries to utilize said resources and supports prior to the distribution of funds to support an
121	121	88eligible expenditure.
122	122	89 (f) (1) Notwithstanding any general or special law to the contrary, no moneys invested in
123	123	90the fund shall be considered an asset for purposes of determining an individual’s or the
124	124	91individual’s household’s eligibility for, or amount of, any benefit or service, including, but not
125	125	92limited to: temporary assistance for needy families and need-based, institutional aid grants
126	126	93offered to an individual at the public educational institutions in the commonwealth.
127	127	94 (2) Notwithstanding any general or special law to the contrary, contributions to an
128	128	95accounting on behalf of a designated beneficiary shall not be included in calculating the gross
129	129	96income of the designated beneficiary under chapter 62. 6 of 6
130	130	97 (g) To carry out the purposes of this section, the Massachusetts department of transitional
131	131	98assistance, the Massachusetts department of children and families, the Massachusetts department
132	132	99of elementary and secondary education, and the Massachusetts department of public health shall
133	133	100provide to the office of the state treasurer any information it deems necessary to fund,
134	134	101coordinate, and evaluate activities of the fund. Said agencies shall enter an agreement with the
135	135	102office of the state treasurer to document the data sharing procedures and the information to be
136	136	103shared.
137	137	104 (h) The state treasurer may promulgate rules and regulations as necessary or proper for
138	138	105the administration and enforcement of subsections (a) through (g), inclusive.