1 of 1
SENATE DOCKET, NO. 2111 FILED ON: 1/17/2025
SENATE . . . . . . . . . . . . . . No. 2146
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Paul R. Feeney
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act establishing a Massachusetts Baby Bonds program.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and NorfolkJoanne M. ComerfordHampshire, Franklin and Worcester2/10/2025Sal N. DiDomenicoMiddlesex and Suffolk2/20/2025Manny Cruz7th Essex2/27/2025 1 of 6
SENATE DOCKET, NO. 2111 FILED ON: 1/17/2025
SENATE . . . . . . . . . . . . . . No. 2146
By Mr. Feeney, a petition (accompanied by bill, Senate, No. 2146) of Paul R. Feeney, Joanne M.
Comerford, Sal N. DiDomenico and Manny Cruz for legislation to address the racial wealth gap.
State Administration and Regulatory Oversight.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 1999 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act establishing a Massachusetts Baby Bonds program.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Chapter 10 of the General Laws is hereby amended by adding after section
278 the following section:-
3 Section 79. (a) As used in this section the followings words and terms shall have the
4following meanings:-
5 “Accounting”, a designated beneficiary’s pro rata share of the fund, as determined by the
6state treasurer.
7 “Board”, means the Massachusetts Baby Bonds Trust Fund Advisory Board.
8 “Committee”, means the Massachusetts Baby Bonds Community Advisory Committee. 2 of 6
9 “Designated beneficiary”, means any individual who: (i) is born on or after July 1, 2024;
10and (ii) receives cash assistance under transitional aid to families with dependent children or is a
11child under the care or custody of the Massachusetts department of children and families within
12the first twelve months of their life.
13 “Eligible expenditure”, means an expenditure associated with any of the following: (i)
14post-secondary education of a designated beneficiary at a vocational or apprentice program,
15community college, or university that is located in and licensed, approved, or accredited by the
16commonwealth; (ii) investment in an entity doing business in the commonwealth by a designated
17beneficiary; (iii) purchase of a home in the commonwealth by a designated beneficiary; or (iv)
18any investment in financial assets or personal capital that provides long-term gains to wages or
19wealth, as defined by regulation promulgated by the state treasurer.
20 “Fund”, means the Massachusetts Baby Bonds Trust Fund.
21 (b)(1) There shall be a Massachusetts Baby Bonds Trust Fund for the exclusive purpose
22of assisting designated beneficiaries in pursuing opportunities for education, housing, and
23entrepreneurship, in order to create opportunities for financial independence.
24 (2) The state treasurer shall administer the fund. The state treasurer may contract with
25practitioners, administrators, investment managers and other entities in order to design,
26administer and provide investment options for the fund. The provisions of section 38 of chapter
2729 of the general laws shall not apply to the investment of the fund.
28 (3) The state treasurer may accept moneys from public and private sources, including, but
29not limited to gifts, grants and donations, but not in lieu of contribution by the General Court. 3 of 6
30The state treasurer may expend moneys from the fund for all reasonable and necessary direct
31costs and expenses incurred with the management and investment of the fund.
32 (4) Moneys deposited in the fund shall not be subject to further appropriation and any
33moneys that are unexpended at the end of a fiscal year shall not revert to the General Fund and
34shall be available for expenditure in the following fiscal year. No expenditure made from the
35fund shall cause the fund to become deficient at any point.
36 (5) The state treasurer shall report annually on or before December 31 to the governor
37and house and senate committees on ways and means: (i) the balance of the fund and (ii) the total
38return generated by the principal of said fund during the prior 12-month period ending on June
3930.
40 (c)(1) There shall be a Baby Bonds Trust Fund Advisory Board. The board shall meet
41from time to time to assist the state treasurer in the development of general policy regarding the
42fund and shall provide technical advice and input to the state treasurer. Matters considered by the
43board shall include, but not be limited to: (i) identification of eligible expenditures; (ii)
44development of mitigation measures to prevent fraud, scams, or financial exploitation of
45designated beneficiaries related to eligible expenditures; and (iii) partnerships with individuals
46and communities disproportionately impacted by the racial wealth gap in program expansion and
47development, including, but not limited to, regular collaboration with the Massachusetts Baby
48Bonds Community Advisory Committee established in subsection (d).
49 (2) The board shall consist of 17 members. There shall be 6 nonvoting members, 2 of
50whom shall be appointed by the president of the senate, 1 of whom shall be appointed by the
51minority leader of the senate, 2 of whom shall be appointed by the speaker of the house of 4 of 6
52representatives and 1 of whom shall be appointed by the minority leader of the house. There
53shall be 11 voting members: the state treasurer, or a designee, who shall serve as chair; the
54secretary for administration and finance, or a designee; the secretary of education, or a designee;
55the attorney general, or a designee; 2 members of the Baby Bonds Community Advisory
56Committee established in subsection (d), selected by said committee; and 4 members appointed
57by the state treasurer 2 of whom shall be experts in economics and socio-economic policy and 2
58of whom shall be individuals from, or who have experience advocating on behalf of, a census
59tract where over 20 per cent of the populations fall below the federal poverty line. The appointed
60members shall each serve for a term of 5 years and shall be eligible for reappointment. The board
61shall serve without compensation but shall be reimbursed for necessary expenses incurred in the
62performance of their duties.
63 (3) The board shall report annually on or before December 31 to the governor and the
64house and senate committees on ways and means.
65 (d) There shall be in the office of the treasurer and receiver general a Massachusetts Baby
66Bonds Community Advisory Committee which shall facilitate regular community engagement
67and outreach concerning the administration and allocation of the Baby Bonds Trust Fund. The
68committee shall be comprised of individuals and interested stakeholders from geographically
69diverse regions of the commonwealth. The committee shall serve without compensation but shall
70be reimbursed for necessary expenses incurred in the performance of their duties.
71 (e)(1) At any time upon their reaching the age of 18 and prior to their reaching the age of
7235, a designated beneficiary may submit a claim to distribute, in whole or in part, their
73accounting; provided, however, that the designated beneficiary shall demonstrate that the 5 of 6
74distribution will be applied toward an eligible expenditure; provided further, that, at the time of
75the application, the designated beneficiary is a resident of the commonwealth.
76 (2) A designated beneficiary may not assign, alienate or otherwise dispose of any portion
77of or interest in such accounting to another individual at any time prior to receiving the full
78distribution of the amounts in their accounting.
79 (3) If a designated beneficiary fails to submit a valid claim prior to their reaching age 35,
80their accounting shall be credited back to the assets of the fund.
81 (4) In the case of the death of a designated beneficiary prior to their reaching the age of
8235, upon receipt of notification of such individual’s death, their accounting shall be credited back
83to the assets of the fund.
84 (5) The state treasurer shall seek to develop and make regularly available relevant
85resources and supports designed to assist in making financial decisions to designated
86beneficiaries and their households. The state treasurer shall encourage and incentivize designated
87beneficiaries to utilize said resources and supports prior to the distribution of funds to support an
88eligible expenditure.
89 (f) (1) Notwithstanding any general or special law to the contrary, no moneys invested in
90the fund shall be considered an asset for purposes of determining an individual’s or the
91individual’s household’s eligibility for, or amount of, any benefit or service, including, but not
92limited to: temporary assistance for needy families and need-based, institutional aid grants
93offered to an individual at the public educational institutions in the commonwealth. 6 of 6
94 (2) Notwithstanding any general or special law to the contrary, contributions to an
95accounting on behalf of a designated beneficiary shall not be included in calculating the gross
96income of the designated beneficiary under chapter 62.
97 (g) To carry out the purposes of this section, the Massachusetts department of transitional
98assistance, the Massachusetts department of children and families, the Massachusetts department
99of elementary and secondary education, and the Massachusetts department of public health shall
100provide to the office of the state treasurer any information it deems necessary to fund,
101coordinate, and evaluate activities of the fund. Said agencies shall enter an agreement with the
102office of the state treasurer to document the data sharing procedures and the information to be
103shared.
104 (h) The state treasurer may promulgate rules and regulations as necessary or proper for
105the administration and enforcement of subsections (a) through (g), inclusive.