S T A T E O F N E W Y O R K
________________________________________________________________________
4065
2021-2022 Regular Sessions
I N A S S E M B L Y
February 1, 2021
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Introduced by M. of A. BENEDETTO -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the state finance law, in relation to establishing the
New York baby opportunity fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new section
78-c to read as follows:
§ 78-C. NEW YORK BABY OPPORTUNITY FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE STATE COMPTROLLER, THE COMMISSIONER OF TAXA-
TION AND FINANCE AND THE COMMISSIONER OF HEALTH THE NEW YORK BABY OPPOR-
TUNITY FUND.
2. THE NEW YORK BABY OPPORTUNITY FUND SHALL CONSIST OF MONEYS TRANS-
FERRED TO THE FUND BY THE STATE COMPTROLLER FROM THE GENERAL FUND AND
ALL OTHER MONEYS APPROPRIATED, CREDITED, OR TRANSFERRED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED HEREIN SHALL
PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW.
3. THE DEPARTMENT OF HEALTH SHALL PROMULGATE APPLICATION FORMS TO BE
SUBMITTED TO THE COMPTROLLER UPON THE BIRTH OF AN ELIGIBLE CHILD. THE
FUND SHALL PROVIDE FOR THE DEPOSIT OF ONE THOUSAND DOLLARS INTO AN INDI-
VIDUAL ACCOUNT FOR EACH ELIGIBLE CHILD WITHIN SIX MONTHS OF RECEIPT OF
AN APPLICATION TO THE FUND FOR SUCH CHILD. MONIES WITHIN EACH ACCOUNT
SHALL BE INVESTED IN A MANNER THAT GENERATES A RATE OF RETURN AT LEAST
EQUAL TO THE RATE OF RETURN EARNED ON A THIRTY-YEAR TREASURY BOND.
4. MONIES IN EACH ACCOUNT SHALL BE IDENTIFIED BY A UNIQUE IDENTIFICA-
TION NUMBER AND MAY ONLY BE ACCESSED BY THE ELIGIBLE CHILD FOR WHICH THE
ACCOUNT WAS ORIGINALLY CREATED. IN ORDER TO ACCESS SUCH FUNDS, THE
ELIGIBLE CHILD SHALL BE AT LEAST EIGHTEEN YEARS OLD AND A CURRENT RESI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08465-01-1
A. 4065 2
DENT OF THE STATE AT THE TIME OF WITHDRAWAL. SUCH MONIES SHALL ONLY BE
UTILIZED FOR QUALIFIED EXPENSES.
5. MONIES OF THE FUND SHALL BE EXPENDED BY THE STATE COMPTROLLER SOLE-
LY FOR THE PURPOSE OF ADMINISTERING THE PROVISIONS OF THIS SECTION.
6. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(A) "ELIGIBLE CHILD" SHALL MEAN ANY CHILD BORN AFTER THE EFFECTIVE
DATE OF THIS SECTION TO PARENTS WHO ARE RESIDENTS OF THE STATE AND WHO
HAVE AN ANNUAL HOUSEHOLD INCOME OF LESS THAN FIVE HUNDRED PERCENT OF THE
FEDERAL POVERTY LEVEL;
(B) "HOUSEHOLD INCOME" SHALL MEAN THE SUM OF THE ADJUSTED GROSS
INCOMES OF THE ELIGIBLE CHILD'S BIRTH PARENTS. SUCH GROSS INCOME AMOUNTS
SHALL BE CALCULATED BASED ON INFORMATION FROM THE MOST RECENT TAXABLE
YEAR AVAILABLE AS PROVIDED AND CERTIFIED BY THE DEPARTMENT OF TAXATION
AND FINANCE;
(C) "QUALIFIED EXPENSES" SHALL MEAN EXPENSES FOR THE EDUCATION OF THE
ACCOUNT HOLDER, OWNERSHIP OF A HOME BY THE ACCOUNT HOLDER, AND COSTS
ASSOCIATED WITH ESTABLISHING OR OTHERWISE BUILDING A BUSINESS.
§ 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.