Assembly Bill A7415

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7415
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 25, 2025
                                ___________
 
 Introduced by M. of A. ANDERSON -- read once and referred to the Commit-
   tee on Children and Families
 
 AN  ACT  to  establish a "baby bond" pilot program for foster youth; and
   making an appropriation therefor
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. 1. (a) There is hereby created a pilot program to be under
 the New York city Administration  for  Children's  Services  to  provide
 funds  through  bonds  ("baby  bonds")  to support foster care youths of
 low-income households with statistically low likelihood of adoption (age
 8-18) and limited familial support living outside of the  custody  of  a
 familial relative.
   (b)  For  the  purposes of this act, "baby bond" shall mean an annuity
 investment fund deposited in a lump-sum and/or in  monthly  installments
 to  accrue  wealth  during  a  period of time. Such annuity shall not be
 distributed as it appreciates and shall  continue  to  receive  deposits
 until it reaches maturity.
   2.  (a)  The  participants  in  such  program shall be selected by the
 administration for children's services from among foster care youths  in
 the city of New York as follows:
   (i)  500  children  shall  be selected from ages 8 to 11, for whom the
 initial deposit shall be $1,000.
   (ii) 500 children shall be selected from ages 12 to 14, for  whom  the
 initial deposit shall be $5,000.
   (iii) 500 teenagers shall be selected from ages 14 to 17, for whom the
 initial deposit shall be $10,000.
   (b) $100 per month shall be deposited into each such account until the
 age of 25.
   3.  The  administration  for children's services shall hire a not-for-
 profit organization to execute this pilot program which shall:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05370-01-5
 A. 7415                             2
              

   (a) provide financial counseling for the program participants, includ-
 ing quarterly financial education trainings;
   (b)  provide  updates  on  the amount in each participant's annuity to
 facilitate long-term planning; and
   (c) steward the baby bond fund, which shall be invested  in  the  same
 manner as the funds of the New York city employees' retirement system.
   4.  Upon  reaching  age 25 participants shall be allowed to access the
 annuity for the following qualified uses:
   (a) transfer to a business account to support business development;
   (b) down payment for the purchase of such participant's primary  resi-
 dence or build equity in such participant's existing residence; and
   (c) payment towards student loans or the cost of education.
   5.  If such funds are not drawn upon for qualified expenses by the age
 of 40, such funds shall  be  converted  into  an  individual  retirement
 account  using  its  existing investment composition for distribution at
 retirement.  If a participant is adopted at any point during  the  pilot
 program,  such  participant  shall  no  longer receive monthly deposits,
 unless such participant  maintains  their  participation  in  the  study
 voluntarily and in full.
   6.  The  costs  of such program, subject to appropriation, shall be as
 follows:
   (a) $8,000,000 for initial deposits  in  the  accounts  of  the  1,500
 participants.
   (b)  $1,800,000  annually  in  monthly  $100 deposits into the partic-
 ipants' accounts.
   (c) $750,000 annually for the not-for-profit organization  to  conduct
 their financial management and counseling services while collecting data
 for annual reports.
   7.  The administration for children's services shall prepare an annual
 report to monitor progress on the overall wellbeing of  program  partic-
 ipants, which shall be published on such administration's website.  Such
 report shall include such participants' academic attendance, grade point
 average, disciplinary records, and overall mental health.
   §   2.   The   sum  of  ten  million  five  hundred  thousand  dollars
 ($10,500,000), or so much thereof as may be necessary, is hereby  appro-
 priated  to the New York city administration for children's services out
 of any moneys in the state treasury in the general  fund  not  otherwise
 appropriated,  for  its  expenses in carrying out the provisions of this
 act. Such moneys shall be payable on the audit and warrant of the  comp-
 troller  on  vouchers  certified  or approved by the commissioner of the
 administration for children's services in the manner prescribed by law.
   § 3. The program shall seek an additional $2.5  million  appropriation
 every year until the completion of the program 20 years after the effec-
 tive date of this act.
   § 4. This act shall take effect immediately.