S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11074
 
                           I N  A S S E M B L Y
 
                              October 7, 2020
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of 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-
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD17380-01-0

 A. 11074                            2
 
   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.