SB 384 Summary

• Establishes the Connecticut Baby Bond Trust as a state instrumentality with $3,200 per designated beneficiary funded by state bonds, with trust assets kept separate from state property and funds

• Authorizes the State Bond Commission to issue up to $600 million in bonds over fiscal years 2023-2033, with $100 million authorized for FY 2023 and $50 million annually thereafter, plus additional funds for issuance costs and capitalized interest

• Allows designated beneficiaries to request their accumulated trust balance (original transfer plus pro rata investment earnings) upon turning 18 after completing a financial literacy requirement, with claims valid until age 30 while residing in Connecticut

• Exempts trust disbursements from taxation and from consideration as assets or income for determining eligibility for state assistance programs and need-based institutional aid at public educational institutions

• Directs the Department of Social Services to report annually to the Treasurer on the number of designated beneficiaries born in the prior fiscal year to calculate required trust transfers, with unclaimed funds retained for subsequent beneficiaries