The Vermont Statutes Online

Title 3: Executive

Chapter 020: Vermont Baby Bond Trust

• § 601. Definitions

  As used in this chapter:

  (1) “Designated beneficiary” means an individual born on or after July 1, 2024 who was eligible at birth for coverage in the Dr. Dynasaur program established in accordance with Title XIX (Medicaid) and Title XXI (SCHIP) of the Social Security Act or for coverage available pursuant to 33 V.S.A. chapter 19, subchapter 9.

  (2) “Eligible expenditure” means an expenditure associated with any of the following, each as prescribed by the Treasurer:

  (A) education of a designated beneficiary;

  (B) purchase of a dwelling unit or real property in Vermont by a designated beneficiary;

  (C) investment in a business in Vermont by a designated beneficiary; or

  (D) investment or rollover in a qualified retirement account, Section 529 account, or Section 529A account established for the benefit of a designated beneficiary.

  (3) “Trust” means the Vermont Baby Bond Trust established by this chapter. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 602. Vermont Baby Bond Trust; establishment

  (a) There is established the Vermont Baby Bond Trust, to be administered by the Office of the State Treasurer. The Trust shall constitute an instrumentality of the State and shall perform essential governmental functions as provided in this chapter. The Trust shall receive and hold until disbursed in accordance with section 607 of this title all payments, deposits, and contributions intended for the Trust; as well as gifts, bequests, and endowments; federal, State, and local grants; any other funds from any public or private source; and all earnings on these funds.

  (b)(1) The amounts on deposit in the Trust shall not constitute property of the State, and the Trust shall not be construed to be a department, institution, or agency of the State. Amounts on deposit in the Trust shall not be commingled with State funds, and the State shall have no claim to or against, or interest in, the amounts on deposit in the Trust.

  (2) Any contract entered into by, or any obligation of, the Trust shall not constitute a debt or obligation of the State, and the State shall have no obligation to any designated beneficiary or any other person on account of the Trust.

  (3) All amounts obligated to be paid from the Trust shall be limited to the amounts available for that obligation on deposit in the Trust, and the availability of amounts for a class of designated beneficiaries does not constitute an assurance that amounts will be available to the same degree, or at all, to another class of designated beneficiaries. The amounts on deposit in the Trust shall only be disbursed in accordance with the provisions of section 607 of this title.

  (4) The Trust shall continue in existence until it no longer holds any deposits or has any obligations and its existence is terminated by law. Upon termination, any unclaimed assets shall return to the State and shall be governed by the provisions of 27 V.S.A chapter 18.

  (c) The Treasurer shall be responsible for receiving, maintaining, administering, investing, and disbursing amounts from the Trust. The Trust shall not receive deposits in any form other than cash. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 603. Treasurer’s Trust authority

  The Treasurer, on behalf of the Trust and for purposes of the Trust, may:

  (1) receive and invest monies in the Trust in any instruments, obligations, securities, or property in accordance with section 604 of this title;

  (2) enter into one or more contractual agreements, including contracts for legal, actuarial, accounting, custodial, advisory, management, administrative, advertising, marketing, or consulting services, for the Trust and pay for such services from the assets of the Trust;

  (3) procure insurance in connection with the Trust’s property, assets, activities, or deposits and pay for such insurance from the assets of the Trust;

  (4) apply for, accept, and expend gifts, grants, and donations from public or private sources to enable the Trust to carry out its objectives;

  (5) adopt rules pursuant to 3 V.S.A. chapter 25;

  (6) sue and be sued;

  (7) establish one or more funds within the Trust and expend reasonable amounts from the funds for internal costs of administration; and

  (8) take any other action necessary to carry out the purposes of this chapter. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 604. Investment of funds in the Trust

  The Treasurer shall invest the amounts on deposit in the Trust in a manner reasonable and appropriate to achieve the objectives of the Trust, exercising the discretion and care of a prudent person in similar circumstances with similar objectives. The Treasurer shall give due consideration to the rate of return, risk, term or maturity, and liquidity of any investment; diversification of the total portfolio of investments within the Trust; projected disbursements and expenditures; and the expected payments, deposits, contributions, and gifts to be received. The Treasurer shall not invest directly in obligations of the State or any political subdivision of the State or in any investment or other fund administered by the Treasurer. The assets of the Trust shall be continuously invested and reinvested in a manner consistent with the objectives of the Trust until disbursed for eligible expenditures or expended on expenses incurred by the operations of the Trust. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 605. Exemption from taxation

  The property of the Trust and the earnings on the Trust shall be exempt from all taxation by the State or any political subdivision of the State. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 606. Monies invested in Trust not considered assets or income

  (a) Notwithstanding any provision of law to the contrary, and to the extent permitted by federal law, no sum of money invested in the Trust shall be considered to be an asset or income for purposes of determining an individual’s eligibility for assistance under any program administered by the Agency of Human Services.

  (b) Notwithstanding any provision of law to the contrary, no sum of money invested in the Trust shall be considered to be an asset for purposes of determining an individual’s eligibility for need-based institutional aid grants offered to an individual by a public postsecondary school located in Vermont. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 607. Accounting for designated beneficiary; claims requirements

  (a) The Treasurer shall establish in the Trust an accounting for each designated beneficiary in the amount of $3,200.00. Each accounting shall include the initial amount of $3,200.00, plus the designated beneficiary’s pro rata share of total net earnings from investments of sums held in the Trust.

  (b) A designated beneficiary shall become eligible to receive the total sum of the accounting under subsection (a) of this section upon the designated beneficiary’s 18th birthday and completion of a financial coaching requirement as prescribed by the Treasurer. The sum shall only be used for eligible expenditures.

  (c) The Treasurer shall create a financial coaching program and materials designed to educate designated beneficiaries and others about the permissible use of funds available under this chapter.

  (d) A designated beneficiary, or the designated beneficiary’s authorized representative in the case of a designated beneficiary unable to make a claim due to disability, may submit a claim for accounting until the designated beneficiary’s 30th birthday, provided the designated beneficiary is a resident of the State at the time of the claim. If a designated beneficiary dies before submitting a valid claim or fails to submit a valid claim before the designated beneficiary’s 30th birthday, the designated beneficiary’s accounting shall be credited back to the assets of the Trust.

  (e) The Treasurer shall adopt rules pursuant to 3 V.S.A. chapter 25 to carry out the purposes of this section, including prescribing the process for submitting a valid claim for accounting. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 608. Data sharing

  In carrying out the purposes of this chapter, the Treasurer may enter into an intergovernmental agreement or memorandum of understanding with any agency or instrumentality of the State requiring disclosure to execute the purposes of this chapter to receive outreach, technical assistance, enforcement, and compliance services; collection or dissemination of information pertinent to the Trust, including protected health information and personal identification information, subject to such obligations of confidentiality as may be agreed to or required by law; or other services or assistance. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)

• § 609. Implementation; pilot program

  The Treasurer’s duty to implement this chapter is contingent upon publication by the Treasurer of an official statement that the Treasurer has received donations designated for purposes of implementation or administration of the Trust in an amount sufficient to operate a pilot program. Upon publication, the Treasurer shall commence a pilot program implementing the Trust pursuant to the provisions of this chapter. The pilot program shall be used to evaluate the impact, effectiveness, and operational necessities of a permanent program consistent with this chapter. (Added 2023, No. 184 (Adj. Sess.), § 17, eff. July 1, 2024.)