Wisconsin proposal would fund accounts for some newborns

The Department of Financial Institutions would open a baby bond account and credit $3,000 for each eligible child. This would cover children born in Wisconsin on or after the bill’s effective date whose mothers meet that income test. The child’s mother must meet Medical Assistance income requirements on the day before the birth. The birth must be on or after the bill’s effective date, which is not shown in the available text.

A beneficiary could apply to receive the account balance for approved expenses. The beneficiary must be at least 18 and apply to the Department of Financial Institutions. The beneficiary must complete a financial literacy course and certify that the money will pay only for an allowed use. The beneficiary and at least one parent generally must live in Wisconsin. If the beneficiary or a parent moved away before the beneficiary turned 18, the beneficiary may qualify by returning and living in Wisconsin for at least a year. Allowed uses include postsecondary education, care or education for a minor dependent, buying a home, starting a business, or retirement savings. The department could end an account at age 30 if the beneficiary has not requested a distribution or met the requirements.

The State Registrar would send birth record copies to the Department of Financial Institutions and could not charge for them. The duty covers birth records for births in Wisconsin sent to the Department of Financial Institutions. The registrar must remove parents’ Social Security numbers. The information is for administering the baby bond program. Birth records must be filed within five days after birth; the proposal requires the registrar to send a copy to the department.