North Carolina SB 279: Henderson Co. Local Act-2.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 279

Short Title: Baby Bond Trust Fund. (Public)
Sponsors: Senators Murdock, Meyer, and Salvador (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 13, 2025
*S279-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH THE BABY BOND TRUST FUND AND TO APPROPRIATE 2
MONEY FOR PURPOSES CONSISTENT WITH THAT FUND. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Chapter 147 of the General Statutes is amended by adding a new 5
Article to read: 6
"Article 6H. 7
"Baby Bond Program Trust Fund. 8
"§ 147-86.90. Policy and definitions. 9
(a) Policy. – The General Assembly of North Carolina hereby finds and declares that 10
making a financial investment in the children of this State who come from limited economic 11
means and encouraging those children and their families to invest in their future financial success 12
is fully consistent with and furthers the long-established policy of the State to provide tools that 13
strengthen opportunities for personal economic development and long-term financial planning. 14
(b) Definitions. – The following definitions apply in this Article: 15
(1) Account holder. – An eligible individual who is the owner of an individual 16
account. 17
(2) Board. – The Baby Bond Program Trust Fund Board of Trustees established 18
in G.S. 147-86.92. 19
(3) Code. – The Internal Revenue Code, as defined in G.S. 105-228.90. 20
(4) Department. – The Department of State Treasurer. 21
(5) Eligible individual. – An infant born on or after January 1, 2024, who meets 22
all of the following: 23
a. Is born to a parent who (i) is a resident of this State, as defined in 24
G.S. 105-153.3, or (ii) establishes residence in this State within six 25
months of the infant's birth. 26
b. Resides in a household having an annual household income that does 27
not exceed two hundred percent (200%) of the federal poverty level. 28
(6) Federal poverty level. – A measure of income promulgated annually by the 29
United States Department of Health and Human Services. 30
(7) Fund. – The Baby Bond Program Trust Fund established in G.S. 147-86.91. 31
(8) Household income. – Income as defined in 7 C.F.R. §§ 245.2 and 245.6 or 32
any superseding federal law. 33
(9) Individual account. – An account established within the Baby Bond Program 34
Trust Fund for an eligible individual pursuant to G.S. 147-86.91. 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 279-First Edition
(10) Office of Vital Records. – The Office of Vital Records of the Division of 1
Public Health of the North Carolina Department of Health and Human 2
Services. 3
"§ 147-86.91. Baby Bond Program. 4
(a) Baby Bond Program Trust Fund. – There is created in the Department of State 5
Treasurer the Baby Bond Program Trust Fund to be administered by the Baby Bond Program 6
Trust Fund Board of Trustees established in G.S. 147-86.92. The Fund is created and shall be 7
administered (i) to establish and fund individual accounts in the amount of two thousand dollars 8
($2,000) for the financial benefit of eligible individuals and (ii) to enable contributors to save 9
funds and increase the likelihood of the account holder's future financial success. 10
(b) Accounts. – The following provisions apply to an individual account: 11
(1) The Board shall establish an individual account for each eligible individual 12
using the information provided to the Board by the Office of Vital Records 13
pursuant to subdivision (2) of this subsection. The Board shall notify the 14
Department of every individual account that is established. 15
(2) Every month, the Office of Vital Records shall transmit to the Board the name, 16
address, and social security number of all eligible individuals for whom the 17
Office of Vital Records received a birth or death certificate during that time. 18
(3) Within 30 days of notification by the Board pursuant to subdivision (1) of this 19
subsection, the Department shall transfer a one-time deposit of two thousand 20
dollars ($2,000) into the individual account of each new eligible individual. 21
(4) The Board shall assign a unique personal identifier for every individual 22
account that is established. 23
(5) Any person may make contributions to an individual account in a manner 24
approved by the Board. 25
(c) Contributions. – The Board is authorized to accept, hold, invest, and disburse 26
contributions, and interest earned on such contributions, from contributors as trustees of the 27
Fund. The Board shall hold all contributions to the Fund, and any earnings thereon, in the Fund 28
and shall invest the contributions in accordance with this section. The assets of the Fund shall at 29
all times be preserved, invested, and expended for the purpose of providing benefits to account 30
holders and paying reasonable expenses of administering the Fund and investing the assets of the 31
Fund. Nothing in this Article shall be construed to prohibit the Boa