H 7797Children

Probate Practice and Procedure - Unclaimed Intangible and Tangible Property

This bill uses unclaimed property funds to provide $3,000 "baby bonds" for eligible children born in Rhode Island.

Held for study

Population
Affected

Introduced Feb 12, 2026Committee House Finance

Plain-English Summary

This legislation changes how the state handles money collected from unclaimed property (such as abandoned bank accounts). Currently, these funds go into the state's General Fund. Under this bill, the state administrator must first use these funds to deposit $3,000 into the "Rhode Island Baby Bond Trust" for every eligible child born in the previous year. Only after these deposits are made—and a reserve is kept for paying claims—will the remaining money be transferred to the General Fund. This effectively uses unclaimed assets to fund savings accounts for specific children.

For younger readers

Sometimes people forget they have money in old bank accounts, and the state holds onto it for them. This is called "unclaimed property." This bill says the state must use some of that money to help babies. Specifically, for certain babies born in Rhode Island, the state will put $3,000 into a special savings account called a "baby bond." This money is set aside before the rest of the unclaimed money goes into the state's main bank account to pay for other things.

Who & Where It Applies

Impacted groups

Newborn Children (Designated Beneficiaries)Parents of Eligible ChildrenState General Fund AdministratorsUnclaimed Property OwnersTaxpayers (Indirectly)

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

Amount unknown

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Establishes a direct mechanism to address the racial and economic wealth gap by providing significant financial assets to children from qualifying families starting at birth.
Utilizes existing state resources from unclaimed property to fund social programs, ensuring that accumulated capital contributes to the public good without immediately raising taxes on the working class.
Strengthens the social safety net by guaranteeing a financial foundation for the next generation, potentially reducing future reliance on government assistance and breaking cycles of poverty.
Diverting funds from the General Fund could unintentionally reduce the budget available for immediate social services, education, and infrastructure needed by vulnerable communities today.
The one-time allocation of three thousand dollars may not be sufficient to account for inflation or the rising costs of higher education and housing by the time the child reaches adulthood.
Relying on unclaimed property revenue can be unpredictable year-to-year, potentially making the funding for this vital social program unstable compared to a dedicated tax revenue stream.

For Conservatives

Utilizes existing unclaimed funds rather than implementing new taxes or raising levies on businesses and hardworking taxpayers to fund the initiative.
Promotes the concept of savings, investment, and capital accumulation, potentially encouraging personal responsibility and financial literacy among recipients as they mature.
May reduce long-term dependence on government welfare programs by providing individuals with a private asset base to start their adult lives self-sufficiently.
Represents a form of government-mandated wealth redistribution, giving handouts to specific individuals rather than allowing market forces and family responsibility to determine financial outcomes.
Depletes the General Fund by diverting revenue, which will likely result in future tax increases on citizens and businesses to cover the state's operating budget deficits.
Appropriates private property (unclaimed funds) that technically belongs to individuals or businesses to fund a government social engineering program instead of prioritizing its return to the rightful owners.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 8 additions · 3 deletions

It is enacted by the General Assembly as follows:

SECTION 1. Section 33-21.1-23 of the General Laws in Chapter 33-21.1 entitled "Unclaimed Intangible and Tangible Property" is hereby amended to read as follows: 33-21.1-23. Deposit of funds.

(a) Except as otherwise provided by this section, the administrator shall promptly deposit in the ~~general fund of this state all funds received under this chapter, including the proceeds from~~ ~~the sale of abandoned property under § 33-21.1-22~~ Rhode Island baby bond trust a one-time three thousand dollar ($3,000) allocation for each designated beneficiary as defined in § 35-24-1 born in the preceding calendar year. The administrator shall promptly deposit all remaining funds in the general fund of this state, including the proceeds from the sale of abandoned property under § 33- 21.1-22. The administrator shall retain in a separate bank account an amount not less than one hundred thousand dollars ($100,000) from which prompt payment of claims duly allowed must be made by him or her. Before making the deposit, the administrator shall record the name and last known address of each person appearing from the holders’ reports to be entitled to the property and the name and last known address of each insured person or annuitant and beneficiary and with respect to each policy or contract listed in the report of an insurance company its number and the name of the company. The record with the exception of the amount due must be available for public inspection at all reasonable business hours.

(b) Before making any transfer from the account surplus ~~to the credit of the general fund~~ pursuant to subsection (a) of this section, the administrator may deduct:

(1) Any costs in connection with the sale of abandoned property;

(2) Costs of mailing and publication in connection with any abandoned property;

(3) Reasonable service charges;

(4) Costs incurred in examining records of holders of property and in collecting the property from those holders; and

(5) Any other charges, costs or expenses incurred in the administration of this chapter.

SECTION 2. This act shall take effect on July 1, 2027.