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S 2843Benefit Programs

Probate Practice and Procedure - Unclaimed Intangible and Tangible Property

Mandates using unclaimed property revenue to fund $3,000 deposits into baby bond trust accounts for eligible newborns.

Held for study
Population
Affected
28
Email Legislator
Introduced Mar 4, 2026Committee Senate Finance

Plain-English Summary

This bill changes how the state handles money from unclaimed property. Currently, when the state collects abandoned funds (like forgotten bank accounts), the money goes into the state's General Fund. Under this new legislation, before the money goes to the General Fund, the administrator must first use it to deposit $3,000 into the "Rhode Island baby bond trust" for every eligible baby born in the previous year. After these deposits are made and administrative costs are covered, any remaining money will then be deposited into the General Fund. The administrator will continue to keep $100,000 available to pay claims.

For younger readers

Sometimes people forget they have money in old bank accounts, and the state holds onto it for them. This bill changes what the state does with that money while they wait for the owners to claim it. Before, the extra money went straight to the state's main bank account to pay for general things. Now, the state will take some of that money and put $3,000 into a special savings account for certain babies born in Rhode Island. This helps those babies have a "nest egg" of money when they grow up. The rest of the money goes to the state like before.

Who & Where It Applies

Impacted groups
Newborns (Designated Beneficiaries)Low-income familiesState Treasurer/AdministratorGeneral Fund recipientsUnclaimed property owners
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Directly addresses wealth inequality by providing a significant financial asset ($3,000) to children born into lower-income families, helping to close the racial and economic wealth gap.
  • Establishes a dedicated, sustainable funding stream for the Baby Bond Trust that does not rely on annual discretionary budget fights or tax increases on the working class.
  • Strengthens the social safety net by ensuring that children from disadvantaged backgrounds have capital available for education, housing, or business creation upon reaching adulthood.
  • Redirects revenue away from the General Fund, which could theoretically reduce the available budget for other immediate social services, education, or infrastructure needs.
  • Relies on the variable revenue of unclaimed property, which could fluctuate year-to-year, potentially threatening the stability of the program if abandoned property claims rise or receipts fall.
  • The $3,000 allocation, while helpful, may not be sufficient to overcome systemic poverty or the rising costs of higher education and housing by the time the child accesses the funds.
For Conservatives
  • Promotes the concept of individual asset ownership and savings rather than traditional cash handouts, potentially encouraging financial responsibility and independence.
  • Utilizes existing non-tax revenue (unclaimed property) to fund the initiative, avoiding the need for immediate tax increases to support the program.
  • May reduce long-term reliance on government welfare programs by attempting to equip young adults with the capital needed to become self-sufficient taxpayers.
  • Represents an expansion of the welfare state by creating a government-mandated redistribution of wealth to specific beneficiaries.
  • Diverts funds from the General Fund, effectively creating a budget hole that may eventually require tax increases or spending cuts elsewhere to fill.
  • Utilizes unclaimed private property—which technically belongs to individuals, not the state—to fund social engineering programs rather than simply holding it for 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.