Vote Smart's Synopsis:

Vote to pass a bill that would establish savings accounts for all eligible children born on or after January 1, 2010 with an initial deposit of $500 from the state.

Highlights:

-Specifies that the state may match up to $500 of eligible deposits to a child account per year, and limits the total aggregate contributions to any child's account to no more than $2,000 per year (Secs. 2 and 4). -Prohibits withdrawals from a child's account prior to the child reaching the age of 18 (Sec. 2). -Specifies that upon reaching the age of 18 a child may withdraw money out of his or her account for the following purposes (Sec. 4):

-to pay for postsecondary education, career technical education, or training; -to purchase a first home; -to purchase a vehicle for transportation to work; -to start a business; or -to fund retirement.

-Limits the fees for management of each account to no more than 1.5% of the net asset value of the account, and specifies that those fees must be deducted from the account (Sec. 5). -Appropriates up to $8.82 million to the state treasurer to fund this program for the biennium ending on June 30, 2011 (Sec. 8).

Full Bill Text