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HB 7797

AN ACT RELATING TO PROBATE PRACTICE AND PROCEDURE -- UNCLAIMED INTANGIBLE AND TANGIBLE PROPERTY

2026 Regular Session Introduced by Karen Alzate and 6 co-sponsors

The bill redirects unclaimed property remittances to fund the Rhode Island Baby Bond Trust, creating a dedicated source of savings for children starting July 1, 2027.

05/12/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7797

Bill Summary: HB 7797 (Rhode Island) – Unclaimed Intangible and Tangible Property

Purpose and intent

  • Establishes a mechanism to fund the Rhode Island Baby Bond Trust program using unclaimed property remittances, rather than relying on taxpayer dollars.
  • Redirects and earmarks certain unclaimed property proceeds to the General Fund and, specifically, to support prompt payments of claims while reserving a minimum balance for administration.

Key provisions and changes

  • Deposit of funds (Section 33-21.1-23):
    • The administrator must promptly deposit all funds received under the unclaimed intangible and tangible property provisions into the state’s General Fund, with two exceptions:
    • Proceeds from the sale of abandoned property under § 33-21.1-22 are included in the deposits to the General Fund.
    • A one-time allocation of $3,000 to each designated beneficiary born in the preceding calendar year, funded from the sale proceeds, is allocated to the Rhode Island Baby Bond Trust.
    • The administrator must also maintain a separate bank account with at least $100,000 available for prompt payment of duly allowed claims.
    • Before deposit, the administrator must record for public inspection the names and last-known addresses of claimants, insured persons, annuitants, beneficiaries, and insurance policy identifiers and company names (except for the amount due).
    • The record (excluding the amount due) must be publicly accessible during reasonable business hours.
  • Deductions before transferring surplus to the General Fund (Section 33-21.1-23):
    • The administrator may deduct the following from the account surplus before transferring funds to the General Fund: 1) Costs associated with selling abandoned property 2) Mailing and publication costs related to abandoned property 3) Reasonable service charges 4) Costs incurred in examining records of property holders and in collecting property 5) Other charges, costs, or expenses related to administering the chapter
  • Effective date: July 1, 2027

Who/what is affected

  • Rhode Island unclaimed property program (intangible and tangible property) administered by the state.
  • Public record and transparency requirements for holders of unclaimed property and related claimants.
  • General Fund finances, shaping how unclaimed property remittances are allocated.
  • Rhode Island Baby Bond Trust program, which would receive an annual per-beneficiary allocation (one-time $3,000 per designated beneficiary born in the prior year).

Financial and procedural implications

  • Creates a dedicated funding stream for the Baby Bond Trust from unclaimed property proceeds, reducing reliance on general tax revenue.
  • Maintains a minimum reserve in a separate administrative account ($100,000) to ensure timely payment of claims.
  • Introduces a public-record framework for claimant and beneficiary information (excluding the monetary amounts due), enhancing transparency.
  • Establishes deductive authorities for administrative and transaction costs prior to transferring surplus to the General Fund.
  • Progression/Timeline:
    • Law would take effect on July 1, 2027.
    • Implementation involves changes to deposit, deduction, and public-record processes starting from that date.

Administrative sponsors and status

  • Introduced February 12, 2026, in the Rhode Island House.
  • Referred to House Finance (General Treasurer) for consideration.
  • Co-sponsors: Karen Alzate, Arthur Handy, Brandon Potter, Joshua Giraldo, Jennifer Stewart, Enrique Sanchez, Brandon Voas.
  • Scheduled hearing/consideration noted for May 12, 2026 (as of the latest action history).

Key takeaways

  • The bill reconfigures the handling of unclaimed property deposits to fund social savings for children (Baby Bond Trust) while preserving operational reserves and adding transparency.
  • It directs annual per-beneficiary allocations to the Baby Bond Trust from property sales, effectively using unclaimed property remittances to support long-term child welfare savings programs.
  • If enacted, the act would begin affecting fiscal operations in mid-2027.

Compiled from official sources — confirm details with the bill’s official record.

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