2014 -- S 2220

========

LC003657

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

____________

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY--

GENERAL PROVISIONS

     Introduced By: Senators DaPonte, Gallo, Ciccone, DiPalma, and Ottiano

     Date Introduced: January 30, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative findings. --The legislature finds that training and education is

vitally important in the development of skilled workers and the promotion of an international

competitive economy. It is the intent of the legislature to ensure that all state citizens are provided

with the opportunity to succeed and that no workers are abandoned in their pursuit of excellence

in training and education. It is the further intent of the legislature to build a highly skilled and

globally competitive workforce by supporting the movement of low-skilled workers into average-

skilled jobs and moving average-skilled workers into high-skilled jobs to achieve a world class

competitive workforce that is sustainable through the coming decades. The legislature intends,

through the establishment of a lifelong learning program, to address the challenge of providing

low-skilled workers with postsecondary education and training and ultimately achieving

excellence in all sectors of our workforce and economy. The legislature intends the lifelong

learning program to develop partnerships and mechanisms through which:

     (1) Workers take responsibility for advancing in their careers and improving their

economic future by investing their own funds in their training and education;

     (2) Employers promote the success of their businesses, workers, and communities by

investing in their workers' lifelong learning accounts;

     (3) Educational and training institutions promote the establishment of lifelong learning

accounts to equip students and their employers with a means to meet the financial demands of

higher education tuition costs and the competitive needs of industries;

      (4) State and local government institutions provide the infrastructure, incentives, and

proactive support for employees, employers, and institutions to invest in lifelong learning

accounts; and

     (5) Financial institutions and nonprofit organizations invest their resources to provide the

initial web of support to establish pilot projects, foster program development, assist in impact

evaluation, and assist in migrating the program achievements and best practices across other

communities and industries in the United States.

     SECTION 2. Chapter 28-42 of the General Laws entitled "Employment Security -

General Provisions" is hereby amended by adding thereto the following section:

     28-42-85.1. Lifelong learning program. – (a) Lifelong learning program is established

within the state workforce investment board to provide the opportunity for employees, with the

support of their employers, to create educational savings accounts that may be used to fund

approved education and training. In operating the program, the board:

     (1) May partner with, and coordinate the voluntary alignment of services with, financial

institutions and other public, private, and nonprofit organizations in order to enable low-wage

workers to attain high-skilled and high-wage jobs in their communities;

     (2) Must work with its partners to:

     (i) Establish the policies, rules, and procedures, including, but not limited to, standards

for fund management and for approving career development plans and education and training that

support the operation of the program;

     (ii) Ensure the program is marketed to various geographic areas and industry sectors of

the state, as well as to low-wage workers, their employers, and the communities in which they

reside; and

     (iii) Help partners coordinate new career counseling services with, existing online and

other providers, including those provided by the state human resource investment council;

     (3) May work with financial institutions to encourage their full engagement in:

     (i) The management functions of the program, including managing lifelong learning

accounts for individual employers and their respective employees consistent with program

requirements and guidelines;

     (ii) Adding value to the program through the provision of financial literacy and career

counseling; and

     (iii) Aligning their activities under a consolidated partnership, which may include the

designation of one fund manager to streamline the establishment and management of the

LC003657 - Page 2 of 4

program; and

     (4) May develop program policies and system options that will lead the program to

become self-sustaining. This may include establishment of fees for participation, system fees for

the administration of accounts, and set-up fees; and transactions fees for deposits and

disbursements, career counseling fees, sponsorship fees, and other fees as determined appropriate

by the board.

     (b) Definitions. As used in this section:

     (1) "Approved career development plan" means an employee's career development plan

that is approved by the program managers and contains the necessary information to determine if

expenditures are in alignment with program criteria.

     (2) "Approved education and training" means education, training, and associated costs

aligned with an approved career development plan and thus eligible to be funded from a lifelong

learning account.

     (3) "Financial institution" means any federally chartered or state chartered bank, savings

bank, or savings and loan association, or credit union.

     (4) "Lifelong learning accounts" means joint savings accounts that are established by

employees and employers to support the education and training of employees and that are aligned

with their approved career development plan.

     SECTION 3. This act shall take effect upon passage.

========

LC003657

========

LC003657 - Page 3 of 4

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- EMPLOYMENT SECURITY--

GENERAL PROVISIONS

***

     This act would establish a lifelong learning program designed to provide employees with

educational savings accounts to help fund educational programs and training.

     This act would take effect upon passage.

========

LC003657

========

LC003657 - Page 4 of 4