2014 -- S 2969

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LC005557

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO EDUCATION - HIGHER EDUCATION ASSISTANCE AUTHORITY

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

     Date Introduced: May 01, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Legislative findings. -- The general assembly hereby finds and declares

that:

     (1) Continuous training and education is vitally important in the development of a skilled

Rhode Island workforce and the promotion of a competitive state economy;

     (2) In a highly competitive 21st century global economy, education cannot be considered

a temporary effort, but a lifelong endeavor that requires continuous retraining, upgrading, and

evolution to keep up with the rapidly changing demands of the workplace;

     (3) From enrolling in credit-bearing courses at colleges and universities, to learning a

new language, to participating in training on new equipment and technology, there are a range of

opportunities for Rhode Islanders to upgrade their skill set, increase their employability and

earnings capacity, and increase the competitiveness and productivity of Rhode Island employers;

     (4) The costs of such education and training can be difficult for many Rhode Islanders to

meet;

     (5) Current state and federal incentives and programs to promote educational attainment

have significant gaps in eligibility, allowable training expenses, and enrollment criteria that do

not adequately reflect the policy of lifelong learning and training; and

     (6) The movement of low-skilled workers into middle-skilled jobs and the movement of

middle-skilled workers into high-skilled jobs will help increase Rhode Island’s economic

competitiveness, better insulate the state from disruptive changes to the economy, and achieve a

sustainable, world class competitive workforce.

     SECTION 2. Chapter 16-57 of the General Laws entitled "Higher Education Assistance

Authority" is hereby amended by adding thereto the following section:

     16-57-6.8. Lifelong learning account program. -- (a) The authority, in cooperation with

the governor's workforce board, shall undertake a comprehensive study regarding the

establishment of a lifelong learning savings account program in Rhode Island. Lifelong learning

savings accounts shall be state-administered savings accounts that are owned by individual Rhode

Islanders, and are designed to help save for, and pay for, approved education and training

expenses. Lifelong learning savings accounts may include matching funds from employers and/or

the state.

     (b) The comprehensive study shall include, but not be limited to:

     (1) A review of the appropriate role for the authority in administering such a program;

     (2) A review of the appropriate role of in-state financial institutions and other public,

private, and nonprofit organizations in establishing and maintaining such accounts;

     (3) Recommendations as to how such a program might be designed to best meet the

training and skill needs of Rhode Island employers and industry sectors;

     (4) Recommendations as to how such a program might be designed to best meet the

training needs of Rhode Island workers, particularly low-wage workers, including the feasibility

of providing matching state funds, up to a certain amount, to help low-wage workers begin such

accounts;

     (5) Definitions for approved education and training expenses, provided that the

definitions shall be flexible and inclusive of short-term training and career-related training that

are not typically covered by current education tax benefits and savings programs. Education and

training expenses may be approved:

     (i) By an agent of the department of labor and training, or an approved partner entity, in

association with an education and training plan; or

     (ii) Through a mutual agreement between employee and employer regarding a career

development plan that promotes the training and career advancement of the employee;

     (6) Recommendations regarding the state tax treatment of contributions to, and

withdrawals from, such accounts; and

     (7) Recommendations on how to coordinate lifelong learning accounts with existing

training and workforce development programs in the state.

     (b) The authority shall provide a report of its findings and recommendations regarding

the establishment of a lifelong learning savings account program to the governor, the president of

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the senate, and the speaker of the house no later than July 1, 2015.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO EDUCATION - HIGHER EDUCATION ASSISTANCE AUTHORITY

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     This act would authorize the higher education assistance authority and the governor's

workforce board to perform a study of the feasibility of establishing a state-administered lifelong

learning savings account program.

     This act would take effect upon passage.

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