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:

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

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that:

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

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

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

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

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

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

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

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

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

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

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meet;

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

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

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

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

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

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

 

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sustainable, world class competitive workforce.

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

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

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

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

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

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

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

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

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the state.

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

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

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

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

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

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

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

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

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

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accounts;

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

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

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

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training expenses may be approved:

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

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association with an education and training plan; or

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

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

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

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withdrawals from, such accounts; and

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

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training and workforce development programs in the state.

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

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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.

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     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

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

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learning savings account program.

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     This act would take effect upon passage.

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