14-R372

2014 -- S 3136

Enacted 06/20/14

S E N A T E   R E S O L U T I O N

 RESPECTFULLY REQUESTING THE RHODE ISLAND HIGHER EDUCATION

ASSISTANCE AUTHORITY, IN COOPERATION WITH THE GOVERNOR'S

WORKFORCE BOARD, UNDERTAKE A COMPREHENSIVE STUDY REGARDING THE ESTABLISHMENT OF A LIFELONG LEARNING SAVINGS ACCOUNT PROGRAM IN RHODE ISLAND

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

Date Introduced: June 20, 2014

     WHEREAS, In a highly competitive 21st century global economy, education should not

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; and

     WHEREAS, Continuous training and education is vitally important in the development of

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

WHEREAS, Whether enrolling in college courses, learning a new language, or

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; and

     WHEREAS, The costs of such education and training can be difficult for many Rhode

Islanders to meet; and

WHEREAS, Current state and federal incentives and programs to promote educational

attainment have considerable gaps in eligibility, allowable training expenses, and enrollment

criteria that do not adequately reflect a policy of lifelong learning and training; and

     WHEREAS, The "Rhode to Work" legislative action plan prepared by the Senate Policy

Office found that several states have introduced Lifelong learning savings accounts, also known

as "LiLAs", which are state-administered savings accounts, owned by individual workers and

designed to help save for, and pay for, approved education and training expenses; and

WHEREAS, Such accounts are intended to fill the gaps left by other state and federal

savings programs and may include matching funds from employers and/or the state; now

therefore be it

     RESOLVED, That this Senate of the State of Rhode Island and Providence Plantations

hereby respectfully requests that the Rhode Island Higher Education Assistance Authority, in

cooperation with the Governor's Workforce Board, undertake a comprehensive study regarding

the establishment of a lifelong learning savings account program in Rhode Island; and be it

further

     RESOLVED, That this Senate hereby respectfully requests that said comprehensive study

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;

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; and be it further

     RESOLVED, That this Senate hereby respectfully requests that the Authority complete

and submit said study to the Governor, the Speaker of the House of Representatives, and the

President of the Senate, on or before July 1, 2015; and be it further

     RESOLVED, That the Secretary of State be and hereby is authorized and directed to

transmit duly certified copies of this resolution to the Executive Director of the Rhode Island

Higher Education Assistance Authority, and the Chair of the Board of Directors of the Rhode

Island Higher Education Assistance Authority.

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LC006020

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