Sec. 3. Lifelong Learning Accounts
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Subtitle B of title I of the Workforce Investment Act of 1998 ( 29 U.S.C. 2811 et seq. ) is amended— by redesignating chapter 6 as chapter 7; and by inserting after chapter 5 the following: In this chapter: The term career pathway means a series of connected education and training strategies and support services that enable individuals to— secure industry relevant certification; obtain employment within an occupational area and to advance to higher levels of future education and employment in that area; and progress through one or more postsecondary education or training options.
The term career plan means an individual employment plan described in section 134(d)(3)(C)(ii) that— describes a worker's career goal, and steps or alternative routes associated with acquiring the skills and skill credentials needed to achieve the goal; and includes labor market and career information on local in-demand industries and high growth industries. The term education or skill development means an activity provided— through a program or course of instruction by a postsecondary educational institution described in section 122(a)(2)(A); through a registered apprenticeship program; or through a program or course of instruction that provides training services, within the meaning of section 134(d)(4).
The term eligible education or skill development expense means an amount paid for a program or course of instruction (including a registered apprenticeship program) of career-related education or skill development, provided by an eligible provider, including— tuition, fees, and similar payments; payments for books, supplies, equipment, tools, and information technology devices, required for such program or course; and any expenses related to an assessment of an eligible worker’s prior learning or competency used to award credit for or placement in a program or course of instruction.
The term eligible provider means— a postsecondary educational institution described in section 122(a)(2)(A) or a provider described in section 122(a)(2)(B); or a provider identified as an eligible provider of training services under section 122(e). The term eligible worker means an individual— who is age 16 or older; on whose behalf a lifelong learning account is established; and who, on the date of application for the establishment of the account, was employed, was self-employed, or had previously been employed and was looking for work.
The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ). The term labor market and career information means information about— a regional labor market and promising industries and occupations for a worker in that market; skills and skill credentials needed by a worker to achieve the worker's career goal; and skill and work experience assessment results for the worker. The term lifelong learning account means an individual eligible worker’s federally tax exempt portable education savings account, established as a trust— that contains contributions, which may be made by the worker, the worker’s employer, or a third party, or which may be made by the worker and matched by the employer; that is established for the purpose of paying for eligible education and skill development expenses, to bolster the worker’s existing career or a transition to a new career; and for which— no contribution may be accepted unless the contribution is in cash; except in the case of a rollover contribution, the total amount of contributions to the account, by the worker, the employer, or a third party, may not exceed $5,000 for a single taxable year; no part of the trust assets may be invested in life insurance contracts; no part of the trust assets may be invested in any collectible (as defined in section 408(m) of the Internal Revenue Code of 1986); the assets of the trust may not be commingled with other property except in a common trust fund or common investment fund; the interest of an individual in the balance in the individual's account shall be nonforfeitable; and no distribution shall be made from the account except for eligible education or skill development expenses or after an event described in section 135E(b)(4)(I).
The amount set forth in subparagraph (A)(iii)(I) shall be adjusted in accordance with increases in the Consumer Price Index for all urban consumers of the Bureau of Labor Statistics. The term one-stop center means a one-stop center referred to in section 134(c). The term registered apprenticeship program means a program— with an industry skills training approach that combines technical and theoretical training— through structured on-the-job learning with related instruction (in a classroom or through distance learning) while an individual is employed, working under the direction of qualified personnel or a mentor, and earning incremental wage increases aligned to enhanced job proficiency; and resulting in the acquisition of nationally recognized and portable certificate, including a certificate of completion of apprenticeship; and carried out under a plan approved by the Office of Apprenticeship or a State agency recognized by the Department of Labor, and meeting the standards required under sections 29 and 30 of title 29, Code of Federal Regulations (or any corresponding similar regulation or ruling), including such matters as the requirement for a written apprenticeship agreement.
The term State agency means an agency appointed under section 135B(b)(1). The term trustee means a Governor-designated entity, which may be a bank (as defined in section 408(n) of the Internal Revenue Code of 1986), that demonstrates to the Governor that the entity will establish and manage a lifelong learning account in a manner consistent with the requirements of this chapter, which demonstration may be accomplished by showing a record of success in establishing and managing similar retirement or education savings accounts.
The term worker means an individual— who is age 16 or older; and who is employed, is self-employed, or was previously employed and is looking for work; or The Secretary shall make grants to States to pay for the Federal share of establishing lifelong learning account programs, to enhance and expand education and skill development activities for eligible workers. For a State to be eligible to receive a grant under this chapter, the Governor of the State shall submit a five-year plan to the Secretary at such time, in such manner, and containing such information as the Secretary may require.
The plan shall consist of a supplement to the State plan described in section 112 and shall include, at a minimum— information identifying a fiscal and administrative agency that is a member of the State board appointed by the Governor of the State to design, establish, and implement the lifelong learning account program proposed for the State; an assurance that the Governor of the State will designate, on the recommendation of the State Board, a trustee to establish and manage the lifelong learning accounts of eligible workers throughout the entire State; and a description of any criteria, developed in cooperation with State board, other than criteria issued under this chapter, that the Governor will use to designate such a trustee; information describing the formula the State will use to allocate funding equitably to local areas within the State to provide assistance to one-stop centers, as described in section 135C(a)(1)(C); information describing how the State board will oversee the design, establishment, and implementation of the lifelong learning accounts program; a description of the State requirements for the program, including requirements to ensure that the trustee manages the lifelong learning accounts in a manner consistent with the fiscal control and accounting procedures described in paragraph (11); a schedule for implementation of the lifelong learning account program, which (notwithstanding any other provision of this chapter) may specify implementation in phases if the schedule provides for full statewide implementation not later than 2 years after the date of approval of the plan; a description of the career information, guidance, counseling, and related activities to be carried out through the one-stop centers in the State, to enable workers seeking to establish or use a lifelong learning account to make informed decisions about meeting their education and skill development needs, including labor market and career information, career planning, and information on the high-skill, high-demand industries identified under subparagraph
(B)and related career pathways; and a description of information to be provided as described in paragraphs (2), (3), and
(4)of section 135E(a); and information, as reported in the State plan, identifying high-skill, high-demand industries in each region of the State or in the State, and sets of courses aligned with the needs of those industries, and services, that constitute career pathways; a description of the methods the State agency will use to determine and carry out State-level activities described in section 135C(b) and any criteria established by the State for State contributions under section 135C(a)(2); a description of how the State agency will monitor and assess the implementation (including operation) of the lifelong learning account program, including a description of the methods the State agency will use for collecting and reporting data on the program as required by the Secretary and providing technical assistance to the one-stop centers in the State, to implement and continuously improve the implementation of a fully operational lifelong learning account program; information describing how the State will use the funds the State receives under this chapter to leverage other Federal, State, local, and private resources, to maximize the effective use of those resources and maximize the effectiveness of the lifelong learning account program, and to expand the participation of workers (especially lower-income workers) and employers (especially small and mid-sized employers) in the program; an assurance that the State agency will provide for fiscal control and accounting procedures to ensure the proper disbursing of and accounting for funds made available to the State through the grant and for funds paid into lifelong learning accounts; a description of the process that the State used to provide an opportunity for comment on, and input on the development of, the State supplemental plan by the State board and by the public, representatives of business, and representatives of labor organizations; an assurance that the State agency will, at the request of a eligible worker who has moved to a second State, direct the trustee managing the worker's lifelong learning account to transfer the account to a trustee in the second State and will otherwise comply with the portability plan described in subsection (e); and a description of the means by which the State agency will direct the transfers, and otherwise comply with the portability plan, referred to in subparagraph (A); if the State requires a minimum amount of contributions described in section 135E(b)(2)(B), the minimum amount; an assurance that the State will participate in any evaluation or research conducted under section 135H; and an assurance that the State will use no more than 10 percent of the funds for administrative costs. At the election of a State, the State may include in the plan a request for a waiver of section 135E(b)(4)(D), to permit a one-stop center staff or system operator of the statewide web-based system in the State to rely on an eligible worker’s statement described in section 135E(b)(4)(C)(iv). The Secretary may approve the request as a portion of the plan, or may deny the request. A State supplemental plan submitted to the Secretary under this section by a Governor shall be considered to be approved by the Secretary at the end of the 90-day period beginning on the day the Secretary receives the plan, unless the Secretary makes a written determination, during the 90-day period, that the plan is inconsistent with the provisions of this chapter. The Secretary shall develop, in consultation with State agencies and other entities and individuals, a plan to ensure the portability of lifelong learning accounts among States. The plan shall address the extent of portability of lifelong learning accounts established for eligible workers. The Secretary shall ensure that States comply with the plan, in determining whether to approve State supplemental plans under this section. A State may submit modifications to a State supplemental plan in accordance with the requirements of this section and section 135C(c) as necessary during the period covered by the plan. A State shall comply with the requirements of the State supplemental plan to be eligible to receive funds under this chapter. Nothing in this chapter shall be construed to affect the eligibility of a State for an allotment under section 127 or 132, or financial assistance under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), on the basis of the State's compliance with the requirements of the State supplemental plan. A State that receives a grant under this chapter— shall use the funds made available through the grant— for the design, establishment, and implementation (including monitoring and assessment) of lifelong learning accounts programs, as described in subsection (b); to provide funds to one or more trustees in the State for the establishment and management of lifelong learning accounts as described in section 135E(b); and to provide assistance to the one-stop centers in the State, to enable the one-stop center staff to carry out the responsibilities described in section 135E(a); and may, after carrying out paragraph (1), use a portion of the grant funds to make contributions to lifelong learning accounts in the State that meet criteria established by the State, such as accounts to which small- and mid-sized employers have made contributions or accounts of lower-income eligible workers. The State agency shall design, establish, and implement (including monitoring and assessing) the lifelong learning accounts program, including— establishing and maintaining a worker-accessible statewide web-based system to provide the assistance described in paragraphs
(1)through
(4)of section 135E(a) and meet the applicable requirements of section 135E(b); developing outreach and marketing activities to be carried out in the State; reviewing the State list of training services providers compiled under section 122(e)(4) to determine the currency and accuracy of the list, updating the list, improving the format of the list, and increasing access to the list; providing capacity building and technical assistance to local boards, one-stop center staff, (and employees of such centers who provide career information, guidance, counseling, and related activities), and eligible providers, with respect to the authorities and responsibilities of such entities under this chapter; developing, disseminating, and presenting information on the lifelong learning account program of the State to workers, employers, and general public, and carrying out creative efforts to engage private sector organizations (such as labor organizations, industry organizations, and nonprofit organizations) and public sector organizations as partners in the program; and preparing reports for the State board for the State, containing assessments of the program. The State board for the State shall— make recommendations to the Governor about the designation of a trustee; provide advice to the Governor and the State agency on a general vision for a lifelong learning account program that suggests ways to create opportunities for all workers, but especially for workers earning less than 200 percent of the poverty line or workers without a degree from a 2-year or 4-year nationally recognized postsecondary (or not participating in an apprenticeship program), to successfully participate in the program, with the goal of improving their skills and the likelihood of long-term prosperity for themselves and their families; provide independent advice to the State agency about the operation and performance of the lifelong learning account program, and, as appropriate, enter into contracts for studies or assessments of the program in order to provide that advice; review and provide advice to the Governor on proposals for State supplemental plans; and receive and comment on reports from the trustee and the State agency, containing assessments of the lifelong learning account program, and from, as appropriate, the Secretary and other entities evaluating or researching the program. Each local board shall develop and submit to the Governor a local supplemental plan, in partnership with the appropriate chief elected official. The plan shall be consistent with the State supplemental plan. The plan shall consist of a supplement to the local plan described in section 118 and shall include, at a minimum— the description referred to in section 135B(b)(7)(A), with respect to information and activities to be provided through the one-stop centers in the local area involved; an assurance that the local one-stop delivery system will, through the one-stop centers in the local area, provide the assistance described in paragraphs
(1)through
(5)of section 135E(a); an assurance that the one-stop center staff for the one-stop centers in the local area will coordinate activities carried out through the centers with State-level activities, including the operation of the statewide web-based system, to provide the assistance described in paragraphs
(1)through
(4)of section 135E(a); information describing how the local board will use the funds the local area receives under this chapter to leverage other Federal, State, local, and private resources, to maximize the effective use of those resources and maximize the effectiveness of the lifelong learning account program in the State, and to expand the participation of workers (especially lower-income workers) and employers (especially small- and mid-sized employers) in the program; and other assurances as required by the Governor. A local supplemental plan submitted to a Governor under this section by a local board and chief elected official shall be considered to be approved by the Governor at the end of the 90-day period beginning on the day the Governor receives the plan, unless the Governor makes a written determination, during the 90-day period, that— deficiencies in activities carried out under this chapter have been identified, and the local area has not made acceptable progress in implementing corrective measures to address the deficiencies; or the plan is inconsistent with the provisions of this chapter. The one-stop center staff that receives assistance under section 135C(a)(1)(C) shall use the assistance to— provide career information, guidance, counseling, and related activities for workers seeking to establish or use a lifelong learning account, including labor market and career information, career planning, and information on the high-skill, high-demand industries, in the region involved, that are identified under section 135B(b)(7)(B) and related career pathways; provide information on lifelong learning accounts, and assistance in establishing and using lifelong learning accounts, including applying to establish such an account; provide information on eligible providers, their education and skill development programs or courses, and the eligible education or skill development expenses associated with the programs or courses; provide information about other public or private education or skill development activities (other than activities eligible for funding through a lifelong learning account) that workers may be eligible to participate in to meet their education and skill development needs; carry out outreach and marketing activities; and meet the applicable requirements of subsection (b). A trustee shall establish and manage lifelong learning accounts in accordance with the following requirements: A worker who resides in a State and who meets the requirements of section 135(6) but does not have a lifelong learning account may, at the election of the worker, request a lifelong learning account. The worker may submit the request through a one-stop center (to the one-stop center staff) or through the statewide web-based system (to the system operator). The request shall include an assurance that the employer of the worker has not required, coerced, or influenced the worker to establish the account. On receipt of a request described in subparagraph
(A)for such a worker, the one-stop center staff involved or the operator of the web-based system shall supply information to the worker on the manner in which the account will be managed, the requirements for withdrawing and using funds from the account, and information on the prohibition and procedure described in paragraph (4)(H), and will ask the worker to acknowledge receipt of the information. On receiving the acknowledgment from the worker, the one-stop center staff or system operator shall forward the application to the appropriate trustee, who shall establish the account. A contribution may be made to an eligible worker's lifelong learning account by— the worker; the employer of the worker, who may provide contributions without regard to the worker's contributions, or as matching funds; or a third party, such as the State, a political subdivision of the State, the Federal government through any Federal program; an individual, or a foundation. The State may require a worker to provide a minimum amount of contributions to the worker's lifelong learning account before permitting the worker's employer to provide employer contributions under this paragraph. If the eligible worker moves to a second State, at the request of the eligible worker, the State described in paragraph
(1)shall direct the trustee to transfer the worker's lifelong learning account to the second State, in compliance with the portability plan described in subsection (d). The program requirements of the lifelong learning account program in the second State shall apply to the account. An eligible worker who desires to withdraw funds from the worker's lifelong learning account shall submit an application to withdraw the funds— at a one-stop center, to the one-stop center staff; or through the statewide web-based system, to the system operator. The application shall include assurances that— the worker is not requesting funds for routine health and safety training or training that relates to use of new equipment that is otherwise covered by the employer; the worker is not requesting funds for an education or skill development activity that was previously provided by the worker’s employer or that is an activity for which the employer previously provided financial assistance (such as tuition assistance) to workers, if the employer initiates discontinuance of the activity or financial assistance, respectively, less than 6 months before the date of the request; and the employer of the worker has not required, coerced, or influenced the worker to establish the account or to use, or refrain from using, funds from the account for any type of education or skill development activity for which the worker may use the funds under this chapter, or for an activity described in subclause
(I)or (II). The one-stop center staff or system operator shall offer career information, guidance, counseling, and related activities described in subsection (a)(1) to the eligible worker. On receiving or declining the services described in subparagraph
(B)the eligible worker shall submit an application to the one-stop center staff or system operator, for the trustee, containing— a career goal (and, if developed, a career plan); a description of the career-related education or skill development activity to be funded through the withdrawal; the eligible provider who will provide the education or skill development activity; and a statement of the eligible education or skill development expense associated with the activity. Except in a State covered by a waiver approved under section 135B(c), on receiving the application, the one-stop center staff or system operator shall endeavor to verify the amount of the expense specified on the statement described in subparagraph (C)(iv). If the one-stop center staff or system operator is able to verify the amount (or is in a State covered by such a waiver), and the application contains the items described in clauses
(i)through
(iv)of subparagraph (C), the one-stop center staff or system operator shall forward the application to the trustee. The trustee shall approve the application not later than 10 days after receipt, unless— the application fails to contain an item described in clause
(i)through
(iv)of subparagraph (C); or the amount in the eligible worker’s account is less than the amount of the expense specified on the statement described in subparagraph (C)(iv). On approving the application, the trustee shall disburse the amount of the expense specified on the statement to the eligible provider. In the event that the amount of the expense includes an amount for an item described in section 135(4)(B), and that amount is not payable to the provider, the provider may reimburse the worker for the amount of that item. If, not earlier than 10 days after the date on which the trustee has received the application, the trustee has failed to approve or disapprove the application, or has approved the application but failed to make a disbursement as provided in subparagraph (F), the eligible worker may bring an action in a court of appropriate jurisdiction to compel disbursement of the amount. No employer of the eligible worker, or contributor to the worker’s lifelong learning account, may require, coerce, or influence a worker to establish the account, or to use, or refrain from using, funds from the account for any type of education or skill development activity for which the worker may use the funds under this chapter, or any activity described in subclause
(I)or
(II)of subparagraph (A)(ii). An eligible worker alleging a violation of this subparagraph may file a grievance or complaint in accordance with section 181(c). For purposes of this paragraph, any disbursement (or request for disbursement) made after the account beneficiary dies, becomes disabled (within the meaning of section 72(m)(7) of the Internal Revenue Code of 1986), or has attained age 70, shall be treated as a disbursement (or request for disbursement) for eligible education or skill development expenses. If a separation or divorce agreement awards the lifelong learning account, or the benefits of the account, of an eligible worker to the worker's spouse or former spouse, the trustee shall transfer the account to the spouse or former spouse. On the death of an eligible worker— if the designated beneficiary for the lifelong learning account elects the application of this clause, such designated beneficiary shall be treated as the account beneficiary for purposes of such account; or in any case not described in clause (i), the trustee shall pay the funds in the account to the beneficiary, and close the account. Consistent with its responsibilities to oversee the one-stop delivery system in the local area, the local board shall oversee the implementation of the lifelong learning account program in the local area, and shall monitor and assess the performance of the program. The Federal share of the cost described in section 135A for administering the lifelong learning accounts program established by this chapter shall be 80 percent. The State may provide the non-Federal share of the cost in cash or in-kind, fairly evaluated, including plant, equipment, or services. The State may provide the non-Federal share from State, local, or private sources. Each State that carries out a lifelong learning account program under this chapter shall require each trustee in the State to annually prepare a report containing information on contributions to and withdrawals from such accounts in the State, an assessment of the State lifelong learning account program, and information on such additional matters as the Secretary of Labor, after consultation with the Secretary of the Treasury, may require. The trustee shall submit each such report to the Governor and the State legislature of the State. The Governor shall transmit each such report to the Secretary of Labor, the Secretary of the Treasury, and Congress, and shall make the report available to the general public. The Secretary shall conduct evaluations and other research, directly or through grants or contracts, to determine the effectiveness of the lifelong learning account programs carried out under this chapter in meeting the objectives of this chapter. The Secretary shall use appropriate methodology and research designs for the evaluations and research. In conducting the evaluations and research, the Secretary may address topics including whether the programs increased the wages or salaries of workers, resulted in promotions, new positions, or better positions for the workers, increased the number of workers who acquired industry-recognized skill credentials, enhanced the job performance of workers, or increased worker retention. The Secretary shall submit to Congress a report containing the results of each evaluation or research project conducted under this section. The Secretary, in conjunction with the Secretary of Health and Human Services, shall conduct a study concerning whether, and the degree to which, States should be permitted to use funds available under a covered program to make contributions to lifelong learning accounts of eligible workers in the State, and concerning the impacts on the covered program. Not later than 24 months after the date of enactment of the Skills Investments Act of 2013, the Secretary of Labor shall submit to Congress a report containing the results of the study and any recommendations for legislation the Secretary determines to be appropriate. In this section, the term covered program means the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act ( 42 U.S.C. 601 et seq. ), an employment and training program carried out under section 6(d)(4) of the Food Stamp Act of 1977 ( 7 U.S.C. 2015(d)(4) ), the portion of a program of employment and training activities carried out under chapter 5 that is funded through individual training accounts described in section 134(d)(4)(G), the activities (including training, other employment services, and provision of allowances) carried out under part II of subchapter B of chapter 2 of title II of the Trade Act of 1974 ( 29 U.S.C. 2295 et seq. ), and another Federal employment and training program identified by the Secretary. No Federal agency may take into consideration the amount deposited to, or withdrawn from, an eligible worker's lifelong learning account in determining the eligibility of the worker for any benefit or service under any provision of Federal law, including any education or skill development benefit or service, other than this chapter. . The table of contents in section 1(b) of the Workforce Investment Act of 1998 is amended— by redesignating the item relating to the chapter heading of chapter 6, as the item relating to the chapter heading of chapter 7, of subtitle B of title I; and by inserting after the items relating to chapter 5 of that subtitle the following: Chapter 6—Lifelong learning accounts Sec. 135. Definitions. Sec. 135A. Lifelong learning account programs. Sec. 135B. State supplemental plans. Sec. 135C. State activities. Sec. 135D. Local supplemental plans. Sec. 135E. Local activities. Sec. 135F. Federal share. Sec. 135G. Trustee reports. Sec. 135H. Evaluations and other research. Sec. 135I. Study on contributions from Federal programs. Sec. 135J. Eligibility for other Federal benefits. .
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- 29 USC 2295
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Sec. 3
Lifelong Learning Accounts
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