SJR81

A Joint Resolution urging the President and the United States Congress to enact the “529 Opening Paths To Invest in Our Nation’s Students Act.”

Whereas, The registered apprenticeship system, administered by the United States Department of Labor, is a unique training system that combines technical education with structured on-the-job learning in order to meet the needs of America’s skilled workforce; and

Whereas, Registered apprenticeship programs span a wide range of industries and career pathways from traditional fields such as construction and manufacturing to emerging industries in healthcare, energy, and homeland security; and

Whereas, Apprenticeship programs provide invaluable benefits and opportunities to students including, but not limited to, on-the-job skills training, an assigned mentor, receipt of a nationally recognized industry credential, incremental wage increases, and excellent job placement rates; and

Whereas, Apprenticeship programs likewise benefit the state and national economies by providing a skilled workforce in essential trades and technical careers, often fields with high demand and unmet workforce need; and

Whereas, Participation in an apprenticeship program can launch an individual’s successful lifelong career, while helping to close the skills gap and fulfill industry needs; and

Whereas, Nationwide, registered apprenticeship programs have grown by 42 percent since 2013, and more than 190,000 individuals entered the apprenticeship system in 2017; and

Whereas, In New Jersey alone, there are currently more than 7,000 individuals in active apprenticeships, and 94 new programs were added in 2017; and

Whereas, Qualified tuition programs, known as 529 college savings plans, are important tools for families that make college more affordable by allowing the use of tax-free distributions for qualified higher education expenses; however, 529 plans currently do not benefit students who enroll in registered apprenticeship programs; and

Whereas, On July 25, 2017, Congressmen Patrick Meehan and Donald Norcross introduced H.R.3395, the “529 Opening Paths to Invest in Our Nation’s Students Act” (“529 OPTIONS Act”), which would enable students enrolled in registered apprenticeship programs to utilize funds from a 529 college savings plan; and

Whereas, The 529 OPTIONS Act would amend the Internal Revenue Code to allow tax-free distributions from 529 college savings plans to be used for: (1) books, supplies, and equipment required for enrollment in a registered apprenticeship program; (2) child care costs in connection with such enrollment; and (3) costs associated with obtaining an industry certification or other credential in connection with an apprenticeship program; and

Whereas, Congressman Donald Norcross, the U.S. Representative for New Jersey’s First Congressional District and an electrician by trade, has touted the importance of apprenticeship programs and called on Congress to pass the 529 OPTIONS Act in order to level the playing field for students and future workers who start their careers in apprenticeships; and

Whereas, It is in the public interest of the nation and the State of New Jersey to enact legislation that will expand the use of 529 college savings plans to support individuals who seek a skills-based education and start their careers through an apprenticeship program; now, therefore,

Be It Resolved by the Senate and General Assembly of the State of New Jersey:

1. The Governor and the Legislature of the State of New Jersey respectfully urge the President and the United States Congress to enact the “529 Opening Paths To Invest in Our Nation’s Students Act” in order to allow distributions from qualified tuition programs (529 plans) to be used for expenses associated with registered apprenticeship programs.

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly or the Secretary of the Senate to the President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of Congress elected from this State.

3. This joint resolution shall take effect immediately.

STATEMENT

This joint resolution urges the President and the United States Congress to enact the “529 Opening Paths To Invest in Our Nation’s Students Act” (“529 OPTIONS Act”), H.R.3395, sponsored by Congressmen Patrick Meehan and Donald Norcross.

The 529 OPTIONS Act would enable students enrolled in registered apprenticeship programs to utilize tax-free distributions from a 529 college savings plan for certain costs associated with enrollment in the program. Registered apprenticeship programs provide invaluable benefits for students pursuing a skills-based career, including on-the-job training, an assigned mentor, receipt of a nationally recognized industry credential, incremental wage increases, and excellent job placement rates. Moreover, apprenticeship programs benefit the state and national economies by providing a skilled workforce in a broad range of traditional and emerging industries, often fields with high demand and unmet workforce need. Passage of the 529 OPTIONS Act would benefit the nation and the State of New Jersey by expanding the use of 529 college savings plans to support individuals who seek a skills-based education and start their careers through an apprenticeship program.