[First Reprint]

SENATE JOINT RESOLUTION

No. 81

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED MAY 31, 2018

 


 

Sponsored by:

Senator  VIN GOPAL

District 11 (Monmouth)

Senator  THOMAS H. KEAN, JR.

District 21 (Morris, Somerset and Union)

 

Co-Sponsored by:

Senator Ruiz

 

 

 

 

SYNOPSIS

     Urges Congress to enact legislation allowing distributions from 529 plans to be used for expenses associated with registered apprenticeship programs. 

 

CURRENT VERSION OF TEXT

     As reported by the Senate Higher Education Committee on March 7, 2019, with amendments.

 


A Joint Resolution urging 1[the President and]1 the United States Congress to 1introduce and1 enact 1[the “529 Opening Paths To Invest in Our Nation’s Students Act.”] legislation allowing distributions from 529 plans for certain purposes.1

 

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 1[enable] have enabled1 students enrolled in registered apprenticeship programs to utilize funds from a 529 college savings plan; and

Whereas, The 529 OPTIONS Act 1, if enacted,1 would 1[amend] have amended1 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

1Whereas, The 115th United States Congress, the session of Congress during which H.R.3395 was introduced, expired at the end of 2018, and legislation similar to H.R.3395 has not been introduced in the current Congress, which commenced at the beginning of 2019; and1

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 1[the President and]1 the United States Congress to 1introduce and1 enact 1[the “529 Opening Paths To Invest in Our Nation’s Students Act”] legislation similar to H.R.3395 of the 115th United States Congress1 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.