SENATE HIGHER EDUCATION COMMITTEE

STATEMENT TO

SENATE JOINT RESOLUTION No. 81

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 7, 2019

      The Senate Higher Education Committee reports favorably Senate Joint Resolution No. 81 with committee amendments.

     As amended, this joint resolution urges the United States Congress to introduce and enact legislation allowing distributions from qualified tuition programs, otherwise known as 529 college savings plans, to be used for various expenses related to apprenticeship programs. Federal legislation allowing for 529 plan distributions to be used for apprenticeship program expenses was introduced in the 115th United States Congress as H.R.3395, the “529 Opening Paths To Invest in Our Nation’s Students Act” (“529 OPTIONS Act”), sponsored by Congressmen Patrick Meehan and Donald Norcross.  The 115th session of Congress ended in January 2019.

      The 529 OPTIONS Act, if enacted, would have enabled students enrolled in registered apprenticeship programs to utilize tax-free distributions from a 529 college savings plan 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. 

      The committee amended the resolution to reflect the fact that legislation similar to H.R.3395 of the 115th United States Congress has not been introduced in the current Congress. At the time of the resolution’s introduction, the 115th Congress was still in session.