Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workforce Development Committee

HB 2580

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Creating a lifelong learning program.

Sponsors: Representatives Kenney, Hansen, Sells, Reykdal, Seaquist, Ormsby, Maxwell, Wylie, Ladenburg, Pollet, Sullivan, Santos, Pedersen, Hasegawa, Haigh, Probst, Tharinger, Hunt and Moscoso.

Brief Summary of Bill

  • Establishes a lifelong learning program for employees, with the support of their employers, to create educational savings accounts.

Hearing Date: 1/25/12

Staff: Jill Reinmuth (786-7134).

Background:

Lifelong learning accounts (LiLAs) are worker-owned, employer-matched portable accounts to finance an individual worker's lifelong education and training.

In 2001 the nonprofit Council for Adult and Experiential Learning (CAEL) developed a model for establishing LiLAs. In this model, LiLAs are employer-sponsored as part of an employee compensation package, and every worker is eligible for an account. The LiLAs supplement, not replace, existing employer-supported tuition-assistance programs. Participation by individuals and employers is optional. LiLAs are funded by the individual worker, the employer, and, in some cases, third-party matches from sources such as foundations, public sector grants, or tax credits. Accounts stay with the individual worker regardless of the person's current employer or employment status, and may be used for tuition and fees, assessment fees, supplies, materials, and books. The individual worker chooses the training and education needed to meet career goals based on a learning plan developed with help of qualified advisors. The LiLAs are designed particularly to help address postsecondary educational access and financing for lower-skilled, lower-wage, and entry-level incumbent employees who may not be eligible for student financial aid or employer-provided tuition.

In 2008 the Workforce Training and Education Coordinating Board was awarded a $75,000 grant from the Lumina Foundation through CAEL for "Taking It to the States: A State-Based Lifelong Learning Account Demonstration Initiative." The grant funds, together with other funds, were used to develop program structure and management systems for an initial regional LiLA pilot. The five-county Pacific Mountain region (Thurston, Mason, Lewis, Pacific, and Grays Harbor) was the selected demonstration area. Six employers and 25 employees participated in the LiLA demonstration project.

Summary of Bill:

The Legislature intends to address certain challenges related to providing low-skilled workers with postsecondary education and training through the establishment of a lifelong learning program. The Legislature also intends to develop partnerships and mechanisms through which:

"Lifelong learning accounts" are defined as joint savings accounts established by employees and employers to support the education and training of employees aligned with approved career development plans.

A lifelong learning program is established within the Workforce Training and Education Coordinating Board (Board) to provide the opportunity for employees, with the support of their employers, to create an educational savings account that may be used for education and training.

The Board may:

The Board must work with its partners to:

Appropriation: None.

Fiscal Note: Requested on January 23, 2012.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.