Creates "New Jersey Workplace Skills Savings Program"; appropriates $25 million.

S1841 TR

SENATE, No. 1841

STATE OF NEW JERSEY

222nd LEGISLATURE

�

Sponsored by:

Senator TROY SINGLETON

District 7 (Burlington)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Creates "New Jersey Workplace Skills Savings
Program"; appropriates $25 million.

CURRENT VERSION OF TEXT

���� As reported by the Senate Labor Committee with
technical review.

��

An Act

�creating the "New Jersey Workplace Skills
Savings Program," supplementing Title 34 of the New Jersey Statutes, and
making an appropriation.

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

���� 1.��� As used in this act:

���� "Account" means the
job training account set up by an employee through the program.

���� "Department" means
the Department of Labor and Workforce Development.

���� "Employee" means any
individual who is 18 years of age or older, who lives in this State or is
employed by an employer in this State, and whose wages are subject to
withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1
et seq.

���� "Enrollee" means any
individual who is enrolled in the program.

���� "Program" means the
New Jersey Workplace Skills Savings Program established pursuant to this act.

���� "Trust" means the
New Jersey Workplace Skills Savings Trust, managed by the Office of the
Treasurer, which holds and manages the individual accounts established pursuant
to this act.

���� 2.��� There is created within
the Department of Labor and Workforce Development a savings program known as
the "New Jersey Workplace Skills Savings Program," to provide a means
for employees to create a self-directed employment training fund to promote
engagement in additional job training and skills development.

���� 3.��� The New Jersey Workplace
Skills Savings Trust, managed by the Department of the Treasury, is established
as a special fund outside of the General Fund, separate and apart from all
public moneys or funds of this State.� The trust shall provide a mechanism
through which the department, as trustee, holds accounts established and
maintained pursuant to the provisions of this act to finance the cost of
self-directed worker training.

���� 4.��� The Department of Labor
and Workforce Development shall administer the �New Jersey Workplace Skills
Savings Program.�� The department shall have the power to:

���� a.���� serve as trustee of the
trust;

���� b.��� adopt rules and
regulations pursuant to the "Administrative Procedure Act," P.L.1968,
c.410 (C.52:14B-1 et seq.), necessary to carry out the provisions of this act;

���� c.���� prescribe and provide
appropriate forms and processes for participation in the program;

���� d.��� establish a process by
which an enrollee is able to contribute monies to the individual account
created by the program;

���� e.���� select an investment
manager and any other contractors needed to manage and market the program;

���� f.���� monitor the investment
manager and any other contractors by audits and other reports;

���� g.��� assess and collect
reasonable administrative fees in connection with any account, contract, or
transaction relating to the program;

���� h.��� impose penalties for
nonqualified withdrawals;

���� i.���� take all actions
required so that the program complies with federal regulations and Internal
Revenue Service Codes; and

���� j.���� perform any other
actions which may be necessary to carry out the purposes of this act.

���� 5.��� a.�������� The program
shall be operated as a trust through the use of individual accounts established
for individual employees.� An account may be opened by any employee who desires
to participate in the program to pay for employment-related training services
as described in section 6 of this act, and that employee shall be the
beneficiary of the account.

���� b.��� Contributions to
accounts shall be made in a manner to be determined by the department, subject
to a maximum contribution of $1,000 to an individual account during any
calendar year period.

���� c.���� Deposits made to an
individual account shall be eligible for a dollar-for-dollar match up by the
State to the maximum allowable annual contribution of $1,000.

���� d.��� There shall be no
interest earned on any individual account.

���� e.���� Balances in any
individual account shall be exempt from any creditor claims.

���� f.���� In the case of any
nonqualified withdrawal, a penalty level shall be established by the
department.

���� g.��� In the case of an
individual wishing to cease participation in the program, the department shall
establish a procedure to return all monies deposited in a manner to be
determined by the department to the individual within 60 days; however, in no
circumstances shall the State matching funds established pursuant to subsection
c. of this section be considered a part of the refundable balance of any
individual account.

���� 6.��� The monies placed into
an account may be used by the beneficiary to pay for:

���� a.���� any costs associated
with an apprenticeship;

���� b.��� licensing exams or
certification fees for any employment related purpose, including, but not
limited to:� commercial driver exams, fees associated with any profession
listed under Title 45 of the Revised Statutes (C.45:1-1 et seq.), additional
certifications related to an existing professional license, required exams for
certification for a registered apprenticeship program, public school teacher
license exams;

���� c.���� retraining programs for
any unemployed worker;

���� d.��� formal classroom
education related to job training as offered by a vocational school, technical
school, union training program, or community college; or

���� e.���� any worker
training-related expenses as provided for by regulation by the department.

���� 7.��� There is appropriated
from the General Fund to the Department of Labor and Workforce Development the
sum of $25 million to effectuate the provisions of this act, including the
provision of matching funds pursuant to subsection c. of section 5 of this act.

���� 8.��� The department shall
annually submit to the Governor and the Legislature pursuant to section 2 of
P.L.1991, c.164 (C.52:14-19.1):

���� a. an audited financial
report, prepared in accordance with generally accepted accounting principles,
on the operations of the program for each calendar year, to be submitted no
later than July 1 of the following year; and

���� b. a report that provides a
summary of the benefits provided under the program, including, but not limited
to, the number of enrollees in the program, the total dollars deposited in each
calendar year, the total State matching funds provided in each calendar year,
the total amount of training expenses approved by the program, and the total
number of individuals who withdrew from the program.� This report shall be
provided based on activity in the program for each calendar year, to be
submitted no later than July 1 of the following year.

���� 9.��� This act shall take
effect January 1, 2027, except that the Commissioner of Labor and Workforce
Development and the Treasurer may take any anticipatory administrative action
in advance as shall be necessary for the implementation of this act.