House Bill 1173

January 9, 2006, read first time and referred to Committee on Commerce, Economic Development and Small Business.
January 25, 2006, reported _ Do Pass.

January 26, 2006

Second Regular Session 114th General Assembly (2006)

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HOUSE BILL No. 1173

A BILL FOR AN ACT concerning professions and occupations.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: ; (06)HB1173.1.1. -->     SECTION 1. [EFFECTIVE JULY 1, 2006] (a) As used in this SECTION, "department" refers to the department of workforce development.
    (b) As used in this SECTION, "eligible education expense" means a payment for education, including tuition and fees and similar payments, books, supplies, equipment, and tools or supplies that may be retained by an eligible employee after completion of a course of instruction, other than the following:
        (1) Meals, lodging, or transportation.
        (2) Any course or other educational activity involving sports, games, or hobbies.
    (c) As used in this SECTION, "eligible employee" means an individual who:
        (1) is an employee of an employer; and
        (2) has the employee's principal place of business with the employer in Indiana.
    (d) As used in this SECTION, "employer" means a corporation, person, partnership, limited liability company, or limited liability
partnership that employs at least one (1) eligible employee.
    (e) As used in this SECTION, "fund" refers to the lifelong learning grant fund established by this SECTION.
    (f) As used in this SECTION, "grant" refers to a lifelong learning grant awarded under this SECTION.
    (g) The lifelong learning grant fund is established to carry out the purposes of this SECTION. The fund shall be administered by the department. The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Except as provided in subsection (h), the money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (h) Money remaining in the fund after termination of the lifelong learning grant program shall be deposited in the state general fund.
    (i) The life long learning grant program is established as a pilot program to encourage life long learning practices by individuals. The department shall administer the program.
    (j) Money deposited in the fund shall be allocated as follows:
        (1) Not more than one hundred thousand dollars ($100,000) to be used by the department for administering the program, including:
            (A) developing the program;
            (B) marketing the program to eligible employees and employers; and
            (C) conducting a study of the program as required by subsection (u).
        (2) The money remaining in the fund to be awarded as matching grants as prescribed by this SECTION.
    (k) The department may contract with private persons or businesses to administer the lifelong learning grant program established by this SECTION.
    (l) The department shall establish a program to provide information to individuals about the lifelong learning grant program established by this SECTION.
    (m) The department shall award grants from the fund to eligible employees to pay eligible education expenses incurred by the eligible employee after July 1, 2006, but before June 1, 2008.
    (n) Except as provided in subsection (o), a grant may be awarded under this SECTION only if the grant is used to match payment of eligible education expenses by an:
        (1) eligible employee; and
        (2) employer.
    (o) A grant may be awarded under this SECTION without payment of eligible education expenses by an eligible employee if the eligible employee had adjusted gross income (as defined in IC 6-3-1-3.5) of not more than thirty thousand dollars ($30,000) for the taxable year preceding the taxable year in which the eligible education expenses were incurred.
    (p) To receive a grant from the department, an eligible employee must:
        (1) have incurred eligible education expenses;
        (2) provide the department with proof of the amount of the eligible employee's payment of eligible education expenses;
        (3) provide the department with proof of the amount of the employer's payment of an eligible employee's eligible education expenses; and
        (4) apply for the grant in the manner prescribed by the department on or before June 1, 2008.
    (q) Subject to subsection (r), the amount of a grant awarded by the department under this SECTION may not exceed the least of:
        (1) the eligible employee's payment of eligible education expenses if the eligible employee is required to make a payment under subsection (n);
        (2) the employer's payment of an eligible employee's eligible education expenses; or
        (3) five hundred dollars ($500).
    (r) The amount of the eligible education expenses incurred by an eligible employee must be greater than or equal to the sum of:
        (1) the amount the eligible employee pays for eligible education expenses;
        (2) the amount the employer pays for the eligible employee's eligible education expenses; and
        (3) the amount of a grant awarded by the department under this SECTION.
    (s) An eligible employee may not receive more than one (1) grant per calendar year.
    (t) The department shall record the time of filing of each completed application submitted under subsection (p)(4). The department shall award grants meeting all the requirements of this SECTION in the chronological order in which the applications are filed.
    (u) The department shall provide for a study of the pilot lifelong learning grant program established by this SECTION. The

evaluation must include a fiscal analysis of the program and an assessment of the effectiveness of the program, including analysis of:
        (1) participation in the program by employers and eligible employees;
        (2) investment in educational activities and courses that promote lifelong learning by eligible employees;
        (3) attitudes of employers and eligible employees toward lifelong learning;
        (4) eligible employee job promotion and retention rates; and
        (5) any other area that the department believes will benefit the ability to evaluate the effectiveness of the program.
The study must measure the extent to which lifelong learning practices are increased. The analysis may include a review of the practices and experiences of other states or political subdivisions with laws similar to this SECTION.
    (v) The department:
        (1) shall require employees who apply for a grant under this SECTION to provide the information that the department determines is necessary to carry out the study required by this SECTION;
        (2) shall report to the legislative council, not later than November 1 of each year, in an electronic format under IC 5-14-6, on the progress of its study;
        (3) subject to the approval of the budget agency, may receive and accept gifts and other donations from any public or private source in its administration of the program; and
        (4) may adopt rules under IC 4-22-2 to implement this SECTION.
    (w) Notwithstanding IC 5-28-27-3(b), there shall be allocated on the first business day after June 30, 2006, three hundred thousand dollars ($300,000) from the skills 2016 training fund to carry out this SECTION.
    (x) This SECTION expires July 1, 2008.