,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #aici  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #i1 #bjac ,mr4   
,kilm] 7= himself & ,mr4 ,polis7        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,education & !         
,work=ce1 & 9 addition to ! ,committee  
on ,ways & ,means1 = a p]iod to be      
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,work=ce 
,inve/m5t ,act ( #aiih to e/abli%       
lifelong le>n+ acc\nts programs1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,skills ,inve/m5t ,act (
 #bjac4  #b4 ,f9d+s & purpose  7a7 ,f9d+
 ,congress f9ds ! foll[+3  7#a7 ,x w n  
be possible = adult work]s 9 ! ,unit$   
,/ates to ma9ta9 a high /&>d ( liv+ 9 a 
competitive global economy )\t a        
dramatic increase 9 _! skills4  7#b7    
,work]s ne$ up-to-date skills & skill   
cr$5tials to keep pace ) ! *ang+ &      
increas+ly complex dem&s ( ! #ba/ c5tury

 economy4  7#c7 ,! fa/e/-gr[+           
occupations & be/-pay+ jobs are ^? t    
require "s po/second>y education4       
,ma9ta9+ a competitive edge requires k &
 o!r skills4 ,increases 9 a c\ntry's    
ov]all level ( educational atta9m5t lead
 to increases 9 its ov]all rate (       
economic gr[?4  7#d7 ,! high co/ (      
education & skill developm5t has limit$ 
! options ( _m work]s4 ,curr5t major    
b5efits su* z ! use ( a ,,hope tax cr$it
 or a ,cov]dell education sav+s acc\nt  
are n available to /ud5ts :o att5d s*ool
 less ?an half-"t4 ,o!r work]s d n e>n  
en\gh to qualify = available education &
 tra9+ tax cr$its & d$uctions4 ,mo/     
available f9ancial aid is int5d$ =      
full-"t /ud5ts /udy+ = degrees r ?an !  
_m adults :o _c att5d education or skill
 developm5t programs full-"t because (  
dem&+ family & "w commitm5ts4  7#e7     
,employ]s increas+ly ne$ work]s ) #ba/  
c5tury workplace & te*nical skills to   
/ay competitive4  7b7 ,purpose ,!       
purpose ( ?is ,act is to e/abli% an     

innovative program to support lifelong  
le>n+1 t--  7#a7 motivates work]s to    
p>ticipate 9 education & skill          
developm5t activities 9 :i* ! work]s    
w\ld n o!rwise p>ticipate2  7#b7        
provides a f9ancial inc5tive to work]s  
to save = education & skill developm5t  
activities = _! c>e]s1 & bett] manage _!
 c>e]s by upgrad+1 at ! "t & place ( _! 
*oos+1 _! skills2  7#c7 (f]s work]s     
labor m>ket & c>e] in=mation to make    
in=m$ *oices :5 enhanc+ skills to prosp]
 9 today's dynamic & highly competitive 
global economy2 &  7#d7 provides an     
inc5tive to small employ]s to inve/ 9 & 
(f] le>n+ opportunities to improve _!   
employees' skills & productivity4  #c4  
,lifelong ,le>n+ ,acc\nts  7a7 ,9 g5]al 
,subtitle ,b ( title ,i ( ! ,work=ce    
,inve/m5t ,act ( #aiih 7#bi ,u4,s4,c4   
#bhaa et seq47 is am5d$--  7#a7 by      
r$esignat+ *apt] #f z *apt] #g2 &  7#b7 
by ins]t+ aft] *apt] #e ! foll[+3  #f   
,lifelong le>n+ acc\nts  #ace4          
,def9itions ,9 ?is *apt]3  7#a7 ,c>e]   

pa?way ,! t]m c>e] pa?way means a s]ies 
( connect$ education & tra9+ /rategies &
 support s]vices t enable individuals   
to--  7,a7 secure indu/ry relevant      
c]tification2  7,b7 obta9 employm5t )9  
an occupational area & to advance to    
high] levels ( future education &       
employm5t 9 t area2 &  7,c7 progress    
?r\gh "o or m po/second>y education or  
tra9+ options4  7#b7 ,c>e] plan ,! t]m  
c>e] plan means an individual employm5t 
plan describ$ 9 section                 
#acd7;d77#c77;,c77ii7 t--  7,a7         
describes a work]'s c>e] goal1 & /eps or
 alt]native r\tes associat$ ) acquir+ ! 
skills & skill cr$5tials ne$$ to a*ieve 
! goal2 &  7,b7 includes labor m>ket &  
c>e] in=mation on local 9-dem& indu/ries
 & high gr[? indu/ries4  7#c7 ,education
 or skill developm5t ,! t]m education or
 skill developm5t means an activity     
provid$--  7,a7 ?r\gh a program or c\rse
 ( in/ruction by a po/second>y          
educational in/itution describ$ 9       
section #abb7;a77#b77;,a72  7,b7 ?r\gh a

 regi/]$ appr5tice%ip program2 or  7,c7 
?r\gh a program or c\rse ( in/ruction t 
provides tra9+ s]vices1 )9 ! mean+ (    
section #acd7;d77#d74  7#d7 ,eligible   
education or skill developm5t exp5se ,! 
t]m eligible education or skill         
developm5t exp5se means an am\nt paid = 
a program or c\rse ( in/ruction 7includ+
 a regi/]$ appr5tice%ip program7 (      
c>e]-relat$ education or skill          
developm5t1 provid$ by an eligible      
provid]1 includ+--  7,a7 tuition1 fees1 
& simil> paym5ts2  7,b7 paym5ts = books1
 supplies1 equipm5t1 tools1 & in=mation 
te*nology devices1 requir$ = su* program
 or c\rse2 &  7,c7 any exp5ses relat$ to
 an assessm5t ( an eligible work]'s     
prior le>n+ or compet5cy us$ to aw>d    
cr$it = or placem5t 9 a program or c\rse
 ( in/ruction4  7#e7 ,eligible provid]  
,! t]m eligible provid] means--  7,a7 a 
po/second>y educational in/itution      
describ$ 9 section #abb7;a77#b77;,a7 or 
a provid] describ$ 9 section            
#abb7;a77#b77;,b72 or  7,b7 a provid]   

id5tifi$ z an eligible provid] ( tra9+  
s]vices "u section #abb7;e74  7#f7      
,eligible work] ,! t]m eligible work]   
means an individual--  7,a7 :o is age   
#af or old]2  7,b7 on ^: behalf a       
lifelong le>n+ acc\nt is e/abli%$2 &    
7,c7 :o1 on ! date ( application = !    
e/abli%m5t ( ! acc\nt1 0 employ$1 0     
self-employ$1 or _h previ\sly be5       
employ$ & 0 look+ = "w4  7#g7           
,in/itution ( high] education ,! t]m    
in/itution ( high] education has ! mean+
 giv5 ! t]m 9 section #aja7;a7 ( !      
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajja7;a774  7#h7 ,labor m>ket
 & c>e] in=mation ,! t]m labor m>ket &  
c>e] in=mation means in=mation ab\t--   
7,a7 a regional labor m>ket & promis+   
indu/ries & occupations = a work] 9 t   
m>ket2  7,b7 skills & skill cr$5tials   
ne$$ by a work] to a*ieve ! work]'s c>e]
 goal2 &  7,c7 skill & "w exp]i5ce      
assessm5t results = ! work]4  7#i7      
,lifelong le>n+ acc\nt  7,a7 ,9 g5]al ,!
 t]m lifelong le>n+ acc\nt means an     

individual eligible work]'s f$]ally tax 
exempt portable education sav+s acc\nt1 
e/abli%$ z a tru/--  7i7 t conta9s      
contributions1 :i* may be made by !     
work]1 ! work]'s employ]1 or a ?ird     
p>ty1 or :i* may be made by ! work] &   
mat*$ by ! employ]2  7ii7 t is e/abli%$ 
= ! purpose ( pay+ = eligible education 
& skill developm5t exp5ses1 to bol/] !  
work]'s exi/+ c>e] or a transition to a 
new c>e]2 &  7iii7 = :i*--  7,i7 no     
contribution may be accept$ unless !    
contribution is 9 ca%2  7,,ii7 except 9 
! case ( a rollov] contribution1 ! total
 am\nt ( contributions to ! acc\nt1 by !
 work]1 ! employ]1 or a ?ird p>ty1 may n
 exce$ #e1jjj = a s+le taxable ye>2     
7,,iii7 no "p ( ! tru/ assets may be    
inve/$ 9 life insurance contracts2      
7,,iv7 no "p ( ! tru/ assets may be     
inve/$ 9 any collectible 7z def9$ 9     
section #djh7m7 ( ! ,int]nal ,rev5ue    
,code ( #aihf72  7,v7 ! assets ( ! tru/ 
may n be comm+l$ ) o!r prop]ty except 9 
a common tru/ fund or common inve/m5t   

fund2  7,,vi7 ! int]e/ ( an individual 9
 ! balance 9 ! individual's acc\nt %all 
be non=feitable2 &  7,,vii7 no          
di/ribution %all be made f ! acc\nt     
except = eligible education or skill    
developm5t exp5ses or aft] an ev5t      
describ$ 9 section #ace;,e7b77#d77;,i74 
7,b7 ,adju/m5t = inflation ,! am\nt set 
=? 9 subp>agraph 7,a77iii77,i7 %all be  
adju/$ 9 accordance ) increases 9 !     
,consum] ,price ,index = all urban      
consum]s ( ! ,bureau ( ,labor ,/ati/ics4
  7#aj7 ,"o-,/op c5t] ,! t]m "o-/op c5t]
 means a "o-/op c5t] ref]r$ to 9 section
 #acd7;c74  7#aa7 ,regi/]$ appr5tice%ip 
program ,! t]m regi/]$ appr5tice%ip     
program means a program--  7,a7 ) an    
indu/ry skills tra9+ approa* t comb9es  
te*nical & !oretical tra9+--  7i7 ?r\gh 
/ructur$ on-!-job le>n+ ) relat$        
in/ruction 79 a classroom or ?r\gh      
di/ance le>n+7 :ile an individual is    
employ$1 work+ "u ! direction ( qualifi$
 p]sonnel or a m5tor1 & e>n+ increm5tal 
wage increases align$ to enhanc$ job    

pr(ici5cy2 &  7ii7 result+ 9 !          
acquisition ( nationally recogniz$ &    
portable c]tificate1 includ+ a          
c]tificate ( completion ( appr5tice%ip2 
&  7,b7 c>ri$ out "u a plan approv$ by !
 ,(fice ( ,appr5tice%ip or a ,/ate ag5cy
 recogniz$ by ! ,dep>tm5t ( ,labor1 &   
meet+ ! /&>ds requir$ "u sections #bi & 
#cj ( title #bi1 ,code ( ,f$]al         
,regulations 7or any correspond+ simil> 
regulation or rul+71 includ+ su* matt]s 
z ! requirem5t = a writt5 appr5tice%ip  
agreem5t4  7#ab7 ,/ate ag5cy ,! t]m     
,/ate ag5cy means an ag5cy appo9t$ "u   
section #ace;,b7b77#a74  7#ac7 ,tru/ee  
,! t]m tru/ee means a ,gov]nor-designat$
 entity1 :i* may be a bank 7z def9$ 9   
section #djh7n7 ( ! ,int]nal ,rev5ue    
,code ( #aihf71 t demon/rates to !      
,gov]nor t ! entity w e/abli% & manage a
 lifelong le>n+ acc\nt 9 a mann]        
consi/5t ) ! requirem5ts ( ?is *apt]1   
:i* demon/ration may be accompli%$ by   
%[+ a record ( success 9 e/abli%+ &     
manag+ simil> retirem5t or education    

sav+s acc\nts4  7#ad7 ,work] ,! t]m     
work] means an individual--  7,a7 :o is 
age #af or old]2 &  7,b7 :o is employ$1 
is self-employ$1 or 0 previ\sly employ$ 
& is look+ = "w2 or  #ace;,a4 ,lifelong 
le>n+ acc\nt programs ,! ,secret>y %all 
make grants to ,/ates to pay = ! ,f$]al 
%>e ( e/abli%+ lifelong le>n+ acc\nt    
programs1 to enhance & exp& education & 
skill developm5t activities = eligible  
work]s4  #ace;,b4 ,/ate supplem5tal     
plans  7a7 ,9 g5]al ,= a ,/ate to be    
eligible to receive a grant "u ?is      
*apt]1 ! ,gov]nor ( ! ,/ate %all submit 
a five-ye> plan to ! ,secret>y at su*   
"t1 9 su* mann]1 & conta9+ su* in=mation
 z ! ,secret>y may require4  7b7        
,cont5ts ,! plan %all consi/ ( a        
supplem5t to ! ,/ate plan describ$ 9    
section #aab & %all include1 at a       
m9imum--  7#a7 in=mation id5tify+ a     
fiscal & adm9i/rative ag5cy t is a memb]
 ( ! ,/ate bo>d appo9t$ by ! ,gov]nor ( 
! ,/ate to design1 e/abli%1 & implem5t !
 lifelong le>n+ acc\nt program propos$ =

 ! ,/ate2  7#b7 7,a7 an assurance t !   
,gov]nor ( ! ,/ate w designate1 on !    
recomm5dation ( ! ,/ate ,bo>d1 a tru/ee 
to e/abli% & manage ! lifelong le>n+    
acc\nts ( eligible work]s ?r\gh\t !     
entire ,/ate2 &  7,b7 a description (   
any crit]ia1 develop$ 9 coop]ation )    
,/ate bo>d1 o!r ?an crit]ia issu$ "u ?is
 *apt]1 t ! ,gov]nor w use to designate 
su* a tru/ee2  7#c7 in=mation describ+ !
 =mula ! ,/ate w use to allocate fund+  
equitably to local areas )9 ! ,/ate to  
provide assi/ance to "o-/op c5t]s1 z    
describ$ 9 section #ace;,c7a77#a77;,c72 
7#d7 in=mation describ+ h[ ! ,/ate bo>d 
w ov]see ! design1 e/abli%m5t1 &        
implem5tation ( ! lifelong le>n+ acc\nts
 program2  7#e7 a description ( ! ,/ate 
requirem5ts = ! program1 includ+        
requirem5ts to ensure t ! tru/ee manages
 ! lifelong le>n+ acc\nts 9 a mann]     
consi/5t ) ! fiscal control & acc\nt+   
proc$ures describ$ 9 p>agraph 7#aa72    
7#f7 a s*$ule = implem5tation ( !       
lifelong le>n+ acc\nt program1 :i*      

7not)/&+ any o!r provision ( ?is *apt]7 
may specify implem5tation 9 phases if ! 
s*$ule provides = full /atewide         
implem5tation n lat] ?an #b ye>s aft] ! 
date ( approval ( ! plan2  7#g7 7,a7 7i7
 a description ( ! c>e] in=mation1      
guidance1 c\nsel+1 & relat$ activities  
to be c>ri$ out ?r\gh ! "o-/op c5t]s 9 !
 ,/ate1 to enable work]s seek+ to       
e/abli% or use a lifelong le>n+ acc\nt  
to make in=m$ decisions ab\t meet+ _!   
education & skill developm5t ne$s1      
includ+ labor m>ket & c>e] in=mation1   
c>e] plann+1 & in=mation on !           
high-skill1 high-dem& indu/ries id5tifi$
 "u subp>agraph 7,b7 & relat$ c>e]      
pa?ways2 &  7ii7 a description (        
in=mation to be provid$ z describ$ 9    
p>agraphs 7#b71 7#c71 & 7#d7 ( section  
#ace;,e7a72 &  7,b7 in=mation1 z report$
 9 ! ,/ate plan1 id5tify+ high-skill1   
high-dem& indu/ries 9 ea* region ( !    
,/ate or 9 ! ,/ate1 & sets ( c\rses     
align$ ) ! ne$s ( ^? indu/ries1 &       
s]vices1 t con/itute c>e] pa?ways2  7#h7

 a description ( ! me?ods ! ,/ate ag5cy 
w use to det]m9e & c>ry out ,/ate-level 
activities describ$ 9 section #ace;,c7b7
 & any crit]ia e/abli%$ by ! ,/ate =    
,/ate contributions "u section          
#ace;,c7a77#b72  7#i7 a description ( h[
 ! ,/ate ag5cy w monitor & assess !     
implem5tation 7includ+ op]ation7 ( !    
lifelong le>n+ acc\nt program1 includ+ a
 description ( ! me?ods ! ,/ate ag5cy w 
use = collect+ & report+ data on !      
program z requir$ by ! ,secret>y &      
provid+ te*nical assi/ance to ! "o-/op  
c5t]s 9 ! ,/ate1 to implem5t &          
cont9u\sly improve ! implem5tation ( a  
fully op]ational lifelong le>n+ acc\nt  
program2  7#aj7 in=mation describ+ h[ ! 
,/ate w use ! funds ! ,/ate receives "u 
?is *apt] to lev]age o!r ,f$]al1 ,/ate1 
local1 & private res\rces1 to maximize !
 effective use ( ^? res\rces & maximize 
! effectiv5ess ( ! lifelong le>n+ acc\nt
 program1 & to exp& ! p>ticipation (    
work]s 7especially l[]-income work]s7 & 
employ]s 7especially small & mid-siz$   

employ]s7 9 ! program2  7#aa7 an        
assurance t ! ,/ate ag5cy w provide =   
fiscal control & acc\nt+ proc$ures to   
ensure ! prop] disburs+ ( & acc\nt+ =   
funds made available to ! ,/ate ?r\gh ! 
grant & = funds paid into lifelong le>n+
 acc\nts2  7#ab7 a description ( !      
process t ! ,/ate us$ to provide an     
opportunity = comm5t on1 & input on !   
developm5t (1 ! ,/ate supplem5tal plan  
by ! ,/ate bo>d & by ! public1          
repres5tatives ( bus9ess1 &             
repres5tatives ( labor organizations2   
7#ac7 7,a7 an assurance t ! ,/ate ag5cy 
w1 at ! reque/ ( a eligible work] :o has
 mov$ to a second ,/ate1 direct ! tru/ee
 manag+ ! work]'s lifelong le>n+ acc\nt 
to transf] ! acc\nt to a tru/ee 9 !     
second ,/ate & w o!rwise comply ) !     
portability plan describ$ 9 subsection  
7e72 &  7,b7 a description ( ! means by 
:i* ! ,/ate ag5cy w direct ! transf]s1 &
 o!rwise comply ) ! portability plan1   
ref]r$ to 9 subp>agraph 7,a72  7#ad7 if 
! ,/ate requires a m9imum am\nt (       

contributions describ$ 9 section        
#ace;,e7b77#b77;,b71 ! m9imum am\nt2    
7#ae7 an assurance t ! ,/ate w          
p>ticipate 9 any evaluation or rese>*   
conduct$ "u section #ace;,h2 &  7#af7 an
 assurance t ! ,/ate w use no m ?an #aj 
p]c5t ( ! funds = adm9i/rative co/s4    
7c7 ,reque/ = waiv] ,at ! election ( a  
,/ate1 ! ,/ate may include 9 ! plan a   
reque/ = a waiv] ( section              
#ace;,e7b77#d77;,d71 to p]mit a "o-/op  
c5t] /aff or sy/em op]ator ( ! /atewide 
web-bas$ sy/em 9 ! ,/ate to rely on an  
eligible work]'s /atem5t describ$ 9     
section #ace;,e7b77#d77;,c77iv74 ,!     
,secret>y may approve ! reque/ z a      
portion ( ! plan1 or may d5y ! reque/4  
7d7 ,supplem5tal plan submission &      
approval ,a ,/ate supplem5tal plan      
submitt$ to ! ,secret>y "u ?is section  
by a ,gov]nor %all be consid]$ to be    
approv$ by ! ,secret>y at ! end ( !     
#ij-;day p]iod beg9n+ on ! day !        
,secret>y receives ! plan1 unless !     
,secret>y makes a writt5 det]m9ation1   

dur+ ! #ij-;day p]iod1 t ! plan is      
inconsi/5t ) ! provisions ( ?is *apt]4  
7e7 ,portability plan ,! ,secret>y %all 
develop1 9 consultation ) ,/ate ag5cies 
& o!r entities & individuals1 a plan to 
ensure ! portability ( lifelong le>n+   
acc\nts among ,/ates4 ,! plan %all      
address ! ext5t ( portability ( lifelong
 le>n+ acc\nts e/abli%$ = eligible      
work]s4 ,! ,secret>y %all ensure t      
,/ates comply ) ! plan1 9 det]m9+ :e!r  
to approve ,/ate supplem5tal plans "u   
?is section4  7f7 ,modifications to plan
 ,a ,/ate may submit modifications to a 
,/ate supplem5tal plan 9 accordance ) ! 
requirem5ts ( ?is section & section     
#ace;,c7c7 z necess>y dur+ ! p]iod cov]$
 by ! plan4  7g7 ,compliance ) plan     
requirem5ts ,a ,/ate %all comply ) !    
requirem5ts ( ! ,/ate supplem5tal plan  
to be eligible to receive funds "u ?is  
*apt]4 ,no?+ 9 ?is *apt] %all be con/ru$
 to affect ! eligibility ( a ,/ate = an 
allotm5t "u section #abg or #acb1 or    
f9ancial assi/ance "u ! ,wagn]-,peys]   

,act 7#bi ,u4,s4,c4 #di et seq471 on !  
basis ( ! ,/ate's compliance ) !        
requirem5ts ( ! ,/ate supplem5tal plan4 
#ace;,c4 ,/ate activities  7a7 ,9 g5]al 
,a ,/ate t receives a grant "u ?is      
*apt]--  7#a7 %all use ! funds made     
available ?r\gh ! grant--  7,a7 = !     
design1 e/abli%m5t1 & implem5tation     
7includ+ monitor+ & assessm5t7 (        
lifelong le>n+ acc\nts programs1 z      
describ$ 9 subsection 7b72  7,b7 to     
provide funds to "o or m tru/ees 9 !    
,/ate = ! e/abli%m5t & managem5t (      
lifelong le>n+ acc\nts z describ$ 9     
section #ace;,e7b72 &  7,c7 to provide  
assi/ance to ! "o-/op c5t]s 9 ! ,/ate1  
to enable ! "o-/op c5t] /aff to c>ry out
 ! responsibilities describ$ 9 section  
#ace;,e7a72 &  7#b7 may1 aft] c>ry+ out 
p>agraph 7#a71 use a portion ( ! grant  
funds to make contributions to lifelong 
le>n+ acc\nts 9 ! ,/ate t meet crit]ia  
e/abli%$ by ! ,/ate1 su* z acc\nts to   
:i* small- & mid-siz$ employ]s h made   
contributions or acc\nts ( l[]-income   

eligible work]s4  7b7 ,/ate-,level      
activities ,! ,/ate ag5cy %all design1  
e/abli%1 & implem5t 7includ+ monitor+ & 
assess+7 ! lifelong le>n+ acc\nts       
program1 includ+--  7#a7 e/abli%+ &     
ma9ta9+ a work]-accessible /atewide     
web-bas$ sy/em to provide ! assi/ance   
describ$ 9 p>agraphs 7#a7 ?r\gh 7#d7 (  
section #ace;,e7a7 & meet ! applicable  
requirem5ts ( section #ace;,e7b72  7#b7 
develop+ outrea* & m>ket+ activities to 
be c>ri$ out 9 ! ,/ate2  7#c7 review+ ! 
,/ate li/ ( tra9+ s]vices provid]s      
compil$ "u section #abb7;e77#d7 to      
det]m9e ! curr5cy & accuracy ( ! li/1   
updat+ ! li/1 improv+ ! =mat ( ! li/1 & 
increas+ access to ! li/2  7#d7 provid+ 
capacity build+ & te*nical assi/ance to 
local bo>ds1 "o-/op c5t] /aff1 7&       
employees ( su* c5t]s :o provide c>e]   
in=mation1 guidance1 c\nsel+1 & relat$  
activities71 & eligible provid]s1 )     
respect to ! au?orities &               
responsibilities ( su* entities "u ?is  
*apt]2  7#e7 develop+1 dissem9at+1 &    

pres5t+ in=mation on ! lifelong le>n+   
acc\nt program ( ! ,/ate to work]s1     
employ]s1 & g5]al public1 & c>ry+ out   
creative ef=ts to engage private sector 
organizations 7su* z labor              
organizations1 indu/ry organizations1 & 
nonpr(it organizations7 & public sector 
organizations z p>tn]s 9 ! program2 &   
7#f7 prep>+ reports = ! ,/ate bo>d = !  
,/ate1 conta9+ assessm5ts ( ! program4  
7c7 ,/ate bo>d responsibilities ,! ,/ate
 bo>d = ! ,/ate %all--  7#a7 make       
recomm5dations to ! ,gov]nor ab\t !     
designation ( a tru/ee2  7#b7 provide   
advice to ! ,gov]nor & ! ,/ate ag5cy on 
a g5]al vision = a lifelong le>n+ acc\nt
 program t sugge/s ways to create       
opportunities = all work]s1 b especially
 = work]s e>n+ less ?an #bjj p]c5t ( !  
pov]ty l9e or work]s )\t a degree f a   
#b-ye> or #d-ye> nationally recogniz$   
po/second>y 7or n p>ticipat+ 9 an       
appr5tice%ip program71 to successfully  
p>ticipate 9 ! program1 ) ! goal (      
improv+ _! skills & ! likelihood (      

long-t]m prosp]ity = !mselves & _!      
families2  7#c7 provide indep5d5t advice
 to ! ,/ate ag5cy ab\t ! op]ation &     
p]=mance ( ! lifelong le>n+ acc\nt      
program1 &1 z appropriate1 ent] into    
contracts = /udies or assessm5ts ( !    
program 9 ord] to provide t advice2     
7#d7 review & provide advice to !       
,gov]nor on proposals = ,/ate           
supplem5tal plans2 &  7#e7 receive &    
comm5t on reports f ! tru/ee & ! ,/ate  
ag5cy1 conta9+ assessm5ts ( ! lifelong  
le>n+ acc\nt program1 & f1 z            
appropriate1 ! ,secret>y & o!r entities 
evaluat+ or rese>*+ ! program4  #ace;,d4
 ,local supplem5tal plans  7a7 ,9 g5]al 
,ea* local bo>d %all develop & submit to
 ! ,gov]nor a local supplem5tal plan1 9 
p>tn]%ip ) ! appropriate *ief elect$    
(ficial4 ,! plan %all be consi/5t ) !   
,/ate supplem5tal plan4  7b7 ,cont5ts ,!
 plan %all consi/ ( a supplem5t to !    
local plan describ$ 9 section #aah &    
%all include1 at a m9imum--  7#a7 !     
description ref]r$ to 9 section         

#ace;,b7b77#g77;,a71 ) respect to       
in=mation & activities to be provid$    
?r\gh ! "o-/op c5t]s 9 ! local area     
involv$2  7#b7 an assurance t ! local   
"o-/op deliv]y sy/em w1 ?r\gh ! "o-/op  
c5t]s 9 ! local area1 provide !         
assi/ance describ$ 9 p>agraphs 7#a7     
?r\gh 7#e7 ( section #ace;,e7a72  7#c7  
an assurance t ! "o-/op c5t] /aff = !   
"o-/op c5t]s 9 ! local area w coord9ate 
activities c>ri$ out ?r\gh ! c5t]s )    
,/ate-level activities1 includ+ !       
op]ation ( ! /atewide web-bas$ sy/em1 to
 provide ! assi/ance describ$ 9         
p>agraphs 7#a7 ?r\gh 7#d7 ( section     
#ace;,e7a72  7#d7 in=mation describ+ h[ 
! local bo>d w use ! funds ! local area 
receives "u ?is *apt] to lev]age o!r    
,f$]al1 ,/ate1 local1 & private         
res\rces1 to maximize ! effective use ( 
^? res\rces & maximize ! effectiv5ess ( 
! lifelong le>n+ acc\nt program 9 !     
,/ate1 & to exp& ! p>ticipation ( work]s
 7especially l[]-income work]s7 &       
employ]s 7especially small- & mid-siz$  

employ]s7 9 ! program2 &  7#e7 o!r      
assurances z requir$ by ! ,gov]nor4  7c7
 ,supplem5tal plan submission & approval
 ,a local supplem5tal plan submitt$ to a
 ,gov]nor "u ?is section by a local bo>d
 & *ief elect$ (ficial %all be consid]$ 
to be approv$ by ! ,gov]nor at ! end ( !
 #ij-;day p]iod beg9n+ on ! day !       
,gov]nor receives ! plan1 unless !      
,gov]nor makes a writt5 det]m9ation1    
dur+ ! #ij-;day p]iod1 t--  7#a7        
defici5cies 9 activities c>ri$ out "u   
?is *apt] h be5 id5tifi$1 & ! local area
 has n made acceptable progress 9       
implem5t+ corrective measures to address
 ! defici5cies2 or  7#b7 ! plan is      
inconsi/5t ) ! provisions ( ?is *apt]4  
#ace;,e4 ,local activities  7a7 ,"o-,/op
 c5t] /aff ,! "o-/op c5t] /aff t        
receives assi/ance "u section           
#ace;,c7a77#a77;,c7 %all use ! assi/ance
 to--  7#a7 provide c>e] in=mation1     
guidance1 c\nsel+1 & relat$ activities =
 work]s seek+ to e/abli% or use a       
lifelong le>n+ acc\nt1 includ+ labor    

m>ket & c>e] in=mation1 c>e] plann+1 &  
in=mation on ! high-skill1 high-dem&    
indu/ries1 9 ! region involv$1 t are    
id5tifi$ "u section #ace;,b7b77#g77;,b7 
& relat$ c>e] pa?ways2  7#b7 provide    
in=mation on lifelong le>n+ acc\nts1 &  
assi/ance 9 e/abli%+ & us+ lifelong     
le>n+ acc\nts1 includ+ apply+ to e/abli%
 su* an acc\nt2  7#c7 provide in=mation 
on eligible provid]s1 _! education &    
skill developm5t programs or c\rses1 & !
 eligible education or skill developm5t 
exp5ses associat$ ) ! programs or       
c\rses2  7#d7 provide in=mation ab\t o!r
 public or private education or skill   
developm5t activities 7o!r ?an          
activities eligible = fund+ ?r\gh a     
lifelong le>n+ acc\nt7 t work]s may be  
eligible to p>ticipate 9 to meet _!     
education & skill developm5t ne$s2  7#e7
 c>ry out outrea* & m>ket+ activities2 &
  7#f7 meet ! applicable requirem5ts (  
subsection 7b74  7b7 ,tru/ees ,a tru/ee 
%all e/abli% & manage lifelong le>n+    
acc\nts 9 accordance ) ! foll[+         

requirem5ts3  7#a7 ,e/abli%m5t  7,a7    
,reque/ ,a work] :o resides 9 a ,/ate & 
:o meets ! requirem5ts ( section #ace7f7
 b does n h a lifelong le>n+ acc\nt may1
 at ! election ( ! work]1 reque/ a      
lifelong le>n+ acc\nt4 ,! work] may     
submit ! reque/ ?r\gh a "o-/op c5t] 7to 
! "o-/op c5t] /aff7 or ?r\gh ! /atewide 
web-bas$ sy/em 7to ! sy/em op]ator74 ,! 
reque/ %all include an assurance t !    
employ] ( ! work] has n requir$1 co]c$1 
or influ5c$ ! work] to e/abli% ! acc\nt4
  7,b7 ,in=mation ,on receipt ( a reque/
 describ$ 9 subp>agraph 7,a7 = su* a    
work]1 ! "o-/op c5t] /aff involv$ or !  
op]ator ( ! web-bas$ sy/em %all supply  
in=mation to ! work] on ! mann] 9 :i* ! 
acc\nt w be manag$1 ! requirem5ts =     
)draw+ & us+ funds f ! acc\nt1 &        
in=mation on ! prohibition & proc$ure   
describ$ 9 p>agraph 7#d77;,h71 & w ask !
 work] to ackn[l$ge receipt ( !         
in=mation4  7,c7 ,e/abli%m5t ,on receiv+
 ! ackn[l$gm5t f ! work]1 ! "o-/op c5t] 
/aff or sy/em op]ator %all =w>d !       

application to ! appropriate tru/ee1 :o 
%all e/abli% ! acc\nt4  7#b7            
,contributions  7,a7 ,9 g5]al ,a        
contribution may be made to an eligible 
work]'s lifelong le>n+ acc\nt by--  7i7 
! work]2  7ii7 ! employ] ( ! work]1 :o  
may provide contributions )\t reg>d to !
 work]'s contributions1 or z mat*+      
funds2 or  7iii7 a ?ird p>ty1 su* z !   
,/ate1 a political subdivision ( !      
,/ate1 ! ,f$]al gov]nm5t ?r\gh any      
,f$]al program2 an individual1 or a     
f\ndation4  7,b7 ,m9imum contribution = 
employ] contributions ,! ,/ate may      
require a work] to provide a m9imum     
am\nt ( contributions to ! work]'s      
lifelong le>n+ acc\nt be=e p]mitt+ !    
work]'s employ] to provide employ]      
contributions "u ?is p>agraph4  7#c7    
,transf]s ,if ! eligible work] moves to 
a second ,/ate1 at ! reque/ ( ! eligible
 work]1 ! ,/ate describ$ 9 p>agraph 7#a7
 %all direct ! tru/ee to transf] !      
work]'s lifelong le>n+ acc\nt to !      
second ,/ate1 9 compliance ) !          

portability plan describ$ 9 subsection  
7d74 ,! program requirem5ts ( ! lifelong
 le>n+ acc\nt program 9 ! second ,/ate  
%all apply to ! acc\nt4  7#d7 ,)drawal (
 am\nts  7,a7 ,application to "o-/op    
c5t] /aff  7i7 ,9 g5]al ,an eligible    
work] :o desires to )draw funds f !     
work]'s lifelong le>n+ acc\nt %all      
submit an application to )draw ! funds--
  7,i7 at a "o-/op c5t]1 to ! "o-/op    
c5t] /aff2 or  7,,ii7 ?r\gh ! /atewide  
web-bas$ sy/em1 to ! sy/em op]ator4     
7ii7 ,assurance ,! application %all     
include assurances t--  7,i7 ! work] is 
n reque/+ funds = r\t9e heal? & safety  
tra9+ or tra9+ t relates to use ( new   
equipm5t t is o!rwise cov]$ by !        
employ]2  7,,ii7 ! work] is n reque/+   
funds = an education or skill developm5t
 activity t 0 previ\sly provid$ by !    
work]'s employ] or t is an activity =   
:i* ! employ] previ\sly provid$ f9ancial
 assi/ance 7su* z tuition assi/ance7 to 
work]s1 if ! employ] initiates          
discont9uance ( ! activity or f9ancial  

assi/ance1 respectively1 less ?an #f    
mon?s be=e ! date ( ! reque/2 &  7,,iii7
 ! employ] ( ! work] has n requir$1     
co]c$1 or influ5c$ ! work] to e/abli% ! 
acc\nt or to use1 or refra9 f us+1 funds
 f ! acc\nt = any type ( education or   
skill developm5t activity = :i* ! work] 
may use ! funds "u ?is *apt]1 or = an   
activity describ$ 9 subclause 7,i7 or   
7,,ii74  7,b7 ,s]vices ,! "o-/op c5t]   
/aff or sy/em op]ator %all (f] c>e]     
in=mation1 guidance1 c\nsel+1 & relat$  
activities describ$ 9 subsection 7a77#a7
 to ! eligible work]4  7,c7 ,application
 to tru/ee ,on receiv+ or decl9+ !      
s]vices describ$ 9 subp>agraph 7,b7 !   
eligible work] %all submit an           
application to ! "o-/op c5t] /aff or    
sy/em op]ator1 = ! tru/ee1 conta9+--    
7i7 a c>e] goal 7&1 if develop$1 a c>e] 
plan72  7ii7 a description ( !          
c>e]-relat$ education or skill          
developm5t activity to be fund$ ?r\gh ! 
)drawal2  7iii7 ! eligible provid] :o w 
provide ! education or skill developm5t 

activity2 &  7iv7 a /atem5t ( ! eligible
 education or skill developm5t exp5se   
associat$ ) ! activity4  7,d7           
,v]ification ,except 9 a ,/ate cov]$ by 
a waiv] approv$ "u section #ace;,b7c71  
on receiv+ ! application1 ! "o-/op c5t] 
/aff or sy/em op]ator %all endeavor to  
v]ify ! am\nt ( ! exp5se specifi$ on !  
/atem5t describ$ 9 subp>agraph 7,c77iv74
 ,if ! "o-/op c5t] /aff or sy/em op]ator
 is able to v]ify ! am\nt 7or is 9 a    
,/ate cov]$ by su* a waiv]71 & !        
application conta9s ! items describ$ 9  
clauses 7i7 ?r\gh 7iv7 ( subp>agraph    
7,c71 ! "o-/op c5t] /aff or sy/em       
op]ator %all =w>d ! application to !    
tru/ee4  7,e7 ,approval ,! tru/ee %all  
approve ! application n lat] ?an #aj    
days aft] receipt1 unless--  7i7 !      
application fails to conta9 an item     
describ$ 9 clause 7i7 ?r\gh 7iv7 (      
subp>agraph 7,c72 or  7ii7 ! am\nt 9 !  
eligible work]'s acc\nt is less ?an !   
am\nt ( ! exp5se specifi$ on ! /atem5t  
describ$ 9 subp>agraph 7,c77iv74  7,f7  

,disbursem5t ,on approv+ ! application1 
! tru/ee %all disburse ! am\nt ( !      
exp5se specifi$ on ! /atem5t to !       
eligible provid]4 ,9 ! ev5t t ! am\nt ( 
! exp5se includes an am\nt = an item    
describ$ 9 section #ace7d77;,b71 & t    
am\nt is n payable to ! provid]1 !      
provid] may reimburse ! work] = ! am\nt 
( t item4  7,g7 ,failure to disburse    
,if1 n e>li] ?an #aj days aft] ! date on
 :i* ! tru/ee has receiv$ ! application1
 ! tru/ee has fail$ to approve or       
disapprove ! application1 or has approv$
 ! application b fail$ to make a        
disbursem5t z provid$ 9 subp>agraph     
7,f71 ! eligible work] may br+ an action
 9 a c\rt ( appropriate jurisdiction to 
compel disbursem5t ( ! am\nt4  7,h7     
,prohibition on employ] requirem5ts1    
co]cion1 or influ5ce  7i7 ,9 g5]al ,no  
employ] ( ! eligible work]1 or          
contributor to ! work]'s lifelong le>n+ 
acc\nt1 may require1 co]ce1 or influ5ce 
a work] to e/abli% ! acc\nt1 or to use1 
or refra9 f us+1 funds f ! acc\nt = any 

type ( education or skill developm5t    
activity = :i* ! work] may use ! funds  
"u ?is *apt]1 or any activity describ$ 9
 subclause 7,i7 or 7,,ii7 ( subp>agraph 
7,a77ii74  7ii7 ,grievance or compla9t  
,an eligible work] alleg+ a violation ( 
?is subp>agraph may file a grievance or 
compla9t 9 accordance ) section         
#aha7;c74  7,i7 ,special disbursem5ts ,=
 purposes ( ?is p>agraph1 any           
disbursem5t 7or reque/ = disbursem5t7   
made aft] ! acc\nt b5efici>y dies1      
becomes disabl$ 7)9 ! mean+ ( section   
#gb7m77#g7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf71 or has atta9$ age #gj1 %all be  
treat$ z a disbursem5t 7or reque/ =     
disbursem5t7 = eligible education or    
skill developm5t exp5ses4  7#e7         
,treatm5t ( acc\nt  7,a7 ,sep>ation or  
divorce ,if a sep>ation or divorce      
agreem5t aw>ds ! lifelong le>n+ acc\nt1 
or ! b5efits ( ! acc\nt1 ( an eligible  
work] to ! work]'s sp\se or =m] sp\se1 !
 tru/ee %all transf] ! acc\nt to ! sp\se
 or =m] sp\se4  7,b7 ,dea? ,on ! dea? ( 

an eligible work]--  7i7 if ! designat$ 
b5efici>y = ! lifelong le>n+ acc\nt     
elects ! application ( ?is clause1 su*  
designat$ b5efici>y %all be treat$ z !  
acc\nt b5efici>y = purposes ( su*       
acc\nt2 or  7ii7 9 any case n describ$ 9
 clause 7i71 ! tru/ee %all pay ! funds 9
 ! acc\nt to ! b5efici>y1 & close !     
acc\nt4  7c7 ,ov]sight ,consi/5t ) its  
responsibilities to ov]see ! "o-/op     
deliv]y sy/em 9 ! local area1 ! local   
bo>d %all ov]see ! implem5tation ( !    
lifelong le>n+ acc\nt program 9 ! local 
area1 & %all monitor & assess ! p]=mance
 ( ! program4  #ace;,f4 ,f$]al %>e  7a7 
,9 g5]al ,! ,f$]al %>e ( ! co/ describ$ 
9 section #ace;,a = adm9i/]+ ! lifelong 
le>n+ acc\nts program e/abli%$ by ?is   
*apt] %all be #hj p]c5t4  7b7           
,non-,f$]al %>e ,! ,/ate may provide !  
non-,f$]al %>e ( ! co/ 9 ca% or 9-k9d1  
fairly evaluat$1 includ+ plant1         
equipm5t1 or s]vices4 ,! ,/ate may      
provide ! non-,f$]al %>e f ,/ate1 local1
 or private s\rces4  #ace;,g4 ,tru/ee   

reports  7a7 ,prep>ation ,ea* ,/ate t   
c>ries out a lifelong le>n+ acc\nt      
program "u ?is *apt] %all require ea*   
tru/ee 9 ! ,/ate to annually prep>e a   
report conta9+ in=mation on             
contributions to & )drawals f su*       
acc\nts 9 ! ,/ate1 an assessm5t ( !     
,/ate lifelong le>n+ acc\nt program1 &  
in=mation on su* additional matt]s z !  
,secret>y ( ,labor1 aft] consultation ) 
! ,secret>y ( ! ,treasury1 may require4 
7b7 ,submission ,! tru/ee %all submit   
ea* su* report to ! ,gov]nor & ! ,/ate  
legislature ( ! ,/ate4 ,! ,gov]nor %all 
transmit ea* su* report to ! ,secret>y (
 ,labor1 ! ,secret>y ( ! ,treasury1 &   
,congress1 & %all make ! report         
available to ! g5]al public4  #ace;,h4  
,evaluations & o!r rese>*  7a7 ,9 g5]al 
,! ,secret>y %all conduct evaluations & 
o!r rese>*1 directly or ?r\gh grants or 
contracts1 to det]m9e ! effectiv5ess ( !
 lifelong le>n+ acc\nt programs c>ri$   
out "u ?is *apt] 9 meet+ ! objectives ( 
?is *apt]4  7b7 ,me?odology & rese>*    

designs ,! ,secret>y %all use           
appropriate me?odology & rese>* designs 
= ! evaluations & rese>*4  7c7 ,topics  
,9 conduct+ ! evaluations & rese>*1 !   
,secret>y may address topics includ+    
:e!r ! programs increas$ ! wages or     
sal>ies ( work]s1 result$ 9 promotions1 
new positions1 or bett] positions = !   
work]s1 increas$ ! numb] ( work]s :o    
acquir$ indu/ry-recogniz$ skill         
cr$5tials1 enhanc$ ! job p]=mance (     
work]s1 or increas$ work] ret5tion4  7d7
 ,report ,! ,secret>y %all submit to    
,congress a report conta9+ ! results (  
ea* evaluation or rese>* project        
conduct$ "u ?is section4  #ace;,i4 ,/udy
 on contributions f ,f$]al programs  7a7
 ,/udy ,! ,secret>y1 9 conjunction ) !  
,secret>y ( ,heal? & ,human ,s]vices1   
%all conduct a /udy conc]n+ :e!r1 & !   
degree to :i*1 ,/ates %\ld be p]mitt$ to
 use funds available "u a cov]$ program 
to make contributions to lifelong le>n+ 
acc\nts ( eligible work]s 9 ! ,/ate1 &  
conc]n+ ! impacts on ! cov]$ program4   

7b7 ,report ,n lat] ?an #bd mon?s aft] !
 date ( enactm5t ( ! ,skills ,inve/m5ts 
,act ( #bjac1 ! ,secret>y ( ,labor %all 
submit to ,congress a report conta9+ !  
results ( ! /udy & any recomm5dations = 
legislation ! ,secret>y det]m9es to be  
appropriate4  7c7 ,def9ition ,9 ?is     
section1 ! t]m cov]$ program means !    
program ( block grants to ,/ates =      
tempor>y assi/ance = ne$y families      
e/abli%$ "u "p ,a ( title ,,iv ( !      
,social ,security ,act 7#db ,u4,s4,c4   
#fja et seq471 an employm5t & tra9+     
program c>ri$ out "u section #f7;d77#d7 
( ! ,food ,/amp ,act ( #aigg 7#g        
,u4,s4,c4 #bjae7;d77#d771 ! portion ( a 
program ( employm5t & tra9+ activities  
c>ri$ out "u *apt] #e t is fund$ ?r\gh  
individual tra9+ acc\nts describ$ 9     
section #acd7;d77#d77;,g71 ! activities 
7includ+ tra9+1 o!r employm5t s]vices1 &
 provision ( all[ances7 c>ri$ out "u "p 
,,ii ( sub*apt] ,b ( *apt] #b ( title   
,,ii ( ! ,trade ,act ( #aigd 7#bi       
,u4,s4,c4 #bbie et seq471 & ano!r ,f$]al

 employm5t & tra9+ program id5tifi$ by !
 ,secret>y4  #ace;,j4 ,eligibility = o!r
 ,f$]al b5efits ,no ,f$]al ag5cy may    
take into consid]ation ! am\nt deposit$ 
to1 or )drawn f1 an eligible work]'s    
lifelong le>n+ acc\nt 9 det]m9+ !       
eligibility ( ! work] = any b5efit or   
s]vice "u any provision ( ,f$]al law1   
includ+ any education or skill          
developm5t b5efit or s]vice1 o!r ?an ?is
 *apt]4  4  7b7 ,con=m+ am5dm5t ,! table
 ( cont5ts 9 section #a7;b7 ( ! ,work=ce
 ,inve/m5t ,act ( #aiih is am5d$--  7#a7
 by r$esignat+ ! item relat+ to ! *apt] 
head+ ( *apt] #f1 z ! item relat+ to !  
*apt] head+ ( *apt] #g1 ( subtitle ,b ( 
title ,i2 &  7#b7 by ins]t+ aft] ! items
 relat+ to *apt] #e ( t subtitle !      
foll[+3  ,*apt] #f--,lifelong le>n+     
acc\nts ,sec4 #ace4 ,def9itions4 ,sec4  
#ace;,a4 ,lifelong le>n+ acc\nt         
programs4 ,sec4 #ace;,b4 ,/ate          
supplem5tal plans4 ,sec4 #ace;,c4 ,/ate 
activities4 ,sec4 #ace;,d4 ,local       
supplem5tal plans4 ,sec4 #ace;,e4 ,local

 activities4 ,sec4 #ace;,f4 ,f$]al %>e4 
,sec4 #ace;,g4 ,tru/ee reports4 ,sec4   
#ace;,h4 ,evaluations & o!r rese>*4     
,sec4 #ace;,i4 ,/udy on contributions f 
,f$]al programs4 ,sec4 #ace;,j4         
,eligibility = o!r ,f$]al b5efits4  4   
#d4 ,au?orization ( appropriations      
,section #acg ( ! ,work=ce ,inve/m5t    
,act ( #aiih 7#bi ,u4,s4,c4 #bhgb7 is   
am5d$ by add+ at ! end ! foll[+3  7d7   
,lifelong le>n+ acc\nt programs ,!re is 
au?oriz$ to be appropriat$ to c>ry out  
*apt] #f su* sums z may be necess>y =   
ea* ( fiscal ye>s #bjae ?r\gh #bjbj4  4 
#e4 ,cr$it = contributions to lifelong  
le>n+ acc\nts  7a7 ,9 g5]al ,subp>t ,c (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to refundable cr$its7 is am5d$ by ins]t+
 aft] section #cf;,b ! foll[+ new       
section3  #cf;,c4 ,contributions to     
lifelong le>n+ acc\nts  7a7 ,cr$it all[$
 ,9 ! case ( an eligible individual1 !re
 %all be all[$ z a cr$it aga9/ ! tax    
impos$ by ?is *apt] = ! taxable ye> an  

am\nt equal to ! applicable p]c5tage ( !
 contributions 7o!r ?an rollov]         
contributions describ$ 9 subsection     
7e77#e77 paid 9 ca% dur+ su* taxable ye>
 by or on behalf ( su* individual to a  
lifelong le>n+ acc\nt ( su* individual4 
7b7 ,limitations & def9itions relat$ to 
all[ance ( cr$it  7#a7 ,doll> limitation
 ,! am\nt ( contributions tak5 into     
acc\nt "u subsection 7a7 ) respect to   
any eligible individual = any taxable   
ye> %all n exce$ ! less] (--  7,a7      
#c1jjj1 or  7,b7 an am\nt equal to !    
comp5sation 7z def9$ 9 section          
#bai7;f77#a77 includible 9 !            
individual's gross income = su* taxable 
ye>4  7#b7 ,limitations bas$ on modifi$ 
adju/$ gross income  7,a7 ,phase\t (    
doll> limitation bas$ on acc\nt         
b5efici>y's modifi$ adju/$ gross income 
,! #c1jjj am\nt conta9$ 9 p>agraph      
7#a77;,a7 %all be r$uc$ 7b n bel[ z]o7  
by ! acc\nt b5efici>y's r$uction am\nt4 
7,b7 ,p] contributor limitation bas$ on 
contributor's modifi$ adju/$ gross      

income ,9 ! case ( a contributor :o is  
an individual 7o!r ?an an employ] ( !   
acc\nt b5efici>y71 ! aggregate am\nt ( !
 contributions ( su* contributor :i* may
 be tak5 into acc\nt "u subsection 7a7 )
 respect to any eligible individual =   
any taxable ye> %all n exce$ ! excess   
7if any7 ( #c1jjj ov] su* contributor's 
r$uction am\nt4  7,c7 ,acc\nt           
b5efici>y's r$uction am\nt ,= purposes (
 subp>agraph 7,a71 ! acc\nt b5efici>y's 
r$uction am\nt is ! am\nt :i* be>s !    
same ratio to #c1jjj z--  7i7 ! excess  
(--  7,i7 ! acc\nt b5efici>y's modifi$  
adju/$ gross income = su* taxable ye>1  
ov]  7,,ii7 #ajj1jjj 7twice su* am\nt 9 
! case ( a jo9t return71 be>s to  7ii7  
#bj1jjj 7twice su* am\nt 9 ! case ( a   
jo9t return74  ,= purposes ( ! prec$+   
s5t5ce1 ! t]m modifi$ adju/$ gross      
income means adju/$ gross income        
increas$ by any am\nt exclud$ f gross   
income "u section #iaa1 #ica1 or #icc4  
7,d7 ,contributor's r$uction am\nt ,=   
purposes ( subp>agraph 7,b71 !          

contributor's r$uction am\nt is ! am\nt 
t w\ld be det]m9$ "u subp>agraph 7,c7 if
 contributor 7 sub/itut$ = acc\nt       
b5efici>y ea* place x appe>s !re94  7,e7
 ,special rule = m>ri$ individuals fil+ 
a sep>ate return ,9 ! case ( a m>ri$    
individual fil+ a sep>ate return1       
subp>agraph 7,c77,i77,,ii7 %all be      
appli$ by sub/itut+ z]o = ! doll> am\nt 
!re94  7#c7 ,treatm5t ( employ]         
contributions  7,a7 ,exclusion f gross  
income ,gross income %all n include any 
contribution to a lifelong le>n+ acc\nt 
made by an employ] ( ! acc\nt b5efici>y 
to ! ext5t t ! aggregate am\nt ( su*    
contributions made dur+ ! taxable ye>   
does n exce$ ! limitation 9 effect "u   
p>agraph 7#a7 7det]m9$ )\t reg>d to     
subp>agraph 7,b7 ( ?is p>agraph7 = su*  
taxable ye> ) respect to su* b5efici>y4 
7,b7 ,coord9ation ) cr$it ,! limitation 
:i* w\ld 7b = ?is subp>agraph7 apply "u 
p>agraph 7#a7 ) respect to ! eligible   
individual = any taxable ye> %all be    
r$uc$ 7b n bel[ z]o7 by ! aggregate     

am\nt contribut$ to lifelong le>n+      
acc\nts ( su* individual :i* is         
excludable f ! taxpay]'s gross income = 
su* taxable ye> "u subp>agraph 7,a7 7&  
su* am\nt %all n be tak5 into acc\nt 9  
det]m9+ ! cr$it "u subsection 7a774     
7#d7 ,applicable p]c5tage ,= purposes ( 
?is section1 ! t]m applicable p]c5tage  
means--  7,a7 #ej p]c5t ) respect to !  
fir/ #ejj ( contributions tak5 into     
acc\nt "u subsection 7a7 ) respect to   
any eligible individual = any taxable   
ye>1 &  7,b7 #be p]c5t ) respect to s   
mu* ( su* contributions z exce$s #ejj4  
7#e7 ,eligible individual ,= purposes ( 
?is section1 ! t]m eligible individual  
means any individual = any taxable ye>  
if1 z ( ! fir/ day ( su* taxable ye>1   
su* individual has atta9$ age #af4  7c7 
,lifelong le>n+ acc\nts ,= purposes (   
?is section--  7#a7 ,9 g5]al ,! t]m     
lifelong le>n+ acc\nt means a tru/      
creat$ or organiz$ 9 ! ,unit$ ,/ates z a
 lifelong le>n+ acc\nt "u a lifelong    
le>n+ acc\nt program e/abli%$ by a ,/ate

 "u *apt] #f ( subtitle ,b ( title ,i ( 
! ,work=ce ,inve/m5t ,act ( #aiih       
exclusively = ! purpose ( pay+ !        
eligible education or skill developm5t  
exp5ses ( ! acc\nt b5efici>y & ma9ta9$  
by a tru/ee consi/ ) ! requirem5ts (    
section #ace;,e7b7 ( su* ,act1 b only if
 ! writt5 gov]n+ in/rum5t creat+ ! tru/ 
meets ! foll[+ requirem5ts3  7,a7 ,no   
contribution w be accept$ unless x is 9 
ca%4  7,b7 ,except 9 ! case ( a rollov] 
contribution describ$ 9 subsection      
7e77#e71 no contribution w be accept$ if
 su* contribution1 :5 add$ to all       
previ\s contributions to ! tru/ = !     
cal5d> ye>1 w\ld exce$ #e1jjj4  7,c7 ,! 
tru/ assets w be held by a tru/ee :o w  
adm9i/] ! tru/ consi/5t ) ! requirem5ts 
( su* lifelong le>n+ acc\nt program &   
?is section4  7,d7 ,no "p ( ! tru/      
assets w be inve/$ 9 life insurance     
contracts4  7,e7 ,no "p ( ! tru/ assets 
w be inve/$ 9 any collectible 7z def9$ 9
 section #djh7m774  7,f7 ,! assets ( !  
tru/ w n be comm+l$ ) o!r prop]ty except

 9 a common tru/ fund or common inve/m5t
 fund4  7,g7 ,! int]e/ ( an individual 9
 ! balance 9 8 acc\nt is non=feitable4  
7,h7 ,no di/ribution %all be made f !   
acc\nt except--  7i7 = eligible         
education or skill developm5t exp5ses1  
or  7ii7 aft] an ev5t describ$ 9        
subsection 7e77#b77;,b74  7#b7 ,eligible
 education or skill developm5t exp5se ,!
 t]m eligible education or skill        
developm5t exp5se means any eligible    
education or skill developm5t exp5se 7z 
def9$ 9 section #ace ( ! ,work=ce       
,inve/m5t ,act ( #aiih7 :i* meets !     
requirem5ts ( subclauses 7,i7 & 7,,ii7 (
 section #ace;,e7b77#d77;,a77ii7 ( su*  
,act4  7#c7 ,acc\nt b5efici>y ,! t]m    
acc\nt b5efici>y means ! individual on  
^: behalf ! lifelong le>n+ acc\nt 0     
e/abli%$4  7#d7 ,tru/ee ,! t]m tru/ee   
has ! mean+ giv5 ! t]m 9 section #ace ( 
! ,work=ce ,inve/m5t ,act ( #aiih4  7#e7
 ,c]ta9 rules to apply ,rules simil> to 
! foll[+ rules %all apply = purposes (  
?is section3  7,a7 ,section #bai7;f77#c7

 7relat+ to "t :5 contributions deem$   
made74  7,b7 ,section #djh7;g7 7relat+  
to community prop]ty laws74  7,c7       
,section #djh7;h7 7relat+ to cu/odial   
acc\nts74  7d7 ,tax treatm5t ( acc\nts  
7#a7 ,9 g5]al ,a lifelong le>n+ acc\nt  
is exempt f taxation "u ?is subtitle    
unless su* acc\nt has ceas$ to be a     
lifelong le>n+ acc\nt4 ,not)/&+ ! prec$+
 s5t5ce1 any su* acc\nt is subject to ! 
taxes impos$ by section #eaa 7relat+ to 
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc4 organizations74 
7#b7 ,nonqualifi$ di/ribution treat$ z  
acc\nt t]m9ation ,if !re is a           
nonqualifi$ di/ribution 7z def9$ 9      
subsection 7e77 f a lifelong le>n+      
acc\nt = any taxable ye>--  7,a7 su*    
acc\nt %all cease to be treat$ z a      
lifelong le>n+ acc\nt z ( ! close ( su* 
taxable ye>1 &  7,b7 any am\nts 9 su*   
acc\nt z ( ! close ( su* taxable ye>    
%all be treat$ z di/ribut$ to ! acc\nt  
b5efici>y on ! la/ day ( su* taxable ye>
 & %all be treat$ z n us$ to pay        

eligible education or skill developm5t  
exp5ses4  7#c7 ,application ( o!r rules 
treat+ c]ta9 ev5ts z acc\nt t]m9ations  
,rules simil> to ! rules ( p>agraphs    
7#b7 & 7#d7 ( section #djh7;e7 %all     
apply to lifelong le>n+ acc\nts1 & any  
am\nt treat$ z di/ribut$ "u su* rules   
%all be treat$ z n us$ to pay eligible  
education or skill developm5t exp5ses4  
7e7 ,inclusion ( di/ributions 9 gross   
income  7#a7 ,inclusion 9 gross income  
,any am\nt di/ribut$ out ( a lifelong   
le>n+ acc\nt %all be includ$ 9 gross    
income by ! acc\nt b5efici>y4  7#b7     
,additional tax  7,a7 ,9 g5]al ,except z
 o!rwise provid$ 9 ?is subsection1 ! tax
 impos$ by ?is *apt] on ! acc\nt        
b5efici>y = any taxable ye> 9 :i* !re is
 a nonqualifi$ di/ribution f a lifelong 
le>n+ acc\nt %all be increas$ by #aj    
p]c5t ( ! am\nt ( su* di/ribution4  7,b7
 ,exceptions ,subp>agraph 7,a7 &        
subsection 7d77#b7 %all n apply if !    
di/ribution is made aft] ! acc\nt       
b5efici>y dies1 becomes disabl$ 7)9 !   

mean+ ( section #gb7m77#g771 or has     
atta9$ age #gj4  7#c7 ,nonqualifi$      
di/ribution ,= purposes ( ?is section1 !
 t]m nonqualifi$ di/ribution means !    
excess 7if any7 (--  7,a7 ! aggregate   
di/ributions f ! acc\nt dur+ ! taxable  
ye>1 ov]  7,b7 ! eligible education or  
skill developm5t exp5ses ( ! acc\nt     
b5efici>y = ! taxable ye>4  7#d7 ,excess
 contributions return$ be=e due date (  
return  7,a7 ,9 g5]al ,if any excess    
contribution is contribut$ = a taxable  
ye> to any lifelong le>n+ acc\nt ( an   
individual1 p>agraphs 7#a7 & 7#b7 &     
subsection 7d77#b7 %all n apply to      
di/ributions f ! lifelong le>n+ acc\nts 
( su* individual 7to ! ext5t su*        
di/ributions d n exce$ ! aggregate      
excess contributions to all su* acc\nts 
( su* individual = su* ye>7 if--  7i7   
su* di/ribution is receiv$ by !         
individual on or be=e ! la/ day         
prescrib$ by law 7includ+ ext5sions (   
"t7 = fil+ su* individual's return = su*
 taxable ye>1 &  7ii7 su* di/ribution is

 accompani$ by ! am\nt ( net income     
attributable to su* excess contribution4
  ,any net income describ$ 9 clause 7ii7
 %all be includ$ 9 ! gross income ( !   
individual = ! taxable ye> 9 :i* x is   
receiv$4  7,b7 ,excess contribution ,=  
purposes ( subp>agraph 7,a71 ! t]m      
excess contribution means any           
contribution 7o!r ?an a rollov]         
contribution describ$ 9 p>agraph 7#f77  
:i* is n tak5 into acc\nt = purposes (  
det]m9+ ! cr$it all[$ "u subsection 7a7 
or ! am\nt excludable f ! taxpay]'s     
gross income "u subsection 7b77#c74     
7#e7 ,rollov] contribution ,an am\nt is 
describ$ 9 ?is p>agraph z a rollov]     
contribution if x meets ! requirem5ts ( 
subp>agraphs 7,a7 & 7,b74  7,a7 ,9 g5]al
 ,p>agraphs 7#a7 & 7#b7 & subsection    
7d77#b7 %all n apply to any am\nt paid  
or di/ribut$ f a lifelong le>n+ acc\nt  
to ! acc\nt b5efici>y to ! ext5t ! am\nt
 receiv$ is paid into a lifelong le>n+  
acc\nt = ! b5efit ( su* b5efici>y n lat]
 ?an ! #fj? day aft] ! day on :i* !     

b5efici>y receives ! paym5t or          
di/ribution4  7,b7 ,limitation ,?is     
p>agraph %all n apply to any am\nt      
describ$ 9 subp>agraph 7,a7 receiv$ by  
an individual f a lifelong le>n+ acc\nt 
if1 at any "t dur+ ! #a-ye> p]iod end+  
on ! day ( su* receipt1 su* individual  
receiv$ any o!r am\nt describ$ 9        
subp>agraph 7,a7 f a lifelong le>n+     
acc\nt to :i* p>agraphs 7#a7 & 7#b7 did 
n apply by reason ( ! application ( ?is 
p>agraph4  7#f7 ,transf] ( acc\nt       
incid5t to divorce ,! transf] ( an      
individual's int]e/ 9 a lifelong le>n+  
acc\nt to an individual's sp\se or =m]  
sp\se "u a divorce or sep>ation in/rum5t
 describ$ 9 subp>agraph 7,a7 ( section  
#ga7;b77#b7 %all n be consid]$ a taxable
 transf] made by su* individual not)/&+ 
any o!r provision ( ?is subtitle1 & su* 
int]e/ %all1 aft] su* transf]1 be treat$
 z a lifelong le>n+ acc\nt ) respect to 
:i* su* sp\se is ! acc\nt b5efici>y4    
7#g7 ,treatm5t aft] dea? ( acc\nt       
b5efici>y  7,a7 ,treatm5t if designat$  

b5efici>y is sp\se or elects to cont9ue 
acc\nt ,if any individual acquires !    
acc\nt b5efici>y's int]e/ 9 a lifelong  
le>n+ acc\nt by reason ( be+ ! designat$
 b5efici>y ( su* acc\nt at ! dea? ( !   
acc\nt b5efici>y & su* individual elects
 ! application ( ?is subp>agraph1 su*   
lifelong le>n+ acc\nt %all be treat$ z  
if su* designat$ b5efici>y 7 ! acc\nt   
b5efici>y4  7,b7 ,o!r cases  7i7 ,9     
g5]al ,if1 by reason ( ! dea? ( ! acc\nt
 b5efici>y1 any p]son acquires ! acc\nt 
b5efici>y's int]e/ 9 a lifelong le>n+   
acc\nt 9 a case to :i* subp>agraph 7,a7 
does n apply--  7,i7 su* acc\nt %all    
cease to be a lifelong le>n+ acc\nt z ( 
! date ( dea?1 &  7,,ii7 an am\nt equal 
to ! fair m>ket value ( ! assets 9 su*  
acc\nt on su* date %all be includible if
 su* p]son is n ! e/ate ( su* b5efici>y1
 9 su* p]son's gross income = ! taxable 
ye> :i* includes su* date1 or if su*    
p]son is ! e/ate ( su* b5efici>y1 9 su* 
b5efici>y's gross income = ! la/ taxable
 ye> ( su* b5efici>y4  7ii7 ,d$uction = 

e/ate taxes ,an appropriate d$uction    
%all be all[$ "u section #fia7;c7 to any
 p]son 7o!r ?an ! dec$5t or ! dec$5t's  
sp\se7 ) respect to am\nts includ$ 9    
gross income "u clause 7,i7 by su*      
p]son4  7f7 ,reports ,! tru/ee ( a      
lifelong le>n+ acc\nt %all make su*     
reports reg>d+ su* acc\nt to ! ,secret>y
 & to ! acc\nt b5efici>y ) respect to   
contributions1 di/ributions1 & su* o!r  
matt]s z ! ,secret>y may require "u     
regulations4 ,! reports requir$ by ?is  
subsection %all be fil$ at su* "t & 9   
su* mann] & furni%$ to su* individuals  
at su* "t & 9 su* mann] z may be requir$
 by ^? regulations4  4  7b7 ,tax on     
excess contributions ,section #digc ( ! 
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7#a7 by /rik+ or at ! end (    
subsection 7a77#d71 by ins]t+ or at !   
end ( subsection 7a77#e71 & by ins]t+   
aft] subsection 7a77#e7 ! foll[+ new    
p>agraph3  7#f7 a lifelong le>n+ acc\nt 
7)9 ! mean+ ( section #cf;,c7c771  1 &  
7#b7 by add+ at ! end ! foll[+ new      

subsection3  7h7 ,excess contributions  
to lifelong le>n+ acc\nts ,= purposes ( 
?is section1 9 ! case ( lifelong le>n+  
acc\nts 7)9 ! mean+ ( section           
#cf;,c7c771 ! t]m excess contributions  
means ! sum (--  7#a7 ! aggregate am\nt 
contribut$ = ! taxable ye> to ! acc\nts 
7o!r ?an rollov] contributions describ$ 
9 section #cf;,c7e77#e77 :i* is n tak5  
into acc\nt = purposes ( det]m9+ ! cr$it
 all[$ "u section #cf;,c7a7 or ! am\nt  
excludable f ! taxpay]'s gross income "u
 section #cf;,c7b77#c71 &  7#b7 ! am\nt 
det]m9$ "u ?is subsection = ! prec$+    
taxable ye>1 r$uc$ by ! sum (--  7,a7 ! 
di/ributions out ( ! acc\nts ) respect  
to :i* additional tax 0 impos$ "u       
section #cf;,c7e77#b77;,a7 = ! taxable  
ye>1 &  7,b7 ! excess 7if any7 (--  7i7 
! maximum am\nt ( contributions :i* may 
be tak5 into acc\nt "u section #cf;,c7a7
 = ! taxable ye>1 ov]  7ii7 ! am\nt     
contribut$ to ! acc\nts = ! taxable ye>4
  ,= purposes ( ?is subsection1 any     
contribution :i* is di/ribut$ out ( !   

lifelong le>n+ acc\nt 9 a di/ribution to
 :i* section #cf;,c7e77#e7 applies %all 
be treat$ z an am\nt n contribut$4  4   
7c7 ,tax on prohibit$ transactions  7#a7
 ,p>agraph 7#a7 ( section #dige7;e7 ( ! 
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to prohibit$ transactions7 is am5d$ by  
r$esignat+ subp>agraph 7,g7 z           
subp>agraph 7,h71 by /rik+ or at ! end (
 subp>agraph 7,f71 & by ins]t+ aft]     
subp>agraph 7,f7 ! foll[+ new           
subp>agraph3  7,g7 a lifelong le>n+     
acc\nt describ$ 9 section #cf;,c7c71 or 
4  7#b7 ,subsection 7c7 ( section #dige 
( su* ,code is am5d$ by add+ at ! end ! 
foll[+ new p>agraph3  7#g7 ,special rule
 = lifelong le>n+ acc\nts ,an individual
 = ^: b5efit a lifelong le>n+ acc\nt is 
e/abli%$ %all be exempt f ! tax impos$  
by ?is section ) respect to any         
transaction conc]n+ su* acc\nt 7:i* w\ld
 o!rwise be taxable "u ?is section7 if1 
) respect to su* transaction1 ! acc\nt  
ceases to be a lifelong le>n+ acc\nt by 
reason ( ! application ( p>agraph 7#b7  

or 7#c7 ( section #cf;,c7d7 to su*      
acc\nt4  4  7d7 ,failure ,to provide    
reports on lifelong le>n+ acc\nts       
,p>agraph 7#b7 ( section #ffic7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & at ! end ( subp>agraph 7,d71 
by r$esignat+ subp>agraph 7,e7 z        
subp>agraph 7,f71 & by ins]t+ aft]      
subp>agraph 7,d7 ! foll[+ new           
subp>agraph3  7,e7 section #cf;,c7f7    
7relat+ to lifelong le>n+ acc\nts71 &  4
  7e7 ,exclusion f employm5t taxes  7#a7
 ,f$]al ,insurance ,contributions ,act  
,subsection 7a7 ( section #caba ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ or at ! end ( p>agraph 7#bb71  
by /rik+ ! p]iod at ! end ( p>agraph    
7#bc7 & ins]t+ 2 or1 & by ins]t+ aft]   
p>agraph 7#bc7 ! foll[+ new p>agraph3   
7#bd7 any paym5t made to or = ! b5efit (
 an employee if at ! "t ( su* paym5t x  
is reasonable to believe t ! employee w 
be able to exclude su* paym5t f income  
"u section #cf;,c7b77#c74  4  7#b7      
,railroad retirem5t tax ,subsection 7e7 

( section #cbca ( su* ,code is am5d$ by 
add+ at ! end ! foll[+ new p>agraph3    
7#ac7 ,le>n+ acc\nt contributions ,! t]m
 comp5sation %all n include any paym5t  
made to or = ! b5efit ( an employee if  
at ! "t ( su* paym5t x is reasonable to 
believe t ! employee w be able to       
exclude su* paym5t f income "u section  
#cf;,c7b77#c74  4  7#c7 ,unemploym5t tax
 ,subsection 7b7 ( section #ccjf ( su*  
,code is am5d$ by /rik+ or at ! end (   
p>agraph 7#ai71 by /rik+ ! p]iod at !   
end ( p>agraph 7#bj7 & ins]t+ 2 or1 & by
 ins]t+ aft] p>agraph 7#bj7 ! foll[+ new
 p>agraph3  7#ba7 any paym5t made to or 
= ! b5efit ( an employee if at ! "t (   
su* paym5t x is reasonable to believe t 
! employee w be able to exclude su*     
paym5t f income "u section              
#cf;,c7b77#c74  4  7#d7 ,)hold+ tax     
,subsection 7a7 ( section #cdja ( su*   
,code is am5d$ by /rik+ or at ! end (   
p>agraph 7#bb71 by /rik+ ! p]iod at !   
end ( p>agraph 7#bc7 & ins]t+ 2 or1 & by
 ins]t+ aft] p>agraph 7#bc7 ! foll[+ new

 p>agraph3  7#bd7 any paym5t made to or 
= ! b5efit ( an employee if at ! "t (   
su* paym5t x is reasonable to believe t 
! employee w be able to exclude su*     
paym5t f income "u section              
#cf;,c7b77#c74  4  7#e7 ,social security
 tru/ funds held h>mless ,!re is h]eby  
appropriat$ 7out ( any money 9 !        
,treasury n o!rwise appropriat$7 = ea*  
fiscal ye> to ea* fund "u ! ,social     
,security ,act an am\nt equal to !      
r$uction 9 ! transf]s to su* fund = su* 
fiscal ye> by reason ( ! am5dm5t made by
 p>agraph 7#a74  7f7 ,exemption f       
,,erisa requirem5ts ,subsection 7b7 (   
section #d ( ! ,employee ,retirem5t     
,income ,security ,act ( #aigd is am5d$ 
by /rik+ or at ! end ( p>agraph 7#d71 by
 /rik+ ! p]iod at ! end ( p>agraph 7#e7 
& ins]t+ 2 or1 & by ins]t+ aft] p>agraph
 7#e7 ! foll[+ new p>agraph3  7#f7 su*  
plan is ma9ta9$ solely = ! purposes (   
e/abli%+1 & mak+ contributions to1      
lifelong le>n+ acc\nts 7)9 ! mean+ (    
section #cf;,c7c7 ( ! ,int]nal ,rev5ue  

,code ( #aihf7 on behalf ( employees4  4
  7g7 ,con=m+ am5dm5ts  7#a7 ,! table ( 
sections = subp>t ,c ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #cf;,b ! 
foll[+ new item3  ,sec4 #cf;,c4         
,contributions to lifelong le>n+        
acc\nts4  4  7#b7 ,section              
#fbaa7;b77#d77;,a7 ( su* ,code is am5d$ 
by ins]t+ #cf;,c1 aft] #cf;,b14  7#c7   
,section #acbd7;b77#b7 ( title #ca1     
,unit$ ,/ates ,code1 is am5d$ by ins]t+ 
#cf;,c1 aft] #cf;,b14  7h7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjac4  #f4 ,cr$it = small
 bus9esses ) respect to lifelong le>n+  
acc\nt programs  7a7 ,9 g5]al ,subp>t ,d
 ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! 
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to bus9ess relat$ cr$its7 is am5d$ by   
add+ at ! end ! foll[+ new section3     
#de,s4 ,lifelong le>n+ acc\nts cr$it    
7a7 ,9 g5]al ,= purposes ( section #ch1 

9 ! case ( an eligible employ]1 !       
lifelong le>n+ acc\nts cr$it is ! sum   
(--  7#a7 ! lifelong le>n+ acc\nt       
contributions cr$it1 &  7#b7 ! lifelong 
le>n+ acc\nt adm9i/rative co/s cr$it4   
7b7 ,lifelong le>n+ acc\nt contributions
 cr$it  7#a7 ,9 g5]al ,= purposes ( ?is 
section1 ! t]m lifelong le>n+ acc\nt    
contributions cr$it means ! am\nt equal 
to #be p]c5t ( ! aggregate am\nt paid or
 incurr$ by ! taxpay] dur+ ! taxable ye>
 z contributions to lifelong le>n+      
acc\nts 7)9 ! mean+ ( section #cf;,c7c77
 ( employees ( ! taxpay]4  7#b7 ,doll>  
limitation ,! am\nt ( ! contributions   
tak5 into acc\nt "u p>agraph 7#a7 )     
respect to any employee = any taxable   
ye> %all n exce$ #c1jjj4  7c7 ,lifelong 
le>n+ acc\nt adm9i/rative co/s cr$it    
7#a7 ,9 g5]al ,= purposes ( ?is section1
 ! t]m lifelong le>n+ acc\nt            
adm9i/rative co/s cr$it means ! am\nt   
equal to #ej p]c5t ( ! aggregate am\nt  
paid or incurr$ by ! taxpay] dur+ !     
taxable ye> z adm9i/rative exp5ses 9    

c>ry+ out a program to make paym5ts to !
 lifelong le>n+ acc\nts 7)9 ! mean+ (   
section #cf;,c7c77 ( employees ( !      
taxpay]4  7#b7 ,doll> limitation ,!     
am\nt ( ! cr$it det]m9$ "u ?is          
subsection = any taxable ye> %all n     
exce$--  7,a7 #ejj p] eligible employ] =
 ! fir/ cr$it ye> & ea* ( ! #b taxable  
ye>s imm$iately foll[+ ! fir/ cr$it ye>1
 &  7,b7 z]o = any o!r taxable ye>4     
7#c7 ,fir/ cr$it ye> ,= purposes ( ?is  
subsection1 ! t]m fir/ cr$it ye> means !
 fir/ taxable ye> = :i* ! taxpay] claims
 a cr$it "u ?is section4  7#d7 ,special 
rules ,= purposes ( ?is subsection1     
rules simil> to ! rules ( p>agraphs     
7#a71 7#b71 & 7#c7 ( section #de;,e7e7  
%all apply4  7d7 ,eligible employ] ,=   
purposes ( ?is section1 ! t]m eligible  
employ] has ! mean+ giv5 su* t]m by     
section #djh7p77#b77;,c77,i7 appli$--   
7#a7 by sub/itut+ #bej employees = #ajj 
employees 9 subclause 7,i7 !re(1  7#b7 =
 purposes ( det]m9+ eligibility = !     
lifelong le>n+ acc\nt contributions     

cr$it = any taxable ye>1 )\t reg>d to   
subclause 7,,ii7 !re(1 &  7#c7 =        
purposes ( det]m9+ eligibility = !      
lifelong le>n+ acc\nt adm9i/rative co/s 
cr$it = any taxable ye>1 by treat+ !    
plan describ$ 9 subsection 7c77#a7 z !  
plan ref]r$ to 9 su* subclause 7,,ii74  
7e7 ,recapture 9 case ( employee        
co]cion1 etc ,if ! ,secret>y1 aft]      
consultation ) ! ,secret>y ( ,labor1    
det]m9es t ! taxpay] has requir$1 co]c$1
 or influ5c$ an employee to e/abli% a   
life long le>n+ acc\nt or to use1 or    
refra9 f us+1 funds f ! acc\nt = any    
eligible education or skill developm5t  
exp5se 7z def9$ 9 section #cf;,c7--     
7#a7 ! tax impos$ on ! taxpay] "u ?is   
subtitle = ! taxable ye> :i* includes ! 
date ( su* det]m9ation %all be increas$ 
by ! am\nt ( ! cr$its all[$ "u ?is      
section to ! taxpay] = all taxable ye>s 
:i* include any portion ( ! p]iod dur+  
:i* su* requirem5t1 co]cion1 or influ5ce
 occurr$1 &  7#b7 no cr$it %all be all[$
 to ! taxpay] "u ?is section = ! taxable

 ye> :i* includes ! date ( su*          
det]m9ation & ! succe$+ taxable ye>4  4 
7b7 ,cr$it "p ( g5]al bus9ess cr$it     
,section #ch7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by /rik+ plus at 
! end ( p>agraph 7#ce71 by /rik+ ! p]iod
 at ! end ( p>agraph 7#cf7 & ins]t+ 1   
plus1 & by add+ at ! end ! foll[+ new   
p>agraph3  7#cg7 ! lifelong le>n+       
acc\nts cr$it det]m9$ "u section #de,s4 
4  7c7 ,d$uction = unus$ cr$it ,section 
#aif7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ & at ! end (    
p>agraph 7#ac71 by /rik+ ! p]iod at !   
end ( p>agraph 7#ad7 & ins]t+ 1 &1 & by 
add+ at ! end ! foll[+ new p>agraph3    
7#ae7 ! lifelong le>n+ acc\nts cr$it    
det]m9$ "u section #de,s4  4  7d7       
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #de,s4 ,lifelong le>n+
 acc\nts cr$it4  4  7e7 ,effective date 
,! am5dm5ts made by ?is section %all    

apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjac4