STAND. COM. REP. NO.  562

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 882

      H.D. 1

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Higher Education, to which was referred H.B. No. 882 entitled:

 

"A BILL FOR AN ACT RELATING TO THE COLLEGE SAVINGS ACCOUNT PROGRAM,"

 

begs leave to report as follows:

 

     The purpose of this bill is to encourage savings and investment for post-secondary educational purposes by:

 

     (1)  Establishing a tax deduction for contributions to a college savings account under the College Savings Account Program (Program); and

 

     (2)  Requiring the State to provide an initial investment in a college savings account with the issuance of each birth certificate for a child born in the state, and periodic investments thereafter.

 

     The University of Hawaii, 3Point, and a concerned individual supported the intent of this bill.  The Hawaii Alliance for Community-Based Economic Development supported this measure with amendments.


 

     Your Committee has amended this bill by:

 

     (1)  Requiring and appropriating funds for the Department of Health to issue a $1,000 voucher to open a college account under the Program, with the issuance of each birth certificate for a child born in the state;

 

     (2)  Deleting the specific amount that the State must transfer from the College Savings Program Trust Fund to the account owner's college account when the designated beneficiary of the account reaches certain ages; and

 

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

 

     As affirmed by the record of votes of the members of your Committee on Higher Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 882, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 882, H.D. 1, and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Higher Education,

 

 

 

 

____________________________

JERRY L. CHANG, Chair