STAND. COM. REP. NO. 1421

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 307
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 307, H.D. 2, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO HIGHER EDUCATION,"

begs leave to report as follows:

     The purpose of this bill is to establish a college savings
program within the Department of Budget and Finance to enable
families to save for college tuition and other expenses.

     Furthermore, this measure authorizes the Director of Finance
to amend the program to enable participants to obtain federal
income tax benefits under section 529 of the Internal Revenue
Code.

     Your Committee finds that a college savings plan will assist
resident and nonresident students alike in meeting the future
costs of tuition.  Your Committee finds that helping families to
save for college education is not only beneficial to the families
themselves, but one of the best investments that this State can
make in its own people.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
307, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

 
a                                                     HB307 SD1
 
 
                                   STAND. COM. REP. NO. 1421
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     HB307 SD1