STAND. COM. REP. NO. 703

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1465
                                        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 S.B.
No. 1465, S.D. 1, entitled:

     "A BILL FOR AN ACT RELATING TO THE STATE POST-SECONDARY
     EDUCATION COMMISSION,"

begs leave to report as follows:

     The purpose of this bill is to authorize the State Post-
Secondary Education Commission to establish a college tuition
savings program for resident and non-resident students at any
post-secondary educational institution accredited by an
accrediting association recognized by the United States Secretary
of Education.

     This measure also exempts from state taxation the interests
and dividends on the funds in the savings program and clarifies
that the State and educational institutions are exempt from
responsibility to cover any gaps between funds accumulated and
the actual costs of future tuition.

     Your Committee finds that investing in a college tuition
savings program will assist persons in meeting the spiraling
costs of a college education.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your

 
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                                   STAND. COM. REP. NO. 703
                                   Page 2


Committee is in accord with the intent and purpose of S.B. No.
1465, S.D. 1, and recommends that it pass Third Reading.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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