STAND. COM. REP. NO. 1005

Honolulu, Hawaii

RE:    H.B. No. 1057

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Higher Education, to which was referred H.B. No. 1057, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE OF HAWAII COLLEGE SAVINGS PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to encourage additional contributions to a college savings account by allowing any person or entity, regardless of whether the person or entity is the account owner, to make contributions to the account after the account is opened.

     Testimony in support of this measure was submitted by the Department of Budget and Finance.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that under current law, only the college savings account owner – usually a parent – is allowed to make contributions into his or her account.  This measure would allow others to contribute directly into an account, and make it much easier for grandparents, other relatives, friends, or employers to make contributions to benefit a particular individual.

Your Committee further finds that allowing these additional contributions would not require any funding from the State in these fiscally challenging times, but would provide an immediate positive impact on the program.

     Your Committee has amended this measure by making the Act effective on July 1, 2009.

     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. 1057, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1057, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

JILL TOKUDA, Chair