STAND. COM. REP. NO. 267

                                   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 Education and Technology, to which was
referred S.B. No. 1465 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is establish a college tuition
savings program to be administered by the State Post-Secondary
Education Commission for resident and nonresident students at any
accredited post-secondary educational institution.

     Testimony in support of the intent of this measure was
submitted by the University of Hawaii.  Testimony in opposition
to this measure was submitted by the Department of Taxation.

     Tuition savings plans involve the payment of money to an
entity that invests the money and achieves a rate of return that
out-performs tuition increases and covers costs associated with
investment management.  These plans do not place limits or
restrictions on the amount of tuition and required fees charged
by higher education institutions.

     Your Committee finds that the State should indeed establish
mechanisms that help all Hawaii's families provide for the cost
of their children's education.  This measure provides one such
mechanism.


 
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                                   STAND. COM. REP. NO. 267
                                   Page 2


     Your Committee has made technical, nonsubstantive amendments
to this measure to reflect preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1465, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1465,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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